KEY POINTS

  • Mercedes to make more electric vehicles and hybrids
  • Mercedes made more sales last year than BMW AG
  • Mercedes plans to produce upwards of 50,000 EQC vehicles this year

 

Mercedes has revealed they are considering adding more plug-in hybrids to their AMG performance car lineup as the automaker seeks to balance customer demand for power with government pressures when it comes to meeting strict emission regulations.

It would appear that Fleet customers have responded to the growing list of hybrids for sale, ranging from compacts to full-size vehicles.

Mercedes sales chief, Britta Seeger claimed that over the past 12 to 18 months, they had seen a change in the mindset of customers as people are becoming more open to electric and hybrid vehicles.

He added there is potential for AMG to grow in that sector, especially with the upcoming GT-4 Door Coupe.

Traditional automakers are rethinking the market as they continue to confront the emission regulations, changing technologies, and competition from rivals like Tesla and new tech industry entrants.

The future seems uncertain for particular brands such as AMG, who are reliant on the significant power their models provide to attract wealthy customers and Mercedes enthusiasts.

Daimler’s main auto manufacturing unit had a turbulent 2019, which saw record amounts of global deliveries though the profit margins were squeezed and the regulatory costs increased.

In the profit warning, the company claimed on Wednesday that legal expenditure related to diesel cheating allegation also harmed the year’s results.

There was good news, though, as Mercedes Benz outsold BMW AG during the past year. Demand for upscale vehicles proved to be resilient as opposed to the general market, which is a trend Seeger expects to persist even as the tariffs and geopolitical tensions keep manufacturers on high alert.

Fully electric AMGs will be considered at one time. The unit is going to test the waters with the GT-4 Door, and the plug-in Protect One, scheduled for 2021.

It is going to supplement a 1.6-liter V6 engine with four electric motors allowing it to accelerate to 200 km/h in 6 seconds. The EV mode lasts for 25 kilometers only.

Mercedes plans to produce upwards of 50,000 EQC vehicles this year. According to a spokesperson from Daimler, the target is still unchanged, which dismisses a report from the media that claimed the objective because of battery supply bottlenecks.

However, the profit margins from the hybrid and electric vehicles are lower for traditional cars. The maintenance of price discipline to avoid discounts is going to be critical for Mercedes Benz to project returns. Seeger stated that it would be essential to make sure there are profitable growth and not just sales volume.