“While we will expand the electrified portfolio towards a share of more than 50 percent of global sales by 2030, our investments in combustion engine development will decline quickly and the number of combustion engine variants will fall by 70 percent by 2030,” Daimler R&D chief Markus Schäfer said in a statement.
From 2025, additional models will be added on a second dedicated electric platform, the Mercedes-Benz Modular Architecture (MMA) designed for compact and medium-sized cars.
Mercedes electrification ambitions have run into problems in the critical U.S. market, where customers remain largely skeptical of the new technologies.
The automaker has delayed plans to launch its first EQ model — the EQC crossover — in the market until next year.
Mercedes’ pricey EV bet will also have implications for the brand’s U.S. dealers.
“The pricing structure on EQ vehicles is going to be a pivotal discussion,” said Jeff Aiosa, owner of Mercedes-Benz of New London in Connecticut, who also is the National Automobile Dealers Association brand representative.
“The margins for the manufacturer are lower on EVs than with (internal combustion engine) technology. How and if that effects dealer margin is unknown.”