It smells like a campfire outside my window, which is true for many people living in the United States right now. I’ve been told that out-of-control Canadian wildfires are to blame, though I’d also believe the scent is emanating from Stuttgart, where a German business magazine just lit up the company and its CEO. Sabrina Carpenter voice: Oh boy.
When everyone was pledging to go full-EV or nearly full-EV by 2035, Ola Källenius had a different plan. Mercedes was going to shoot for 2030, and the EQS, EQE, and related SUVS were going to lead the way. The problem, as any regular Morning Dump reader will know, is that those products weren’t very good, and even if they had been good, the market in the United States wasn’t there. What’s a CEO to do?
General Motors is the 2nd largest EV seller in the United States, albeit a distant second behind Tesla. How many new EVs can we expect in the coming years? Uh, just the one, actually. General Motors has plenty right now and needs to pivot back towards making sedans and other cars. Still, GM has to be ready for China, because China is coming, according to Bill Ford.
That’s heavy. Let’s lighten it up a little. Do you like 7-Eleven? Do you like cars? I’ve got great news for you.
‘It Was Too Late To Stop It’
So far as I know, no one from The Autopian was invited to the Mercedes launch for the AMG GT EV in Los Angeles, even though our company is based there. Hopefully it wasn’t because we’ve written a fair bit of criticism about their product line, about the AMG GT, and about their claim to have invented the car; I like the brand and I generally like the cars, so that would be kind of a bummer.
Will this stop us from reporting on their woes or writing honestly about how we feel about them? Of course not. To paraphrase the other Michael Bolton: Why should I change, they’re the ones who…uh, are having some challenges.
It seems like our collective groan at the new electric AMG GT was shared by at least one executive at the company as reported by Manager Magazin‘s Margaret Hucko, who wrote this morning about the tenure of Källenius and the launch event:
“This car shouldn’t even exist,” one of the Mercedes executives fumed. “But it was too late to stop it.” The electric GT was already too far along in its development. The same applies to the two electric derivatives. First, a high-performance SUV will hit the market next year, followed by an SUV coupé.
According to the Manager Magazin report, the push to make fast EVs for AMG has already cost over $1 billion. The whole Mercedes effort to make EVs has been strange and stands in contrast to BMW, which has just quietly built decent electric cars without making a big deal out of it. So far this year, Mercedes has only reached an 11.6% share of BEVs, whereas BMW is at 17.7%. KRS One voice: A real thug is a thug that’s hush.
Allegedly persuaded by Tesla’s stock price, Källenius went super hard on the concepts of luxury and electrification, at the expense of either mass market models or gas-powered profit centers like vans. It’s how we ended up with the expensive and objectively mediocre EQS. [Ed Note: To be fair, pretty much every automaker saw Tesla’s stock price and proceeded to set billions of dollars on fire trying to chase it. Also, I like the way the new AMG GT looks. It’s wacky, and I like wacky. -DT]
There’s some more gossip in the piece specifically around the EQS and a reminder that Källenius was involved there, too:
But Källenius’s passion for eco-friendly vehicles also came to an abrupt end in late 2023. When the supervisory board met to review the 2024 plans, sales of the EQS and EQE electric sedans had plummeted by 90 percent. Källenius, then head of development, had spearheaded these models, hoping they would usher in a new era for the company. Mercedes had invested around 5 billion euros in the development of the EQS, EQE, and two related SUVs alone, with billions more spent on manufacturing, marketing, and all the associated costs. But now the disaster was obvious to the board members. “It was clear then that these cars were the biggest failures in the company’s history,” says one board member who was present at the time.
Yikes!
This is a rough report for Källenius, and I want to be fair because he’s getting a second swing at some of these vehicles and they seem good. The Mercedes-Benz VLE van looks awesome and is apparently more than decent. The new CLA is also extremely promising and maybe, maybe, we’ll eventually get to drive one.
