Mercedes Braces For Profit Nosedive As EV Models Become Mainstream

Everyone’s doing it. It’s as popular as the fidget spinner and Pokémon Go crazes all those ~~years~~ months ago. In a rush to signal their environmental bonafides and display their dedication to the Next Big Thing, luxury automakers are tripping over themselves in an effort to promise an all-electrified model lineup as soon as technology and finances allow.

This time, it’s Mercedes-Benz. The world’s oldest car brand doesn’t want its rivals cashing in once governments around the globe start turning off the fossil fuel taps. So, earlier this week, Daimler CEO Dieter Zetsche stepped up and made a promise we’ve heard ad nauseum as of late: every model in the brand’s lineup will soon sport some form of electric propulsion, be it a hybrid setup or full-on battery electric powertrain.

For Mercedes-Benz, this means 50 hybrid or EV models, including at its irrelevant-to-Americans Smart brand. The move isn’t without a steep cost, however — Daimler is bracing for a slashing of vehicle profit margins. In some cases, the green collected from green cars could be half that of a gasoline Benz. What to do?
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carloslassiter - 9/14/2017 11:09:56 AM

-7 Boost

Interesting.

Honda copies the widely panned Model 3 dashboard, and now Mercedes is saying that electric vehicles will be far less profitable.

Based on the genius comments in here I thought Elon Musk was a bad businessman and his company was headed for bankruptcy, now it appears the rest of the industry is falling all over themselves to copy his vehicles and business model.

Holydude - 9/14/2017 2:20:30 PM

-2 Boost

I wouldn't pay too much attention to most of the comments in here, this site is populated by various geriatrics who still long for stick shifts and ICE engines and are afraid of any changes or challenges to their habits or ways of thinking that they will go to any length to discourage innovations. Hmm.. sounds like much of the current president's supporters...

MDarringer - 9/14/2017 6:36:05 PM

+3 Boost

There is no reason for Mercedes' profits to nosedive.

CANADIANCOMMENTS - 9/14/2017 9:41:20 PM

0 Boost

True MD. Mercedes, BMW, Porsche etc don't do low margin. EVER. If you want the EV offering they will bring to the market, it will not be cheap nor will it be unprofitable for the firm. S-Class BEV will happen. Bring money. Lots of it.

MrEE - 9/16/2017 3:42:53 AM

+1 Boost

Means they cannot compete with Tesla without low to negative margin. With normal markup their sales will be near zero and will be be viewed as failure, much worst for company future. GM offerings have been assessed as a loss on each Volt and Bolt, but worth it to enable gas guzzler sales and to be prepared for the future.