German luxury carmaker Mercedes-Benz has backed away from its pledge to fully transition to electric vehicles (EVs) by 2030 after sluggish sales, shifting away from gasoline cars, which remain in high demand among car buyers. We are proceeding with the transition.
According to Bloomberg UK, Mercedes-Benz CEO Ola Källenius said: Said Shareholders said Wednesday that the company’s “transformation” into electric vehicles “may take longer than expected.”
Källenius aimed to make Mercedes-Benz fully electric by 2030. In July 2021, Mercedes-Benz announced the promotion of full electrification and clarified a policy change from “electric first” to “electric only”.
“The EV shift is accelerating, especially in the luxury segment where Mercedes-Benz belongs,” Källenius said. Said 2021:
The tipping point is approaching; By the end of this decade, the market will be ready to switch to electric only. This measure represents a major reallocation of capital. By managing this rapid transformation while adhering to profit objectives, we will ensure Mercedes-Benz’s lasting success. Thanks to our highly qualified and motivated employees, I am confident that we can succeed in this exciting new era. [Emphasis added]
Those plans have been delayed as orders for the company’s all-electric sedans were disappointing and first-quarter profit margins fell to 9%. Instead, Mercedes-Benz will continue to make gasoline-powered cars beyond the beginning of the next decade.
Luxury automakers aren’t the only ones abandoning electrification-only plans.
In January, Ford Motor Co. cut production of its all-electric F-150 Lightning pickup truck by almost half, citing a lack of demand from U.S. consumers.
Meanwhile, late last year, nearly half of Buick dealers in the U.S. opted to acquire from General Motors to avoid having to sell EVs. Auto dealers have called on President Joe Biden to end the EV mandate, citing a lack of demand.
John Binder is a reporter for Breitbart News. Please email jbinder@breitbart.com. Follow him on Twitter here.
