BERLIN -- Daimler's supervisory board signed off an investment plan worth over 60 billion euros ($67.88 billion) for the Mercedes-Benz passenger car and vans businesses between 2022 and 2026.
The company aims to be at the forefront of electric vehicle production and software, Daimler said in a statement Thursday.
Existing plans announced in October of 2020 to reduce capital expenditure by 20 percent from 2019 levels by 2025 remain in place, the statement said, with new spending focused on electrification, digitalization and autonomous driving.
Increasing net revenue per vehicle and implementing a direct sales models formed part of this strategy, it said, adding that advances in battery technology and production should help reduce the cost of battery-electric vehicles over time, Daimler said.
"Our goal is technological leadership in the automotive luxury segment and in the area of premium vans while remaining committed to our ambitious margin targets," Daimler CEO Ola Kallenius said in the statement.
Daimler did not give a breakdown of its spending. The plan includes some of the 40 billion euros already committed to electrify the Mercedes product range during this decade, part of a pledge to go electric-only where possible
Mercedes plans to launch three new all-electric vehicle platforms in 2025 and to set up eight battery factories with partners, the company said in a strategy update in July.
Mercedes is betting the luxury segment will shift faster toward battery cars than the mass market because of customers’ greater purchasing power.
After years of criticism for being late to adopt purely battery-powered cars, Mercedes this year stepped up its game with the launch of the EQS, the full-electric version of its flagship S-Class.
Mercedes has said it expects plug-in hybrid and fully electric cars to account for more than half of global car sales by 2025.
The board's approval of the investment comes week before the cars and vans division splits off from Daimler truck and buses on Dec. 10.
Bloomberg contributed to this report