SHANGHAI\u2014 As Daimler’s incoming\nCEO, Ola K\u00e4llenius will quickly decide where to follow a cost axis as the\nautomaker adjusts to the headwinds of trade issues, an elevated plan for\nrevenues and a costly electrification policy. Reportedly, the new boss has his\neyes set on Mercedes-Benz vehicle factories for about $6.75 billion in price\nsavings and effectiveness increases by 2021.<\/p>\n\n\n\n
“When you’re in transformation,\nyou’re engaging in business history at the greatest stage,” said\nK\u00e4llenius, 49, on the sidelines of the Shanghai car show this month. “In\norder to prepare yourself to pick up money flow, you need to obtain the\ngreatest efficiencies at the same moment.” Daimler will be “very\nselective” with his assets, K\u00e4llenius said. “We’re not just targeting\none class of costs,” he said. “We’re really searching for\nefficiencies across the board.”<\/p>\n\n\n\n
Speaking to the media roundtable during the Shanghai show, K\u00e4llenius elaborated on Daimler’s electrification approach, the brand portfolio fragmentation and whether he believes we have achieved “maximum vehicle.” Edited passages follow.<\/p>\n\n\n\n
Q: There are about 40 models in Mercedes. That’s not counting the planned EQ family of electric vehicles in the coming years. Are you worried about the spread of products?<\/strong><\/p>\n\n\n\n A:<\/strong> Over 20 years we’ve had an ongoing trend, where we’ve been going\nfor more versions. Smart architectures and components are the key to doing this\neffectively.<\/p>\n\n\n\n We are introducing eight distinct\ncars on our fresh compact vehicle design, all of which look completely\ndistinct. Architecture sharing is very, very large in designs. So you can make\nmore choices with a reasonable investment.<\/p>\n\n\n\n People have chosen what the budget they are supposed to spend, and they are experimenting within that section. Now we’ve got a little over 40 designs. I can see strengthening of one or two models in the future. Customers have shown us a great willingness to test.<\/p>\n\n\n\n So do you think we haven’t reached’ top vehicle?’<\/strong><\/p>\n\n\n\n Over the next 10 to 15 years, we\nare on a track of development. This is where Asia will have a higher chance to\nrevamp their demographic development, wealth development, and financial\ndevelopment, especially China. We purchased about 650,000 units in China,\nmaking it by a broad percentage our largest market.<\/p>\n\n\n\n Even if you have a flat general\nprice in mature economies like Europe and America, you still have capital\ndevelopment and more individuals are coming into the spectrum where a Mercedes\nbecomes more important. So I see possibilities for luxury to acquire market\nshare in the lengthy run, even in a mature industry.<\/p>\n\n\n\n What is the electrification approach for Daimler?<\/strong><\/p>\n\n\n\n There are no two methods to do\nthis, in the lengthy run the earth is heading towards zero-emission. For us,\nbattery powered cars will play a vital part in going there in the next five to\n10 years.<\/p>\n\n\n\n Our electrification approach is\nfocused on three columns. There will be a 48-volt gentle hybrid scheme for\nevery single combustion motor we will have. Then in each section we will have\nplug-in cars. And we’re going to have a complete family of electric cars with\nEQ battery.<\/p>\n\n\n\n Right now we don’t have [complete\nhybrid cars] in the schedule. We think that plug-in hybrid is a stronger usage\nfor the client at this stage because you can actually ride up to a certain\nrange.<\/p>\n\n\n\n It is anticipated that high-cost electric cars will put stress on the\nmargins of automakers. How do you do this?<\/strong><\/p>\n\n\n\n In this first or two generations,\nthe price composition of electric cars is certainly greater than what we used\nto have on the [ motor] hand of burning. As we scale and further expand the\ntechnology, mainly on the battery hand, it’s one of the primary duties to drive\ndown that price. It’s going to take many years. Being a lucrative company is\nour objective. The company situation also has to be lucrative with the electric\ncars.<\/p>\n\n\n\n What will be the impact on manufacturing at Mercedes ‘ Alabama\nfacility, a significant export center, of increasing trade tensions between the\nUS and Europe and China?<\/strong><\/p>\n\n\n\n We have a manufacturing footprint\nin each of the appropriate areas that more or less suits our revenues. We are\nstill relying on world trade. We depend on good trade ties between nations. We\nthink that it is an absolute variable of development for the world’s markets.\nSo we’re a lot of free trade.<\/p>\n\n\n\n We need to see what the outcome\nof the U.S.- China agreements \u2014 especially with respect to Alabama \u2014 is. We\nhope that the mindset of encouraging trade will prevail in this situation. But\nthe outcomes of these discussions are not known to us.<\/p>\n","protected":false},"excerpt":{"rendered":" SHANGHAI\u2014 As Daimler’s incoming CEO, Ola K\u00e4llenius will quickly decide where to follow a cost axis as the automaker adjusts to the headwinds of trade issues, an elevated plan for revenues and a costly electrification policy. Reportedly, the new boss has his eyes set on Mercedes-Benz vehicle factories for about $6.75 billion in price savings <\/p>\n