Mercedes to Double Investment in Electric Car Technology, Daimler R&D Chief Says

Mercedes to Double Investment in Electric Car Technology, Daimler R&D Chief Says

By Scott Doggett March 5, 2010

Mercedes-Benz will nearly double its investment in batteries and fuel-saving engines as part of an effort to offer electric vehicles, Daimler AG development chief Thomas Weber said this week.

The Daimler luxury car unit will spend $1.4 billion in each of the next two years to develop electric-vehicle technology, Weber said in an interview with a Bloomberg reporter at the 2010 Geneva Auto Show. The company spent just $769 million annually for the past three years.

Weber said the company was working on batteries that could last at least 10 years and handle driving in extreme conditions. The company also announced this week that it will develop electric cars for China with BYD Co. and that Daimler will produce lithium-ion batteries at a new factory by 2012.

"Mercedes wants to be there first," Weber said. "We're attacking; we want to be on the top position and can't wait until someone delivers a commodity."

The move comes as BMW, the luxury car leader, announced plans to debut an electric-powered vehicle by 2015. Mercedes' approach differs because it is working on developing batteries rather than engines.

Weber said that as cars become more electrified, batteries will be a more important component. Daimler could also supply batteries to other automakers, according to Chief Environmental Officer Herbert Kohler.

Scott Doggett:  is an AutoObserver.com Associate Editor.