In preparation for the end of February, Mercedes Benz realized that their lofty goal of 100% electric vehicles (EVs) by 2030 was not realistic with today’s economy or consumers.
Originally proposed back in 2021 by CEO and board chair Ola Källenius, the company was making solid progress with the venture. Obsessed with the metrics of the idea, they pushed their plans forth with $47 billion in seed money to ensure they could outfit factories properly. A small but crucial step, Källenius thought this would send a signal to the world and essentially corner the luxury corner of the EV market.
Now, with the release of their fourth quarter financials comes a simple statement. “Customers and market conditions will set the pace of the transformation. The company plans to be in a position to cater to different customer needs, whether it’s an all-electric drivetrain or an electrified combustion engine, until well into the 2030s.” They followed that up by explaining that they now project EVs to make up only 50% of their sales at best.
This news isn’t a huge surprise after multiple incidents of Mercedes-Benz vehicles catching fire and causing legendary levels of damage. On New Year’s Eve 2023, one of their most legendary fires occurred. As an EQB model was being charged in a Malaysian showroom, the car burst into flames. Footage of the fire quickly spread across social media, with people going crazy over a scene showing a chunk of the building collapsing.
In that fire, about 90% of the vehicles, 20% of the EVs that were being charged, and five percent of the massive showroom were eaten by the fire, according to their local fire chief.
More recently, a new EQ350+ was parked in the garage of a Nocatee, FL, house when it randomly burst into flames. Occurring in early 2024, the fire came long after Mercedes implemented previously announced changes as a result of fires. Not plugged in or charging, the fire still had no specified ignition source, but they did determine it did roughly $1 million in damage.
So, Mercedes-Benz won’t be going fully electric any time in the near future, and perhaps that’s safer for all of us.
