Mercedes-Benz announces carbon-neutral plan

By 2030, half of Mercedes-Benz passenger car sales will be plug-in hybrids or all-electric. And by 2039, the company will have a carbon-neutral passenger car fleet.

They are two key take outs of Ambition2039, the company’s “path to sustainable mobility” announced this week in Germany.

The plan was delivered Monday (May 13) by Daimler AG chief executive-in-waiting, Ola Kallenius.

Kallenius, who on May 22 takes over from long-time Daimler and Mercedes-Benz figurehead, Dieter Zetsche, delivered the plan in Mercedes’ home town Stuttgart before heading to Norwegian launch of the company’s first EQ model, the midsized EQC 400 SUV.

Ambition2039 was described by Kallenius as a “sustainable business strategy”. The plan includes plans for CO2 neutral production across its European plants by 2022 and “agreement on concrete CO2 measures with suppliers and joint design of infrastructure”.

“We’re not just talking tank to wheel but cradle to grave,” Kallenius told carsales in an Australian media roundtable in Oslo, just hours after the Stuttgart announcement.

Under the plan, Mercedes-Benz will continue the electrification of its range of conventionally-powered vehicles. Kallenius confirmed Mercedes-Benz’s commitment to have electrification of all of its models — via 48-volt hybrid as a minimum — by 2025.

But Ambition2039 will prompt manifest change. According to Kallenius: “The shift will require a fundamental transformation of our company within less than three [automotive] product cycles.”

“That’s not much time when you consider that fossil fuels have dominated our business since the invention of the car… But as a company founded by engineers, we believe technology can also help to engineer a better future,” he stated.

Core to the target is a new generation of “xEVs” asserted Kallenius. The term includes battery (BEV), plug-in hybrid (PHEV) and fuel-cell (FCEV), he explained.

To this end, Kallenius says Mercedes is not putting all its eggs in one basket. Indeed, to achieve the goal, the company will need to remain technology-neutral, he says.

“Our current focus is on battery-electric mobility, but there’s also room and need to continue to work on other solutions; for example, fuel cell or eFuels [synthetic fuels].

“Today, no-one knows for sure which drivetrain mix will best serve our customers’ needs 20 years from now. That’s why we encourage policy makers to pave the way for tech neutrality. Let’s fix the target, but not the means to achieve it,” he opined.

That said, electric models will be half of Benz sales by 2030, he says.

“That includes all-electric cars and plug-in hybrids.

“We will continue to offer our customers performance and luxury from Mercedes. At the same time, we want to significantly reduce CO2 emissions per vehicle.

“Our R&D team is working together with established partners and startups alike to bring EV performance up and costs down,” he stated.

The 2039 strategy will extend beyond products, however. Kallenius says improving the CO2 performance of its supply chain partners is important. Mercedes-Benz will also create access to green electricity for its consumers to power their vehicles.

The company’s joint-venture fast-charging network IONITY is already committed to use renewable power sources “where ever possible”, he told carsales.

The development of mobility services and electrification of vehicles beyond cars will also play a part in the strategy.

“Our approach also includes the continuous development of our mobility services, to spread the use of electric models.

“In addition to cars, we’re also electrifying our vans, trucks and buses. And the modular development enables the rapid transfer of technology between our divisions,” Kallenius promised.