Saturday, July 27, 2024

Mercedes-Benz Shifts Strategy, Halts Development of Electric Platform “MB.EA-Large”

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Mercedes-Benz has decided to halt the development of its electric platform “MB.EA-Large,” which was intended for the electrification of its largest saloons and SUVs starting from 2028. This change comes as the company faces disappointing sales figures for its current luxury electric cars, prompting the need for “tough cuts,” according to a report by the German Handelsblatt newspaper, citing insiders.

The decision to pause the development of “MB.EA-Large” reflects a broader reorientation at Mercedes-Benz, driven in part by a misjudgment by Group CEO Ola Källenius regarding the pace of sales growth for electric vehicles. The company had previously aimed to transition to selling only electric cars by the end of the decade, with plug-in hybrids also phased out. However, the current market conditions have necessitated a reassessment of this strategy.

Källenius emphasized the company’s commitment to zero emissions, stating, “In the coming years, there will be both: Electric cars and ultra-modern, electrified combustion engines. If the demand is there, well into the 2030s.” This shift underscores Mercedes-Benz’s focus on flexibility in responding to market demands while maintaining its commitment to sustainability.

Mercedes-Benz had initially announced plans to debut three new all-electric platforms starting from 2025, including the MB.EA platform for medium-sized and large passenger cars, the AMG.EA platform for performance models, and the VAN.EA platform for electric vans and light commercial vehicles. Despite the pause in the development of “MB.EA-Large,” the company remains dedicated to expanding its electric vehicle portfolio.

The decision to halt the “MB.EA-Large” platform is part of a larger effort by Mercedes-Benz to balance its portfolio of combustion engines and electric cars, ensuring that both segments remain competitive and up to date. This approach aligns with the strategy of competitor BMW, which has also opted not to pursue an “electric only” strategy.

As Mercedes-Benz navigates this strategic shift, the company will continue to invest in sustainable efficiencies and flexible production processes to meet the evolving needs of customers and the market.

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