Daimler to Invest $11 Billion

Date: 1 DEC 2016posted by Car Rentaledited by WinX

Luxury automaker Daimler is planning to invest up to $10 billion euros ($11 billion USD) in developing electric cars. This comes a week after a group of six automakers, including Daimler announced they were planning on expanding super fast charging sites all over Europe in order to be more competitive against Tesla. The current trend shows automakers are investing heavily into electrics cars. A decade ago they were avoided since they had a very limiting operating range, high costs and were not profitable. However, recent advances in technology, pro-electric car laws and a backlash against diesel has made investing in electric cars a very reasonable move and the proper way to plan for the future. The most recent advances has allowed electric cars to extend their range by up to 50 percent which lead to a spike in investment from major players such as Volkswagen and Daimler. Daimler plans to develop ten different electric cars based on the same architecture by 2025 and for this growth they are ready to invest up to 10 billion euros. Three of the models will be Smart branded cars and will be able to increase their operating range up to 700 kilometers (434 miles). Mercedes-Benz, a subsidiary of Daimler, unveiled their all electric SUV at the Paris Motor Show in September. The mass production version of the SUV is to hit the showroom floors in 2019.

In September, news leaked said Daimler planned to roll out at least six electric car models as part of its push to compete with Tesla and Volkswagen. And Volkswagen has announced this week they are planning on dropping diesel powered vehicles in the United States amid the diesel emissions scandal, Daimler has currently no decision nor any considerations to withdraw diesel from the United States. Withdrawing diesel-powered vehicles will have no major effect on Daimler since they account for less than 1 percent of the Mercedes brand's car sales in the United States this year. Daimler is currently undergoing an internal investigation of its certification process for diesel exhaust emissions in the United States at the request of the Justice Department after US Environmental Protection Agency said it would review all light-duty diesel vehicles. Volkswagen said they will be refocusing their efforts on sport utility and electric vehicles after dropping their diesel powered vehicles.

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