German luxury automaker Mercedes-Benz is set to dramatically reduce its development of electric vehicles in an effort to cut its spending amidst slow sales of its current electric models.
As per a recent report by Handelsblatt and the German arm of Automotive News, the three pointed star has cancelled the development of its MB.EA Large platform, which was set to underpin the next generation of mid-size and full-size EVs by the brand.
Sources from Mercedes familiar with the matter told Handelsblatt that the decision was made after reviewing poor sales of its EQE and EQS electric models, which include sedans and crossover SUVs.
"The pace of transformation will be determined by market conditions and the wishes of our customers," the automaker said in a statement to AutoNews Germany, translated from German.
Mercedes-Benz
Mercedes expects to save roughly €4-6 billion ($4.35-6.52 billion) by axing the MB.EA platform, which was set to underpin the next generation EQE and EQS models. In lieu of the move, future versions of the EQE and EQS will get an upgraded version of the current model's platform, complete with an 800V charging architecture, new batteries and more efficient electric motors.
Initially, Merc planned two versions of the MB.EA platform to underpin its electric lineup; the MB.EA Small for smaller models and MB.EA Large for its larger flagship vehicles. Though plans for the Large platform fell through, the MB.EA Small platform is still in development and is set to underpin an electric version of the popular C-Class sedan due next year, as well as an upcoming electric version of the popular GLC-Class crossover SUV.
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Mercedes-Benz
The move to cancel the flagship electric car platform comes as Mercedes rethinks its bigger EV strategy to push more volume sellers in key markets such as North America.
During an April 2024 event attended by North American Mercedes-Benz dealers in Stuttgart, Germany, the brand told its retailers that it will be shifting from an aggressive EV push to a "flexible and tactical" based on a more diverse lineup of gas, hybrid and electric models for its customers. In its effort, the three-pointed star would ramp up production of internal combustion engines and hybrid vehicles, anticipating to sell cars that run on gas well into the 2030s.
"Every dealer body is concerned with this transition to electrification and whether it matches the consumer's pace," said New York City-area Mercedes dealer Joseph Agresta. "We've all seen a leveling off to some degree of customer demand for BEVs, so we should have powertrains that customers want."
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Despite this, Mercedes remains keen on electrifying its most iconic models. Recently, the brand unveiled an electric version of the G-Class, or G-Wagon; a large 4x4 off-roader that has grown to be the ultimate status symbol over its storied history.
Mercedes-Benz Group AG has been trading at $74.96 under (MBGAF) at the time of writing.
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