Is Mercedes going electrical? The German car manufacturer Mercedes Benz recently showed off the Vision AVTR concept vehicle in early January 2021. It was, without doubt, a futuristic, outlandish beast. The vehicle explored various ways drivers will be able to connect with their cars and ways an electric car can enhance its environmental credentials via a compostable battery.
According to Daimler and the chairman of Mercedes-Benz, Ola Källenius, the AVTR is also a concept that could advocate for the big changes and new ideas that are coming into the auto industry. In the real world, this shift to greener mobility is, of course, as Källenius well knows, not exactly driven by movies or concept cars.
During a digital version of the cancelled Gevea Auto Show, Källenius said that Mercedes Benz’s powertrain lineup would persistently be busy for about ten years or so. Currently, the company is offering its traditional gasoline and diesel engine options. Some of the engines are going to 48-volt systems. Then, the all-electric models are introduced to the collection, “the newer plug-in-hybrid.”
The head of the company affirmed that looking at the next few years, calculating from 2021 until around 2025, the world is going into what he called “peak complexity.” He added that reaching 2025 and approaching 2030 when we come together again, the tree is going to be trimmed especially on the combustion products. They are simplifying the powertrain portfolio.
Who Would Want a Plug-In Mercedes?
Källenius addressed the question of who wants to buy a Mercedes plug-in. He said that the first group is the people who have already made up their minds to go for electric vehicles.
Nowadays, everybody wants to go zero-emission. We all want electric vehicles and plug-in combinations. And of course, that’s why we all seek information on these kinds of vehicles.
Second, those will want to drive an electric Mercedes Benz because it was referred to them. Källenius said that 50% of Mercedes sales in Europe are to businesses that buy these cars for their staff to use as company cars. These purchasing companies are inclining towards the greener choice, all thanks to taxation rules. The reality is, if the company that employs you decides to give you an electric car, then you will be left with no other choice than to drive them.
Kallenius hinted that the companies are already changing their policies. They aim at having car fleets that emit little or zero CO2. So, the company decides for the user. We all know Mercedes Benz for their innovative ideas, so I am sure pulling this off won’t be a big deal for the German giants.
He told reporters that environmental regulation over the last decades has forced the industry. He admitted that they might have gotten to the point where Daimler and Mercedes Benz as a whole, have to mentally flip a switch. He also acknowledged that the long-term future needs to be CO2-free.
We Are Now on This Path
Källenius said automakers face a choice to either get dragged kicking and screaming into the new reality or to become one of the architects of a clean, newer mobility.
He said, “Almost regardless of regulation, we are now on this path.”
It is a path that’s already behind schedule. For instance, Mercedes’s all-electric EQC SUV has been delayed in the U.S. by almost a year because the company has not been able to build enough just yet. When will they finish building? That is a question we hope to get an answer to in the nearest future.
However, Källenius said they had to make a tough choice. He also added that they have a reasonable amount of demand in Europe and the demands outrun supply, even though they are ramping up and adding additional battery lines to the production. Mercedes-Benz decided to go all-in on Europe. They would have launched in the U.S. in March, but we were forced by circumstance to wait nine months later for the launching.
Källenius also stated that Mercedes currently has a strong lineup of vehicles in the U.S., which made delaying the launch of the EQC acceptable. When the car arrived, Källenius said, “U.S. consumers will be ready for it,” even if EVs are still a bit of a mystery to some shoppers.
The acceptance of electric vehicles has been a gradual development, it has also seen its share of challenges and not a similar one. Källenius said that the U.S. is one market, but it is many markets. He talked about the ecosystems and made mention of Silicon Valley where you have a bunch of early adopters, and many things happen quickly. He stated that he thinks the electrical vehicle market is moving out of that first phase to more “mainstream pull demand”.
Källenius said that Mercedes is gradually making and will continue to make the required investments to become a company that’s an “architect” for new mobility.
An example of this investment is the just-opened electric vehicle production facility in China, which will make the EQC for the China market. Källenius wouldn’t give out a specific number for how many EQs Mercedes is expected to have sold in the car’s first year on the market, just that it will be in tens of thousands globally, mostly in Europe. That raises curiosity in the minds of people. What will be the criteria for distribution? How much will the highly anticipated car go for?
Take a Drive
As time goes on, the number of electric vehicles people use or drive will gradually increase due to its advantages over the traditional diesel and gasoline engines. Electric Mercedes Benz is one of those vehicle-producing companies striving to lead the way in the production of electric cars. The company has already launched a couple of electric Mercedes cars and is currently aiming at electrifying a large chunk of its lineup over the next few years. Most car nuts are excited about the news and celebrities that have the money are probably already planning to add the electrical Mercedes Benz to their collection.
