Mercedes-Benz's ambitious and extremely expensive offensive in the world of electric mobility continues to crack under the pressure of harsh market reality. After years of aggressively pushing battery alternatives and trying to convince its traditional customers that the sound of exhaust gases can be replaced by digital simulations, even the highest-ranking figures in the German giant have begun to openly express their disappointment. Tensions in Stuttgart have reached a boiling point, and the reason for another serious tremor turned out to be the long-awaited all-electric successor to the sports icon AMG GT 4-Door, as revealed in a material by Motor1.
Inside sources from the kitchen of the German manufacturer reveal shocking moods in the board of directors. A high-ranking manager bluntly stated to the authoritative German magazine Manager Magazin (originally quoted by The Autopian platform) that this expensive electric sports car “should not have existed”. However, the problem is not a lack of engineering precision, but the fact that the project has passed the point of no return. Unlike competitors such as Honda, which quickly spent billions of investments and froze three of its future electric platforms, Mercedes found itself too deep in the development trap. The Germans had already spent over $1 billion on the creation of the sports platform for the electric AMG models alone, which made stopping the project an economic suicide.
However, this amount seems almost insignificant against the backdrop of the colossal costs of developing the huge EQS and EQE SUV models, which, according to publications, amount to approximately 5 billion euros. The entire strategy for creating the luxury electric EQ family was initiated and strongly pushed by CEO Ola Källenius. His main goal was to pursue the rapid growth of Tesla shares, adjusting the brand's centuries-old history to the rapidly changing fashion of Wall Street. However, the result of this hasty decision turned out to be a sobering slap in the face.
According to the detailed report by the German publication Manager Magazin, the catastrophic decline in sales of EQ models in 2024 by as much as 90% has shown unequivocally that the luxury audience categorically rejects these plastic and impersonal forms. Inside the company, these models are now openly defined as “the biggest failures in the brand's history”, the unnamed director told the media. However, in order for the loss not to be complete, Mercedes is trying to readjust its compass on the move. Analysts add that the new electric CLA, which is already on the market at a much more affordable price, as well as the luxury VLE van for the American market, are the brand's first timid attempts to get out of the trap it has gotten itself into with its high-end experiments.