http://www.ibtimes.com/tesla-motors-stop-supplying-mercedes-benz-battery-pack-drivetrain-german-automaker-2331898
Tesla Motors To Stop Supplying Mercedes-Benz With Battery Pack, Drivetrain
As German Automaker Develops Its Own
03/07/16  ANGELO YOUNG

[image  / MERCEDES-BENZ
http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/md/public/2016/03/07/b-class-electric-drive.jpg
B-Class Electric Drive  The next generation Mercedes-Benz B-Class Electric
Drive will forgo the battery pack and drivetrain that has underpinned Merc’s
first fully electric vehicle. Pictured is a 2015 model
]

After seven years, Mercedes-Benz and Tesla Motors are parting ways. The
German automaker will go at it alone in developing the next generation
B-Class Electric Drive, its fully electric $42,000 compact five-door
hatchback.

“We have had an excellent project with Tesla and have worked very well with
them,” Harald Kroeger, head of electric-drive development at Mercedes-Benz
parent Daimler AG, told the German magazine Wirtshafts Woche in an article
published over the weekend. 

But the company has invested 500 million euros ($550.5 million) in a battery
and drivetrain plant and can now supply itself with the necessary
components, Kroeger added.

The current B-Class ekes out about 100 miles per fully charged battery, not
much for an electric car priced at around $42,000. But the next generation
B-Class Electric Drive will boast more than twice the range, putting it
comfortably in the area of the wave of electric cars coming out in
2017-2018, including Tesla’s Model 3 sedan, priced at around $35,000 after
the U.S. federal green-car incentive.

The decision to end the supply arrangement comes seven years after Daimler
invested $550 million in Tesla – a 10 percent stake in the startup – that
came at a crucial make-or-break moment for the Palo Alto electric car maker.
Daimler sold nearly half of those shares in 2014.

Similar to Daimler, Toyota was an early investor in Tesla, putting in $50
million and selling its Fremont, California, factory site to Tesla ...
[© 2016 IBT Media]




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