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    HomeTechMercedes boss: EV costs will remain higher for foreseeable future

    Mercedes boss: EV costs will remain higher for foreseeable future

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    MUNICH (Reuters) – The chief executive of Mercedes-Benz, Ola Kaellenius, has stated that the variable costs for producing electric vehicles will remain higher than combustion engine models in the foreseeable future, leading to increased competition. Mercedes-Benz has disclosed further details about its newest electric vehicle architecture, the CLA compact electric sedan, set to launch next year and aimed at achieving a 30% to 35% higher driving range.

    “The variable costs for an electric car are higher. It will remain that way for the foreseeable future,” said Kaellenius during a media briefing at the IAA car show in Munich. He added that the higher costs cannot be passed on to customers on a like-for-like basis. Variable costs affecting the price of EV production include battery raw materials, software development, and electricity prices. In light of this, Mercedes-Benz is seeking to optimize fixed costs and resource allocation to achieve the same profitability with electric cars as with combustion-engine vehicles.

    The new CLA has set a target power use of 12 kilowatt hours per 100 kilometers, offering a driving range of 750 kilometers. This is an improvement compared to the EQA 350 compact SUV model, which currently consumes around 17 to 18 kWh per 100 km. Markus Schaefer, Chief Technology Officer at Mercedes-Benz, stated that the new CLA aims to reduce costs by approximately 50% compared to the previous generation.

    Key battery suppliers for the CLA will be CATL and ACC, in which Mercedes-Benz owns a 33% stake. The CLA, scheduled to enter production next year and be available on the market from 2025, is a strategic move to reduce complexities in model development, which have significantly increased in recent years, according to Schaefer. Mercedes-Benz plans to offer both hybrid and all-electric versions of the CLA, with no diesel versions planned.

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    By Christina Amann and Victoria Waldersee; Writing by Christoph Steitz; Editing by Frances Kerry



    Credit: The Star : Tech Feed

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