Berlin, Europe Brief News – The German Automaker’s Chief Executive said that Mercedes Benz will keep spending on future electric vehicles even as it is currently facing supply chain cost pressure due to the Russian invasion of Ukraine.
Ola Kaellenius was speaking during the company’s opening of its first US electric vehicle battery factory and she also confirmed that the company’s 2020 financial outlook remained in place despite the conflict.
She said, “ we always protect the investment into future technology and future products. This is the seed which we will harvest. Not even in the Covid year of 2020 did we cut back on R&D for crucial projects”.
Mercedez is working with suppliers in Ukraine for its new EV projects but the operations have halted in Ukraine due to Russia’s invasion. The company also mentioned that it will be a bit too early to call what the wider ramification will be.
Russia’s invasion Shaping market trends
Growing gasoline prices since Russia’s invasion of Ukraine has amplified the changes for established automakers that still rely on fossil fuel-powered vehicles for profits.
On the other hand, surging prices for materials like nickel and heavily minor ion Russia have also hurt the industry.
Kaellenius is pushing the shift by Mercedez from a combustion technology company to a firm whose products do not emit carbon and rely on software and computing power.
Mercedez and other established automakers are following the footsteps of Tesla in EV sales and in developing computer and software systems to compete with US firms for new features and updates.
Daimler Truck left Mercedez company back in December and Kaellenius said that he saw no reason for Mercedes to further separate EVs from combustion engine operation.
The investors are now pushing established automakers to manufacture pure Electric Vehicle units as they start to become a necessary thing for consumers.
Kaellenius said, “ there is only one Mercedez-Benz and that one company sooner than many people think will be an all-electric company”.
Mercedes also made a huge announcement that Japanese battery maker Envision will supply battery modules for Mercedez EVs. This is a significant move to make Mercedez EV even bigger in value.
Mercedez is also planning to produce EV batteries in Europe, North America and Asia. The company is aiming to have eight-cell factories at one time to produce 200-gigawatt hours a year by the end of the decade.
