Summary
- Mercedes-Benz has abandoned plans to go all-electric by 2030 due to slower EV growth and struggles to stay competitive in China
- The company is focusing on more internal combustion-powered cars but has new EV models planned, including an electric E-Class and C-Class
- Mercedes is working on a turnaround plan that includes cutting costs, investing in technology like AI, and bringing new EVs to market
- The company plans to launch dozens of new or refreshed models within the next two years, including 19 new combustion engine models and 17 battery-electric cars by 2027
- Mercedes is focusing on new technologies such as steer-by-wire and AI features in its new vehicles, starting with the Mercedes CLA-Class with an all-electric or hybrid powertrain
Article
Mercedes-Benz Refocusing on Internal Combustion-Powered Cars Amid Slow EV Growth
Last year, Mercedes-Benz made the decision to abandon plans to go all-electric by 2030, opting instead to renew its focus on internal combustion-powered vehicles. The German automaker faced challenges with slower electric vehicle (EV) growth, declining sales in China, and concerns about competition in the market. Nevertheless, Mercedes still has several new EV models in the pipeline, including electric versions of popular models like the E-Class and C-Class.
Mercedes Announces Intense Product Launch Program
As part of its turnaround plan, Mercedes announced an ambitious product launch program that includes dozens of new or refreshed models set to launch in the next two years. This initiative aims to bring new combustion engine models and battery-electric cars to the market. The company plans to introduce 19 new combustion engine models and 17 battery-electric cars by the end of 2027, making it the most intense product launch program in Mercedes’ history.
Advanced Technologies and AI Integration
Mercedes is looking to incorporate cutting-edge technologies into its new lineup, including steer-by-wire systems and AI integration. The company’s Chief Technology Officer, Markus Schaefer, highlighted the advanced features of the upcoming models, such as automated driving assistance systems and innovative tech like steer-by-wire. These technologies will offer enhanced performance, reduced costs, and better packaging options for drivers.
Debut of the Mercedes CLA-Class
The Mercedes CLA-Class will mark the beginning of the company’s new product line, featuring a sedan body style with the option of an all-electric or hybrid powertrain. The vehicle will introduce MB.OS, Mercedes’ new in-house operating system, providing a software-defined experience similar to Tesla or Rivian. The CLA will utilize Mercedes’ MMA platform, designed to accommodate electric power or electrified combustion engines, with a focus on efficiency and sustainable driving.
Future of Electric Models and Specialized Divisions
While Mercedes has not revealed specific details about upcoming electric models like the E-Class, the company emphasizes that new electric models will feature a more conventional design language. In addition to the electric vehicle lineup, Mercedes plans to strengthen its specialized divisions, including the AMG performance cars, Maybach luxury brand, and G-Class family. The automaker aims to capitalize on the growth of these segments in the market.
Challenges and Outlook for Mercedes-Benz
Mercedes faces challenges ahead, including lower sales expectations for 2025 and decreased earnings compared to the previous year. The company’s struggles reflect broader issues in the automotive industry, including the shift to electric vehicles, market uncertainties in China and the U.S., and the need to balance investments in EV technology with customer demand for internal combustion engines. Despite these obstacles, Mercedes remains committed to innovation and adapting to the changing landscape of the automotive market.
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