For over a century, the auto industry believed most of its products would run on gasoline or diesel. This simple notion underpins the auto industry’s business plan, encompassing automobile design, manufacturing, and sales. No more. Everyone in business talks about a future without fuel-burning engines. Electric automobiles are becoming mass-produced. Several reputable automakers have discussed developing only electric cars by the decade’s end. That’s far. The decade ends in less than 90 months. Consider these: According to Experian, the average U.S. car loan is 68.6 months, while the average lease is 35.3 months. After one or two deals, Americans buying or leasing a new car, truck, or SUV may only have electric vehicles. Will it? Mercedes-Benz, a major automaker, will only make electric automobiles by 2030. At the 2024 Mercedes-Benz E-Class launch, we spoke to CEO Ola Kallenius about what it means and how the firm that pioneered the internal combustion engine wants to make its most significant transformation in 130 years. He said this. Electrify by 2030: “From 2025, all new car designs will be electric.” By the decade’s end, we can transport everything from the S-Class to affordable automobiles to electric vehicle-ready places. We’re ready if legislation or market forces make the market electric. We have spent money and technological resources to prepare Mercedes-Benz for a full line of electric vehicles (EVs). Mercedes-Benz still uses internal combustion engines. Before looking at market trends, we’ll ensure our internal combustion engines can last until 2030. However, internal combustion engine development will be severely cut between 2026 and 2027. We didn’t start a new internal combustion engine program until the early 2030s for engines released in 2035–2042. We won’t do that. EVs are not yet mainstream: We have tactical freedom since we are still determining what will happen. Mercedes-Benz should be ready for when new technology replaces old technology. Missing the time could end the company. It can take longer than expected. We fund startups. We’re supporting this modification. Battery electric cars are the best approach to zero-emission cars: With current technology, a non-fossil fuel energy source can power an electric car at 70% efficiency. Energy conversion is good. Hydrogen must be broken down using energy in a fuel cell before it can be stored, compressed, or cooled to become a liquid. The fuel cell stack generates electricity to turn the wheel. 20%–25% could be done. The cycle requires large-scale CO2 extraction from the air. Your performance is down 10%–12%. Fuel cells for trucks: “The Daimler Truck team is working on fuel cells, and I can see them being used in big trucks.” A class 8, 40-ton truck that runs 600 miles daily needs a vast, expensive battery for an electric engine. Hydrogen stations must be strategically placed along the road. Mercedes and Formula 1 will make synthetic fuels for electric car internal combustion engines. “Even if we switch to all-electric or mostly-electric vehicles and fuel cells for large trucks by the end of the 2030s, we’ll still have 1.5 to 2 billion ICE vehicles on the road.” These cars must have minimal carbon loads to reach zero CO2 emissions by 2050. These cars need low-carbon fuels. Since Formula One’s 2026 engine rules mandate CO2-free fuels, we’ll use it to help build one with our fuel partner. Extreme racing will employ similar technologies. Mercedes-Benz will develop e-drivetrains and software: E-drivetrains and software are changing the car business. These two areas require vertical integration, as indicated—our necessities. We must acknowledge them. E-powertrains are a riskier enterprise than gasoline engines. “The electric drivetrain has higher variable costs than the one we’re used to, which is with an internal combustion engine.” This causes scientific, industrial, and economic issues. How can you maintain earnings? Focus on fixed costs. Spend more on cash. Create new business models. Mercedes-Benz software determines future models: We’ve constructed them before and studied batteries for 20 years, even though it’s a new drivetrain. Over the previous 30 years, electronic systems have been placed in various areas, with the car manufacturer integrating all driver and passenger functions. The software was a viable option—no more. We’re the car’s brain, central nervous system, and stack designer. Mercedes-Benz’s software stack allows it to work with other software companies: “We’ll make Google’s latest car maps.” Mercedes-Benz and Google will collaborate to demonstrate future automotive mapping and navigation technologies. This is our current focus. Mercedes-Benz must reinvent: “In the past, you could say that if the next S-Class just did better than the last one and you kept costs down, you were on your way to success.” Nothing is inevitable today. Having an excellent name, a lengthy history, and success for over 100 years doesn’t guarantee success in the future. Return it. We play Carl Benz and Gottlieb Daimler. Rethink the original idea.
