{"id":34627,"date":"2022-10-26T12:03:59","date_gmt":"2022-10-26T16:03:59","guid":{"rendered":"https:\/\/autosector.com\/?p=34627"},"modified":"2022-10-26T12:03:59","modified_gmt":"2022-10-26T16:03:59","slug":"1137617_mercedes-ceo-talks-800-volt-future-electric-g-wagen","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=34627","title":{"rendered":"Mercedes CEO talks 800-volt future, electric G-Wagen"},"content":{"rendered":"

Mercedes-Benz is changing. For the German luxury brand that popularized the four-stroke combustion engine, the shift to electrification and carbon neutrality is about much more than propulsion. Like every other established and startup automaker, the industry faces an unprecedented crossroads where digitization, electrification, energy, and ownership models converge. To call it an inflection point would be reductive.\u00a0<\/span><\/p>\n

How Mercedes-Benz pivots to electrification and embraces digitization could serve as either a boilerplate or a cautionary tale for other automakers. The latest person overseeing this seismic paradigm shift is Ola K\u00e4llenius, CEO of Mercedes-Benz AG and Chairman of the Board from May 22, 2019 thru May 2024.<\/span><\/p>\n

The tall Swede, with a depth of automotive knowledge matched only by his breadth of global business affairs, has worked for Mercedes since 1993, with a brief stop at McLaren, and has held Mercedes leadership positions covering everything from engine emissions systems to AMG performance.\u00a0<\/span><\/p>\n

On the opening of the Paris auto show, Mr. K\u00e4llenius sat down with<\/span> Green Car Reports<\/span> and a small group of journalists following the launch of the<\/span> 2023 Mercedes-Benz EQE SUV<\/span><\/a>. The electric crossover promises to be the volume model in the brand\u2019s growing EQ electric family in North America.\u00a0<\/span><\/p>\n

From the imminent U.S. arrival of the EQC electric compact crossover and subsequent launch of the peerless electric G-Wagen to the urgency for the brand to decarbonize by 2039, the affable executive maintained his infectious optimism\u2014even hours after his beloved Alabama Crimson Tide suffered an upset loss to the Tennessee Volunteers in collegiate football.\u00a0<\/span><\/p>\n

\u201cWe have a chance,\u201d he said, referring to vying for the national championship in postseason seeding.\u00a0<\/span><\/p>\n

The same could be said for Mercedes leading the way in this new era as it had in the combustion era.<\/span><\/p>\n

This interview has been edited and reference points in brackets have been added for clarity.\u00a0<\/em><\/p>\n

<\/p>\n

\"Ola<\/p>\n

Ola K\u00e4llenius, CEO of Mercedes-Benz<\/p>\n<\/div>\n

<\/span><\/span><\/p>\n

How are you driving sustainable demand for the EV transformation?<\/strong><\/p>\n

I think what we\u2019re now seeing on this journey to complete zero emission, and we\u2019re saying let\u2019s go there as quickly as we can\u2014even though it is a 10+-year journey\u2014if we look at how that is developing now, right now as we sit here in 2022, we are now beyond the early adopter phase and we are starting the mass adoption phase.\u00a0<\/span><\/p>\n

The momentum is almost building on its own. It\u2019s not a coincidence that now that we come back to Paris after two years and the pandemic, that we make a big splash with two electric vehicles. We will continue to spread the word.\u00a0<\/span><\/p>\n

What are your concerns about infrastructure?<\/strong><\/p>\n

We are part of a consortium here in Europe with Ionity to build infrastructure. Many players are stepping in, the energy companies are also stepping in. There\u2019s a lot of momentum in it. But it\u2019s still very much underdeveloped. In Japan there\u2019s a long way to go. That\u2019s one of the markets where the distance is a little bit longer.\u00a0<\/span><\/p>\n

We as a company are looking at what else we can do to complement it. We have the biggest and best roaming system in the world now, at over 850,000 public charging points. We\u2019re looking at what else we can do to build momentum, build trust in the product, create convenience for the customer. Watch this space. More to come.<\/span><\/p>\n

