Daimler Board Endorses $68 Billion Spending Plan for Mercedes

(Bloomberg) -- Daimler AG's board has backed investments totaling 60 billion euros ($68 billion) for Mercedes-Benz luxury cars and vans from next year to 2026 as the automaker strives for leadership in electric cars and software. 

The company didn't give a breakdown of its spending, noting some of the funds would go toward automated driving and digitization projects, it said Thursday. The plan includes some of the 40 billion euros already committed to electrify the Mercedes product range during this decade, part of a pledge to go electric-only where possible. 

“Our goal is technological leadership in the automotive luxury segment and in the area of premium vans while remaining committed to our ambitious margin targets,” Chief Executive Officer Ola Kallenius said in a statement. 

Mercedes plans to launch three new all-electric vehicle platforms in 2025 and set up eight battery factories with partners, the company said in a strategy update in July. Mercedes is betting the luxury segment will shift faster toward battery cars than the mass market because of customers' greater purchasing power.

After years of criticism for being late to adopt purely battery-powered cars, the storied German manufacturer this year stepped up its game with the launch of the EQS, the electric version of its flagship S-Class. Mercedes has said it expects plug-in hybrid and fully electric cars to account for more than half of global car sales by 2025.

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