Daimler CEO Says Plug-In Electric Car Plans Will Be Accelerated

AUG 18 2016 BY ERIC LOVEDAY 18

Mercedes-Benz - Long Range BEV

Mercedes-Benz – Long Range BEV

Daimler Chief Executive Officer Dieter Zetsche says that Mercedes-Benz will accelerate its electric car plans. He made this announcement during a conference call with analysts a couple of weeks ago. Quoting Zetsche:

“We are adjusting our planning in this field.”

“It is very important to get the right timing. As a tendency, and as a trend, we have become more bullish in that regard.”

No specific details were released, but Zetsche did say that Mercedes-Benz will make some official announcements in regard to its electric car plans at the upcoming Paris Motor Show this October, including a 500 km/311 mile new EV/utility vehicle offering.

Reuters adds the following:

“Daimler reiterated it will increase spending in research and development, which it expects to be “significantly above” last year’s 6.6 billion euros, which was already a step up from 5.7 billion invested in 2014.”

Much of that additional spending will be in electric car-related fields.

The upcoming SUV in Paris is one of several long-range BEVs planned by M-B.

Source: Reuters

Categories: Daimler, Mercedes

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18 Comments on "Daimler CEO Says Plug-In Electric Car Plans Will Be Accelerated"

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How about a larger battery and Fast Charging for the B-Class Electric.

“electric vehicle” does not necessarily mean *battery” electric vehicle.

There was a report a year ago that Daimler intend to do this
http://insideevs.com/mercedes-b-class-ed-set-bump-range-300-miles-report/
Of course, an interesting question is how it’ll compare to the ICE B-Class in terms of interior space… If the design isn’t BEV-optimized, cargo and/or people space will suffer, If it is, how will they fit an ICE drivetrain? Doing to different chassis+body designs sounds unreasonable… The B-Class isn’t a very high-volume car.

R&D: So far, it seems lots of Research not much development! I think the 215 Mile range Modl 3 will be filling General Sales before MB has first sales of their 500 Km range car!

He said it is important to get the timing right. Major automakers spend between 5 and 15 billion dollar on R&D each year. Most of the money has been going to ICE cars, because it makes more sense to improve efficiency of the 99% of the fleet by 5%, rather than improving 1% (BEV cars) by 50%. For example, Tesla Model S is more efficient than a Prius, but if you compare the amount of fuel saved by Prius, it is several order of magnitude higher than Tesla, so that is where Toyota’s R&D budget ($15b per year) has been spent.

Most of the R&D money of the laggard OEMs has been going towards their ICE vehicles because they are unimaginative and desperate to not cannibalize their ICE build and service profits.

But as Tesla innovates EVs and tech that is much better then the laggard OEMs cars and starts to rapidly erode their sales as the Model S has done to MB S class then you see these belated announcements that someday we will compete.

How about the idea that the money goes into ICEs because they still need to pay all of this fancy R&D from something? I get tired to say that, but car manufacturers have pretty low margins and BEVs make no money for now. Tesla is just spending investors money so far filing loss after loss each quarter. Mercedes needs to fund their R&D from running operations if they still want to be around tomorrow.

Is that like from 0 to 60 in 5 years?

My thesis that hope is lost on thwarting the upcoming CARB 2% ZEV mandates, just got more traction from MB.

It’s make, or buy credits. Lots of credits. Now, with VW and the net credit sellers (Nissan, GM & Tesla M3), the others have to decide if they want to look like Phillip Morris, or “put up” before 2018.

It took Tesla drinking their milkshake to get the German automakers to finally make a real move toward plug-ins.

Better late than never I guess.

daimler just had a year of record sales.

Not for S class no comment, those are down 20% as the far superior Tesla Model S continues to destroy MB S class sales.

http://left-lane.com/us-sales-2016-first-half-limousine-segment/

Is that the Teska S which still has Tesla not allowed to break even? Basically a subsidized car that does not cover current operations? I would be careful not to oversell success here (allthough it is a success to make a break into the segment)

you’ve got to be careful with using left-lane.com because their figures are disaggregated for US, europe and china and are not worldwide figures (i’ve made that mistake also). daimler listed their sales figure for last year. total sales volume was a record, with unit growth led by c-class and utility vehicle sales. s-class sales were up about 2% over 2014 but the big bump in benz-o sales occurred with mercedes-benz introduced the w222 benz-o in 2013. 2015 benz-o sales ran at around 107,000/year, which is more than twice the 48,000/year sales volume for the bm 7-series. so the real dynamic is that mercedes-benz is eating bmw’s lunch at the luxury end, and has caught up with bmw at the “entry” level (benz c-class/bm 3-series) with each hitting a 2015 rate of around 500,000/yr.

Yep – when the Model S outsold the S-class in Western Europe, that got the shareholders’ attention, who grilled the top brass at the annual shareholder meeting about whether MB had an answering product.

And, of course, the short answer was “no”. Nothing slated for production that could hold a candle to the Model S.

Obviously, that must change going forward, and that’s basically what they just said in this press release.

let’s be clear, this is not a product announcement, it is a commitment by daimler to development of electric vehicles. the determination of what products to introduce and when to introduce them is a marketing matter.

Can we please have an article on the Battery/Gigafactories backing all of these new electric cars? Is everyone building a gigafactory now? is Samsung and LGChem taking production up by 10x?

I believe it takes auto makers roughly 5 years to design devolop engineer a new car before it reaches production…
So they would need to start a new plant 2 years or so before production…