How scientific research leads to sustainable modern luxury

It’s no secret that our world is changing fast and along with it, our industry. At #CES2020 in Las Vegas, I had the chance to talk about our R&D strategy that will enable us to create a desirable future:

Challenges such as ambitious CO2 targets, digitalization, technological transformation and many more loom large. But it’s much more than about simply adapting to them. We are now in the unique position of being able to shape the coming times. For us, this is a rewarding opportunity – because who doesn’t want a desirable future? This is why we at Daimler are constantly optimizing and updating our R&D strategy. We are working to shape mobility for a better, more sustainable life here on our precious planet.

We have already laid the foundations for meeting global challenges. But to even better prepare for the future, we are implementing a new R&D strategy consisting of five pillars:

1.   Emotional product leader

To start, we strive to be an emotional product leader. This means that with our offerings, we define sustainable modern luxury and inspire people to enjoy our products and services. Our holistic luxury and high-tech experiences will cover everything from vehicles to digital services. Through the unique fusion of technology, design, functionality and connectivity, we will excite our customers by making their user experience even more fascinating.

2.   Pioneering innovation

The second pillar is pioneering innovation. As the inventors of the automobile, it is up to us to define the future of sustainable modern luxury. Specifically, our research approach is guided by our credo: Ignite, Invent, Implement.

• Ignite: we identify “what’s next” – which means current and upcoming social, economic and technological trends – and together with external partners from universities and start-ups, we develop them into integrated future scenarios.
• Invent: as an international team, we ramp up network projects to strategies, concept maturity and prototypes.
• Implement: we shape innovations into applications, see them through to series maturity and ensure that our products continue to play a pioneering role in the future.

3.   Holistic sustainability

Through holistic sustainability, we actively shape sustainable mobility and take responsibility. With inspiring innovations and products, we are shaping the path towards emission-free, CO2-neutral mobility.

Our "Ambition 2039" strategy is an important milestone in our sustainable business strategy: we have committed ourselves to ambitious targets, such as that of our carbon footprint. One goal is a carbon-neutral new passenger car fleet by 2039. This approach towards exemplary sustainability and resource preservation goes for everything throughout the entire process chain, from suppliers to recycling.

In fact, we are the first premium automobile manufacturer to have had its climate protection objectives scientifically verified by the Science Based Targets Initiative (SBTI). This is in line with the Paris World Climate Agreement, with the goal of limiting global warming. By 2030, it is our plan that more than 50% of our car sales will consist of vehicles with partly or fully electrified drivetrains. Plug-in hybrid vehicles play a key role here. We will offer at least 20 of these models in all segments by the end of this year.

4.   Digital transformation: advanced engineering process

The next pillar is our approach to digital transformation. As this is a topic taking center stage these days, our approach to digitalization applies just as much to our processes as it does for our products. When it comes to our vehicles, we implement human-centered digital solutions from the conception phase all the way to the finished product. As such, we are the designers of the "Digital Luxury Experience". Our data-driven products are digitally connected and we strive for integrating them seamlessly into the everyday lives of our customers.

5.   Executional & business excellence

Finally, we are committed to executional and business excellence. We aim to develop the best products and consistently tailor our actions towards efficiency and profitability and base our offerings on an optimum of customer requirements. We implement this all via a high-performance modular strategy, developing worldwide where it makes most sense and is the most efficient. You will soon be able to see our strategy implemented with our new all-electric vehicles and, of course, in the new generation of our Mercedes-Benz S-Class.

(Artist: Pedro Silvestre; Source: THU, Golden Ticket Challenge 2019)

Pioneering means thinking “beyond tomorrow”

As you can see: we are thinking “beyond tomorrow.” We are pushing the digital change in the automotive industry with human-centered innovations, because we want to shape mobility for the better in a transforming world. This is why we are engineering the future based on our extensive scientific research. Because as the inventor of the car 134 years ago, we at Daimler AG have the experience, the know-how and the will to reinvent it – and we will do so for the better.

(Source of images if not otherwise noted: Daimler AG)