A German multinational automotive corporation, Daimler, announced on Thursday to launch 50,000 Mercedes EQC electric vehicles in 2020. The company has denied the claims reported in Manager Magazin that it will have to reduce its target in 2020 due to insufficient battery supply. Manager Magazin stated that Daimler could only manufacture cars around 30,000 per year which id half of its target due to battery supply problems from LG Chem. The battery supply issues pare back the sale target set by Daimler in2019 from 25,000 EQC to 7,000 ECQ.
Due to the strict carbon dioxide emission package set by European Union (EU), carmakers will have to face heavy charges next year if they fail to reduce C02 emissions. According to a report published in this month, if Daimler fails to cut of CO2 emission to 103 grams per km by 2021, the company will be required to pay fine for 997 million euros.
One of the biggest factors hampering Daimler’s ECQ production is that Tesla bought a battery automation specialist, Grohmann Engineering which was initially hired by Mercedes to manufacture batteries.
LG Chem has been selected for supply of batteries and this South Korean firm recently accepted a loan from European Bank of Reconstruction and Development (EBRD) for 250 million euros which will be used to construct a gigafactory in Poland. The factory is expected to manufacture around 1 million EVs in a year once it reaches its full capacity.