New boss, new strategy: Daimler seeks new partners under Ola Kaellenius

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Daimler will move through a series of radical changes after Dieter Zetsche will give up its CEO seat on May 22 in favor of Ola Kaellenius. The new chief already announces that he intends to find new partners in order to reduce development costs.

Daimler seeks new alliances with car makers and technology companies: “We need to reduce the cost of developing electric cars. The intensity of collaborations will grow. Alliances will not only be made with other builders and component suppliers, but also with technology companies,” Kallenius said to Reuters.

Cost reduction is essential for manufacturers to be able to offer electric cars at prices as close as possible to those of internal combustion engined models. Kaellenius proposes that prices become virtually the same until around 2025.

“The cost structure of an electric car is higher than that of an internal combustion engine. We are working hard to reduce the gap. We have to work on costs, where we are now, we need to take a significant step in costs by 2025.”

At present, Daimler has a partnership with the Renault-Nissan Alliance, but the international press has recently speculated that the German manufacturer intends not to prolong the agreements signed with Renault-Nissan, when the current contract expires.

Shock: Daimler set to abandon its partnership with the Renault-Nissan Alliance

Instead, Daimler signed an agreement with the traditional rival BMW for car sharing, car rental, car parks and electric car charging, and later confirmed they want to develop technologies for autonomous driving together too.

Dieter Zetsche, the distinguished and highly successful CEO of Daimler AG and chief of the Mercedes-Benz brand is leaving the German car maker on May 2019 for travel company Tui. This brings an end to a long twelve (thirteen in 2019) years tenure at the top of Mercedes-Benz. In 2006 Zetsche (65) moved into its current position, but the current CEO (Chairman of the Executive Board) has in fact been employed by Daimler-Benz since 1976.

Dieter Zetsche’s successor at the helm of Daimler,Ola Källenius, currently Chief Operating Officer & the head of Mercedes-Benz R&D Deparment. He is a Swedish citizen and so, for the first time ever, Daimler will be run by a non-German CEO. Since 2015, Källenius is responsible for the sales strategy of Mercedes-Benz and from 2017 he also oversees the Research and Development for the brand.