Amazon hands Mercedes-Benz its biggest electric vehicle order to date
German auto giant Mercedes-Benz announced its largest order of electric vehicles to date Friday: 1,800 electric delivery vans for retail giant Amazon to use across Europe.
The deal shows how companies are increasingly paying attention to ways to decarbonize transportation including buying more zero-emission commercial vehicles. In particular, the market for electric last-mile delivery vehicles is starting to grow quickly as logistics companies such as FedEx and Amazon, as well as retailers such as IKEA, set and strive to hit climate goals.
Mercedes-Benz, a subsidiary of Daimler, has been a longtime partner of Amazon, as well as global shipping companies. Two years ago, Amazon bought 20,000 Mercedes-Benz Sprinter vans to launch its local franchised shipping program in the United States. However, those were internal combustion vehicles.
The world's largest automakers have been relatively slow to build and market electric trucks and buses, citing a lack of demand from customers and technology that isn't ready for prime time. That's left an opening for startups such as Rivian, which has a deal to sell Amazon 100,000 electric trucks.
But Mercedes-Benz appears to be making up for lost time. The automaker also announced Friday that it's joining the Climate Pledge, an initiative coordinated by Amazon and firm Global Optimism that commits signatories to achieving the objectives laid out in the Paris Climate Agreement by 2040, a decade earlier than the agreement's 2050 goal. Mercedes-Benz says it will become net carbon-neutral by 2040.
Amazon plans to use the 1,800 electric delivery vans — 1,200 e-Sprinter vans and 600 e-Vito vans — to deliver goods in countries in Europe. European countries including England, Germany, Spain, Denmark and Sweden are acting aggressively to decarbonize transportation emissions and are more swiftly adopting electric trucks compared to the U.S.
Mercedes-Benz says by the end of the year it will offer five electric vehicle models and 20 plug-in hybrid vehicle editions. Its vehicle and battery production also will be carbon-neutral, using clean energy.
"Amazon is adding 1,800 electric delivery vehicles from Mercedes-Benz as part of our journey to build the most sustainable transportation fleet in the world, and we will be moving fast to get these vans on the road this year."
Transitioning to electric vehicles after decades of making gas and diesel-powered ones won't be easy. The German auto industry is losing jobs and profits as it refashions its factories to make electric vehicle drive trains, and reduces production of the traditional engine and gas tank.
At the same time, big companies such as Amazon increasingly are making global climate commitments in an effort to stay competitive, protect their brands, meet mandates and retain employees. Amazon plans eventually to have all of its shipments to customers become net-zero carbon, with 50 percent of all shipments net-zero by 2030.
Electrification of its fleet will play a large role in those goals. In the release, Amazon CEO Jeff Bezos said that Amazon is buying the electric vans from Mercedes-Benz in an effort "to build the most sustainable transportation fleet in the world."