Mercedes-Benz, a well-known car company, used to think it would cost them 40 million euros to switch completely to making only electric cars by 2030. But not long ago, the company’s boss, Ola Källenius, said they will keep producing normal cars with gasoline engines for as long as they need to.
Källenius mentioned that maybe car companies were too hopeful before, but now they see things more clearly. Mercedes plans to make both electric cars and the efficient gasoline cars they are known for at the same time.
This new plan might be because it costs a lot of money to develop and make electric cars. Also, electric cars can’t always drive as far on a single charge as people would like, and there aren’t enough places to charge them yet.
Cheaper gas cars over EVs in the United States
The German automaker has announced plans to focus on making less expensive cars. They also want to offer more cars with traditional engines. They believe that these steps could help them sell over 300,000 cars in the US this year.
After the pandemic, many car makers started to concentrate on making more money per car. They made more luxury cars because there were not enough cars to meet the demand, people wanted to buy them, and loans were cheap. But now, this strategy isn’t working as well because there are more cars available and loans cost more.
In January, Mercedes reportedly told its dealers that it’s going to change what cars they have, focusing more on cheaper models and less on electric vehicles (EVs) to keep sales steady. They’re starting by making sure the dealers have more of the GLC model, which is more affordable.
Mercedes-Benz betting on electric cars where it makes sense
To meet the needs of customers in America, Mercedes is planning to make more gasoline-powered cars and hybrid cars (which use both gasoline and electricity). They have told their car dealers in the US that they will be providing more of these traditional and hybrid cars, adding 25 new or improved models to their offerings this year.
This plan includes adding more options for the luxury S-Class and the GLE SUV, including versions that can be plugged in to charge their batteries. They’re also going to release a new GLC crossover that uses electricity, expected by autumn.
Even with these changes, Mercedes isn’t giving up on making fully electric cars, because they know there’s a big interest in them.
Car experts think this new direction is good. Ivan Drury from Edmunds Insights believes that while aiming high is important, staying grounded and in touch with what’s really happening is essential, as the last year has shown. He suggests that having more affordable models helps buyers get a feel for the brand and keeps them interested in what Mercedes will come up with next.
Long-term commitment to electrification is uncertain
Although the company acknowledges the long-term potential of electric vehicles (EVs), it currently emphasizes a more flexible approach that puts profitability first and adjusts to the realities of the current market. This raises questions about Mercedes’ plans for electric cars in the future.
Uncertainty and concerns
Mercedes has decided to focus on traditional fuel-powered engines, which might be bad for the environment and doesn’t match with their goals to be more green in the long term. Finding the middle ground between caring for the planet and making money is quite tough.
Even though making cars that save people money might attract new customers, it’s really important to think about whether this approach goes well with the growing number of people who want eco-friendly ways to travel. Mercedes hasn’t stopped working on electric cars altogether.
However, it’s not clear how much they’ll keep investing in electric cars, or when these cars will become common. This makes people wonder about Mercedes’s future plans for electric cars.
With Mercedes’s recent decision, it shows just how hard it is to make travel greener. Whether they succeed in the long run will depend on how well they can balance taking care of the environment with making profits and keeping up with what customers want.
the company’s boss, Ola Källenius, said they will keep producing normal cars with gasoline engines for as long as they need to.
https://www.telegraph.co.uk/business/2024/02/22/mercedes-benz-chief-build-petrol-cars-2030s/
