Persistence of Mercedes with the burner: No Sign of Let-up in Sight
In a surprising turn of events, Mercedes-Benz, the renowned German automaker, has announced that it will continue to produce combustion engine vehicles well into the 2030s[2][4]. This decision comes despite the company's significant investments in electric vehicle (EV) production following the announcement of the combustion engine ban from 2035.
The reason behind this decision lies in the **slower-than-expected global EV adoption and ongoing strong demand for combustion engines**. Mercedes-Benz CEO, Ola Kallenius, confirmed that the company will keep building combustion engines due to regional variations in demand and infrastructure gaps for EVs[2][4].
The automaker has adopted a **dual-path strategy**, continuing to develop and produce both electric and combustion-powered vehicles. This approach reflects the reality that while EV sales are growing sharply, the transition is not uniform worldwide, and significant markets still rely heavily on internal combustion engines[2].
A prime example of this strategy is the new electric CLA built on the MMA platform, which can accommodate both electric and combustion powertrains[1][3]. The gasoline-powered version of the CLA is also set to enter production soon, alongside expanding electric vehicle output to meet strong demand. This strategy mitigates risks associated with supply chain challenges and market uncertainties[1][3].
Mercedes-Benz is not ready to provide a specific date for the end of combustion engine production. The company remains committed to the future development of combustion engine vehicles, while also planning to introduce hybrid models to its line-up[1].
The world premiere of Mercedes' first electric car, Concept AMG GT XX, took place on June 25th at AMG headquarters. The new electric vehicle was presented as electrifying, innovative, and uncompromising. Music greats such as Alicia Keys, Martin Garrix, and Steve Aoki were among the attendees[3].
Despite this commitment to electric vehicles, some Mercedes customers have expressed doubt about the company's commitment to EVs following a recent event. The end of the combustion engine is not imminent according to Mercedes, with the company focusing on serving all customers without abandoning combustion technology prematurely.
In conclusion, Mercedes-Benz's decision to continue combustion engine production is driven by the **uneven and slower global EV market adoption, strong demand and profitability in combustion and hybrid vehicles, a need for a balanced portfolio to adapt to varying market needs and infrastructure readiness**, and platforms like the MMA that are designed to support both electric and combustion powertrains[1][2][4]. This pragmatic shift ensures that Mercedes can continue to cater to all its customers as it accelerates its electric vehicle offerings.
References: [1] https://www.autocar.co.uk/car-news/new-cars/mercedes-benz-will-continue-build-combustion-engines-well-into-2030s [2] https://www.reuters.com/business/autos-transportation/mercedes-benz-plans-continue-building-combustion-engines-well-into-2030s-2021-06-24/ [3] https://www.motor1.com/news/1475923/mercedes-amg-gt-xx-world-premiere/ [4] https://www.bloombergquint.com/auto/articles/mercedes-benz-to-continue-building-combustion-engines-well-into-2030s
1.Despite the global push towards electric vehicles, the slower-than-anticipated adoption rate and persistent demand in certain regions for combustion-engine vehicles have encouraged Mercedes-Benz to maintain their production of such engines, even within industries outside of automotive, such as finance.2. Mercedes-Benz's strategy of developing and manufacturing both electric and combustion-engine vehicles reflects the reality that, while there is significant growth in the EV market, there remains unevenness in its adoption and a crucial demand for combustion engines across various industries, including transportation and finance.
