Daimler Is Considering An Early End Of ICE Vehicle Production

Daimler has stated before that it wants to achieve a CO2-free fleet by 2039, but the company is reportedly looking at ending ICE (internal combustion engine) vehicle production early. CEO Ola Källenius dropped a hint in an interview that the interim targets for electric vehicles could be revised upwards. The German publication Handelsblatt pointed out that Källenius is running through scenarios with the board of directors. In these scenarios, Mercedes-Benz could offer 100% electric cars as early as five or eight years earlier.

Notably, GM recently set a target of 100% electric vehicle sales by 2035 and Ford set a target of 100% electric passenger vehicle sales in Europe by 2030.

If Daimler does move up its electrification plans, the report noted that the “symbol of this accelerated change” could be the next generation of the S-Class, planned to be launched in 2028. “If Källenius is serious about his accelerated changeover, it would probably only be available as an electric vehicle,” the Handelsblatt noted.

In the interview, Källenius hinted that the previous intermediate stages for sales of pure EVs and plugin hybrids could be revised upwards as well (naturally). The current plans are for 25% of sales to be plugin vehicle sales by 2025 and 50% by 2030. Källenius does expect to achieve the same high margins with EVs as it gets from ICE vehicles by 2030. Electrive noted that once the cost parity had been achieved, there wouldn’t be a reason for the company to stick with ICE vehicles.

We’ll see. What are your thoughts on Daimler’s electrification plans? Will it match GM or Ford?



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