Lean on Me: Incoming Daimler CEO Aims to Tap Alliances, Get Models Out the Door Faster, Cheaper

Matt Posky
by Matt Posky

Planned successor for Daimler CEO Dieter Zetsche, Ola Källenius, says Mercedes-Benz will significantly reduce development costs under his supervision by accelerating alliances throughout the industry. This, of course, has everything to do with electric cars, as that’s all auto executives seem capable of discussing anymore.

“The cost structure of the electric car is above that of the combustion engine car. We are working hard on lowering this,” Källenius said on Monday. “We need to work on the cost of vehicle architectures. From where we are now, we need to make a significant step by 2025 in terms of cost.”

According to Reuters, the future CEO claims development costs will have to come down substantially by 2025 and be largely dependent on successfully negotiating industrial alliances. “The intensity of cooperations will increase. The alliances will be not only with other carmakers and suppliers, but also with technology companies,” he explained.

From Reuters:

Daimler is pushing to develop a raft of electric and hybrid cars as a way to reach its aim of having a car fleet which is carbon neutral by 2039.

Mercedes-Benz wants to have a passenger car fleet which is carbon neutral in 20 years, the carmaker said on Monday.

To achieve this goal, Daimler wants at least half of its new car sales to be electric and hybrid cars by 2030 and wants to have carbon neutral production process by 2022, the carmaker said.

However, as much faith as the company has in its electrified EQ sub-brand, it would be silly to presume these alliances wouldn’t spill over into the realm of internal combustion. As stated, plenty of Mercedes-Benz vehicles will incorporate some form of hybridization, and the automaker has already partnered with Renault, Nissan, and BMW to share the financial sting of delivering all manner of vehicles to the masses.

Reuters recently claimed that Daimler’s Chinese joint venture partner BAIC is seeking to buy a stake in the company of between 4 and 5 percent. “We welcome investors who see the future of mobility in Daimler and are invested for the long run,” Källenius said of the prospective deal.

Unfortunately, these arrangements have not been subject to universal praise. Mercedes’ new pickup, the X-Class, has been criticized for being little more than a well-disguised Nissan Navara. While that’s technically what it is, Benz made no small effort in ensuring it offered a more refined product that was deserving of its badge. Still, concerns are mounting that all of this sharing and co-development could dilute Mercedes’ image as a premium automaker.

None of that appears to be an issue for Källenius, however. He’s decidedly focused on electrification and plans to chase that dragon with a cadre of rival automakers at his side. He’s scheduled to officially replace Dr. Z on May 22nd.

[Images: Daimler AG]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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