Shulou(Shulou.com)11/24 Report--

Mercedes-Benz (formerly Daimler) Group CEO Kang Songlin said on Sunday that the variable cost of producing electric vehicles will remain higher than internal combustion engine models for the foreseeable future, saying this will continue to intensify already fierce competition.

Ola Kaellenius 'comments came as Mercedes-Benz revealed more details about its latest electric car architecture, the CLA compact electric sedan. The electric car will be launched in 2024 with the goal of increasing range by 30 to 35 percent.

"The variable cost of electric vehicles is higher," Kang Songlin said at the IAA auto show in Munich. This situation will continue for the foreseeable future. He added that higher costs cannot be passed on to consumers in a reciprocal manner.

Variable costs that affect EV production prices include battery raw materials, software development and electricity prices.

That's why the group is working to optimise fixed costs and resource allocation in order to achieve the same profitability as combustion engine cars, mr kang says.

The goal of the new CLA electric car is to consume 12 kilowatt hours per 100 kilometers and have a range of 750 kilometers. Mercedes currently offers the EQA 350 compact SUV, which consumes 17 to 18 kilowatt hours per 100 kilometers.

Asked how much the new CLA models cost less than their predecessors, Mercedes-Benz chief technology officer Markus Schaefer said they were on track to reduce costs by 50 percent.

The batteries for CLA models will be produced by major suppliers Ningde Times and ACC, in which Mercedes owns a third of the shares.

Schaefer revealed that CLA models will go into production next year and be on the market from 2025, aiming to significantly reduce the complex challenges encountered in model development in recent years.

Mercedes-Benz will offer hybrid and all-electric models, but it has no diesel plans.

Related Reading:

"Mercedes-Benz CLA Concept Car Official Preview Appears: Based on New MMA Architecture, 750 km Range"

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