Wednesday, July 17, 2024
NewsMercedes-Benz Not Dropping Gas As Quickly As Expected

Mercedes-Benz Not Dropping Gas As Quickly As Expected

Merc CEO says ICE will live on for a while longer

  • New Mercedes models will offer ICE

  • Now expecting just half of sales to be EV by 2030


The next batch of Mercedes-Benz vehicles will have something old and familiar instead of high-tech wizardry. Benz will be spending more money on developing internal combustion cars as its electric timelines have shown to be a touch optimistic.

“We need flexibility for longer, until deep into the 2030s,” CEO Ola Källenius told Bloomberg. “We remain committed to offering electric versions of the entire lineup this decade, but we have to ensure our combustion-engine cars remain competitive.”

Previous Benz plans had been to sell only EVs wherever possible by 2030. It’s now expected that half of brand sales will be electric by that time. A new generation of Mercedes-Benz models will start to arrive next year with a new CLA coupe. That will be offered in EV form as well as in ICE.

Gas cars make more money, Källenius said, but added that the company will still be looking to reduce its costs. The company may also sell its stake in Daimler Truck, which is worth approximately 10.5 billion euros. Benz has put two of three European battery plants on hold, Bloomberg reports, and is looking at working to move to lower-cost cells. “We will build battery cell plants at the speed with which we’ll need them,” Källenius said. “We have to match capital allocation to the rate of adoption.”

Despite its issues, Källenius did not seem to be in favor of EU EV tariffs. “When you have benefited from open markets as Germany has for decades, it doesn’t make sense to possibly trigger a trade conflict,” he said. “We manufacture the Smart in China with our partner Geely and are thus importing cars to Europe at a significant scale.”

 

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