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The United States, Canada and members of the European Union have all used economic recovery funds to support green technology. The German Ministry for the Environment, Nature Conservation and Reactor Safety joined the club with a $13.4 million grant to Mercedes-Benz Vans. Germany’s Economic Support Program will issue the grant to help Mercedes-Benz Vans produce 50 battery-electric vehicles (BEV) throughout the country. In addition to aiding the resource-intensive R&D process, the government hopes to see an improvement in the automaker’s fortunes in the European market.
Mercedes-Benz Vans will use most of the grant in implementing a drive system dedicated specifically to electrical power rather than hybrid vehicle operation. The BEVs produced with government funds will be monitored using driver diaries addressing mileage, performance and durability. The testing process will also look at limitations to battery-electric operation including public charging needs and battery durability. In particular, Mercedes-Benz Vans wants to monitor the impact of varying temperatures on lithium-ion batteries in day-to-day operation in the midst of humid summers and frigid winters.
This $13.4 million grant is a small part of the German government’s National Development Plan for Electric Mobility. This long-term development plan encourages the growth of public and private institutions within Germany needed for electric vehicles to hit German streets. The investment made in Mercedes-Benz Vans is an investment in the company’s Stuttgart-based research and development facility. Ministry officials are also banking on a quick turnaround on this investment with a projected release date of 2010 for the initial order of BEVs, according to automaker representatives.
Germany should receive significant dividends from this relatively minor investment in Mercedes-Benz Vans. The automaker already has a prototype and design in place for its battery-electric vans, which means it is only a matter of time before a final production model is ready. Mercedes-Benz Vans states it will focus on fleet customers with the first 50 units, which is a reliable market for battery-electric vehicles. By opting for battery-electric power, Mercedes-Benz Vans introduces an emissions-free option for fleet buyers that put high mileage on their vehicles. These BEVs will also help Germany adhere to increasingly strict standards for carbon emissions within the European Union. The main virtue of the $13.4 million grant to Mercedes-Benz Vans is that BEVs will become more affordable in Germany, the European Union and worldwide through better production processes.
