SMM: Mercedes-Benz will phase out manual transmissions and "significantly" reduce the number of internal combustion engine models, which is one of its parent company Daimler's cost-cutting measures to increase investment in electric vehicles.
Mercedes-Benz said at an online investor and analyst meeting that Daimler needs to cut fixed costs to reduce its break-even point. The company wants to reduce the complexity of its R & D and production processes, with the goal of cutting spending by 20% by 2025 compared with 2019.
"We will significantly reduce the platform and number of internal combustion engine models," Markus Shaefer, chief operating officer and director of research and development of Mercedes-Benz, said at the meeting. "We will reduce the number of gearboxes and phase out manual transmissions, thus shifting resources to electric drive."
Mercedes-Benz says it will reduce its internal combustion engine models by 40% by 2025 and 70% by 2030. Specifically, by 2030, the company's passenger cars will phase out manual transmissions, which will be available only in its compact range for some time to come. A newer version of the C-Class will be launched next year and is no longer expected to be equipped with a manual transmission.
Daimler's global production of manual transmissions fell from 500000 in 2016 to less than 300000 last year, while production of automatic transmissions increased from 1.41 million to 1.56 million and dual-clutch transmissions increased from 457000 to 680000 over the same period, according to analyst firm LMC Automotive. LMC estimates that manual transmissions will account for only 5.7 per cent of Daimler's gearbox production this year.
Al Bedwell, head of powertrain at LMC, said: "with the development of electrification, manual transmissions are becoming less and less marketable, and dual-clutch transmissions have greatly reduced the use of manual transmissions."
Mercedes-Benz has played an important role in the history of internal combustion engine development, including the first passenger car equipped with internal combustion engine launched in 1936. However, electrification and upgrading of internal combustion engines to meet stricter emission regulations have forced all carmakers operating in Europe to reduce the number of internal combustion engine models.
Like Volkswagen, Daimler was punished for cheating on emissions tests. In September 2019, Daimler was fined 870 million euros ($1.01 billion) for "negligent violation" after German prosecutors investigated cheating in the sale of diesel vehicles. Last month, Daimler agreed to pay $2.2 billion to resolve a U. S. government investigation into cheating in its diesel emissions.
