On Thursday, Daimler AG revealed that it plans to produce nearly 50,000 Mercedes EQC, a fully electric luxury SUV. The announcement rebuffed Manager Magazin’s claim that the company will slash production volume in 2020 owing to battery supply issues.
Manager Magazine earlier published that the company had reduced its production from 60,000 to 30,000 as if facing a battery shortage from LG Chem.
It also said that Daimler hoped to sell more than 25,000 Mercedes EQC cars last year, but managed to sell just 7,000 due to the same concern.
A Daimler spokesman, Joerg Howe, commented on this saying the company has not released any revised production plans and will stick to its 50,000 Mercedes-Benz EQC production target throughout 2020.
Automakers will be penalized next year if they fail to slash carbon emissions. Daimler vehicles emitted an average of 130.4 grams of CO2 per kilometer in 2018, hence the company needs to set a target of 103.1 grams per kilometer by 2021, according to the forecast.
The company may also face a $1.1 billion fine in the case it fails to cut the carbon emissions of its fleet.
Daimler’s work council chief of Daimler, Michael Brecht, explained why the company has been struggling to fulfill overall battery demand. He said Tesla overtook battery automation specialist Grohmann Engineering, for whom Daimler was totally dependent on batteries for its Mercedes-Benz.