<\/p>\n

\"Ola<\/p>\n

Ola K\u00e4llenius, CEO of Mercedes-Benz<\/p>\n<\/div>\n

<\/span><\/span><\/p>\n

What else is being done in terms of expediency and efficiency?<\/strong><\/p>\n

Efficiency is the new currency. In the EQXX we wanted to demonstrate what is possible. Then one can ask yourself, was that just a science project with something that is in the far distinct future? No. The<\/span> EQXX has phenomenal efficiency<\/span><\/a>. [It gets up to 8.6 kwh per 100 km of real driving]. It\u2019s a car you can put on the street, but without certain energy users such as massage seats, or 15-speaker Dolby Atmos. But once you transport that into a Mercedes luxury tech vehicle, some of the technologies from the EQXX will already be with us in the next architectures that are coming on at the end of 2024 and 2025.\u00a0<\/span><\/p>\n

Such as?<\/strong><\/p>\n

The MMA, our entry-level lux vehicles [currently the A-Class, B-Class, CLA-Class, GLA and EQA, and GLB and EQB]; MB.EA, some of the core lux positions; and of course we will proliferate it throughout our whole portfolio. So you have a next gen with significant efficiency gains to come in the \u201824-\u201925-\u201926 model year time frame, which is literally around the corner. Paired with that, we\u2019re also making progress on energy density. So better efficiency gives longer range and more energy density gives longer range. So both are happening in parallel.<\/span><\/p>\n

The EQG platform is a dedicated platform. Is there anything it is limited by?<\/strong><\/p>\n

The G-Wagen has cult status, it\u2019s just unique. The G will always remain a G. It\u2019s not on a platform. It\u2019s its own vehicle. Full stop. And it will remain its own vehicle. We\u2019re not going to do a G off, let\u2019s say, the EVA2 platform. The G stays the G. Now we have decided to<\/span> electrify the G<\/span><\/a>, we gotta do it, it was absolutely obvious. We\u2019re working on it, in the year 2024 we intend to come to market.\u00a0<\/span><\/p>\n

We\u2019re looking at some exciting technologies there with silicone anodes [Mercedes is partnering with the California-based startup Sila Nano to make more efficient silicon anodes]. We will have one high energy-density battery cell that we\u2019re working on for this vehicle. And the powertrain itself will be, from a performance point of view, phenomenal.<\/span><\/p>\n

I had the opportunity late last fall to take an early powertrain mule for a spin in our off-road facility outside of Graz\u2014we make this vehicle in Austria, as you know. We were in the car for an hour and we did everything, like every angle, everything you can imagine, it\u2019s pretty comprehensive terrain we built up there. And we walked out of the car and were like, from now on going off-road is electric.\u00a0\u00a0<\/span><\/p>\n

It is mind-blowing. I know I\u2019m raising expectations here\u2026but it was so competent, so easy to drive it. It will have phenomenal performance on and off the road coupled with the most energy-dense battery that we can find in a vehicle that is slightly aerodynamically challenged.<\/span><\/p>\n

<\/p>\n

\"Mercedes-Benz<\/p>\n

Mercedes-Benz EQG Concept<\/p>\n<\/div>\n

<\/span><\/span><\/p>\n

Is the G-Wagen going to be the only vehicle to have the 800-volt architecture?\u00a0<\/strong><\/p>\n

We will gradually switch over to 800-volt architecture. The carrier of the next generation, the very first with 800-volt, will be the MMA architecture.<\/span><\/p>\n

<\/p>\n

\"2021<\/p>\n

2021 Mercedes-Benz EQC<\/p>\n<\/div>\n

<\/span><\/span><\/p>\n

Will we see an EQC in the next generation<\/a> for North America?<\/strong><\/p>\n

Absolutely. [The MB.EA platform for mid-size and large vehicles is expected around 2025.]\u00a0<\/span><\/p>\n

