German multinational automotive corporation, Daimler, has announced an investment plan of up to €70 billion ($85 billion USD) starting in 2021 through 2025. The automaker says that most of the investment will be used “to accelerate the transformation towards electrification and digitization.”
The Mercedes-Benz parent company’s work council came to a the new budget agreement with the Supervisor Board of Dailmer AG after, what they described as, “controversial discussions.”
According to the company, Daimler will spend “more than €70 billion in research and development and in property, plant and equipment,” with the focus of the new investment primarily on Mercedes-Benz’s “electrification and digitization.”
The company also announced that a portion of the new budget will be used towards Daimler’s truck division: “Furthermore, within this business plan Daimler Trucks will also be able to accelerate its plans towards emission free transportation.”
Head of Daimler, Ola Källenius, said in regards to the new investment plan: “With the Supervisory Board’s confidence in our strategic course, we will be able to invest more than €70 billion over the next five years. We want to push ahead faster in particular with electrification and digitization. In addition, we have agreed with the Works Council on a transformation fund. With this agreement, we are fulfilling our shared responsibility to actively shape the transformation of our company. Improving our profitability and targeted investment in Daimler’s future go hand in hand.”