Latest news with #OlaKällenius
Auto Blog
3 days ago
- Automotive
- Auto Blog
Mercedes CEO Has a Trump Tariff Deal That Could Reshape US-EU Auto Trade
Ola Källenius's comments to Der Spiegel comes as German automakers like Mercedes, BMW and Volkswagen negotiate with the Trump Administration. Tariffs have the auto industry on watch Hours before an event in Michigan on April 29, President Trump signed two executive orders aimed at reducing the impact of trade tariffs on the automotive industry. One order prevents automakers, who face 25% tariffs on auto imports, from being subject to additional levies on materials. The other order allows automakers to apply for tariff relief, which will reduce a portion of the costs associated with their imported components. However, these benefits will be gradually phased out over the next two years. Ola Källenius, CEO of the Mercedes-Benz Group, and Winfried Kretschmann, Minister President of Baden-Württemberg, stand in the production area during a tour of the Mercedes-Benz passenger car plant in Rastatt. During a rally that night in Michigan, Trump described this move as providing 'a little flexibility' to the automotive industry, hoping to persuade automakers to produce their cars and components in the United States. He said, 'We gave them a little time before we slaughter them if they don't do this. They're going to make so much money. They're going to have so many jobs.' Despite the developments, German luxury car manufacturer Mercedes-Benz withdrew its earnings guidance for 2025 during the announcement of its Q1 results. This decision was driven by uncertainty regarding the potential impact of President Trump's tariffs on imported vehicles. The company also stated that if auto tariffs remained at their current levels, it would decrease profit margins by 300 basis points on cars and 100 basis points on vans. Mercedes CEO offers some guidance on a potential tariff solution In a new interview with German business publication Der Spiegel, Mercedes-Benz CEO Ola Källenius said that while he is looking at different scenarios, the kind of investments he has to make are ones that could last for decades, rather than ones made 'in response to a volatile situation' such as the current US-EU tariff situation that is currently unfolding. Recognizing that the current administration has the impression 'that we in Europe are closed to certain issues and only demand openness where we have strengths,' the CEO proposed a deal meant to balance its imports and exports. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. 2025 Mercedes-Benz G 580 EQS — Source: Mercedes-Benz In his proposal, Källenius would allow duty-free imports of U.S.-built cars into Europe in exchange for tariff waivers on an equal number of vehicles exported by EU automakers to the U.S., adding that it would alleviate and fulfill its desire to reindustrialize and become an attractive destination for companies to set up factories for exported goods. 'For every car that leaves the USA or Europe, a car from the other side comes in duty-free,' Källenius told Spiegel. 'We have put this idea to both sides, and it is a possible component of the negotiations between the USA and the EU.' Such a solution would work for a company like Mercedes-Benz. In the same interview, Källenius noted that Mercedes 'is a major producer' of cars in the United States, adding that the company builds and sells around 350,000 vehicles in the country, which could count for consideration in trade talks. 'But the models we build and sell [in the U.S.] are not the same,' Källenius told Spiegel. 'Two-thirds of the vehicles from our plant in Tuscaloosa, Alabama, are exported to 150 countries worldwide. We therefore contribute to a more balanced trade balance for the USA. We believe this should be taken into account in the negotiations.' The team at Spartanburg that helped make the seven millionth BMW a reality. — Source: BMW Ford CEO Jim Farley proposed a similar idea Källenius's idea of rewarding U.S. exports is roughly on the same wavelength as similar ideas proposed by other automotive CEOs. Previously, Ford CEO Jim Farley raised the idea that automakers like Ford should get credit for building cars in the United States that are shipped overseas for international consumption, noting that it is 'essential' that the federal government come up with policies that encourage manufacturers to build cars for export, adding that it exports nearly as many vehicles as its brings in. 'So many of the vehicles we build here are exported around the globe,' Farley said. 'Shouldn't we get credit for that?' Around the same time Farley made those comments, the export of some high-ticket models to China, including the F-150 Raptor, Mustang, Bronco, and Lincoln Navigator, was halted due to retaliatory tariffs as high as 150% on imported vehicles. Final thoughts For what it's worth, German automakers like Volkswagen, BMW, and Mercedes-Benz have a lot of leverage for a potential U.S. tariff deal, especially if they propose that German automakers receive credits based on the number of vehicles they produce in the United States. These aren't small potatoes, either. BMW alone manufactures some of its highest-volume models, such as the BMW X3, X4, X5, X6, X7, and XM, at its Spartanburg, South Carolina, plant, which serves both U.S. and international markets. According to data from the U.S. Department of Commerce, BMW is the largest automotive exporter by value in the U.S., shipping 'more than $10 billion' of cars in 2024. American hands assemble these cars, no matter the badge or its supposed country of origin. About the Author James Ochoa View Profile
Yahoo
5 days ago
- Automotive
- Yahoo
Mercedes-Benz begins production of next-gen electric CLA
