Mercedes is choosing to invest in ‘high-tech combustion’ over total EV future

  • Mercedes is changing its priorities
  • The automaker will keep spending money on gas cars
  • Its all-electric future will take longer to arrive

Published on Jul 01, 2024 at 2:05 PM (UTC+4)
by Siddharth Dudeja

Last updated on Jul 02, 2024 at 11:25 AM (UTC+4)
Edited by Tom Wood

Mercedes-Benz, like most other major automakers, jumped on the all-electric hype train when it was cool, but it’s now made sense of what’s what — which is why Mercedes is now shifting millions of its R&D budget towards internal combustion engine (ICE) cars over a fleet of EV models.

The German automaker aspired to be an all-electric brand within the next decade, but the love for gas cars couldn’t let it push through.

But the esteemed carmaker isn’t the only one reversing its choices, and EVs might just need more public appeal.

That is, before completely replacing the good ol’ ICE cars.

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The all-electric future will take longer to arrive

Everyone has been buying an EV only recently.

Hence, the possibility of an all-electric market in the coming years seemed real.

However, it only lasted so long because, as trends do, it cooled off.

Electric car sales took a dive, and some EV owners are now unhappy with their purchases.

As a matter of fact, a chunk of people who still use gas cars committed that they would never buy an electric.

Mercedes CEO Ola Källenius told German magazine Wirtschaftswoche that ICE cars will last “well into the 2030s.”

This could mean that the all-electric commitment that most automakers made might not last.

Since the automaker’s boss himself believes gas engines are going to stay for a longer time, then why not keep spending more to keep these cars in the game?

Moreover, Mercedes isn’t the only one wanting to keep ICE cars alive.

Mercedes likes electrics, but gas cars will stay for now

Volkswagen is spending billions of dollars from its R&D budget on gas cars.

Ferrari also committed to keeping its V12 combustion engine alive as long as possible.

It’s important to note that Mercedes doesn’t not like electric cars, but has now realized how to properly transition its lineup.

The brand’s recent launches, including the electric G-Wagen, are promising candidates.

The German automaker still wants to keep creating hybrids and all-electrics but in a realistic matter.

Källenius further added that it still wants electric cars to amount to half of its total sales by the end of this decade.


Siddharth Dudeja

Siddharth is a tech nerd with a secret love of all things cars. He has been writing for a few years now, and on his free time you would find him gaming when he's not procrastinating.