
The Electric G-Class Flop Mercedes Didn't See Coming
It was supposed to be the electric crown jewel of Mercedes's legendary G-Class lineup. Instead, the all-new G580 EQ is turning into one of the brand's biggest recent disappointments — and now, even insiders are admitting it.
A scathing report from Handelsblatt quotes a Mercedes executive who didn't hold back: 'The car is sitting at dealerships like a rock… a complete failure.' This brutal honesty reflects a reality that's hard to ignore. By April 2025, Mercedes had sold just 1,450 units of the electric G, while nearly 9,700 gas-powered G-Classes found buyers. That's not just a dip — it's a seven-to-one rejection by the very audience the EQ was supposed to impress.
Too Expensive, Too Heavy, Too Limited
Let's start with the price. The Electric G-Class, or the G580 EQ starts around €180,000 in Europe — over €40,000 more than a similarly specced G500. Add inflation and economic uncertainty to the mix, and that premium becomes nearly impossible to justify.
But price is just the beginning. Utility — one of the G-Class's defining traits — takes a major hit. The electric version can only tow about 415 kg. That's not a typo. Gas versions tow up to 3,500 kg. And while the G580 EQ looks the part, it weighs over 3,000 kg — hundreds more than the V8. That weight crushes its range, which tops out at just 385 km on a full charge, and even less in real off-road conditions.
Buyers Want the Real Thing
One Mercedes exec said it best: 'People want a real G-Class… with a V8.' The market isn't just rejecting the EV — it's sending a clear message. The G-Wagen is more than a silhouette and a badge. It's about raw power, sound, and capability. And right now, the electric version doesn't deliver on any of those fronts.
Is There a Way Back?
Mercedes isn't giving up yet. A smaller 'Baby G' is reportedly in development for 2027, and it might not be electric-only — a turbocharged combustion option is on the table. That could be the key to winning back the core audience.
The electric G-Class was meant to electrify the brand's most iconic SUV. Instead, it's become a cautionary tale. You can't strip the soul out of a legend and expect people not to notice. Mercedes now has to ask itself: can the future of the G really be silent, slow, and soulless?
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Arab News
3 hours ago
- Arab News
Pope Leo XIV faces funding challenges for cash-strapped Vatican
VATICAN CITY: The world's smallest country has a big budget problem. The Vatican doesn't tax its residents or issue bonds. It primarily finances the Catholic Church's central government through donations that have been plunging, ticket sales for the Vatican Museums, as well as income from investments and an underperforming real estate portfolio. The last year the Holy See published a consolidated budget, in 2022, it projected €770 million ($878 million), with the bulk paying for embassies around the world and Vatican media operations. In recent years, it hasn't been able to cover costs. That leaves Pope Leo XIV facing challenges to drum up the funds needed to pull his city-state out of the red. Withering donations Anyone can donate money to the Vatican, but the regular sources come in two main forms. Canon law requires bishops around the world to pay an annual fee, with amounts varying and at bishops' discretion 'according to the resources of their dioceses.' US bishops contributed over one-third of the $22 million (€19.3 million) collected annually under the provision from 2021-2023, according to Vatican data. The other main source of annual donations is more well-known to ordinary Catholics: Peter's Pence, a special collection usually taken on the last Sunday of June. From 2021-2023, individual Catholics in the US gave an average $27 million (€23.7 million) to Peter's Pence, more than half the global total. American generosity hasn't prevented overall Peter's Pence contributions from cratering. After hitting a high of $101 million (€88.6 million) in 2006, contributions hovered around $75 million (€66.8 million) during the 2010's then tanked to $47 million (€41.2 million) during the first year of the COVID-19 pandemic, when many churches were closed. Donations remained low in the following years, amid revelations of the Vatican's bungled investment in a London property, a former Harrod's warehouse that it hoped to develop into luxury apartments. The scandal and ensuing trial confirmed that the vast majority of Peter's Pence contributions had funded the Holy See's budgetary shortfalls, not papal charity initiatives as many parishioners had been led to believe. Peter's Pence donations rose slightly in 2023 and Vatican officials expect more growth going forward, in part because there has traditionally been a bump immediately after papal elections. New donors The Vatican bank and the city state's governorate, which controls the museums, also make annual contributions to the pope. As recently as a decade ago, the bank gave the pope around €55 million ($62.7 million) a year to help with the budget. But the amounts have dwindled; the bank gave nothing specifically to the pope in 2023, despite registering a net profit of €30 million ($34.2 million), according to its financial statements. The governorate's giving has likewise dropped off. Some Vatican officials ask how the Holy See can credibly ask donors to be more generous when its own institutions are holding back. Leo will need to attract donations from outside the US, no small task given the different culture of philanthropy, said