Mercedes-Benz Dials Back To ICE Cars After EVs Fail To Boost Profit
Giancarlo Perlas May 9, 2024- In a major win for all petrolheads out there, the management of Mercedes-Benz confirmed that they are no longer strictly sticking to their 2030 electrification goals.
Going Back to the Basics
Mercedes-Benz CEO Ola Källenius revealed during the company’s annual shareholders’ meeting that they are getting their sights back on internal combustion engine (ICE) cars instead of going all-in on electric vehicles (EV). This somehow supports the earlier statements of US dealership owners and insiders that the dwindling EV sales have forced the German automaker to change its stance on its electrification target.
“They’re not going to force [EVs] on the market,” an unnamed Mercedes retailer said in an interview with Automotive News. “They are going to allow the market to dictate.”
The move is in line with the brand’s “Economics of Desire” business slogan wherein it adjusts its strategy based on what market trends dictate. Although the 2030 electrification goal of Mercedes remains in its long-term plan, its execs have always made it clear that it’s only enforceable as long as “market conditions allow.”
In this case, Källenius admitted that the lower interest in EVs and reduced profit from their sales have caused them to reconsider. There have also been hints that the company will continue its streamlining efforts to reduce its bloated portfolio and optimize the products that truly matter to customers, particularly its core series and ultra-high-end segments.
Nevertheless, it will proceed to diversify its offerings with ICE, hybrids, and full EVs on the way to the end of the decade.
Q1 2024 Revenue of Mercedes-Benz
According to the first quarter report of Mercedes this year, its revenue has gone down by 4.4% compared to the same period of last year from €37.516 billion to €35.873 billion. It also reflected a 24.6% net loss amounting to €3.025 billion.