GM’s Only New EV Will Be The Hyundai Van Thing
There’s a story in Automotive News about how GM, which is very EV-heavy, is going to consider building more hybrids, sedans, and other vehicles that’ll make the market happy (and that the company probably shouldn’t have stopped building). What jumped out at me was the revelation that GM is slow-rolling EVs so much that it’ll only have one debut the rest of this decade.
GM’s plans to launch new EVs this decade largely have been pushed back or canceled. A commercial van codeveloped with Hyundai is now the only new EV expected to be released by GM through 2030. But it will make some updates to current electric models, including a redesigned Equinox EV around 2028.
That van looks super cool, though, and I think GM’s brands have the EV market fairly well covered when you consider they’ve got everything from a new Bolt up to a Celestiq. Ariana Grande voice: I want it.
Bill Ford Admits Chinese Cars Can’t Be Kept Out Forever
China continues to be an existential threat to the automotive industry, and it’s likely that some sort of bipartisan support will push a bill to effectively ban Chinese car sales will become law sooner rather than later. Does that mean we won’t see Chinese cars ever? Ford Exec Chairman Bill Ford doesn’t think that’s realistic:
“We have to go toe-to-toe with China,” said Bill Ford, the automaker’s executive chair, at an Axios event in Washington, D.C., on Tuesday. “We can’t expect to keep them out forever, and we have to be able to beat them at their own game.”
As reported by the Wall Street Journal, Bill Ford also acknowledged that politics sure is making the making of things hard:
“Ford, the great-grandson of company founder Henry Ford, said Tuesday that U.S. plans must include an industrial policy that keeps the country competitive with major automotive hubs like China, Japan and South Korea. It must also be able to withstand policy changes ushered in by elections, he said.
“Our lead times are longer than political lead times,” Ford said. “I think an industrial policy that is a bipartisan one—which, as I say today, even saying that might sound difficult—we really need that.””
Kacey Musgraves voice: Yup.
Check Out This Sweet 7/11 GT-R Hot Wheels
Is 7-Eleven actually cool or have I just been Larry Chen-pilled? Either way, 7-Eleven is having a moment, and the latest clothing/accessories/fashion collection from the brand will include this handsome GT-R. From a press release:
This year’s collectible puts the spotlight on the high-performance 2017 Nissan GT-R (R35), a legendary model beloved by car enthusiasts. The model features a sleek white wrap with 7-Eleven’s iconic logo on the hood and sides, creating the kind of die-cast livery collectors love to discover.
Charlie XCX voice: Vroom vroom.
What I’m Listening To While Writing TMD
I would accept the argument that the Sophie-produced “Vroom Vroom” from Charlie XCX is sound-forward that we really haven’t quite caught up to it yet. Man, I miss Sophie.
The Big Question
What’s the best car Mercedes currently makes?
Top photo: Mercedes-Benz
Definitely my favorite Charlie XCX song. Her music isn’t generally my vibe, but Sophie was someone special for sure.
I just barely bought the 7-11 Supra. I think its much nicer looking than that GTR unfortunately.
TBQ: Whatever the cheapest G-Wagen is, I guess. Nothing else in their stable is remotely appealing compared with competing vehicles in the same segment. At least the G-Wagen is distinctive.
Mercedes is the official conveyance of idiots with bad taste around here. I see SO MANY EQS shitboxes because “can’t be seen in a Kia”
You think that people in @ $100K EQS’s even considered a Kia?
That’s funny.
Let’s see . . . We could do the wine pairing with the tasting menu at Le Bernadin . . . or we could just hit the Taco Bell drive thru after the opera.
The depreciation on the EQS is pretty savage, so I could see someone cross-shopping a used one with a Kia.
One of the richest people I know (think private Italian villa vacations) drives a 2009 Prius with a door dent.
Most people I see driving $100K EQS’s really should have considered a Kia, given that they can’t seem to afford to pay for a) tires that aren’t bald b) fixing body damage bad enough that plastic is dragging on the road c) windows either totally spiderwebbed or completely busted out.