the Rev. Robert Gahl, director of the Church Management Program at Catholic University of America's business school. He noted that in Europe there is much less of a tradition (and tax advantage) of individual philanthropy, with corporations and government entities doing most of the donating or allocating designated tax dollars. Even more important is leaving behind the 'mendicant mentality' of fundraising to address a particular problem, and instead encouraging Catholics to invest in the church as a project, he said. Speaking right after Leo's installation ceremony in St. Peter's Square, which drew around 200,000 people, Gahl asked: 'Don't you think there were a lot of people there that would have loved to contribute to that and to the pontificate?' In the US, donation baskets are passed around at every Sunday Mass. Not so at the Vatican. Untapped real estate The Vatican has 4,249 properties in Italy and 1,200 more in London, Paris, Geneva and Lausanne, Switzerland. Only about one-fifth are rented at fair market value, according to the annual report from the APSA patrimony office, which manages them. Some 70 percent generate no income because they house Vatican or other church offices; the remaining 10 percent are rented at reduced rents to Vatican employees. In 2023, these properties only generated €35 million euros ($39.9) in profit. Financial analysts have long identified such undervalued real estate as a source of potential revenue. But Ward Fitzgerald, the president of the US-based Papal Foundation, which finances papal charities, said the Vatican should also be willing to sell properties, especially those too expensive to maintain. Many bishops are wrestling with similar downsizing questions as the number of church-going Catholics in parts of the US and Europe shrinks and once-full churches stand empty. Toward that end, the Vatican recently sold the property housing its embassy in Tokyo's high-end Sanbancho neighborhood, near the Imperial Palace, to a developer building a 13-story apartment complex, according to the Kensetsu News trade journal. Yet there has long been institutional reluctance to part with even money-losing properties. Witness the Vatican announcement in 2021 that the cash-strapped Fatebenefratelli Catholic hospital in Rome, run by a religious order, would not be sold. Pope Francis simultaneously created a Vatican fundraising foundation to keep it and other Catholic hospitals afloat. 'They have to come to grips with the fact that they own so much real estate that is not serving the mission of the church,' said Fitzgerald, who built a career in real estate private equity.


Arab News
13 hours ago
- Arab News
Britain still has work to do on defense
The British government last week published its long-awaited Strategic Defence Review. Led by former Defence Secretary and NATO secretary general Lord Robertson, the review outlines the major geopolitical challenges facing Britain and offers 62 recommendations to make the UK and its allies more secure. The government accepted all of them. Unsurprisingly, the review identifies Russia as the most acute threat to UK security. However, it also highlights the challenges posed by China, North Korea, and Iran. While many of the findings reaffirm existing concerns, the review makes three particularly important observations and course corrections that deserve attention. First, it shows that the UK is taking seriously the military lessons from Russia's full-scale invasion of Ukraine. After three years of near-nightly missile and drone strikes on Ukrainian cities, the need for robust air defense is clearer than ever. The review pledges £1 billion in new funding for homeland air and missile defense, a long-overdue investment. Another lesson from Ukraine is the critical importance of a strong defense industrial base capable of producing large quantities of munitions and artillery shells. At points during the war, Russia and Ukraine were expending more shells in a week than some European countries manufacture in an entire year. When the time came to supply Ukraine, many European nations lacked sufficient stockpiles. This was a wake-up call — especially for countries that had allowed their defense industries to atrophy. The UK is now taking steps to address this. The review commits £6 billion to build six new munitions and missile factories, including £1.5 billion for an 'always-on' production facility. This means Britain will be able to rapidly surge production in a crisis without starting from scratch. Additionally, the review commits to producing 7,000 long-range strike weapons in the near term, another recognition of evolving battlefield needs. Second, the review firmly reorientates the UK toward European security by adopting a 'NATO First' policy. This means prioritizing Britain's role in the alliance above other regional or global commitments. The timing is appropriate. Since Britain left the EU in 2019, its place in Europe has often been questioned. But following Russia's invasion of Ukraine, the UK has reasserted its leadership role in European defense — both within NATO and through bilateral and multilateral cooperation. The document also emphasizes the UK's continued engagement in the Middle East, especially with the Gulf states. Luke Coffey The explicit commitment to NATO First is a welcome signal to Britain's European partners. It affirms that, even outside the EU, the UK remains a key pillar of the continent's defense architecture. Third, while NATO remains the primary focus, the UK will continue to project power globally. The