‘Electrification is on the go’. This is probably the loudest heard whisper these days. Still, bigger brands like Toyota, BMW, and now Mercedes are showing their skepticism about going all-electric. Possible reasons for postponing their zero-emission plans include prioritizing profit over the environment, uncertainty in the electric charging technology, costly infrastructure, and unending demand for traditional cars.
Challenges With EVs
“Perhaps there is too much optimism related to EVs in the industry”, Ola Källenius, the CEO of Mercedes, shared. The German automaker believes in slowing down its pace to go completely electric as it requires heavy production and development costs, limitations in driving range, and restricted charging infrastructure. A few months ago, the OEM also declared that it would need approximately 40 million euros of investment if it plans for complete electrification by 2030.
Mercedes Targets a 300,000 sales Figure
In a meeting, the automaker emphasized two future strategies: making more affordable models and making fewer electric vehicles that will possibly help Mercedes reach the 300,000 sales target in the U.S. only. Although the company hasn’t completely given up on EVs for now, it is focusing on putting profit over the environment. This decision might put questions on the automaker’s negative environmental impacts, but risking the company’s long-term economic benefits upon the environment looks like an unrealistic approach.
Mercedes Plans to Expand Vehicle Lineup
Keeping in view consumer demands, Mercedes vows to bring an extensive lineup of traditional combustion engine and hybrid vehicles this year. Twenty-five new or uplifted models plan to hit the market, which will include an expansion of S-Class and GLE lineups. Some of these models will also be introduced in a plug-in hybrid variant. However, an electric GLC crossover is in the plan too.
EVs or no EVs, the auto industry is self-juggling with its decision to electrification. What do you think this chaos will result in? Let us know in the comments below.
In North America as well in Europe, the EV sales slow down, now many customer are facing the inconveniences of an EV, low driving range, long time to charge the car, even with supercharged, many electronics problems
Well to think recently they launch MG4 and Ora in Pakistan, two cars to avoid as well all EV cars like Audi e-tron segment
Only good solution at the moment are Hybrid cars for someone who don’t want an ICE car
“…the OEM also declared that it would need approximately 40 million euros of investment if it plans for complete electrification by 2030.”
Are we sure about that number? 40 Million euros is pocket change for such a big company not a make or break decision making amount for them.
I’m also surprised how people get this one simple fact wrong. EVs will not replace ICE cars over night. When ICE cars first came on the scene over a 100 years ago, people did not drop their horses over night and buy cars. 🤣 It happened slowly. It took decades for the cars to become more common than horses and horse driven carriages etc.
For the legacy auto companies, they are having a difficult time because shifting their current manufacturing from ICE platforms to EV platforms will take a lot of capital. It will cost these companies a lot and maybe even cause them to shrink. So, like this article points out, this is just these legacy companies trying to focus on the money rather than doing what is required to make them future proof. The “EV only” future is quite a ways away. But EVs are the future.
However, to prepare for the inevitable, these companies do need to change their ICE strategies a bit. Focus on Plugin hybrids more and on the EV front they can focus on EREVs instead. That helps mitigate the range anxiety issues. (EREVs = Extended Range EVs which have a combustion engine which only acts as a charger for the electric power system.) And because EREVs have a combustion engine unlike pure EVs, these companies can easily adopt their current ICE/hybrid platforms for the use.
Toyota’s Akio Toyoda is always demonizing EVs and always presenting his doomsday scenario of how EVs will destroy legacy jobs; well, here is your chance Akio. You can save the combustion engine and the jobs. Just do it the right way moving forward. Not trying to pull the world back just because you are unwilling to change and/or adapt.