Luxury car maker Mercedes-Benz is not targeting 2030 to complete its transition to producing only electric cars.
After announcing its 2021 targets, the German automaker blamed “market conditions” for poor EV sales and consumer demand not meeting expectations, but almost all major automakers currently have We are witnessing this reality.
The company announced that. Investor outlook Rather than going fully electric by 2030, the company plans to remain “in a position to serve a variety of customer needs” such as fully electric drivetrains and electric internal combustion engines “all the way into the 2030s.”
However, the brand claimed that it expects EV sales to account for half of its overall sales in the second half of the 2020s.
Mercedes said “customers and market conditions will determine the pace of change” and blamed the “exceptional uncertainty” in the car market, citing almost every major global conflict as the reason.
In addition to “the Middle East conflict, the Russia-Ukraine war, and other regional crises,” the report also pointed to “tensions” between the United States and China, as well as “political relations” between the European Union and China.
Supply chain issues and bottlenecks in critical production components are a major risk, particularly with respect to raw materials and energy, the company said. Mercedes-Benz cited almost every possible factor, along with inflation, as a reason for the lack of EV sales.
The company was much more confident when it made ambitious plans announcement In 2021, it will commit $47 billion to complete all-electric production by 2030.
Ola Källenius, head of Mercedes-Benz, said at the time: “We are confident that we can do this profitably and that our focus on the electric sector will build a successful future and will continue to support Mercedes-Benz’s I believe this is the right way to increase value.” . But Mercedes opened its own trapdoor in 2021, saying it would sell electric cars “as market conditions permit.”
That clearly hasn’t happened yet, with the company saying that 2024 sales will be “softer” and “slightly lower” compared to the previous year.
The company remained confident that it was poised for a “tipping point” to an “all-electric era” and that efficiency improvements were on the horizon in terms of battery life.
Mercedes-Benz joins companies like Ford, Honda and GM in grappling with slowing electricity production, while the Biden administration is delaying calls for emissions regulations until the 2024 election.
Still, Mercedes-Benz, like other electric car brands, has faced some pretty public fire for its electric models.
According to reports Breitbart, an EQB model caught fire while charging at a showroom in Malaysia on New Year’s Eve 2023.The outlet also mentioned the Mercedes-Benz EQE350+ electric car It caught fire It happened in a garage in Florida and caused about $1 million in damage to the house.
At the same time, Mercedes-Benz also announced that it would move forward with its self-driving program and work on “optimizing its industrial footprint” as it hopes to reduce production costs and lower prices for electric vehicles.
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