Mercedes-Benz is scrapping its plans to only sell electric vehicles after 2030 as consumer demand for EVs remains lower than what automakers projected.
The Verge said that the report showed a stunning turnaround for the German automaker from its pledge three years ago to completely phase out selling gas-powered vehicles by 2030 and to only sell EVs.
“Customers and market conditions will set the pace of the transformation,” Mercedes said in its fourth quarter earnings statement. “The company plans to be in a position to cater to different customer needs, whether it’s an all-electric drivetrain or an electrified combustion engine, until well into the 2030s.”
The report said that the company only expects EV sales to reach “up to 50%” of their total sales by that point, indicating that it could be even less than half.
Tesla CEO Elon Musk, whose company is the world’s second largest EV manufacturer, said that Tesla expects to see significantly slower sales numbers this upcoming year.
The news comes after The New York Times reported earlier this month that the Biden administration was preparing to ease its push to force EVs onto American consumers as consumer demand for the vehicles remains low, dealerships have expressed serious concerns, and automakers have had to cut production and revamp production of gas vehicles.
The report said the move was a “concession to automakers and labor unions” from the administration as it was forcing “limits on tailpipe emissions” to force Americans to switch from gas-powered cars to more expensive electric vehicles — which often have performance issues in adverse weather conditions. The serious lack of charging stations, and the time it takes to recharge electric vehicles, are among other top complaints from consumers.
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Ford announced last month that it was making significant cuts — around 1,400 employees — to the number of workers who produce its once-touted F-150 Lightning truck at the Rouge Electric Vehicle Center due to low customer demand.