How do you see a path forward working together with partners and where do you see a need to be distinct [Mercedes announced a partnership<\/a> with Apple Music and Universal Music Group this week]?<\/strong><\/p>\n

It\u2019s one of the cornerstones of how we deal with that. Let me start from the top. We fundamentally believe as an automotive OEM, you have to be the architect of your operating system. Let me expand on that. The operating system that we\u2019re developing we call MB OS. It\u2019s not just about the software stack and the different domains within the software stack. It\u2019s about the corresponding software. You can\u2019t look at this in one dimension, you always look at hardware and software together.\u00a0<\/span><\/p>\n

We made the decision a few years ago that now that we are on this paradigm shift of how software is deployed in the car, that we must be the architect of it. But it goes beyond the car. It\u2019s car, cloud, and the unique customer ID and everything that happens customer-facing in your marketing and sales system. It\u2019s really a triangle.<\/span><\/p>\n

If you have decided that you are the architect of this building but you still need to finish the building and put furniture into the rooms and all those things, while you do that you have to have almost like an open source mentality. You\u2019re not creating a fortress, where you sit inside a fortress and you can\u2019t communicate anything else. You want to build bridges to tech companies and other players relevant to the consumer.<\/span><\/p>\n

So we cooperate with several big tech companies, whether it\u2019s well-known ones from the U.S. or in China, because China has its own ecosystem, or in other countries around the world.\u00a0<\/span><\/p>\n

<\/p>\n

\"Ola<\/p>\n

Ola K\u00e4llenius, CEO of Mercedes-Benz<\/p>\n<\/div>\n

<\/span><\/span><\/p>\n

What is the status of the new gigafactory locations?<\/strong><\/p>\n

The U.S. one is being built now. We announced most recently we\u2019re doing one in Hungary with CATL. You know we have a shareholding in ACC [Automotive Cell Company]. ACC has announced three plants, not dedicated to us, but the<\/span> two starting customers are Stellantis and Mercedes<\/span><\/a>. In China we are pretty much decked out. So we\u2019re moving fast on this.\u00a0<\/span><\/p>\n

What progress is being made on battery recycling?<\/strong><\/p>\n

We\u2019re building our own recycling plant in southern Germany as we speak so that we also learn what the latest and greatest recycling technologies will be. And we work with some of the leading players in the space. If I look at the best recycling technology that are in the pipeline, of the precious materials that we have in lithium-ion batteries, we could get north of 90% recycling quota out of those once we get them out of service.\u00a0<\/span><\/p>\n

They have a very high economic value. So by definition, this is going to have a\u2014like steel is recycled today, no one throws away steel\u2014so one day the recycling of batteries will be the biggest virtual mine in the world. But it\u2019s probably at least 10 years away. Because before meaningful volume comes back from the market<\/span>,<\/span><\/span> we\u2019re going to be some time in the 2030s. So we need to now develop the technology and start building the infrastructure to get ready for this. But we don\u2019t need it next year, we need it gradually.<\/span><\/p>\n

What can you say about the profitability of the EQ range?<\/strong><\/p>\n

What we have said is that the contribution of especially the EVA2 vehicles [the EQE and EQS sedans and SUVs] are healthy from the word go, whereas we don\u2019t disclose individual profit margins on vehicles and we won\u2019t. In our financial market communication, where we put out the weather chart of where we want to be in different economic climates, we have also said that once we are on the other side of the transformation, this weather chart also applies to the company in those conditions. It is absolutely clear on the way to 2030\u2014and beyond\u2014to be as robustly profitable in an electric era as in the combustion era.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Mercedes-Benz is changing. For the German luxury brand that popularized the four-stroke combustion engine, the shift to electrification and carbon neutrality is about much more than propulsion. Like every other established and startup automaker, the industry faces an unprecedented crossroads where digitization, electrification, energy, and ownership models converge. To call it an inflection point would […]<\/p>\n","protected":false},"author":1,"featured_media":34628,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-34627","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-cars"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/34627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34627"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/34627\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/34628"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34627"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}