German luxury car maker Mercedes-Benz is set to drastically scale back its development of electric vehicles in an effort to cut spending amid sluggish sales of its current electric models.
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According to a recent report by Handelsblatt and the German section of Automotive NewsThe three-pointed star canceled the development of its MB.EA Large platform, which was to underpin the brand's next generation of medium and large-size electric vehicles.
Mercedes sources familiar with the matter told Handelsblatt that the decision was made after reviewing poor sales of its EQE and EQS electric models, which include sedans and crossover SUVs.
“The pace of the transformation will be determined by market conditions and the wishes of our customers,” the automaker said in a statement to AutoNews Germany, translated from German.
Mercedes Benz
Mercedes expects to save approximately €4.35 billion to €6.52 billion ($4.35 billion to $6.52 billion) by eliminating the MB.EA platform, which would underpin the next-generation EQE and EQS models. In lieu of this move, future versions of the EQE and EQS will get an upgraded version of the current model's platform, complete with an 800V charging architecture, new batteries, and more efficient electric motors.
Merc initially planned two versions of the MB.EA platform to support its power line; the MB.EA Small for smaller models and the MB.EA Large for its larger flagship vehicles. Although plans for the large platform fell through, the MB.EA Small platform is still in development and will underpin an electric version of the popular C-Class sedan due out next year, as well as an upcoming electric version of the popular GLC-class crossover SUV.
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Mercedes Benz
The decision to cancel the flagship electric car platform comes as Mercedes reconsiders its broader electric vehicle strategy to drive more volume sellers in key markets such as North America.
During an April 2024 event attended by North American Mercedes-Benz dealers in Stuttgart, Germany, the brand told its retailers it will shift from an aggressive push into electric vehicles to a “flexible and tactical” one based on a more diverse range of hybrid and gasoline vehicles. and electric models for its customers. In its effort, the three-pointed star would increase production of internal combustion engines and hybrid vehicles, anticipating selling gasoline-powered cars well into the 2030s.
“All dealers are concerned about this transition to electrification and whether it matches the pace of the consumer,” said Joseph Agresta, a New York City-area Mercedes dealer. “We've all seen some stabilization in customer demand for BEVs, so we should have powertrains that customers want.”
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Despite this, Mercedes remains interested in electrifying its most emblematic models. Recently, the brand presented an electric version of the G-Class, or G-Wagon; a large 4×4 all-terrain vehicle that has become the ultimate status symbol throughout its historic history.
Mercedes-Benz Group AG is trading at $74.96 below (MBGAF) at the time of writing.
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