German luxury automaker Mercedes-Benz is backing away from its commitment to fully transition to Electric Vehicles (EVs) by 2030 amid weak sales, shifting back to gas-powered cars that remain in demand among car buyers.
According to Bloomberg UK, Mercedes-Benz CEO Ola Källenius told shareholders on Wednesday that the automaker’s “transformation” to EVs “might take longer than expected.”
Källenius had sought to make Mercedes-Benz fully electric by 2030. In July 2021, Mercedes-Benz announced its all-electric push, vowing to shift from an “electric-first” to “electric-only” agenda.
“The EV shift is picking up speed — especially in the luxury segment, where Mercedes-Benz belongs,” Källenius said in 2021:
The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade. This step marks a profound reallocation of capital. By managing this faster transformation while safeguarding our profitability targets, we will ensure the enduring success of Mercedes-Benz. Thanks to our highly qualified and motivated workforce, I am convinced that we will be successful in this exciting new era. [Emphasis added]
Those plans have been slowed as orders for its all-electric sedans have been disappointing and brought margins down to nine percent in the first quarter. Instead, Mercedes-Benz will continue making gas-powered cars past the start of the next decade.
The luxury automaker is not the only one abandoning an electric-only agenda.
In January, Ford Motor Company followed through on plans to scale back production of its all-electric F-150 Lightning pickup truck — cutting it in almost half — over a lack of demand among American consumers.
Meanwhile, late last year, nearly half of Buick dealers across the United States opted to take buyouts from General Motors to avoid having to sell EVs. Car dealers have asked President Joe Biden to halt its EV mandates, citing a lack of demand.
John Binder is a reporter for Breitbart News. Email him at jbinder@breitbart.com. Follow him on Twitter here.