{"id":74044,"date":"2024-07-07T12:00:42","date_gmt":"2024-07-07T16:00:42","guid":{"rendered":"http:\/\/autosector.com\/?p=74044"},"modified":"2024-07-07T12:00:42","modified_gmt":"2024-07-07T16:00:42","slug":"mercedes-benz-adjusts-future-product-plans-keeps-internal-combustion","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=74044","title":{"rendered":"Mercedes product plans keeping internal combustion around longer – Autoblog"},"content":{"rendered":"
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Mercedes-Benz<\/a> is gearing up for a near-record slew of new models after its first generation of battery-powered cars fell short.<\/p>\n

The product offensive over the next two to three years will also see the S-Class<\/a> maker pivot to spending more on its lucrative lineup of fuel-burning vehicles. Top-level buyers, in particular, \u201ckeep reaching for our high-tech combustion-engine cars,\u201d Chief Executive Officer Ola K\u00e4llenius said in an interview.\u00a0<\/p>\n

\u201cWe need flexibility for longer, until deep into the 2030s,\u201d K\u00e4llenius said, keeping intact the company\u2019s goal of being carbon-neutral by 2039. \u201cWe remain committed to offering electric versions of the entire lineup this decade, but we have to ensure our combustion-engine cars remain competitive.\u201d<\/p>\n

The preeminent luxury-car maker has pared back electrification plans in recent months as EV demand has slowed. But Mercedes<\/a> also has trailed archrival BMW<\/a> because its lineup of electric models has put off buyers with high prices and polarizing designs. The company\u2019s battery-vehicle sales fell 9% during the first quarter to 50,500 units, while its Munich-based competitor\u2019s deliveries surged to 82,700 vehicles.<\/p>\n

The EQS \u2014 billed as one of the most significant launches in decades when Mercedes introduced it in 2021 \u2014 has particularly fallen short, drawing unflattering comparisons to a jellybean amid low sales. The six-figure sedan\u2019s sloping roof maximized aerodynamics but cramped some rear-seat customers \u2014 a problem in China<\/a>, where many car owners are driven by chauffeurs. Customers in that market also missed status-symbol details like Mercedes\u2019 characteristic three-pointed star hood ornament.<\/p>\n

The sales flop contributed to Mercedes\u2019 decision to walk back its goal to sell only EVs where possible by 2030. Its new target is for roughly half of sales to be electric by then. Competitors including Audi<\/a> and Jaguar Land Rover<\/a> similarly have adjusted as even EV leader Tesla<\/a> struggles with slumping deliveries.<\/p>\n

Tepid demand also has triggered costly design upgrades, with Mercedes preparing a face-lifted EQS for next year with more back-seat comforts and the star returning to the hood. During the first quarter, higher spending on what the company dubbed \u201clifecycle management\u201d partly dragged on returns, which fell to 9% from 14.5% a year earlier.<\/p>\n

Mercedes will kick off its next generation of vehicles built on new underpinnings next year, starting with the entry-level CLA coupe and later the GLB SUV. During a preview of the upcoming suite of cars at the company\u2019s design center in Sindelfingen, southern Germany, K\u00e4llenius was keen to demonstrate sufficient roominess in even the smaller models, squeezing his tall frame into the back seats.\u00a0<\/p>\n<\/div>\n

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The automaker also plans to bring out a compact electric version of the G-Wagon in 2026.<\/p>\n

The CLA will be available in battery-powered and combustion-engine versions. At the time of launch, the model is set to head the current portfolio on some driver-assistance systems and computing power, K\u00e4llenius said in Sindelfingen.<\/p>\n

While combustion-engine cars will generate superior profits for longer, the Stuttgart-based company is continuing to push for savings in purchasing, fixed costs and non-essential spending, K\u00e4llenius said.\u00a0<\/p>\n

Mercedes may also potentially free up as much as \u20ac10.5 billion by selling its remaining stake in Daimler<\/a> Truck, which was spun off in 2021. The lockup period for the carmaker\u2019s remaining 35% holding expires at the end of the year.<\/p>\n

\u201cThe stake represents an additional reserve in addition to our net industrial liquidity,\u201d K\u00e4llenius said. No decision has been made, and the carmaker is \u201cfully focused on the needs of the Mercedes customer,\u201d he said.<\/p>\n

Daimler Truck rose as much as 2.9% Monday in Frankfurt. Since trading separately from Mercedes, the world\u2019s biggest commercial-vehicle maker\u2019s stock has risen 38%, boosting its market valuation to \u20ac31 billion. Mercedes shares also advanced as much as 2% in intraday trading.<\/p>\n

Mercedes is conserving some spending by putting two of three European battery<\/a> plants slated to emerge from a \u20ac7 billion joint venture on hold. Automotive Cells Company, co-owned with Stellantis and TotalEnergies, has paused work in Germany and Italy<\/a> to consider pivoting to lower-cost cells in light of slowing EV demand.<\/p>\n

\u201cWe will build battery cell plants at the speed with which we\u2019ll need them,\u201d K\u00e4llenius said. \u201cWe have to match capital allocation to the rate of adoption.\u201d<\/p>\n

The shift to EVs is also being challenged by geopolitical tensions. The European Union is set to formalize provisional tariffs on China-made battery cars this week, with duties rising to as much as 48%. Should the charges go ahead, Smart models made by a Mercedes-Geely joint venture in China will attract a 20% tariff on top of the existing 10%, K\u00e4llenius said.<\/p>\n

\u201cWhen you have benefited from open markets as Germany has for decades, it doesn\u2019t make sense to possibly trigger a trade conflict,\u201d he said. \u201cWe manufacture the Smart in China with our partner Geely<\/a> and are thus importing cars to Europe at a significant scale.\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Mercedes-Benz is gearing up for a near-record slew of new models after its first generation of battery-powered cars fell short. The product offensive over the next two to three years will also see the S-Class maker pivot to spending more on its lucrative lineup of fuel-burning vehicles. Top-level buyers, in particular, \u201ckeep reaching for our […]<\/p>\n","protected":false},"author":1,"featured_media":74045,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2],"tags":[],"class_list":["post-74044","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/74044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=74044"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/74044\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/74045"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=74044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=74044"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=74044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}