German carmaker Mercedes-Benz AG will not cut future spending on electric vehicles, the chief executive said on Tuesday local time, Reuters reported, even as the company grapples with Russia’s woes Supply chain cost pressures exacerbated by the conflict with Ukraine.
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Kaellenius told Reuters: “We have been protecting our investments in future technologies and products. This is the seed we will reap. Even during the pandemic, we have not cut research and development spending on critical projects.”
He also said Mercedes was working with suppliers in Ukraine whose operations had already been disrupted, but it was too early to tell what the wider impact would be. Soaring oil prices since the start of the war have exacerbated the challenges facing established automakers, which remain heavily reliant on gasoline-powered vehicles.
As have soaring prices for materials used in electric vehicle batteries, such as nickel, which is mined in large quantities in Russia, and the industry has ushered in the test. Kaellenius is trying to accelerate Mercedes’ transformation from a traditional car technology company to one that relies on software and computing power with zero-carbon products.
Daimler parted ways with Mercedes in December, and Kelenius said on Tuesday he saw no reason for Mercedes to further separate its electric and gasoline-powered car businesses.
Moreover, some investors are trying to push established automakers to produce pure electric vehicles. “There’s only one Mercedes-Benz, and that company is going to be an all-electric company sooner than people think,” Kelenius said in an interview.
