Automotive

Mercedes, Stellantis, and GM Make Investments

Mercedes invests in wind energy, Stellantis invests in cost savings, and GM invests in EarthCruiser.
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Mercedes, Stellantis, and GM Make Investments

Mercedes-Benz has signed a power purchase agreement (PPA) with Spanish utility Iberdrola for 140 MW of wind energy from the Windanker Baltic Sea project. 

We understand some of those words. But, what does it mean exactly? Basically, the massive investment will provide Mercedes with solar, and onshore/offshore wind energy that intends to meet half of its German electricity demand by 2025. 

PPAs offer producers guaranteed financing for long-term contracts to buy electricity directly from a generator at a pre-negotiated price. This allows carmakers like Mercedes to control production costs in their effort to cut CO2 emissions. 

Finding savings anywhere possible is going to be crucial to the longevity of EV manufacturing according to Stellantis CEO, Carlos Tavares. EVs are 40% more expensive to create than their ICE equivalents, and the affordability of producing them is difficult given that the raw materials needed are scarce and pricey.

The automaker is even currently conducting a manufacturing assessment of its Ram 1500 plant in Sterling Heights to see if and where it can cut costs. A company spokesperson called the evaluation a “normal course of business” but declined to outline any specific impacts it may have, which historically isn’t the most comforting news for workers.

GM is teaming up with EarthCruiser to create a next-generation overland upfit solution for the GMC Hummer EV pickup to be unveiled in late summer 2023. 

EarthCruiser expects to outfit the electric pickup with everything an off-road explorer needs, like solar panels and extra storage, but the collab’s teaser image still leaves much to the imagination. 

So many secrets. The duo also plans to develop together some “top-tier adventure vehicles” down the line, but are taking a page from the Stellantis playbook and remaining tight-lipped with the deets.

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