Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
    • Browse photos from the 2021 awards ceremony
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Battery testing center for large battery packs and more
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automotive News Europe
August 05, 2016 01:00 AM

Mercedes said to plan electric-car subbrand to challenge BMW, Tesla

Elisabeth Behrmann and Christoph Rauwald
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Mercedes-Benz will create a subbrand for electric cars to challenge BMW and Tesla Motors in a bet that alternative-fuel cars have the potential to become profitable.

    Mercedes will add two electric SUVs and two sedans, according to two people familiar with the plan, who asked not to be named because the details haven’t been disclosed.

    Mercedes hasn’t chosen a name for the subbrand yet, one of the people said.

    The automaker said in June that it planned to unveil an electric car at the Paris auto show in September. It will be an SUV capable of driving about 500 kilometers (310) miles on a single charge. It will also show the distinct design Mercedes has developed to set its electric cars apart.

    Tesla’s success with the Model S sedan increased the pressure on other luxury-car makers, even as the U.S. company struggles with missed financial goals and delays in new models.

    Germany’s luxury-market leaders need to show they too can make electric innovations that capture the imagination of buyers, and they’re facing emissions regulations that require low-pollution vehicles. Yet customers in Mercedes’s home market of Germany, in particular, have been skeptical of limited driving range, long charging times, comparatively high prices and at times quirky designs.

    Mercedes had previously stuck to adding batteries and electric motors to existing models, a cheaper solution than rival BMW’s investment in carbon fiber and futuristic design for its “i” brand.

    Now their positions are reversed: BMW is holding off on a new “i” model for another five years. Mercedes will start selling its electric line-up before the end of the decade, one of the people familiar with the plans said.

    In addition to the e-cars, Mercedes parent Daimler is planning its first all-electric heavy-duty delivery truck by the start of the next decade. The company has also promised electric versions of each of the vehicles in the Smart city-car brand.

    “When Tesla started coming up many years ago we decided at the time, and I believe correctly, that the technology wasn’t quite ready,” Wolfgang Bernhard, Daimler’s trucks chief, said in an interview last week at the urban e-truck’s unveiling. “Now we believe the time has come to earn money in e-mobility over the next five to 10 years.”

    Christoph Sedlmayr, a spokesman for Daimler, declined to comment on the number and model type of electric cars planned, while adding there will be more than one.

    Bremen factory

    The first of the new electric autos will be produced at the company’s factory in Bremen, Germany, according to one person familiar with the plans. From next year, the Bremen plant will also build a fuel-cell electric version of the GLC SUV that can be charged both with hydrogen and at a wall socket.

    Mercedes’ previous efforts to establish clean-driving cars had mixed results. A fuel-cell version of the B class compact car sold few vehicles because of a patchy refueling network and high costs. Otherwise, the brand restricted itself to electric versions of existing models such as Smart and the boxy B class, which had a 155-kilometer range.

    BMW’s earnings this week showed some positive potential for electric-car sales. A new version of the i3 city car helped push deliveries of alternative-drive vehicles up 87 percent in the first half, the company said.

    RECOMMENDED FOR YOU
    Hyundai marketing VP Andreas-Christoph Hofmann to speak at Automotive News Europe Congress
    Recommended for You
    Andreas-Christoph Hofmann 2021 Eurostars
    Hyundai marketing VP Andreas-Christoph Hofmann to speak at Automotive News Europe Congress
    Monica Perez Lobo Toyota 2022
    Toyota Europe ESG director Monica Perez Lobo to speak at Automotive News Europe Congress
    Philippe Houchois, managing director of Jefferies Group
    Jefferies analyst Philippe Houchois to speak at Automotive News Europe Congress
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
        • Browse photos from the 2021 awards ceremony
    • More
      • Publishing Partners
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Battery testing center for large battery packs and more
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us