As automakers and suppliers invest heavily in electric vehicle (EV) capacity and technology development, the actual demand for EVs has yet to catch up, leading carmakers to adjust their production plans accordingly. The luxury carmaker, Mercedes-Benz, just revealed its first-ever electric truck, the G Wagon, or the G580 with EQ Technology.
This development is anticipated as the German automaker announced in 2021 that it would make all-electric vehicles by 2030. However, the carmaker had undergone a recalibration in this commitment.
Mercedes-Benz Adjusts its Roadmap to 2030
Mercedes-Benz is adjusting its electrification strategy, slowing down its timeline to go fully electric by 2030.
Initially, the German luxury automaker had set ambitious plans in motion, committing €40 billion ($43 billion) in 2021 to phase out combustion engines and focus solely on electric vehicles (EVs) by the end of the decade. This strategy aligned with EU regulations aiming to ban new gas and diesel vehicle sales by 2035.
In detail, here are the company’s original climate targets and progress.
However, recent developments indicate a shift in gears.
The company’s blueprint outlined a goal for half of its vehicle sales to be electrified (EVs or hybrids) by 2025. Now, this target has been postponed to 2030. This adjustment reflects the current reality where fully battery-powered vehicles constituted only 11% of Mercedes’ sales in 2023, rising to 19% when including hybrids.
This shift underscores the company’s pragmatic approach amidst evolving market dynamics.
Mercedes-Benz’s recalibration aligns with industry trends, as other automakers like Ford and General Motors have also revised their electrification strategies in response to changing consumer demand for EVs in the U.S. and Europe.
Even the EV giant, Tesla, reported a dip in profits with lower EV sales for this year’s first quarter.
Other factors in the changing EV landscape include reduced government subsidies, rising electricity costs, and insufficient public charging infrastructure. These factors contribute to a deceleration in customer demand for EVs.
Moreover, governments are reevaluating their timelines for banning the sale of combustion-powered cars. The EU settled on a 2035 cutoff but pledged to explore synthetic fuels as an alternative. Similarly, the UK shifted its ban from 2030 to 2035 last year.
Charging Ahead: Mercedes-Benz’s Electric G580
The company now emphasizes that the pace of the transition to electric will be dictated by customer demand and market conditions. Investors have responded positively to Mercedes’s announcement, coupled with news of a $3.2 billion share buyback, resulting in a more than 5% increase in the company’s stock price.
The carmaker’s current plans for updates suggest a significant evolution. Still, Mercedes-Benz reaffirms its commitment to electrification by continuing to innovate and make high-tech EVs like the electric G-Class Wagon.
Here are the key features and specifications of the company’s new fully-electric truck:
- Design and Development: The electric G-Class, known as the G580 with EQ Technology, maintains the iconic G-Class design while being powered by a battery. It retains the ruggedness and off-road capability of its combustion engine counterpart.
- Electric Powertrain: Has 4 electric motors, one for each wheel, delivering a total output of 579bhp and 859lb ft of torque. The motors are paired with a two-speed gearbox for each, developed specifically for the G580.
- Performance: Boasts impressive off-road performance, matching or exceeding the capabilities of the petrol-powered G-Class. It features a shiftable low-range transmission and offers up to 100% gradeability on certain surfaces.
- Battery and Range: Comes with a 116kWh battery, shared with the EQS, offering a claimed range of 292 miles. The batteries are integrated into the frame, serving as a structural component. The battery pack is protected by an underride guard that acts as a skid plate when off-roading.
- Charging: Can be fast-charged at speeds of up to 200kW, allowing for quick charging times.
- Sound Experience: Offers a “G-Roar” function providing an emotive sound experience in the cabin, enhancing the driving experience.
Overall, the Mercedes-Benz G580 with EQ Technology combines the legendary off-road capabilities of the G-Class with electric power, contributing to clean transportation and reducing emissions.
Joining Forces for Climate
The luxury carmaker has joined the climate protection initiative “Transform to Net Zero” (TONZ). Led by Microsoft, TONZ brings together nine renowned companies from various industries and countries to promote the conditions necessary for the broad decarbonization of the economy and society.
Moreover, through initiatives like Ambition 2039, Mercedes-Benz aims to achieve a “net zero CO2” new car fleet within less than 20 years, extending beyond driving operations to include the entire value chain.
The commitment to climate protection aligns well with Mercedes-Benz’s new strategic focus on high-margin luxury cars. Today’s luxury car customers prioritize climate protection, seeking solutions that combine fascination with responsibility.
Mercedes-Benz aims to maintain its technological leadership role in electric drives and digitalization as exemplified in G580 with EQ Technology, reflecting its dedication to providing innovative and sustainable mobility solutions.