Mercedes-Benzis known as one of the leading names in luxury automobiles. In the coming years, though, the conversation about Mercedes-Benz might focus on one thing:
electric vehicles. Manufacturers across the globe are introducing electric vehicles (EVs) into their lineups, but Mercedes-Benz is trying something even more ambitious.
NBC News, Mercedes-Benz plans to be all-electric by 2030. Shifting away entirely from gas-powered vehicles so quickly seems like a major task, but Mercedes-Benz is up for the challenge.
Mercedes-Benz's EV strategy
Electric vehicles are considered by many to be the
future of automobiles, and Mercedes-Benz hopes to be at the forefront of this shift to electric. Their plan to reach this milestone by the end of the decade involves a $47 billion investment in EVs.
Batteriesare at the center of Mercedes-Benz's EV strategy, and they plan to build eight battery plants. The exact locations of these plants have not yet been announced, but Mercedes-Benz wants plants located in Europe and the United States. They are also looking for partners to build the plants with.
While the goal is to be fully electric by the end of the decade, the logistics have not been fully figured out yet. There is no hard date in place for when the manufacturer will stop selling gas-powered vehicles.
The European Union is going electric
Manufacturers like Mercedes-Benz are now in a rush to get into the electric vehicle market early. This is partially due to uncertainty regarding laws and regulations about the future of
gas-powered vehicles. EVs are viewed as a means of combating climate change, so some lawmakers are pushing for them to become the dominant mode of transportation.
The European Union recently proposed a law that would promote EV sales and shift away from gas. This would serve as a ban on the sale of gas-powered vehicles beginning in 2035.
For Mercedes-Benz, this serves as an ultimatum. To keep their place in the automotive industry, they need to be ahead of the curve in producing EVs.
Major manufacturers have all-electric goals
With the changing automotive landscape, Mercedes-Benz is not the only one looking to be at the forefront of electric vehicles.
European rivals to Mercedes-Benz have similar timetables to the end of the decade goal.
Volvohopes to be all-electric by 2030. Meanwhile, German car staple Volkswagen announced their plan to also invest in battery production facilities.
Manufacturers outside of Europe have similar goals. In anticipation of proposals like the EU gas-powered sales ban, General Motors announced its goals of being all-electric by 2035. In China, a newcomer to the car market called
Niois making a name for themselves for their electric vehicles.
Mercedes-Benz's goal of shifting away from gas-powered vehicles by the end of the decade is an ambitious one. For a name so heavily associated with their gas-powered cars, the idea of them becoming fully electric so quickly seems almost impossible. Because of upcoming regulations and pressure from competitors, though, this might be necessary if they want to remain a major force in the industry.
The shift from gas to electric may come quicker than previously expected. While changes in the automotive market may be difficult to predict and keep up with, your car insurance coverage doesn't have to be so complicated.
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