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Mercedes-Benz is going ahead on the launch of its new leading electric sedan with the launch of its second significant plug-in car: the E-battery-powered Class’s sibling.
The EQE sedan, like the EQS, that Mercedes began taking reservations for last month, is constructed on a new dedicated electric vehicle foundation rather than modified combustion engine underpinnings. The concept from the ground up must result in increased range and interior space.
Mercedes believes that the EQE, which will make its debut at this week’s Munich auto show, will build on the success of the EQS, which was well-received by analysts who test drove prototypes prior to its April reveal. Since then, Daimler AG’s main business has planned a huge push towards electric vehicles, pledging to invest more than 40 billion euros ($47 billion) on electrifying its entire product line this decade.
The luxury-car leader’s shift to battery power was rocky at first, partly because early versions like the EQC sport utility were more costly than the combustion cars on which they were based.
In a letter to customers weeks ago, Metzler Bank analyst Juergen Pieper stated that the EQE must help boost sales growth, income, and margins.
Electric vehicles, which are becoming more widely available, “have the potential to alter the mood to the positive,” according to Pieper.
The industry could need a lift in morale.
Because of the worldwide semiconductor shortage that has wrecked production plans in previous months, auto stocks have quickly flipped from top performers to lagging Europe’s benchmark index. Mercedes has warned that deliveries will be severely hurt this quarter, and the company is still grappling with extended delivery delays for several models.
“The issue has grown even larger with the plant closures at semiconductor providers in Malaysia and elsewhere,” Daimler Chief Executive Officer Ola Kallenius told Automobilwoche in an interview posted Sept. 2. “Our third-quarter revenues are projected to be tangibly lower than the 2nd period.”
In July, Daimler lowered its Mercedes-Benz sales estimate, forecasting deliveries to be about in line with 2020. It had been anticipating rapid expansion.
Mercedes is able to fund its transition to electric vehicles thanks to strong underlying demand and high profits, which will involve the launch of 3 new all-electric platforms in 2025 and the establishment of eight battery facilities with partnerships. Because consumers have more spending power and the ability to charge their vehicles at home, the firm anticipates premium automobiles will go electric sooner than inexpensive vehicles.
Mercedes will introduce five completely electric vehicles and one new hybrid model at Munich, Europe’s first motor show since the outbreak. A Mercedes-Maybach design idea will be one of the purely rechargeable automobiles, indicating how the company intends to attract well-heeled consumers in the ultra-luxury category.
Mercedes will be focusing more on bigger premium automobiles with better incomes, according to Kallenius. He’s nearing completion on Daimler’s major reorganization, which will see the company’s vast truck division spun off later this year. Mercedes-Benz Cars will keep a 35 percent interest in Mercedes-Benz Trucks, the world’s greatest commercial vehicle manufacturer.