Mercedes Boss Hands The Combustion Engine Another Lifeline
The CEO added, "I believe the most rational approach in the current situation is for an established manufacturer to do both [EV and gas] and not neglect one technology." If those sorts of comments sound familiar, BMW CEO Oliver Zipse and Toyota Chairman Akio Toyoda have expressed similar sentiments, saying that focusing all one's resources on exclusively building cars that are not yet fully supported in terms of worldwide infrastructure and demand is simply implausible for any automaker that wishes to exist long enough to see global EV adoption take hold en masse. To be fair, Källenius hasn't just come to this realization now. Last year, he announced plans to move the EQS and S-Class under one nameplate, and Mercedes, like most of its peers, has always accompanied its all-electric goals with the condition that they are subject to market conditions. And let's face it, the market for new luxury EVs is not exactly booming.
"The new CLA is the greeting from the kitchen of an entire family," Källenius said. "Then the core segments will follow with the electric versions of the GLC, C-Class, and E-Class. We still have an incredible amount in the pipeline." As we touched on above, Mercedes is dropping the EQ "sub-brand," which was essentially a gamble based on the supposition that EV buyers wanted association with the Mercedes brand but also a unique identity. It was also a marketing ploy because Mercedes EQ models looked vastly different from traditionally named and powered Benzes, but the combination of a new name and jellybean styling led one dealer to tell Automotive News (subscription required) in 2023, "Our cars need to be 'want' cars. The S-Class has maintained good loylty because it's aspirational. An EQS is not something that most people aspire to own."
Källenius' comments indicate that, like BMW (which sells identically styled i7 EV and 7 Series sedans), future EVs will look similar to their combustion-powered counterparts, and those hybridized counterparts will now likely be sold well into the next decade. The shift in styling strategy has already begun. The all-electric G 580 with EQ Technology has a silly name, but it looks like the solid G-Wagen it is. Notably, Porsche is also now working on a new gas Macan after the EV's sales failed to sustain the nameplate, reports Autocar. In America, both the old gas and new electric Macan are sold concurrently, but in Europe, cybersecurity laws meant Porsche had to move on, and with the 718, too. Now, it may be returning to combustion, but have no doubt, more EQs and electric Caymans will still be developed.
Related: Genesis Is Going After BMW And Mercedes Where It Will Hurt Most
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