Mercedes-Benz CEO: ‘Hydrogen only for heaviest vehicles’

Can we say that the era of EVs has finally arrived at Daimler?

“Absolutely, now it’s serious. We illustrated this once again at the IAA in Munich with the new EQB and EQE, flanked by two electrical design studies: the Concept #1 from Smart and the Concept EQG from Mercedes. The latter is the harbinger of a purely electric G-class and confirms that the electrification is continuing in all ranks at Daimler, including in the high-end products. This means that the power surge will soon cut across our portfolio, because battery-electric propulsion is the main road to the future for the passenger cars from Mercedes and Smart.”

Do you reserve the hydrogen fuel cells for heavy transport?

“Indeed, our fuel cells will serve in trucks that have to transport heavy loads over long distances, 40 tons over up to 2,000 kilometers per day. In that specific case, the battery would become so big and heavy that the charging capacity would drop, which of course is not the intention. To accelerate the development of the fuel cells, we have entered into a partnership with Volvo Trucks. Daimler’s position is therefore that both passenger cars and light commercial vehicles will have an electric powertrain with batteries and that only the largest vehicles will benefit from a hydrogen fuel cell. Provided that the hydrogen is
produced from renewable sources.”

Yet Mercedes was the only premium brand to showcase combustion engine cars at the IAA in September…

“Yes, a small correction: they were purely electrified combustion engines. What’s more, we design these at Mercedes with knowledge from Formula 1. We let them flow into series production to a greater or lesser extent. The Project 1 Hypercar, which takes over almost the entire drivetrain from our F1 car, proves that we do not impose any restrictions on ourselves. It is true, however, that there were also cars with milder forms of hybridization, such as the new C-Class All-Terrain. There is simply no clear turning point in technology where one development replaces the other. So rest assured that combustion engines will be produced this decade and perhaps the next.”

From that point of view, are you happy that the Grünen did not win the elections in Germany, also in view of a possible speed limit on the autobahn?

“That is mainly an emotional discussion, which is actually separate from our green ambitions and those of the new government. On the other hand, I do not think that the speed limit should remain at the top of the agenda if we are doing everything we can to reduce our CO2 emissions across the board. You should not underestimate how important our customers – especially those outside Europe – find that psychological autobahn quality mark and the accompanying top performance. Not so much because they want to clock those speeds themselves, but merely as a knowledge that our cars are designed to deliver such performance non-stop. That is an asset of the German automotive industry that we are not happy to give up.”

Frankly, it seems a bit contradictory: launching more and more EVs, but don’t want to say goodbye to combustion engines and the top speeds that come with them…

“The question is not so much when one technology goes out of production and another takes over, but how you create the conditions that facilitate such a switch. We all love and hold on to the individual mobility that our founder devised at the end of the nineteenth century. Today the question is how we can give this concept a sustainable future together with the authorities. In any case, our commitment is clear: from 2025 we will only develop electric platforms to be completely CO2 neutral by 2039. However, to achieve that, the infrastructure must grow with it and the energy must be renewable. We cannot achieve this alone, so let’s look together at how we can innovate instead of putting an expiration date on the combustion engine. Also, don’t forget that there are major infrastructure differences in the 150 markets that Daimler serves with its products.”

As CEO, are you frustrated that there is still no global consensus on the urgency of the issue?

“In my humble opinion, there is: virtually all nations have agreed to the Paris Climate Agreement and are therefore prepared to phase out the use of fossil fuels in order to move towards a CO2-neutral society. The problem is that not everyone is the same
can or wants to use a timeline, both among governments and among car manufacturers. Mercedes is doing above average in this area and is also a partner of the Ionity consortium for fast charging stations, which is currently rolling out the next phase. So we also think and collaborate on the infrastructure, although we have never done that with filling stations. Fortunately, there is positive momentum, which is attracting more and more energy players to our market. That helps to encourage governments to participate actively.”

And now the key question: will this transition cost the car industry jobs or will workplaces be created?

“There will be a shift anyway. According to a recent study by Die Welt am Sonntag, jobs will indeed disappear in the production of combustion engines. Functions at other places in the production chain will return. So see it rather as a transition that will take at least ten to fifteen years. To this end, we at Daimler are already setting up a conversion plan that should prepare our facilities for the future. The factory in Stuttgart, where we are currently still building many combustion engines, will be a future-oriented e-campus with a prototype facility and a production line for electric shafts. Another example: the factory in Berlin is going digital. And so on. Do not forget that individual mobility is still a growth market and will remain so for the foreseeable future.”