Daimler AG aims to have a carbon-neutral new passenger car fleet by 2039, said Ola Källenius, the future Chairman of the Board of Management of Daimler AG, and currently still responsible for Group Research & Mercedes-Benz Cars Development as a member of the Board of Management.

Let’s be clear what this means for us: a fundamental transformation of our company within less than three product cycles. That’s not much time when you consider that fossil fuels have dominated our business since the invention of the car by Carl Benz and Gottlieb Daimler some 130 years ago. But as a company founded by engineers, we believe technology can also help to engineer a better future. Our way to sustainable mobility is innovation – in a holistic approach along the entire value chain. the pushing ahead with the transformation to emission-free mobility. Sustainability is one of the key elements of Daimler’s corporate strategy and at the same time a benchmark for corporate success.

—Ola Källenius

As part of the sustainability targets for the car division—labeled “Ambition2039”, said Källenius, the company aims by 2030 to have electric models—including all-electric cars and plug-in hybrids—make up more than half of its car sales.

We will continue to offer our customers performance and luxury from Mercedes. At the same time we want to significantly reduce CO2 emissions per vehicle. Our R&D team is working together with established partners and startups alike to bring EV performance up and costs down. Our approach also includes the continuous development of our mobility services, to spread the use of electric models. In addition to cars, we’re also electrifying our vans, trucks and buses. And the modular development enables the rapid transfer of technology between our divisions. Our current focus is on battery-electric mobility.

But there’s also room and need to continue to work on other solutions, for example, the fuel cell or eFuels. Our GLC F-CELL (combined hydrogen consumption: 0.34 kg/100 km, combined CO₂ emissions: 0 g/km, combined power consumption: 13.7 kWh/100 km) is one proof point. This technology will also find use in our city buses. Today, no one knows for sure which drivetrain mix will best serve our customers’ needs 20 years from now. That’s why we encourage policy makers to pave the way for tech neutrality: Let’s fix the target, but not the means to achieve it.

—Ola Källenius

Mercedes-Benz is also striving to achieve carbon-neutral production, starting with Factory 56 in Sindelfingen. (Earlier post.) All of its European plants will follow by 2022.

Electricity from renewable sources will also be used for production of the EQC at our plant in Bremen and our battery production in Kamenz, Saxony. A holistic view on carbon cutting also includes the recycling of raw materials. Mercedes cars have a potential recycling ratio of 85 percent. So, we are moving from a value chain to a value cycle.

—Ola Källenius

Responding to the announcement, Helen Clarkson, CEO, The Climate Group, the international non-profit with a mission of accelerating climate action, said:

Today’s announcement is a new start for the automotive industry to take on its full responsibility in tackling climate change. Businesses are the auto industry’s biggest customers, and many are already switching their fleets to electric and installing charging points through our EV100 initiative on clean transport. They are sending an undeniable signal that the future of transport is electric - and it’s time vehicle supply started to match their demand.