What’s The CEO Of Mercedes Doing About Europe’s Gas Crisis?
According to Ola Källenius, the CEO of Mercedes-Benz, the gas crisis in Europe will serve as “a stimulus” to invest more in sustainable energy.
Källenius said in an interview on Sunday that the region’s ongoing power shortage, which has affected millions of homes since Russia invaded Ukraine, had caused the automaker to lean more toward wind energy for its operations. He added that Mercedes has started taking steps to “maintain full production” and plans to reduce its natural gas usage by moving to electric and other power sources.
Many homes were concerned that Russia might entirely shut off the water supply this winter. The German government has previously implemented a crisis management strategy that, if necessary, might result in a gas restriction for enterprises. However, data from the trade association Gas Infrastructure Europe indicates that gas storage facilities have far surpassed the EU officials’ aim, indicating that Europe has enough gas to get through the season without experiencing any significant supply disruptions.
What Does This Mean For The Businesses?
Businesses have planned for emergencies. In order to “ensure that we have parts in the system” in the event of any gas shortages this winter, Mercedes has taken the precautionary step of stockpiling several natural gas-powered vehicle components,” said Källenius.
The development of an on-site wind farm, which will eventually supply more than 15% of Mercedes’ electricity demands across Germany, is the first of two significant projects the automaker has opted to move forward with recently.
According to Källenius, the consortium has also agreed to use a wind energy facility in the Baltic Sea, which will “add another 25%” of capacity. He continued, “We’re going to diversify, we’re going to strengthen ourselves, and of course, we’re going to go carbon-free. The goals may be compatible with the organization’s more significant goals.
In an effort to catch up to industry pioneer Tesla, Mercedes is now expanding its inventory of electric vehicles, along with other major automakers. Goals set forward by the German behemoth include having half of its sales origination from electric vehicles by 2025 and having the brand “become completely electric” by 2030. The corporation declared that it would devote more than 60 billion euros ($58.5 billion) to an “emissions-free future” between 2022 and 2026.
A Glimpse Of The Next Big Thing
On Sunday, Källenius introduced the EQE sports utility vehicle, the company’s most recent electric vehicle, at the Paris Motor Show. As the first electric choice for all of Mercedes’ cars, he called the automobile one of the most significant introductions in the company’s history.
“One of our best [sales] globally is the E-class SUV sector. That’s why this car is so crucial for us,” Källenius added, pointing to the one in the background of the video chat. The mid-size SUV, in his words, is “the final piece of the puzzle” for Mercedes.
IMF Forecast & The Company’s Revised Policies
Concerns about consumer demand for brand-new vehicles and other products are growing, especially as the outlook for the world economy continues to deteriorate. IMF forecasts for the global economy were once again revised downward last week, with the organization projecting that “for many people, 2023 will feel like a recession.” In particular, Källenius noted that there were “clouds looming” due to factors like inflation and other obstacles.
