Ever since Tesla started to implement price cuts, EV manufacturers have been embroiled in a price war. However, Mercedes sees no point in this tactic and will not participate under any circumstances.
This is what CEO Ola Källenius says InsideEVs. The CEO sees nothing in the strategy Tesla and other car manufacturers use: “In every market you are always looking carefully for the ideal price point, taking into account supply and demand. Drastic price changes do not suit a brand like Mercedes.”
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The electric car market is currently struggling. According to Källenius, this is partly due to the high inflation, which means that potential customers have less money left over and are less willing to pay the price difference between cars with a combustion engine and EVs.
No ifs and buts
The economic situation is therefore anything but ideal for the transition the automotive industry is undergoing. Nevertheless, there is no doubt at Mercedes about the direction it has taken: “The destination is very clear to us: the automotive industry must become completely emission-free. As far as we are concerned, there are no ifs and buts possible there.”
However, that does not mean that Mercedes no longer uses combustion engines. According to Kallenius, the Stuttgart brand can maintain a model range for the time being with both EVs and cars with a combustion engine. “We can go with the market,” says the CEO. “This applies to Germany, China and other locations in the world, for example. We have production flexibility. But we are preparing for a future with significantly more electrification.”
One of the first
Mercedes was one of the first major car manufacturers to make it clear that it was working towards a fully electric model range. As early as 2019, parent company Daimler announced that it wanted to have a completely emission-free fleet by 2039. What followed was a stream of electric cars like the Mercedes EQA, Mercedes EQB, mercedes eqe in Mercedes EQS.