Daimler announces $ 85 billion investment, mainly to accelerate electrification

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Daimler, the parent company of Mercedes-Benz, has announced a new investment plan worth 70 billion euros (85 billion USD) for the years 2021 to 2025.

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

After what the Daimler works council called “controversial discussions,” they reached an agreement with the supervisory board of Daimler AG and have now approved a new budget for 2021 to 2025.

During the period, Daimler will spend “more than 70 billion euros on research and development and fixed assets” and they say that the objective of the investment will be “electrification and digitization”.

They weren’t as clear as Audi who also approved their budget yesterday and made it clear they were going to spend 12 billion euros on the marketing of 30 electric vehicles, including 20 all-electric vehicles.

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

Additionally, they said investments would be made to further electrify Daimler’s truck division:

“In addition, as part of this business plan, Daimler Trucks will also be able to accelerate its emission-free transport projects.”

The company had already made progress with electric trucks, such as the eCascadia, a Class 8 electric semi-trailer, and the eActros, a short-range urban electric truck.

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

Daimler CEO Ola Källenius commented on the new budget approved today:

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

Mercedes-Benz has been slower than some of its peers to bring fully electric vehicles to market.

He also disappointed when he 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 EQS and EQA, two new electric vehicles that will hit the market over the next year.

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

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