Mercedes CEO: Flexibility crucial in ICE to EV transition

Mercedes-Benz Cars CEO Ola Källenius recently shared his thoughts on various topics, including electrification, competition from Chinese brands, and autonomous driving. In an interview, Källenius emphasized Mercedes’ commitment to zero-emission mobility and their ambitious decarbonization strategy, Ambition 2039. He stated that Mercedes is investing billions of euros into new generations of electric vehicles (EVs) and new technology.

Källenius acknowledged that the transition to zero-emission mobility is a marathon, not a sprint. He emphasized the need for tactical flexibility in the next decade, as not all markets will develop at the same pace. Mercedes aims to offer both electrified high-tech internal combustion engine (ICE) vehicles and EVs, leveraging the flexibility of their assembly plants.

When asked about the challenge from Chinese EV rivals, Källenius expressed that it is natural for new entrants to enter the market during such a significant transformation. He mentioned that Mercedes has seen similar arrivals in the past, such as the Japanese and Korean brands. Källenius believes that Mercedes’ Concept CLA is hard to beat when considering its overall features and performance.

Källenius highlighted Mercedes’ commitment to safety and craftsmanship. He mentioned that Mercedes has a long-standing safety pedigree and conducts a range of tests that other companies do not. Additionally, he emphasized the attention to detail in design, where even an air vent is seen as a piece of jewelry. Källenius believes that these qualities set Mercedes apart from its competitors.

Regarding e-fuels, Källenius sees battery-electric vehicles (BEVs) as the primary solution for passenger cars. However, he acknowledged the importance of carbon-reduced fuels for industries like aviation and shipping. Källenius mentioned that while carbon-reduced fuels can lower the burden of existing ICE vehicles, the efficiency of an EV is significantly greater than that of e-fuels. He also noted that industrial-scale efforts to remove CO2 from the atmosphere are still in progress.

When it comes to autonomous driving, Källenius highlighted Mercedes’ advanced level-two-plus systems. He mentioned that Mercedes is the first manufacturer to take baby steps into autonomous driving, where the computer is responsible for driving and takes liability. Mercedes has introduced Highway Drive Pilot in Germany and the US, allowing drivers to engage in other activities at lower speeds. Källenius sees this as a starting point and is exploring ways to expand autonomous driving capabilities in more driving situations.

In conclusion, Mercedes-Benz Cars CEO Ola Källenius reiterated the company’s commitment to electrification and its decarbonization strategy. He acknowledged the competition from Chinese brands and emphasized Mercedes’ focus on safety, craftsmanship, and attention to detail. Källenius also discussed the role of e-fuels and highlighted Mercedes’ advancements in autonomous driving. As Mercedes continues its journey towards zero-emission mobility, it aims to offer a blend of high-tech ICE vehicles and EVs while maintaining strategic clarity and technical flexibility.

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