Daimler supervisory board signs off $68B investment plan for Mercedes

Europe

BERLIN — Daimler’s supervisory board signed off an investment plan worth over 60 billion euros ($67.88 billion) for the Mercedes-Benz passenger car and vans businesses between 2022 and 2026.

The company aims to be at the forefront of electric vehicle production and software, Daimler said in a statement on Thursday.

Existing plans announced in October of 2020 to reduce capital expenditure by 20 percent from 2019 levels by 2025 remain in place, the statement said, with new spending focused on electrification, digitalization and autonomous driving.

Increasing net revenue per vehicle and implementing a direct sales models formed part of this strategy, it said, adding that advances in battery technology and production should help reduce the cost of battery-electric vehicles over time, Daimler said.

“Our goal is technological leadership in the automotive luxury segment and in the area of premium vans while remaining committed to our ambitious margin targets,” Daimler CEO Ola Kallenius said in the statement.

The statement was issued a week before the cars and vans division splits off from Daimler truck and buses on Dec. 10.

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