Daimler AG Approves 60 Billion Euros Investment In Mercedes-Benz

Daimler AG's Supervisory Board approved the Mercedes-Benz Business Plan for 2022 to 2026, endorsing the strategic plan for Mercedes-Benz to go fully electric. The Supervisory Board signed off on an investment plan for the years 2022 to 2026 of more than 60 billion euros. Although the company plans to reduce capex, research and development expenditure for the electrification of the product portfolio and digitalization measures, including steps towards automated driving, will remain at a high level.

Mercedes-Benz is preparing to go all electric by the end of the decade

The endorsement by the Supervisory Board of the Mercedes-Benz Business Plan reinforces the company's commitment to sustainably achieving the margin targets communicated in October 2020 and reiterated in July 2021, also during an accelerated transformation towards an electric-only era. An important lever for achieving this is to increase net revenues per vehicle. In addition, a gradual shift toward a direct sales model, which includes control over pricing, is being sought. Rising revenue from digital services will further support results.

Mercedes-Benz is preparing to go all electric by the end of the decade, wherever market conditions allow. Against this background, the Supervisory Board supports existing measures to consistently increase efficiency and to lower fixed costs. At the same time, the investment plan for 2022 to 2026 remains in line with the goal of cutting capex and research and development spending by more than 20 percent between 2019 and 2025 and to further reduce it beyond this date.