Mercedes is gradually sliding into a troubled period as declining sales, driven by weak demand in China, have prompted the company to issue a recent profit warning. Highlighting this weak demand, Mercedes has recently cut several models from its lineup, most notably the GLE and GLC coupe SUVs. As the Chinese automotive market shifts rapidly toward an all-electric future, Mercedes remains entangled in its legacy of internal combustion engine (ICE) vehicles.

While Mercedes publicly promotes its commitment to electric vehicles and sustainability, behind the scenes, the company is lobbying the EU to slow down its net-zero goals, which aim to effectively ban ICE engines within the next decade.

Even without mandatory emissions regulations and climate objectives, electric cars will eventually surpass the internal combustion engine era due because the economic realities are pointing that way.

Mercedes is in panic mode, this week the Mercedes CEO, Ola Kallenius flew to Beijing to forge deeper technological partnerships that can boost sales and compete with the burgeoning Chinese electric vehicle market.

Kallenius, who has made several trips to China this year, is seeking to enhance Mercedes’ appeal to Chinese consumers,especially for the upcoming launch of its next-generation electric vehicle. 

By partnering with local companies specializing in mapping, in-car entertainment, and other technologies, Mercedes aims to make its battery-only CLA, the first model on its new electric architecture, more competitive and desirable.

However, for Mercedes, it might already be too late. China’s shift toward an electric vehicle future cannot be disrupted by legacy European automotive brands attempting to capitalize on a transition that China is leading.