Daimler ready for electric car future, but admits it could cost jobs

Daimler CEO Ola Kallenius says automaker Germak is well ahead of its 2039 target to phase out combustion-engine cars.

In a report by The Financial Times, the auto giant’s chief executive said strong demand for electric Mercedes models had encouraged the company to accelerate its transition to an electric vehicle maker. This is a major contributing factor towards the group’s goal of offering a full range of carbon neutral cars within the next two decades.

Earlier this year, Daimler assured its investors that it would not cut production and sales of gasoline and diesel vehicles ahead of time, but rather use them as a “cash machine” to fund their plans. electric future.

Since his appointment as a leader at Daimler, Ola Kallenius has overseen the rollout of EQS, Mercedes’ very first luxury electric vehicle, to be marketed as an alternative to the premium S-Class. However, the chief refused to put his finger on a specific date when the combustion engines will be definitively executed. On the contrary, he mentioned that regulatory pressure coupled with lower battery costs and “market dynamics” are all pointing to wise change.

Read: Nissan abandons 1.5% stake in Daimler for $ 1.2 billion

As of now, sales of electric cars are gaining ground, with Mercedes having sold 16,000 electric vehicles and 43,000 plug-ins hybrids worldwide in the first three months of this year, accounting for 10% of global sales.

But serious debate remains over how electrification will render a considerable number of auto jobs redundant. According to report, Kallenius admitted that assembling an electric powertrain takes less labor than that of its combustion counterpart, concluding that German automakers will need to have “an honest conversation about the jobs.”

Mercedes’ new small electric crossover, the EQA, was introduced earlier this year

According to Autonews Europe, the transition to EVs can create a “job fiasco”. The warning comes from Joerg Hosmann, president of IG Metall, the main metalworkers’ union in Germany and the largest industrial union in Europe. His comments come after a survey by the IFO institute shows that the switch to pure EV production could lead to the obsolescence of 100,000 jobs in the industry by 2025.

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