Why do Mercedes-Benz EVs evaluate it as a “failure” overseas?
German automakers are struggling in the electric vehicle market. Foreign media reports say that it is still difficult to evaluate as successful compared to a huge goal.
Automotive News, a media outlet specializing in automobiles, recently reported that Volkswagen and Mercedes’ “electric vehicle ambitions” have faced difficulties. They announced bold electrification goals, but they have not yet achieved them.
According to the media, Mercedes-Benz has announced that it will target the high-end electric vehicle market in China. It plans to switch its portfolio to electric vehicles as much as possible by 2030 and expand its position in China’s luxury car market.
The same goes for Volkswagen, which announced its grand plan in the same goes for Volkswagen. Volkswagen has announced a plan to invest the industry’s best funds in R&D for electric vehicles.
But the results are not good enough. For now, Mercedes-Benz cut the price of its large flagship sedan EQS EV by about $33,000 in China. This is because it misjudged the market. Volkswagen also said it plans to delay its major Trinity flagship electric vehicle project for at least two years.
In response to Mercedes-Benz and Volkswagen’s move, the media said, “German car companies trying to steal electric car crowns from Tesla have turned to failure.”
German car industries such as Mercedes-Benz and Volkswagen are spending more than 100 billion euros on next-generation electric vehicles such as electric vehicle platforms, battery factories, and software infrastructure expansion. This could be a risk signal for German cars, which are spending unprecedented amounts of money on converting electric vehicles.
Michael Dean Bloomberg Intelligence pointed out, “German automakers claim to be announcing bold electrification goals and leading the conversion, but they are not yet realized,” adding, “They still have a long way to go.”
Axel Schmidt, global director of Accenture’s automotive division, said pessimistically, “It is hard to deny that they can make good cars, but we are not sure that the 120-year-old hardware manufacturer can master the complexity and quality required for software.”
“German cars seem to be making a little mistake recently,” said Matthias Schmidt, an automobile industry analyst based in Berlin. “Internal perfectionism can be the worst enemy and slow down innovation in a rapidly changing electric vehicle environment.”