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Daimler announces $85 billion investment, mostly toward accelerating electrification

Daimler, Mercedes-Benz’s parent company, announced a new investment plan worth €70 billion ($85 billion USD) for the years 2021 through 2025.

The automaker says that most of the investment will be used “to accelerate the transformation towards electrification and digitization.”

After what Daimler’s work council described as “controversial discussions”, they came to an agreement with the Supervisory Board of Daimler AG and they have now approved a new budget for 2021 through 2025.

During the period, Daimler will spend “more than €70 billion in research and development and in property, plant and equipment” and they claim that the focus of the investment is going to be “electrification and digitization.”

They weren’t as clear as Audi who also approved their budget yesterday and specified that they are going to spend €12 billion on bringing 30 electric vehicles to market, including 20 all-electric vehicles.

Nonetheless, Daimler said that most of the money will go to Mercedes-Benz’s electrification plans.

Also, they said that investments will be made to further electrify Daimler’s truck division:

“Furthermore, within this business plan Daimler Trucks will also be able to accelerate its plans towards emission free transportation.”

The company already had made some progress with electric trucks, like the eCascadia, an electric class 8 semi truck, and the eActros, a short-range urban electric truck.

More recently, it also unveiled the eActros LongHaul electric truck.

Ola Källenius, the head of Daimler, commented on the new budget approved today:

“With the Supervisory Board’s confidence in our strategic course, we will be able to invest more than €70 billion over the next five years. We want to push ahead faster in particular with electrification and digitization. In addition, we have agreed with the Works Council on a transformation fund. With this agreement, we are fulfilling our shared responsibility to actively shape the transformation of our company. Improving our profitability and targeted investment in Daimler’s future go hand in hand.”

Mercedes-Benz has been slower than some of its peers in bringing all-electric vehicles to market.

It also disappointed when it delayed the launch of the EQC electric SUV in North America.

But the German automaker is looking to redeem itself with the upcoming launch of the EQS and EQA, two new electric vehicles that are going to hit the market over the next year.

Mercedes-Benz also recently announced the EQE and EQS SUV.

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