In an unexpected strategic turnaround, Mercedes-Benz announces that it will not ultimately be a fully electric brand by 2030 as initially planned. The German manufacturer will invest millions in the development of more efficient internal combustion engines. This change of direction reflects the challenges faced by the automotive industry in its transition to electric.
An electrification objective revised downwards
Only three years ago, Mercedes-Benz had very high ambitions in terms of electrification:
- Passage du « EV first » au « EV only »
- 100% electric versions for all models
- Complete phase-out of petrol and diesel engines by 2030
Today, the automaker admits that those goals were too ambitious. Mercedes CEO Ola Källenius says internal combustion engines will remain around “well beyond the 2030s.”
A massive investment in thermal engines
Mercedes announces an investment of 14 billion euros (around 15 billion dollars) in its passenger car division. A significant part of this sum will be devoted to the development of “high-tech combustion technologies”:
– Improvement of existing thermal engines
– Development of new engines, particularly for the future S-Class
– Optimization of engine-transmission combinations to reduce CO2 emissions
The aim is to comply with future Euro 7 and China 7 emissions standards, while avoiding heavy fines.
The reasons for this turnaround
Several factors explain this change in strategy:
– Lower than expected demand for electric vehicles
– Lack of charging infrastructure
– Technical and logistical difficulties in the transition to electric
– Need to meet increasingly strict emissions standards for thermal engines
Mercedes is not the only brand to review its ambitions. Other manufacturers such as GM, Ford or Jaguar have also had to adjust their electrification plans.
A new balance between electric and thermal
Despite this strong comeback of thermal power, Mercedes is maintaining its objective of carbon neutrality by 2040. The manufacturer’s strategy is now based on a mix:
– Continued development of electric vehicles
– Investment in hybridization technologies
– Improving thermal engines to make them cleaner and more efficient
This more pragmatic approach aims to respond to different market needs while preparing for the long-term future.
A challenge for the automotive industry
The case of Mercedes illustrates the difficulties encountered by the entire automotive sector in its transition to electric:
– High development and production costs
– Adaptation of production chains
– Staff training
– Transition management for suppliers
Faced with these challenges, many manufacturers are reviewing their schedules and adopting more gradual approaches.
This strategic turnaround by Mercedes-Benz highlights the complexity of the energy transition in the automobile industry. Between ambitious environmental objectives, regulatory constraints and market realities, manufacturers must constantly adjust their plans.
Mercedes’ massive investment in “high-tech” thermal engines shows that the road to 100% electric mobility will probably be longer and winding than initially expected. It also highlights the importance of maintaining a diversified approach to engines to meet the different needs and constraints of the global market.
This new strategy from Mercedes could well influence other players in the sector, leading to a global reassessment of the short and medium term electrification goals in the automotive industry. Display Hide the table of contents
