Mercedes-Benz Group AG will reveal a new slew of vehicles to meet slumping sales and they’re going back to what they know, powerful fossil-fuelled engines.
Surprisingly, this strategy of going back to fuel is driven by an unlikely customer group.
Top-level buyers in particular “keep reaching for our high-tech combustion-engine cars,” CEO Ola Källenius said in an interview.
“We remain committed to offering electric versions of the entire lineup this decade but we have to ensure our combustion-engine cars remain competitive.”
The world’s biggest premium carmaker has pared back plans on electrification after demand slowed especially in Europe.
The EQS, available since 2021 and billed as one of the most significant launches in decades, in particular has fallen short.
While combustion-engine cars will generate superior profits for longer, the Stuttgart-based company is continuing to push for savings in purchasing, streamline fix costs and non-essential spending, Källenius said.
Amidst one German carmaker’s failure to take off in the EV space, another has made a significant USD5 billion investment in another failing American EV manufacturer, Rivian.
Established brands are being forced to change their EV plans as the luxury EV market loses its sheen.
On top of that, a price war on a global scale on EVs is forcing the margins to go even lower making it a lose-lose situation for all invovled.
Not to mention the fact that hybrids are having a moment.
