Daimler’s supervisory board has approved Mercedes-Benz’s business plan for 2022 to 2026, approving the strategic plan for the brand to go fully electric.
After the Daimler Truck split, it will “focus on profit and growth opportunities in the passenger car and van business”.
The world’s most valued luxury brand will strive to become a leader in electric drives and automotive software.
The board of directors signed an investment plan of 60 billion euros. Although the company plans to reduce capital spending, research and development spending for product line electrification and digital metrics, including steps towards automated driving, will remain at a high level.
CEO Ola Kaellenius said: “Our aim is to be the technology leader in the luxury automotive segment and in the premium vans segment while remaining committed to our ambitious margin targets.
Mercedes-Benz is preparing to go all-electric by the end of the decade, where market conditions allow.
The 2022 to 2026 investment plan remains in line with the objective of reducing investment and research and development spending by 20% between 2019 and 2025 and further reducing it beyond.
The key to achieving this is a strict prioritization of future investments – primarily focusing on electric mobility. The company expects the use of standardized battery platforms and scalable vehicle architectures, along with advances in battery technology, to help reduce variable vehicle costs. The proportion of battery costs in a vehicle is expected to decline significantly this decade.