Investment plan

Daimler supervisory board approves $ 68 billion investment plan for Mercedes

BERLIN – Daimler’s supervisory board has approved an investment plan of more than 60 billion euros ($ 67.88 billion) for the Mercedes-Benz passenger car and van business between 2022 and 2026.

The company aims to be at the forefront of electric vehicle production and software, Daimler said in a declaration Thursday.

Existing plans announced in October 2020 to reduce capital spending by 20% from 2019 levels by 2025 remain in place, the statement said, with new spending focused on electrification, digitization and autonomous driving .

Increasing net revenue per vehicle and implementing direct sales models was part of this strategy, he said, adding that advances in battery technology and production should help reduce the cost. battery-electric vehicles over time, Daimler said.

“Our goal is to be the technology leader in the luxury auto segment and in the premium van area while remaining committed to our ambitious margin targets,” Daimler CEO Ola Kallenius said in the statement.

Daimler did not give a breakdown of its expenses. The plan includes part of the 40 billion euros already committed to electrify the Mercedes product line during this decade, as part of a commitment to go electric only where possible.

Mercedes plans to launch three new all-electric vehicle platforms in 2025 and set up eight battery factories with partners, the company said in a strategy update in July.

Mercedes is betting that the luxury segment will turn to battery cars faster than the mass market due to the greater purchasing power of customers.