The company is introducing new electric vehicles and has said it aims to have a carbon-dioxide neutral lineup by 2039 although it hasn't specified a date for exiting production of internal combustion vehicles — which are generating the profits for the transition to zero local emission vehicles in any case. The company is set to overhaul its strategy for Mercedes-Benz on Thursday.
The update comes in the wake of newly ambitious targets proposed by the European Union's executive commission to reduce emissions of carbon dioxide, the main greenhouse gas blamed by scientists for global warming and climate change. The commission called for a 100% reduction in CO2 emissions from cars by 2035, meaning a de facto end to gasoline and diesel engines in Europe.
The company plans to spin off its truck division later this year, in part because cars and trucks are moving toward different technologies, with cars expected to use batteries while long-haul trucks in some cases will rely on hydrogen fuel cells to achieve zero local emission transport in coming years.
For the second quarter, Daimler's net profit came in at 3.7 billion euros, up from a loss of 1.9 billion euros in the April-June period in 2020 when the company had to shut down plants during the early phase of the COVID-19 pandemic. Revenue rose 44% to 43.5 billion euros.