‘Baby’ G-Class still coming as Mercedes-Benz scraps EV-only plans

Mercedes-Benz has become the latest marque to backtrack on its “electric-only by 2030” plans in favour of a split strategy involving both full EVs and electrified combustion options comprising hybrids and plug-in hybrids.

New models

In tabling its transformation plan, CEO Ola Källenius said while it will still launch a number of EVs between now and 2027, the so-called Next Level Performance scheme will involve a number of new combustion engine AMG products, plus the incoming all-new CLA.

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Of the key models named, the CLA will be joined, albeit in 2026, by a heavily updated version of the current S-Class and later, EV versions of the GLC and C-Class.

In addition, commitment is reportedly still being given to the so-called baby G-Class, spelled with a lowercase g, last reported in 2023 as being lined-up for a 2026 unveiling.

EQ out?

While no direct mention was made, the roll-out of the electric C-Class and GLC will seemingly spell the end of the dedicated EQ brand, which was reported in 2023 as being in-line for discontinuation in 2024.

Although EQ branded vehicles remain for the moment, a gradual phasing-out has seemingly already taken place, as indicated by the all-electric G580 being officially titled G580 by EQ Technology instead of EQC as it did during the concept stages.

According to motor1.com, the refocusing on combustion engines will lead to the prolonging of the current V8 and V12 engines alongside the comparative EV modules earmarked for higher-up and AMG products.

Cost-cutting

Along with cost-cutting measures totalling 10% until 2027, a streamlining of design languages will be undertaken, as well as a ramp-up in safety and driver assistance tech.

“Overall, sales are expected to gain traction after dozens of new or refreshed models reach the markets until 2027,” the statement read.

“Through a set of initiatives, Mercedes-Benz Group aims to further leverage growth potential through its direct sales channel, elevate the customer service experience to a new level and to boost revenue quality”.

Announcing its outlook for 2025, the three-pointed star said, “revenue in 2025 to be slightly below the prior-year level.

“In a market environment that remains challenging, group earnings before taxes and interests is expected to be significantly below the previous year’s level resulting out of divisional guidance”.

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