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
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • 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. Automakers
May 09, 2019 03:39 AM

Zetsche says his successor will have tough job

Edward Taylor
Reuters
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Pressure to develop electric and autonomous cars has led Mercedes r&d costs to rise to balloon, Zetsche said.

    OSLO -- Daimler's next CEO will have a tough job to restore margins at Mercedes-Benz, current boss Dieter Zetsche said, as Mercedes launched a new luxury electric car to rival Tesla.

    Zetsche said Mercedes needed to find a way to rebuild margins after research and development costs at Mercedes-Benz ballooned.

    Zetsche will be succeeded as Daimler's CEO on May 22 by Ola Kallenius, who is already considering ways to cut billions in costs, according to Germany's Manager Magazin.

    Zetsche said: "There are many challenges ahead. We are in a situation of an economic slowdown. It is not going to be easier going forward." He was speaking on the sidelines of the launch event near Oslo.

    Pressure to develop electric and autonomous cars has led r&d costs at Mercedes-Benz passenger cars to rise to 14 billion euros ($15.7 billion) from around 8 billion euros four years ago, Zetsche said.

    At the same time, China, the world's largest car market, has seen sales momentum slowing for nine months in a row, with a 5.2 percent fall in sales in March.

    Mercedes-Benz's EQC electric crossover will hit showrooms this summer, years after Tesla launched its Model S sedan in 2012.  The EQC will go up against Tesla's Model X crossover.

    The EQC compact crossover is the first of a fleet of 10 full-electric vehicles Mercedes expects to launch by 2025.

    Daimler has been cautious about embracing mass production of electric vehicles at Mercedes-Benz amid concerns about operating range and customer acceptance.

    The company took a 9.1 percent stake in Tesla for around $50 million in May 2009 to learn about battery technology, but sold its stake for a $780 million profit in 2014.

    Daimler launched an electric car under the Smart brand in 2010, but waited until 2014 to build an electric Mercedes B class.

    Daimler, like other automakers, has struggled to make electric cars profitable, although the cost of battery packs is expected to fall as they invest in ramping up battery cell production.

    ING analysts say the total cost of ownership, including fuel prices, could reach parity between electric and combustion engined vehicles by 2025.

    In an effort to make a profit with electric cars, Daimler has opted to build the Mercedes EQC in a way that enables it to be built on the same production line as a combustion engined car, retooling existing plants. The EQC is being built in Bremen, Germany, on the same line as the C-class sedan and wagon, and GLC and GLC Coupe.

    Daimler is investing more than 10 billion euros to expand the electric EQ model range and is building battery cell production facilities.

    The EQC will have an operating range of 445 km (277 miles)  to 471 km (293 miles) under Europe's outgoing NEDC test cycle, with a base version costing below 60,000 euros to make it eligible for Germany’s electric car environmental bonus.

    Asked whether Daimler was too late to the electric vehicle trend, Zetsche said: "For the past 40 years I have heard that German manufacturers have missed all the important trends. But apparently customers still like cars from manufacturers that have missed the boat."

    Zetsche took over as CEO of DaimlerChrysler in 2006 and took the decision to sell Chrysler, returning Mercedes to the top selling luxury brand globally in 2016 and defending the title ever since.

    Zetsche said Daimler's future hinged on making electric cars profitably.

    "We need to prove that we can earn adequate margins, and the capital market wants to proof points. We are working on making this a reality."

    RECOMMENDED FOR YOU
    EU says U.S. plan for EV tax breaks discriminatory
    Recommended for You
    EU hq
    EU says U.S. plan for EV tax breaks discriminatory
    BMW i4 production Munich 2021
    Europe's car industry could be headed for a crash amid high inflation
    Ionity Hyundai Ioniq 5 recharge test drive Milan Paris
    Hyundai Ioniq 5 helps prove long-distance EV journeys are possible, with conditions
    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
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • 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