Mercedes Benz Canceled New EV Platform
Mercedes Benz says that it has canceled its new electric car platform because EV sales haven’t gone the way they thought they would.
Apparently there’s a slowdown in their electric car sales, but Mercedes Benz is, I’m sorry, my friends, in my opinion, completely lying.
Global and China EV Sales Trends
I think the real reason they canceled their new electric car platform has absolutely nothing to do with sales and everything to do with what they’ve been telling us over the last twelve months, what they’ve been saying about China, what they’ve been begging the European Union to do.
Why are they saying all this stuff? Constantly trying to get the European Union not to put tariffs on chinese EV’s and chinese batteries.
China dominance in Mercedes Benz’s profits
Unfortunately, none of the global media have read between the lines. They’ve just printed this real nonsense from Mercedes Benz.
Now to give you some context, EV sales this year are up about 20% versus last year worldwide.
the most important car market for Mercedes Benz anywhere in the world is without a doubt China.
There’s not even a question, if you’re to question that, you just don’t like logic. Mercedes Benz makes more profit in China than anywhere else.
So that’s its most important car market. So for Mercedes Benz to come out and say they’re going to cancel their new EV platform because of low demand, when EV sales in China have never been higher, they’re nearly 50% of all car sales in China right now.
It clearly flies in the face of any kind of real logic and there’s more to this story. I can almost guarantee you the Mercedes Benz at some point in time going to very quietly reveal the true reason for why they canceled their EV platform.
Germany vs. China
it has nothing to do with electric car demand. German media outlets have reported that Mercedes Benz has stopped work on a dedicated electric car platform designed for large vehicles after sales of its existing cars have slowed.
The MBEA platform was intended to underpin electric follow on versions of the current Mercedes Benz EQE and EQS electric sedans.
Apparently the vehicles would have been produced in 2028. So clearly you can already see some gaps in logic here.
Mercedes Benz is saying, oh well, today EV sales have slowed down, therefore we’re not going to bring out a new EV platform four years from now, in 2028.
That obviously doesn’t make any sense and I think starts to prove my point, which is this. Mercedes Benz has no intention of not manufacturing EV’s because it has no choice.
I mean, if it doesn’t,doesn’t manufacture larger electric cars, then its sales will collapse.
Over the last three months alone, Mercedes Benz deliveries worldwide have gone down. Global car sales have actually increased this year.
Mercedes Benz deliveries have decreased. The key reason for Mercedes Benz delivery is declining is it’s simply this. It doesn’t sell enough electric cars.
Mercedes Benz know this, but the biggest reason it canceled this platform is simply because it was a german platform to build to come up with this new german EV platform.
Comparison Audi, Volkswagen, and Stellantis
It’s probably three to four times more expensive than doing it in China.
So basically, Mercedes Benz is seeing what Audi is doing, it’s seeing what the Volkswagen group is doing, it’s seeing what Stellantis is doing.
And it’s like, why are we paying these engineers in Germany to do something they don’t know as much about as we can pay for in China at a fraction of the price? It’s really that simple.
Mercedes Benz is obviously telling investors, telling the german government, it’s nothing to do with the fact that it’s too expensive to do in Germany.
It’s obviously our german engineers, they’re good, but they’re not as good when it comes to electrification as these chinese engineers who are working for a fraction of the price.
Impact of cost-saving measures: $7 billion savings
Mercedes Benz says the impact of the project will save it around $7 billion. So realistically, it’s just going to save a whole lot of money because it’s going to do it in China.
A second version of the platform, called the MBEA medium, was being developed for the EQC sedan, with the platform part of an ambitious plan to offer electric vehicles of every model, including the G Class four WD.
In February 2024, the german carmaker said it had revised the electric vehicle targets it announced in 2021.
Market Performance and Strategic Shifts
Those saw a goal of 25% of its sales in Europe to be EV’s by 2025.mercedes has given up on that because they.
They believe that, well, they don’t really want to do that anymore.
The reason they don’t want to do that anymore is because have a look at their profits this year, you start selling more electric cars, and if you can’t manufacture lots of them or you don’t manufacture them as cheaply as the Chinese do, you start to make less profit.
Profit margins and the economic
That’s the biggest reason here, all these big automakers saying EV sales are going down when they’re actually telling honestly, this information is very easy to find out.
They can find out if EV sells are going down, which they’re not actually going up significantly.
It’s easy for them to find this stuff out.
But the truth is they’re just saying this because it sounds like the right thing to do. They’re saying, oh, no, no. The reason we’re not making more EV’s is we care about the environment.
But where can you say about the customer? It’s basically Toyota,It’s a Toyota phrase, giving customer choices when Toyota doesn’t obviously offer any choices, any realistic choices in most parts of the world, if you want a Toyota Ev.
Mercedes Benz sold 77% more electric cars globally in 2023, compared to 2022. But in the first three months of the year, they sold 462,978 vehicles, versus 503,000 in the first three months of 2023.
And considering this year, vehicle sales for the first three months of the year are about 15% higher than the first three months of last year.
That means Mercedes Benz is clearly going backwards when it comes to vehicle deliveries, and they’re actually going backwards when it comes to profit as well.