Mercedes-Benz stole the show yesterday, and the internet, too. The one-third of the ‘Big Three’ announced its plans to go all-electric by the end of this decade, “where market conditions allow.” “The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade,” Ola Kaellenius, Mercedes’ CEO, said in a statement.
Mercedes plans to introduce plans (if that makes sense) on how it will reduce investment in conventional ICEs, cut down on the EV manufacturing costs, and maintain profits in today’s world. Perhaps the highlight of this announcement was the German carmaker will also introduce four all-new bespoke EV architectures by 2025.
The automaker says it will now offer a BEV in all the segments it currently competes in, from 2022, and also offer an EV option for all its models from 2025. Earlier this year, Mercedes unveiled the new, MMA EV platform for smaller vehicles in 2024, and now, the company says that all the platforms developed will be EV-specific. In 2025, it is said that it will launch three all-new architectures for its entire portfolio.
The new MB.EA platform will cater to medium and large passenger vehicles, like the SUVs, the AMG.EA architecture will solely be used for everything AMG for the future electric sports cars, whereas the Van.EA platform will be reserved for light commercial vehicles (LCVs).
Britta Seeger, in charge of Marketing & Sales at Mercedes, has also confirmed that the EQE SUV + the EQS SUV will debut sometime next year, with a Mercedes-Maybach version of the EQS already on its way. Britta also confirmed that the G-Class is also on its way in 2024, so that’s that.
“These upcoming AMGs will also move boundaries in terms of efficiency and aerodynamics. And there will be so much more to come to make these cars real AMGs in an electric world,” Seeger said.
Mercedes CEO Ola Kallenius said: “The EV shift is picking up speed – especially in the luxury segment, where Mercedes-Benz belongs. The tipping point is getting closer, and we will be ready as markets switch to electric-only by the end of this decade.”
“This step marks a profound reallocation of capital. By managing this faster transformation while safeguarding our profitability targets, we will ensure the enduring success of Mercedes-Benz. Thanks to our highly qualified and motivated workforce, I’m convinced that we will be successful in this exciting new era.”
As for the investment figures, Mercedes has committed to more than €40 billion for the development of new EVs, and judging by the demand worldwide, it now says that EVs will account for a market share of up to 50% by 2025, up from the previous 25% hybrid and electric vehicles mentioned in 2020.
Profit-wise, Mercedes seeks to “increase net revenue per unit” by raising shares of the high-end Maybach and AMG models and by also generating more revenue through digital services. By 2026, it is said that the investment in the ICEs will have fallen by 80% when compared with 2019 levels, although it is yet to be confirmed as to when will the company stop making them ICEs altogether. Expect it to be near Audi’s date.
Talking about the elephant in the room, Mercedes is planning to build 8 new EV battery factories worldwide – one in the US, four in Europe, for a total production capacity of 200GWh. This comes in addition to existing plans for “nine plants dedicated to building battery systems”.
There you have it folks – long-live the roar-y AMGs, Karl Benz’s ICE idea, then.