CEO of Daimler Kang LinSong: Mercedes Benz electric vehicles will not cut prices and demand volume, even if carbon emissions are "challenges" in two years

Posted 2022-11-24 00:00:00 +0000 UTC

Ola kaellenius, Daimler's chief executive, said meeting Europe's stricter carbon targets for 2020 and 2021 "will be a challenge," Reuters reported. This may mean that Daimler will face huge fines, so more electric vehicles must be launched and sold. But he said he would not lower the price of the Mercedes electric car it makes. "We need to act in an economically sound way," he said. "It's very important to achieve the right price on Mercedes Benz electric vehicles, rather than undermining the pricing level." Daimler is under increasing pressure as consumers tend to buy larger, high emission sports utility vehicles. The EU will impose penalties on automakers who fail to reduce carbon dioxide pollution levels by 2020 and beyond 2021. From January 1, 2020, the EU stipulated that new cars should not emit more than 95 grams of carbon dioxide per kilometer. Exceeding this target, which is calculated at a fine of 95 euros per gram per vehicle, will prompt automakers to speed up the electrification of their product lines by providing more powered vehicles and fully powered vehicles. PA consulting forecasts that Daimler will emit 130.4 grams of carbon dioxide per kilometer in 2018, and that it needs to reach the target of 103.1 grams per kilometer by 2021. If Daimler fails to cut its carbon dioxide emissions, it faces a fine of 997 million euros ($1.1 billion). Although it will be difficult to meet carbon limits, Mercedes Benz will not miss the opportunity to make a high profit in the new generation of electric vehicle market, said conlinson. He is referring to the launch of a series of electric vehicles by Mercedes Benz. But mass production of electric vehicles is not easy. At the end of last month, German "manager" magazine reported that Mercedes Benz had cut the production target of EQC from 60000 to 30000 vehicles due to LG Chemical's insufficient battery supply. The report also said that in 2019 Daimler had hoped to sell 25000 Mercedes Benz eqcs, but for the same reason, only about 7000 were produced. Daimler denied the report, saying the company's 2020 production plan for Mercedes Benz EQC pure electric vehicles has not been revised and plans to produce about 50000 units a year. Mercedes Benz EQC is the first model of Daimler, and it is also the first model after its electrification, which is of great significance to Daimler aiming at the transformation of electrification. But the launch of EQC has been hampered by mass production problems, including Daimler's recall of part of the new Mercedes Benz EQC in October last year after discovering possible defects in differential bolts. In addition, Mercedes Benz's profits have been eroded as it invests heavily in the automotive sector. On Tuesday, Daimler reported its biggest annual profit drop in a decade, while net profit plummeted 64% to 2.7 billion euros from 7.6 billion euros in the same period last year. The EBIT of Mercedes Benz passenger cars decreased by 53% to 3.359 billion euros compared with 7.216 billion euros last year, and the sales profit margin decreased to 3.6% compared with 7.8% last year. As Daimler is launching pure electric and hybrid vehicles, the Mercedes Benz passenger car business will face a difficult few years, he warned. "We will restore the company's financial position and take the necessary measures to get it back on track, but it will take some time on some issues without any expediency." Cornisson must ensure the recovery of Daimler's performance, especially in an environment where the automotive industry is undergoing a wide range of changes, including stricter carbon emission regulations and costly electric transformation. Mercedes Benz is preparing to enter the pure electric and hybrid vehicle market. By 2022, Mercedes Benz will launch more than 20 models, including class a vehicles, electric vans and electric SUV EQA. Mercedes Benz expects sales of its electric cars to jump to 9% from the current 2%. Mercedes Benz also hopes that the scale of electric vehicles (including pure electric vehicles and plug-in hybrid vehicles) will account for more than 50% of the company's total sales in 2030. It is estimated that by 2025, more than 40% of its models in Europe will be pure electric vehicles or hybrid vehicles. In addition, he said, Mercedes Benz is also developing its own car software operating system, which requires a large amount of investment and can take up to four years to put into production.

Copyright © 2020. TUTESL All rights reserved.