Mercedes-Benz is backing down: in 2030 it will not produce only electric cars

Mercedes-Benz won’t be an all-electric company eventually in 2030. The German giant has hinted it will not meet its original plan to produce only electric vehicles by that date, as agreed in mid-2021. Poor sales have forced it to adopt a more conservative strategy.

Based on the latest financial results, Mercedes-Benz predicts that 50% of sales over the next five years will be all-electric.. The company said that the current economic situation is uncertain and international conflicts may lead to unexpected events. The German points out that the struggle between the US and China is causing a deterioration in trade relations.

“Further disruptions in the supply chain and, in particular, bottlenecks in the availability of critical components remain a significant risk factor,” he said in his report. “This could impact supply chains and commodity and energy price dynamics.”

Mercedes-Benz stated that is taking steps to go all-electric. However, he noted that he will be “tactically flexible” and will analyze market conditions and his customers to determine the pace of this transformation.

“The company plans to be able to meet the various needs of customers, be it all-electric powertrain or electrified internal combustion engineuntil the 2030s,” he said.

The German company added that plants are being restructured to meet demand and reach a tipping point towards an all-electric era. Change will not be easy because multi-million dollar investment required and a comprehensive reorganization that will see some jobs disappear.

Mercedes-Benz remains committed to electric vehicles

Mercedes-Benz will become a 100% electric companyalthough it will happen until mid-2030s. The German company had to abandon its original plan to invest $40 billion in the production of electric vehicles alone. The strategy outlined in 2021 included building eight gigafactories to produce batteries that they would use in their own vehicles and those of their business partners.

But the electric future that Mercedes-Benz and other manufacturers envisioned has changed due to current conditions. The war between Russia and Ukraine, the current conflict in the Middle East and the Chinese blockade have changed the commercial ecosystem. Company does not rule out “possible shocks” in financial marketsand the negative impact of the economic downturn on the automotive industry.

Rising inflation and interest rates are not the only challenges facing manufacturers. Some dealers report that Selling electric cars is becoming increasingly difficulthow buyers became picky. Gone are the days when Teslas sold like hot cakes as brands now have to convince everyday users rather than consumers. early adopters.

Amid the uncertainty, Mercedes-Benz said they were able to implement their strategy during difficult times. “We are paving the way for next-generation products and platforms such as VAN.EA and MB.OS. to ensure that Mercedes-Benz remains at the forefront of the industry,” said Ola Källenius, CEO of the German giant.