Mercedes-Benz announced on Thursday that the next iteration of its entry-level sedan will debut as an all-electric vehicle before offering a hybrid version. The company will no longer sell a gasoline-only model of the car.
This strategy represents a significant departure from the conventional approach of Mercedes and other established automakers. Historically, most manufacturers have adapted vehicles designed for internal combustion engines to accommodate battery power. However, the new Mercedes CLA sedan, unveiled in Rome with the assistance of rapper will.i.am, exemplifies how at least some established carmakers are now developing electric vehicles first, then adapting them for customers who still prefer gasoline engines.
The CLA, which will be the first of over two dozen Mercedes vehicles to utilize the same underlying technology, signals a shift towards electric vehicles among many global carmakers. This comes despite ongoing efforts by Republicans in the United States to potentially weaken legislation introduced under the Biden administration, which aimed to promote battery technology.
However, in the face of uncertain demand for electric vehicles and evolving government policies, Mercedes is hedging its bets by offering hybrid models. These combine traditional gasoline engines with smaller batteries and electric motors.
“If the world isn’t predominantly electric by 2030, we at Mercedes-Benz, as an established manufacturer, can’t afford to abandon a substantial portion of our revenue,” stated Ola Källenius, the Chief Executive of Mercedes, in an interview in Rome. “So, yes, you could view it as a hedge.”
Mercedes did not reveal the price of the new CLA but indicated that it would be priced competitively with the existing model, which starts at $45,000 in the United States. The company plans to integrate components from this vehicle into sport utility vehicles and a station wagon in the future.
