Munich:
The variable cost of producing electric vehicles will remain higher than for combustion engine models in the near future, fueling intense competition, Mercedes-Benz’s chief executive said on Sunday.
Ola Kellenius’ comments come as Mercedes-Benz more details revealed About its latest electric vehicle architecture, the CLA compact electric sedan, which will launch next year and aims for 30% to 35% more driving range.
“The variable cost for an electric car is high. It will remain that way for the foreseeable future,” Kellenius told reporters at the IAA car show in Munich.
Variable costs that affect the price tag of EV production include raw materials for batteries, software development and electricity prices.
Kellenius said that’s why the group was working to optimize fixed costs and resource allocation to reach the same profitability with electric cars as it could with combustion engines.
“The variable cost for an electric car is high. It will remain that way for the foreseeable future,” Kellenius told reporters at the IAA car show in Munich.
Variable costs that affect the price tag of EV production include raw materials for batteries, software development and electricity prices.
Kellenius said that’s why the group was working to optimize fixed costs and resource allocation to reach the same profitability with electric cars as it could with combustion engines.
The CLA, which will go into production next year and hit the market by 2025, Schaefer said, is an effort to reduce the complexity in model development that has increased significantly in recent years.
Mercedes-Benz will offer hybrid and all-electric versions, while no diesel versions are planned.
