Mercedes-Benz Abandons Plan to Only Sell Electric Vehicles
Mercedes-Benz has announced that it will backtrack on its initial plan to exclusively sell electric vehicles (EVs) after 2030. The decision comes as the company announced that its EVs are being sold at a lower rate than initially projected.
Three years ago, Mercedes announced its intention to sell only EVs after 2030 and gradually phase out gas-powered vehicles in markets conducive to EV adoption. But in a statement published last week, the company found that only 50% of its sales in its fourth-quarter earnings statement were EVs, a percentage lower than initially anticipated.
In response to this, the company concluded these initial plans will not be carried out. Mercedes further explained that any transformation in the company will be dictated by customer preferences and prevailing market conditions.
“Mercedes-Benz will continue to focus on its brand promise: to build the world’s most desirable cars. Mercedes-Benz will remain strategically focused and tactically flexible and is taking the necessary steps to go all electric. Customers and market conditions will set the pace of the transformation. The company plans to be in a position to cater to different customer needs, whether it’s an all-electric drivetrain or an electrified combustion engine, until well into the 2030s.”
Mercedes-Benz 2024 outlook statement
The decision to continue selling gas-powered and hybrid cars will apply to Europe as well, where EV sales drastically outpace those in the United States.
While there has been a big push for EVs in the past few years, most notably by climate activists and Tesla CEO Elon Musk, concerns about EV performance persist amongst the American public. Many consumers are critical of how these vehicles perform in extreme weather conditions, such as intense heat or cold.
Throughout this last winter, there have been multiple reports of EV owners across the country that have cited substantial battery loss in their vehicles during the extreme cold. A AAA study from 2019 has supported these claims, concluding that EV driving ranges fall by 12% in 20-degree Fahrenheit temperatures.
But it’s not just performance concerns that are an issue for Americans; proposals to outright ban or end the sale of gas-powered vehicles are often met with disdain from consumers who still want to have options in the type of vehicle they purchase depending on their needs, budget, and desires.
