Mercedes-Benz says that the variable costs to produce EVs will remain higher than comparable combustion models for many more years, despite the car manufacturer committing to an all-electric future.
Company boss Ola Källenius told journalists at the ongoing Munich Motor Show that Mercedes is working to optimize fixed costs and resource allocation to offset the higher variable costs of EVs so the brand’s electric models achieve the same profitability as its combustion models.
“The variable costs for an electric car are higher,” Källenius confirmed. “It will remain that way for the foreseeable future.” He noted that the costs of raw materials used for batteries, software development, and electricity prices are adding up and said these costs can not be passed on to customers on a like-for-like basis, Reuters reports.
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