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On July 22nd, Stuttgart/Beijing - Mercedes Benz will be fully prepared to achieve comprehensive pure electric vehicles by 2030 in the market where conditions permit. In the transformation from "electric first" to "fully electric", Mercedes Benz, a leading luxury car company in the world, is accelerating towards a future of zero emissions and software driven.

By 2022, Mercedes Benz will supply pure electric models to all sub markets it serves; Starting from 2025, all newly announced vehicle architectures will be on a pure electric platform, and each model will provide customers with a pure electric version to choose from. Mercedes Benz aims to accelerate its electric transformation while ensuring profitability goals.

The electrification transformation is accelerating, especially in the luxury car segment where Mercedes Benz is located. The industry turning point is approaching, and as the global market achieves a pure electric transformation by 2030, we will also be prepared. "said Olak? Llenius, Chairman of the Board of Directors of Daimler AG and Mercedes Benz AG, This move signifies a profound financial reset. By harnessing this accelerated transformation and maintaining our profitability goals, we will continue the long-term success of Mercedes Benz. Thanks to our highly skilled and ambitious team, I firmly believe that we will achieve success in this exciting new era

To promote this transformation, Mercedes Benz is announcing a series of comprehensive plans, including significant acceleration related research and development work. From 2022 to 2030, the investment in pure electric vehicle models will exceed 40 billion euros. The plan to accelerate the promotion of the electric product lineup may advance the turning point of electric vehicle applications.

Technical Plan

Model Architecture: In 2025, Mercedes Benz will announce three pure electric vehicle architecture platforms:

The MB.EA pure electric architecture platform will cover all medium and large passenger vehicle products, creating a scalable modular system that will become the overall framework of future electric products;

The AMG.EA pure electric architecture platform will become a dedicated platform for performance electric vehicles, meeting the needs of Mercedes AMG customers who pursue high technology and performance;

The VAN.EA pure electric architecture platform ushers in the era of pure electric MPVs and light commercial vehicles, contributing to the future of zero emission transportation and zero emission cities.

Vertical integration: After restructuring the powertrain related business, Mercedes Benz will integrate planning, research and development, procurement, and production into one business department, deepen the vertical integration of production manufacturing and research and development work, and internally develop electric drive technology. This measure includes the acquisition of British electric company YASA. Through this acquisition, Mercedes Benz will acquire unique axial flux motor technology and technical expertise in developing the next generation of high-performance motors. In the strategy of focusing on efficiency and overall system costs, including inverters and software, self-developed motors are an important component, such as eATS2.0 motors.

China is not only the world's largest new energy vehicle market, but also has numerous companies and suppliers focused on electric vehicle components and software technology, which will play a crucial role in Mercedes Benz's accelerated promotion of electrification strategy.

Battery method: In the future, Mercedes Benz's battery production demand will exceed 200 gigawatt hours. In addition to the production network consisting of 9 battery factories that have already been put into operation or planned, Mercedes Benz plans to build 8 more battery cell factories with global partners. The next generation of highly standardized batteries will be suitable for over 90% of Mercedes Benz passenger cars and light business vehicles, and with its flexibility, provide personalized solutions for all customers.

In terms of battery cell manufacturing, Mercedes Benz plans to collaborate with new European partners to develop and efficiently produce battery cells and modules, which will continue Europe's important position in the automotive industry in the electric era. The production of battery cells will bring new opportunities to Mercedes Benz, driving the transformation of its existing powertrain production network.

By continuously integrating the most advanced battery cell technology in the field of passenger cars and light commercial vehicles, Mercedes Benz aims to enhance the range performance of its vehicle throughout its entire lifecycle. In the next generation of power lithium batteries, Mercedes Benz will collaborate with battery material company SilaNano and other partners to use silicon carbon composite materials in the anode to improve energy density. This collaboration will break through the existing range performance and further shorten charging time. In terms of solid-state batteries, Mercedes Benz is exploring the possibility of developing batteries with higher energy density and higher safety with its partners.

