Mercedes: 60 billion euros to accelerate in the electric sector

Daimler 's supervisory board , during today's meeting, approved the Mercedes business plan covering the period 2022-2026, kicking off the strategic plan to become fully electric.   Following the spin-off of Daimler Truck, the German automaker will now constantly focus on profit and growth opportunities in the passenger car and van sector. For the transformation into a software-driven and emission-free future, the Supervisory Board has signed an investment plan worth over € 60 billion to be made between 2022 and 2026.  While the company plans to cut investments, R&D expenditures for range electrification and digitization measures, including those related to autonomous driving, will remain unchanged.  Ola Kallenius , Chief Executive Officer of Daimler AG and Mercedes-Benz AG, said: “ Our goal is technology leadership in the luxury automotive segment and premium van area, while remaining true to our ambitious margin goals. Mercedes-Benz has what it takes: a clear strategy, a highly qualified and motivated team, as well as strong support from the entire supervisory board. With the most desirable cars we want to grow profitably and create sustainable value for our customers, employees, shareholders and partners ”.  The company is still aiming to meet the previously announced margin targets The approval by the supervisory board of Mercedes' business plan strengthens the company's commitment to achieve, in a sustainable way, the margin targets communicated in October 2020 and reaffirmed in July 2021, even in a period in which the accelerating towards an all-electric era.  An important lever to achieve this is to increase net revenues per vehicle. Additionally, a gradual shift to a direct selling model is being sought, including price control.  Increased revenue from digital services will further support the results. The investment plan for the period 2021-2026 remains in line with the goal of reducing capital and R&D expenditures by more than 20% between 2019 and 2025 and further reducing them beyond that date.

Daimler 's supervisory board , during today's meeting, approved the Mercedes business plan covering the period 2022-2026, kicking off the strategic plan to become fully electric.

Following the spin-off of Daimler Truck, the German automaker will now constantly focus on profit and growth opportunities in the passenger car and van sector. For the transformation into a software-driven and emission-free future, the Supervisory Board has signed an investment plan worth over € 60 billion to be made between 2022 and 2026.

While the company plans to cut investments, R&D expenditures for range electrification and digitization measures, including those related to autonomous driving, will remain unchanged.

Ola Kallenius , Chief Executive Officer of Daimler AG and Mercedes-Benz AG, said: “ Our goal is technology leadership in the luxury automotive segment and premium van area, while remaining true to our ambitious margin goals. Mercedes-Benz has what it takes: a clear strategy, a highly qualified and motivated team, as well as strong support from the entire supervisory board. With the most desirable cars we want to grow profitably and create sustainable value for our customers, employees, shareholders and partners ”.

The company is still aiming to meet the previously announced margin targets

The approval by the supervisory board of Mercedes' business plan strengthens the company's commitment to achieve, in a sustainable way, the margin targets communicated in October 2020 and reaffirmed in July 2021, even in a period in which the accelerating towards an all-electric era.

An important lever to achieve this is to increase net revenues per vehicle. Additionally, a gradual shift to a direct selling model is being sought, including price control.

Increased revenue from digital services will further support the results. The investment plan for the period 2021-2026 remains in line with the goal of reducing capital and R&D expenditures by more than 20% between 2019 and 2025 and further reducing them beyond that date.

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