Mercedes-Benz, a prominent luxury carmaker, has recently made adjustments to its electrification strategy, signaling a shift in the company’s roadmap towards 2030. Initially, the German automaker had set ambitious goals to transition fully to electric vehicles by the end of the decade, aligning with EU regulations targeting the phasing out of combustion engines by 2035. However, recent developments indicate a recalibration of these plans, with Mercedes-Benz now postponing its target for half of its vehicle sales to be electrified (EVs or hybrids) from 2025 to 2030.
This adjustment comes in response to the current market reality, where fully battery-powered vehicles accounted for only 11% of Mercedes’ sales in 2023, rising to 19% when including hybrids. The company’s pragmatic approach reflects the evolving landscape of consumer demand for electric vehicles, prompting a reevaluation of their electrification timeline. This move by Mercedes-Benz mirrors industry trends, with other automakers like Ford and General Motors also revising their electrification strategies in light of changing market dynamics.
The luxury carmaker’s recalibration is further influenced by factors such as reduced government subsidies, increasing electricity costs, and inadequate public charging infrastructure, all contributing to a slowdown in customer demand for EVs. Additionally, governments worldwide are reassessing their timelines for phasing out combustion-powered vehicles, with the EU settling on a 2035 cutoff and exploring alternative fuels like synthetic options. The UK has also adjusted its ban from 2030 to 2035, reflecting the shifting landscape of automotive regulations.
Mercedes-Benz emphasizes that the pace of its transition to electric vehicles will be guided by customer demand and market conditions. Investors have responded positively to the company’s announcement, with news of a $3.2 billion share buyback resulting in a more than 5% increase in the company’s stock price. Despite the adjustments in its electrification strategy, Mercedes-Benz remains committed to innovation in high-tech EVs, exemplified by the introduction of the electric G-Class Wagon.
The electric G-Class, known as the G580 with EQ Technology, maintains the iconic design and rugged off-road capability of its combustion engine counterpart while being powered by a battery. Featuring four electric motors, one for each wheel, the G580 delivers an impressive total output of 579bhp and 859lb ft of torque. Equipped with a two-speed gearbox for each motor, specifically developed for the G580, the electric truck promises exceptional off-road performance, matching or surpassing its petrol-powered counterpart.
With a 116kWh battery shared with the EQS model, the G580 offers a claimed range of 292 miles. The battery pack is integrated into the frame, serving as a structural component and is safeguarded by an underride guard that acts as a skid plate during off-roading adventures. The G580 can be fast-charged at speeds of up to 200kW, allowing for rapid charging times, enhancing the overall user experience.
Furthermore, the G580 with EQ Technology features a unique “G-Roar” function that provides an emotive sound experience in the cabin, enhancing the driving experience for users. By combining the legendary off-road capabilities of the G-Class with electric power, Mercedes-Benz aims to contribute to clean transportation and reduce emissions, aligning with its commitment to sustainable mobility solutions.
In a bid to further its climate protection efforts, Mercedes-Benz has joined the “Transform to Net Zero” initiative led by Microsoft, which brings together nine leading companies from various industries and countries to promote decarbonization across the economy and society. Through initiatives like Ambition 2039, Mercedes-Benz aims to achieve a “net zero CO2” new car fleet within less than 20 years, extending its focus beyond driving operations to encompass the entire value chain.
The luxury carmaker’s dedication to climate protection aligns with its strategic focus on high-margin luxury cars, catering to the preferences of today’s customers who prioritize responsible and sustainable solutions. Mercedes-Benz aims to uphold its technological leadership in electric drives and digitalization, exemplified by the innovative G580 with EQ Technology, showcasing the company’s commitment to providing cutting-edge and environmentally friendly mobility solutions.