review confirms plans to produce a new class of nuclear-powered attack submarines, developed jointly with the US and Australia under the AUKUS partnership. This capability extends Britain's reach far beyond Europe and demonstrates that, in the words of the review, 'NATO First does not mean NATO only.' The document also emphasizes the UK's continued engagement in the Middle East, especially with the Gulf states. Each of the six Gulf monarchies is mentioned by name, and the review reaffirms Britain's long-standing naval presence in Bahrain — an essential strategic foothold in the region. Despite these strengths, the review contains gaps and raises concerns, particularly around funding. Accepting all 62 recommendations is politically bold, but doing so without guaranteed funding is risky. Although the government has pledged to increase defense spending from 2.3 percent to 2.5 percent of GDP by 2027, this falls short of the 3–5 percent levels being discussed by NATO leaders before their summit this month in The Hague. Take, for example, the eight new attack submarines: there is no full funding commitment. The government promises new investment 'in future years,' but offers no guarantees. A so-called Defense Investment Plan will be published this year to detail how these ambitions will be financed. But for now, this ambiguity leaves observers uncertain. Why accept all recommendations if the Treasury hasn't formally agreed to pay for them? Another concern is the lack of whole-of-government coordination. Unlike the previous Conservative-led government, which conducted numerous Strategic Defence and Security Reviews, the Labour government dropped the 'security' component. Past reviews incorporated not only military planning, but also issues such as cybersecurity, border control, counterterrorism, and resilience against pandemics and disinformation. These are vital elements of national security, and omitting them risks undermining Britain's broader preparedness. The new review does warn of threats from cyberattacks, assaults on critical infrastructure, and disinformation campaigns, but these threats are often outside the remit of the armed forces to address. Unless the government embraces a cross-departmental approach and integrates other security agencies into defense planning, it risks creating dangerous blind spots. Perhaps the most glaring issue is the size of the British armed forces. If there is one lesson from Ukraine, it is that large, professional armies still matter. Britain's Army currently stands at just 74,400 soldiers. The review proposes to increase this to 76,000 after the next election, a marginal boost that will also take years to implement. This is insufficient. Moreover, a smaller conventional force shrinks the recruitment pool for the UK's elite special forces, who are typically drawn from the regular military. Despite these challenges, the review is an important first step. Its focus on NATO, industrial resilience, and lessons from Ukraine are encouraging signs that Labour is serious about restoring Britain's defense credibility. But serious work remains. Unless the government fully funds its promises, addresses the absence of cross-government security integration, and expands the armed forces in a meaningful way, the review will fall short of its ambitions. When Labour last came to power in 1997, they published a defense review in 1998 but then failed to produce another during their entire 13 years in office. This time, they should follow the Conservative model and commit to conducting reviews every few years. As this review rightly notes, the world is becoming more dangerous. It is in everyone's interest for Britain to remain a strong, credible force on the global stage. • Luke Coffey is a senior fellow at the Hudson Institute. X: @LukeDCoffey.


Arab News
18 hours ago
- Arab News
Germany's Munich Re withdraws from climate initiatives
FRANFURT: German reinsurance giant Munich Re said on Friday it had withdrawn from several climate alliances but insisted that it would keep pursuing green targets independently. It is the latest sign that major firms are going cold on such initiatives, amid concerns about their effectiveness and growing political opposition in the United States and elsewhere. Munich Re said it had pulled out of the UN-backed Net Zero Asset Owner Alliance, the Net Zero Asset Managers Initiative, Climate Action 100+ and the Institutional Investors Group on Climate Change. The groups all aim to help financial giants reach net-zero carbon emissions. 'Climate related disclosures and associated administrative requirements have become very complex for international corporations,' said the firm, which acts as an insurer for insurers. 'Moreover, they are disproportionate to the impact achieved in terms of climate protection.' It also said there was an 'increasing ambiguity in assessing private initiatives under the legal and regulatory regimes across various jurisdictions.' The group, which last year booked a net profit of 5.7 billion euros ($6.5 billion), said it believed that it could pursue its climate targets 'in a more focused and targeted manner on our own.' 'Climate protection remains an urgent priority for Munich Re,' it said. 'We continue to pursue our goal of contributing to the achievement of the Paris climate targets.' The 2015 Paris climate accords aimed to limit global warming to well below two degrees Celsius above pre-industrial levels — and to 1.5 if possible. The group said it had achieved or exceeded the interim targets that it had set itself for 2025.