Summary
- Mercedes Benz will merge S-Class and EQS sedan lineup with ICE cars and EVs
- Existing S-Class and EQS sedans will be updated in 2025 and 2026
- Next-generation flagship design expected under merged lineup by 2030
- Mercedes Benz struggles to meet EV sales targets, cuts production at plant in Germany
- Company delays goal for EVs to be 50% of sales mix from 2025 to 2030, invests more in ICE powertrains
Article
Mercedes Benz is planning to merge its S-Class and EQS sedan lineups, combining internal-combustion-engine (ICE) cars and electric vehicles (EVs) under the same design language. The existing S-Class and EQS sedans will receive comprehensive updates in 2025 and 2026, with a next-generation flagship design expected to be released by 2030. This move comes as Mercedes Benz aims to streamline its offerings and improve sales performance, particularly in the EV market.
The decision to merge the S-Class and EQS sedan lineups was influenced by Mercedes Benz’s struggle to meet its EV sales targets. Recent reports have indicated a slowdown in sales of the S-Class and EQS models, prompting the luxury automaker to reevaluate its strategy. As a result, the company has adjusted its goal for EVs to account for 50% of its sales mix by 2030, pushing back the timeline from the initially planned 2025 deadline.
In response to the challenges in meeting EV sales targets, Mercedes Benz CEO Ola Kallenius has confirmed that the brand will invest more in ICE powertrains and continue to sell traditional vehicles for a longer period than previously anticipated. The company’s ICE vehicle sales have declined by 22% in the first half of 2024, highlighting the need for a refresh of the current lineup. This shift in strategy underscores the importance of maintaining a balance between ICE and EV offerings to meet customer preferences and market demands.
As part of this new approach, Mercedes Benz is planning to release a next-generation flagship design that combines elements of the S-Class and EQS sedans. By unifying the design language across its ICE and EV models, the automaker aims to create a cohesive lineup that appeals to a broader range of customers. With comprehensive updates planned for the existing S-Class and EQS models in the coming years, Mercedes Benz is positioning itself for success in the competitive luxury automotive market.
In light of these changes, Mercedes Benz is taking a proactive approach to address the shifting landscape of the automotive industry. By investing in both ICE powertrains and EV technologies, the company is positioning itself for long-term success and sustainability. The merger of the S-Class and EQS lineups reflects a strategic decision to leverage the strengths of both ICE and EV vehicles, catering to different customer preferences and market trends. Ultimately, Mercedes Benz’s commitment to innovation and adaptation will ensure its continued relevance in an evolving automotive landscape.
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