Mercedes-Benz bets on luxury drivers embracing electric vehicles

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German automaker Mercedes-Benz expects luxury car buyers to help drive the transition from internal combustion engines to electric vehicles in the coming years.

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The company is seeing a trend towards electric vehicles and aims to be carbon dioxide neutral by 2039. All Mercedes models will have electric versions by 2025 and become fully electric only after this year. As well as being better for the environment – as automakers look to cut CO2 emissions – Mercedes understands it can also be a better business decision.

Mercedes delivered around 31,000 electric vehicles in the first two quarters of 2022, but admitted that it was mostly selling electric vehicle models during the rest of the year. Meanwhile, production will continue to ramp up as fast as possible – a difficult feat given current semiconductor shortages and other logistical issues – although the company expects an easier time in 2023.

As Mercedes-Benz CEO Ola Kallenius noted in a statement to CNBC’s Jim Cramer during a keynote at the CNBC ESG Impact conference: “Step by step we see the market turning. I truly believe that in this decade we will go from being based on high-tech internal combustion engines to being electric, if not all-electric, dominant in the segment. luxury.”

It may take a while, but Mercedes is confident that its customers will jump on the EV bandwagon at some point.

Kallenius added: “As long as you give the customer a product that is superior to what they had before, they are open-minded for a change… The experience for the customer in terms of torque, performance, everything is fantastic.”

In the immediate term, Mercedes will continue to sell traditional ICE models alongside its new electric vehicles for the next few years. In August, the company began production of its first electric SUV, the EQS, at its factory in Tuscaloosa, Alabama.

Mercedes has also partnered with Rivian to develop two different electric vans for use in Europe. Going forward, more partnerships are possible as the company seeks to become a leader in the nascent market.

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