In a recent announcement at the IAA car show in Munich, Ola Kaellenius, the CEO of Mercedes-Benz, shared his insights into the electric vehicle (EV) industry’s cost challenges.
Kaellenius stated that the variable costs associated with producing electric vehicles would remain higher than those of combustion engine models for the foreseeable future.
This revelation comes as Mercedes-Benz unveils details about its latest EV architecture, the CLA compact electric sedan, set to launch next year with a targeted 30% to 35% increase in driving range.
Kaellenius emphasized that electric car production’s variable costs, which include raw materials for batteries, software development, and electricity prices, would continue to pose challenges. These cost discrepancies cannot be directly passed on to customers without affecting market competitiveness.
To address this issue, Mercedes-Benz is actively working on optimizing fixed costs and resource allocation to achieve profitability levels comparable to combustion engines in the EV segment.
The upcoming CLA electric sedan is designed with a power usage target of 12 kilowatt-hours per 100 kilometers, offering an impressive 750 kilometers of driving range. This efficiency compares favorably to the 17 to 18 kWh per 100 km seen in Mercedes-Benz’s current EQA 350 compact SUV model.
Mercedes-Benz’s Chief Technology Officer, Markus Schaefer, discussed efforts to reduce battery costs significantly for the new CLA class. Key battery suppliers, including CATL and ACC (in which Mercedes holds a third of the ownership), will produce batteries for this model.
The CLA is set to enter production next year and will be available in the market from 2025. This strategic move aims to simplify model development processes that have become increasingly complex in recent years.
Mercedes-Benz’s future lineup will include hybrid and all-electric versions, with no plans for diesel models. This shift reflects the automotive industry’s evolving landscape as it navigates the challenges and opportunities posed by electric mobility.
