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Bloomberg
Daimler AG plans to ratchet up development spending throughout the year as the inventor of the automobile scrambles to keep pace with a disruptive shift to electric, self-driving vehicles.
Research-and-development expenses jumped 24 percent to 2.1 billion euros ($2.3 billion) in the first quarter and will continue to rise in the course of 2017, the Stuttgart, Germany-based company said Wednesday. The faster pace implies the maker of Mercedes-Benz cars will invest more than the targeted 8.1 billion euros this year and comes after the company last month accelerated the introduction of at least 10 new battery-powered models by three years to 2022.
“The significant rise in spending is almost exclusively down to investments in digitalization, our electric-vehicle strategy and autonomous driving,†Chief Financial Officer Bodo Uebber said on a call with reporters.
Like other automakers, Daimler is battling a backlash against diesel cars stemming from Volkswagen AG’s emissions cheating. The scandal has prompted regulators to tighten scrutiny and caused consumers to sour on diesel cars, which are key for meeting increasingly stringent rules on carbon-dioxide emissions.
DIESEL PROBES
After achieving steady reductions in CO2 emissions in previous years, Daimler struggled in 2016, with levels in Europe steady at 123 grams per kilometer as buyers favored larger vehicles. In its home region, Daimler needs to reach 100 grams per kilometer by 2021 or face fines. Daimler has also been caught up in the diesel controversy.