Mercedes-Benz has initiated a new phase in automotive manufacturing with the commencement of the new CLA model's production at the Rastatt plant in Germany. Embracing a "Digital First" strategy, the company says it has integrated cutting-edge technologies such as artificial intelligence, digital twin, and the Mercedes-Benz Operating System ( into its MO360 digital production ecosystem. Mercedes-Benz has invested a significant amount in the Rastatt plant, gearing up for the production of the electric CLA. The plant benefits from a network of German sites supplying essential components: electric drive units and axles from Stuttgart-Untertürkheim, bodyshell components from Kuppenheim, and batteries from Kamenz. The Rastatt facility has undergone rapid transformation, setting a precedent for the "Digital First" approach across the Mercedes-Benz global production network. A virtual simulation aided the revamp of an assembly hall, leading to the swift and efficient setup of a new production line. This method also helps efficiency gains in terms of construction time and costs. Mercedes-Benz Group Board of Management chairman Ola Källenius said: "With the CLA, Mercedes-Benz is ushering in a new era. The best guarantee for the long-term success of electromobility is top-of-the-range products like the CLA. We as a company are investing to ensure that these can be 'made in Germany.' A key prerequisite to make this possible is that framework conditions remain competitive.' The Rastatt plant is a pioneer in utilising AI for process engineering in its top coat booths, achieving a 20% reduction in energy consumption and shorter ramp-up times. Committed to sustainability, the production at Rastatt is carbon-neutral, with the entire Mercedes-Benz production network being powered by 100 percent green electricity. Following the successful launch at Rastatt, Beijing Benz Automotive will also commence the production of the CLA for the Chinese market. Additionally, the Hungarian Mercedes-Benz plant in Kecskemét will produce further models of the new vehicle family, with batteries sourced from the company's own battery factory and electric drive units from the subsidiary plant in Sebes, Romania. "Mercedes-Benz begins production of next-gen electric CLA" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Business Insider
15-05-2025
- Automotive
- Business Insider
Photos show the Mercedes-Benz electric popemobile worth an estimated $500,000 that Pope Leo XIV may be next to ride
The newest popemobile is a custom Mercedes-Benz G-class electric vehicle. Mercedes-Benz CEO Ola Källenius personally delivered the car to Pope Francis in 2024. It features a bulletproof glass canopy, an adjustable back seat for the pope, and white interiors. The day before Pope Francis died, he took one last ride in his popemobile. Pope Leo XIV could be the next to use it. The custom Mercedes-Benz G-class electric vehicle was designed to transport Francis around Vatican City emission-free as part of his commitment to environmental justice. "With this popemobile, we are also sending out a clear call for electromobility and decarbonization," Mercedes-Benz CEO Ola Källenius said in a statement in December 2024, when he delivered the car to Pope Francis. Mercedes-Benz has a long history of providing cars for the papacy, dating back to a Nürburg 460 Pullman Saloon for Pope Pius XI in 1930. Take a look at the most recent version of the popemobile. Mercedes-Benz designed its first-ever electric popemobile for sustainable, emission-free travel in Vatican City. The Mercedes-Benz CEO personally delivered the new popemobile to Francis in December. Källenius and other Mercedes-Benz employees who were involved in developing and producing the vehicle also received a private audience with the then-pope. The vehicle took about one year to manufacture and cost an estimated $500,000. The open-top G580 features four motors optimized for driving slowly through large crowds for public appearances. The car's exterior and interior are furnished in white, the color traditionally worn by the pope. The dashboard features a digital display. The back of the popemobile features red carpeting and white seating for the pope and other passengers. The license plate reads SCV 1, which stands for "Stato della Città del Vaticano" or "State of Vatican City." The car also flies the yellow and white flags of Vatican City. On some trips, the popemobile includes a bulletproof glass canopy. The sides of the popemobile remain open, allowing the pope to greet members of the public and offer blessings. Francis rode in the popemobile on Easter Sunday, one day before he died.
Axios
12-05-2025
- Automotive
- Axios
Mercedes to expand U.S. production of SUVs, commercial vans
Mercedes-Benz is expanding its U.S. manufacturing footprint, with plans to add one of its most popular models, the GLC compact crossover utility vehicle, to its Alabama plant by 2027. Why it matters: The news comes after the Trump administration boosted tariffs on imported vehicles to pressure global automakers to build more cars in the U.S. Mercedes' decision underscores the importance of Alabama in the automaker's global production network, the company said. Driving the news: Mercedes did not say how much it would invest in the plant, or whether any jobs would be created, but said it could add GLC production without an expansion. GLC output will be primarily for the North American market. Mercedes sold more than 64,000 GLC crossovers last year in the U.S. The intrigue: The Alabama investment will occur along with an expansion at Mercedes' Sprinter van assembly plant in Charleston, S.C., which CEO Ola Källenius described as a "significant investment in a whole new class" of light commercial vans. What they're saying: Mercedes employs about 11,000 U.S. workers, and with suppliers, that number is over 150,000.
Yahoo
02-05-2025
- Automotive
- Yahoo
Mercedes-Benz announces new car coming to Alabama plant
VANCE, Ala. (WIAT) — Mercedes Benz will make a new car at its plant in Tuscaloosa County, although what this new 'core segment' vehicle will be or what it looks like is anyone's guess. In a statement released Thursday, the car manufacturer announced it would build a new car at its Mercedes-Benz U.S. International plant outside Tuscaloosa. Currently, the plant puts out the GLE and GLS; the EQE and EQS SUVs and the Mercedes-Maybach line of EQS and GLE vehicles. 'Tuscaloosa has been a key hub for Mercedes-Benz vehicles for almost 30 years,' said Ola Källenius, chairman of the board of management of Mercedes-Benz Group AG. 'It's a natural step to bring a further model to Alabama as part of a strategy to deepen our commitment to the United States, a market, which has been our home for more than a century.' Since opening in 1997, over 4.5 million cars have rolled off the line at MBUSI. Last year, the plant put out nearly 260,000 vehicles. 'We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa, strengthening our ties to the North American market where a range of Mercedes-Benz vehicles including the GLE and GLS models have their roots,' MBUSI CEO Jason Hoff said. The announcement comes in the wake of the Trump administration's proposed 25% tariffs on imported cars, as well as a 25% tariff on auto parts that is set to go into effect this weekend. According to a report by CNBC, an estimated 60% of the vehicles produced at Mercedes-Benz's Tuscaloosa County plant are exported. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
