Mercedes-Benz Dials Back To ICE Cars After EVs Fail To Boost Profit

Giancarlo Perlas May 9, 2024
  • In a major win for all petrolheads out there, the management of Mercedes-Benz confirmed that they are no longer strictly sticking to their 2030 electrification goals.
Mercedes-Benz C-Class

Going Back to the Basics

Mercedes-Benz CEO Ola Källenius revealed during the company’s annual shareholders’ meeting that they are getting their sights back on internal combustion engine (ICE) cars instead of going all-in on electric vehicles (EV). This somehow supports the earlier statements of US dealership owners and insiders that the dwindling EV sales have forced the German automaker to change its stance on its electrification target.

“They’re not going to force [EVs] on the market,” an unnamed Mercedes retailer said in an interview with Automotive News. “They are going to allow the market to dictate.”

The move is in line with the brand’s “Economics of Desire” business slogan wherein it adjusts its strategy based on what market trends dictate. Although the 2030 electrification goal of Mercedes remains in its long-term plan, its execs have always made it clear that it’s only enforceable as long as “market conditions allow.”

In this case, Källenius admitted that the lower interest in EVs and reduced profit from their sales have caused them to reconsider. There have also been hints that the company will continue its streamlining efforts to reduce its bloated portfolio and optimize the products that truly matter to customers, particularly its core series and ultra-high-end segments.

Nevertheless, it will proceed to diversify its offerings with ICE, hybrids, and full EVs on the way to the end of the decade.

Q1 2024 Revenue of Mercedes-Benz

According to the first quarter report of Mercedes this year, its revenue has gone down by 4.4% compared to the same period of last year from €37.516 billion to €35.873 billion. It also reflected a 24.6% net loss amounting to €3.025 billion.

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About Author

Giancarlo Perlas

Giancarlo Perlas is an economist by profession with a career spanning nearly two decades. His professional journey has seen him assume vital roles in various government and private organizations, particularly in the blockchain and cryptocurrency sectors. Alongside his civic and corporate pursuits is his love for cars, particularly those made by Mercedes-Benz. In 2012, he found himself with like-minded individuals within BenzInsider. From then on, he used the platform as a way to share his passion with the automotive community. Follow his Facebook page at, X (formerly Twitter) @giancarloperlas, and IG @benzinsider. View all posts by Giancarlo Perlas →

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