Charging network: At the same time, Mercedes Benz is focusing on creating a new standard in the charging field. Through the Plug&Charge plug and play service, customers do not need additional verification and payment operations. They start charging when plugged in, and simply unplug the plug after charging. The Plug&Charge service will be launched with the launch of this year's all-new EQS pure electric sedan.

At present, the Mercedes Benz charging network has become one of the world's largest charging networks, covering over 530000 AC and DC charging stations worldwide. In addition, Mercedes Benz is collaborating with Shell to expand its charging network. By 2025, the network will have over 30000 charging stations in Europe, China, and North America, including over 10000 high-power charging stations worldwide. Meanwhile, Mercedes Benz plans to launch multiple high-end charging stations in Europe, providing customized charging experiences with first-class facilities.

VISIONEQXX model: Mercedes Benz is currently conducting research and development work on VISIONEQXX, which has an actual range of over 1000 kilometers and strives to maintain kilowatt hour power consumption in single digits (with a range of over 6 miles per kilowatt hour). At present, a cross disciplinary team, including experts from Mercedes Benz F1 High Performance Power Systems Co., Ltd. (HPP), is rapidly advancing the achievement of this project vision. In 2022, the VISIONEQXX model will make its global debut. The technical achievements from VISIONEQXX may be applied to the new electric architecture platform after adaptation.

Production plan

At present, Mercedes Benz is upgrading its global production network to fully prepare for future pure electric vehicle production. The pace of increasing production of new car models will be flexibly planned according to market demand. Thanks to early investment in flexible production and the leading MO360 digital production system, Mercedes Benz now has the ability to mass produce pure electric vehicle models. Next year, a total of 8 Mercedes Benz electric vehicle models will be produced in 7 factories on 3 continents. By 2022, all passenger cars and battery plants operated by Mercedes Benz AG will be carbon neutrality.

To improve production efficiency, Mercedes Benz is partnering with the German leader in innovative battery production and automation systems, GROB, to jointly increase battery production and related technologies. The collaboration will focus on the assembly of battery modules and battery packs.

In addition, Mercedes Benz plans to establish a new power lithium battery recycling plant in Kupenheim, Germany, to develop recycling technology and ensure future recycling capacity. The factory is expected to start operation in 2023, depending on the outcome of active communication with relevant departments.

Talent Plan

For Mercedes Benz, the transformation from internal combustion engines to electric vehicles is feasible and has officially started. Through consultation and progress with employee representatives, Mercedes Benz will continue to promote transformation at the human resources level, including extensive retraining programs, early retirement, and buyouts. The relevant technical colleges will provide future oriented skill training for employees. In 2020 alone, approximately 20000 employees in Germany received training in electric transportation. In order to promote the development of the MB.OS operating system, 3000 new software engineer positions will be added globally.

Financial Plan

At present, Mercedes Benz is still committed to achieving the profit target proposed in the autumn of 2020. Last year's goal was based on the assumption that by 2025, the sales of plug-in hybrid and pure electric vehicles will reach 25%; The current latest plan is based on the assumption that "by 2025, this proportion will reach 50% and new car sales will have basically transitioned to pure electric vehicle models by 2030". One important pivot is to increase the proportion of high-end electric vehicle models such as Maybach and AMG to increase the net revenue of individual vehicles, and to more directly grasp pricing strategies and sales activities. The increase in revenue generated by digital services will also contribute to this goal. At the same time, Mercedes Benz is focusing on further reducing variable and fixed expenses, and reducing the proportion of capital expenditure in investment. Breakthroughs in the field of overall battery platform, scalable electric vehicle architecture, and battery technology will help improve standardization and reduce cost levels. The proportion of battery costs for the entire vehicle is expected to significantly decrease. In 2026, investment in internal combustion engines and plug-in hybrid technology will decrease by 80% compared to 2019. Based on this, Mercedes Benz expects the company's profit margin in the pure electric era to be similar to that of the internal combustion engine era.

Our important task in this transformation is to impress customers with attractive products and transform with us. For Mercedes Benz, the pioneering pure electric flagship model EQS is just the beginning of this new era, "said Kang Linsong.

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