Frankfurt (AFP)

German automaker Daimler will be ready to go all-electric before 2030 and, to achieve this, will invest 40 billion euros over the decade, he said Thursday.

The manufacturer of Mercedes-Benz plans to open eight factories around the world for battery cells, the key component of electric models, a sign of the accelerated abandonment by the automotive sector of traditional fuels against a backdrop of increasingly stringent environmental standards.

"We will be ready if the markets turn entirely to electric by the end of the decade," notes Ola Källenius, boss of Daimler, presenting a "fundamental reallocation of capital" as a historic split in the group.

By the end of the year, Daimler intends to IPO its heavy-vehicle business Daimler Trucks, which has become independent.

For the automobile branch Mercedes-Benz Cars and Vans, Daimler will in total devote at least 40 billion in less than ten years to electrification.

Investments in thermal and hybrid technologies will drop by 80% between 2019 and 2026.

Mercedes now expects a share of hybrid and electric cars in global sales of at least 50% in 2025, down from 25% previously.

"China is to play a key role in the accelerated electrification strategy," said the manufacturer of the luxury S-Class, whose electric model EQS was unveiled in April.

The key to this strategy: from 2025, Mercedes will only launch "architectures" - the technical basis of a vehicle that accommodates engine, wheel and chassis - 100% electric.

It will also acquire the British startup YASA, specializing in electric motors.

Daimler has not specified either the deadline or the location for its eight "giga-factories" of battery cells that the group intends to install around the world to cover its needs.

Despite electrification, Daimler intends to maintain the level of its margins, adds the group.

© 2021 AFP

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