What are the projections in electric cars of two giants of the automotive industry Code List


Mercedes bet everything on electric cars and announced that by 2030 it will only sell this technology in Europe

Almost a year and a half ago, one of the first big brands to announce its full conversion to electricity was Mercedes Benz. He did it through his CEO, the Swede Ola Källenius, who announced in July 2021 an investment of 40,000 million euros exclusively to develop the electric platforms that would allow it to have at least one electric model in each segment in which they have products by 2022, and from 2025 only launch new cars under that technology. The announcement said that from 2030, Mercedes will only sell battery-powered cars in Europe.

In volkswagen Something similar happened, although with the date set at 2033 as the time when new non-electric models will no longer be manufactured for the European continent. But the process at the VW Group’s parent company was a bit more traumatic, because in the midst of its digital expansion, with the successful ID.3 and ID.4 on the streets, they had to undergo a change of command when the CEO who pushed for accelerated electrification, Herbert Diess, went out of business and was replaced by the same CEO at Porsche, Oliver Blume.

The commitment of both German companies was very clear towards the new mobility powered by batteries, but even anticipating the deadline that the European Union that it poses to manufacturers, who will no longer be able to sell cars with Thermal motors since 2035. However, while the numbers are good, neither company seems to have managed to meet the 2022 goal for electric cars.

Herbert Diess was the driving force behind the VW Group's electric outpost and stepped down last September.  The bet is very big and quite risky and not all the numbers seem to give as expected REUTERS/Fabrizio Bensch/File Photo
Herbert Diess was the driving force behind the VW Group’s electric outpost and stepped down last September. The bet is very big and quite risky and not all the numbers seem to give as expected REUTERS/Fabrizio Bensch/File Photo

The economic situation of European countries has been affected by unexpected inflation and a major energy crisis, which creates a scenario in which many users have decided to postpone it out of caution or have not been able to achieve their personal goals directly, which It has led them to opt for more affordable brand cars instead of making the leap to expensive electric ones in general.

Although a year ago, VW’s two electrical products positioned themselves strongly against the advanced tesla, reality seems to indicate that today they are the fourth group in sales of cars with this technology, behind the Elon Musk brand, the Chinese BYD and the North American General Motors. In fact, news has recently broken of an almost certain postponement of the ambitious project. Trinitythe ultra-modern platform designed only to build long-range electric cars and the ability to reach Level 4 autonomous driving.

Tesla continues to be the leading brand in sales and profitability in Europe, and that is the parameter that the large manufacturers have.  REUTERS/Hannibal Hanschke/File photo
Tesla continues to be the leading brand in sales and profitability in Europe, and that is the parameter that the large manufacturers have. REUTERS/Hannibal Hanschke/File photo

For Mercedes the picture is not very different. Its goals of overtaking Tesla may not yet be met. Between January and September, the electricity market only grew by 1.9%, according to Bloomberg, and the same source ensures that the Stuttgart brand ranks 16th in the ranking of products that work exclusively with batteries worldwide. Without going very far, outside of Europe, Mercedes appealed for a reduction in prices of their electric cars in China due to low demand in recent months. And the price drop was substantial, since the most expensive models, those of the EQS line, reached up to 32,000 euros, which is between 21 and 25% of the previous price.

The data that generated this decision is that so far this year until October, Mercedes has sold 12,000 units of electric models of its entire range, while the local LITTLE BOY registered 10,059 cars in October alone.

China is the world's largest automotive market and Mercedes decided to lower the prices of its electric cars by up to 25% in search of improving sales.  REUTERS/Aly Song
China is the world’s largest automotive market and Mercedes decided to lower the prices of its electric cars by up to 25% in search of improving sales. REUTERS/Aly Song

the investments in product development, in electric mobility technologies and in software for its implementation, coexist with those that must continue to be done to give continuity to the current models, which are the ones that maintain constant and stable income for the coffers of the automotive companies.

The bet must be very well evaluated and that is why some projects such as the autonomous driving project that both Volkswagen and Ford have been doing together since 2019 have been dissolved, to convert these gigantic investments into technology that the user can buy and enjoy today. Finding balance is not easy with variations of a so unstable economy and one supply chain still in crisisand that it could be extended for at least another 12 months.

The big brands have a “back” to support this heavy load that they have imposed, but even so, the CEO of one of the most important groups in the industry had to step aside since his great motto was to give the jump to full electrification in no time. For everyone it will be a matter of understanding that the steps cannot be longer than the stride.

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