Mercedes boss: EV costs will remain higher for foreseeable future

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Mercedes boss: EV costs will remain higher for foreseeable future
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The variable costs for producing electric vehicles will remain higher compared to combustion engine models for the foreseeable future, the chief executive of Mercedes-Benz said on Sunday, adding this would continue to fuel intense competition. Ola Kaellenius's comments come as Mercedes-Benz disclosed more details about its newest electric vehicle architecture, the CLA compact electric sedan, which will launch next year and target 30% to 35% more driving range.

FILE PHOTO: The logo of Mercedes-Benz is seen outside a Mercedes-Benz car dealer in Brussels, Belgium

Ola Kaellenius's comments come as Mercedes-Benz disclosed more details about its newest electric vehicle architecture, the CLA compact electric sedan, which will launch next year and target 30% to 35% more driving range. Variable costs weighing on the price tag of EV production include raw materials for batteries, software development, and electricity prices.

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