Mercedes-Benz Gears Up for Electric E-Class
Mercedes-Benz has confirmed plans to introduce a new all-electric E-Class model, signaling a significant move in its electric vehicle (EV) strategy. This launch is part of a wider product offensive that will see dozens of new or updated models rolled out by 2027.
It’s possible that the new electric E-Class will replace the EQE model. The company previously replaced the EQG designation with the G 580 for its electric G-Class before it hit production. Considering the EQE’s performance hasn’t met expectations, a fresh start with a new name and updated technology seems plausible.
Mercedes-Benz has announced the product offensive, which begins this year with the CLA. The initial launch of the CLA will be electric, with a mild hybrid version following. This new generation will utilize a flexible approach to vehicle design, allowing components from the CLA, such as electric motors, battery modules, and control units, to be used in other vehicles, including the all-electric E-Class.
One key distinction from the CLA is how these vehicles will be categorized. While the CLA will offer both electric and internal combustion engine (ICE) or mild hybrid options on a single platform, the higher-end models such as the C-Class and above will have separate platforms for their electric and combustion versions, even if they appear very similar externally. This approach allows each type of vehicle to maximize its strengths, without sacrificing features like space or efficiency.
Mercedes-Benz aims to offer a consistent design language across its range. Customers will choose a model first, then select their preferred powertrain. This contrasts with the past, where customers in the E-Class segment were faced with distinct choices between the conventional E-Class and the EQE.
The product offensive also encompasses a new electric GLC. By 2027, Mercedes-Benz expects over 30% of its sales to be xEVs (electric and plug-in hybrid vehicles), driven in part by such new BEV models. According to CEO Ola Källenius, Mercedes aims to leverage its full potential through its largest-ever product and technology campaign, complemented by a comprehensive performance enhancement program.
Despite these ambitious plans, Mercedes-Benz is facing some financial challenges. The 2024 operating result decreased by 31% to 13.6 billion euros, while sales dropped 4.5% to 145.5 billion euros. Passenger car margins declined from 12.6% to 8.1%. The company anticipates further sales and turnover declines this year. To counter these trends, Mercedes-Benz is responding with its model offensive and production adjustments.
Although no German plants are slated for closure, production volumes will be capped at 300,000 vehicles each. More vehicles will be manufactured in countries with lower labor costs, increasing from 15% presently to 30% by 2027. For example, production in Hungary, where costs at the Kecskemét plant are 70% less than in Germany, will increase.