You are that wasn’t an Altima?
No, it wasn’t doing 105 on a donut, so Big Altima Energy is out.
“What’s the best car Mercedes currently makes?”
The parts that Mercedes still makes for the W123 platform.
Thanks a lot. Now I’m going to have to go down the eBay rabbit hole. Maybe David will fly up to help me put it together?
If not the W123 or the WWII Jeep then how about a BMW 2002?
(Caveat, this is actually from January 2007 so dunno what the situation is like now some 20 years later) BMW showcased how it was possible to build a 2002 that was around 90% new using factory parts that they were still producing: https://classicmotorsports.com/articles/2002-redo-building-new-bmw-2002/
If you go the 2002 route make sure to have the hood, trunk lid, fenders, drivers side floor and footwells and suspension mounts thoroughly inspected for rust. If it’s bad or negative report run away as quickly as you can before it attacks your wallet. I repaired/restored a couple of them many moons ago and it is a slow tedious and expensive proposition.
Olla is a bean counter (nothing wrong with that unless you have no beans left to count) and married to a green activist wife, who by his own admission played a large influence on him when deciding on the electrification of the fleet. Also very much nothing wrong with that either except what was missing was the competence and steady hand to execute this transition. Ouch, ouch and ouch. The results are in, and financially, reputationally and unfortunately politically, the green causes have managed to piss everyone off or straight up nearly drive companies out of business à la VW. Meanwhile it smells like campfire everywhere so hot damn. Go to mars I guess on an xAi driven, spaceX built, and ride in a Tesla rover.
The big problem a lot of the western oems struggling with electrification is they tried to copy Tesla and the Chinese while also pissing off their key demos. GM somehow skirted it, Nissan never had that problem because it was right there with Tesla.
Toyota has skirted it maybe a little too much for some of their demos that had been buying hybrids from them. But looks like they are winning them back.
The French and Italians have done a much better job with it then the Germans. The only German controlled company that really was able to do it right was mini.
I think the most Mercedes Mercedes are their best cars the e class stands out as does the cle / amg sl. GLE and G class are Mercedes enough as well.
The Sprinter, of course.
Interestingly on Kia Canada’s website, they’re listing a van: the Kia PV5
It’s an EV van for under $50k CAD (35USD). 72kWh battery, 400v architecture and you can chose between white, or white.
Nowhere to be found on Kia’s US site. Side-effect of USMCA being ignored by the US that Canada will start seeing forbidden fruit?
Kia brought their vans to at least two Canadian auto shows earlier in the year with plans to bring it in to Canada.
I don’t believe they have really said one thing or another on bringing it to the US . Just no plans when asked directly. While the smaller evs they are bringing in for Canada they basically said the US isn’t getting them. More forbidden fruit for Mexico and Canada.
Latest stats are that EV sales are up 20% this quarter in Canada over last year (and truck sales down).
Whether that’s directly related to the war with Iran and fuel costs, Canadian incentives for EVs, or a larger trend would be something for future statisticians to evaluate.
Ev sales are often called a roller coaster just about everywhere. Evs tend to do well when they are cheap now do especially well when gas is expensive and they are cheap. Even the Chinese were buying erev at higher rates the last few years. It looks like that might have changed as gas prices have increased.
There are definitely a lot of different reasons for what’s happenint in Canada. The population centers appear to want evs especially small cheap evs.
What’s interesting to me is GM EVs have been outselling Tesla in Canada. I bet it won’t take Chinese long to either. The byd Seagull will basically pay for itself in 5 years though energy and maintenance savings over a gas car.
I was in Quebec earlier in the year. Lots of EVs, even in rural areas. Very very few Teslas.
I guess there’s repercussions your CEO supports annexing their country, and doing some shady deals on trying to claim rebates.
I probably walk into a 7-Eleven more often than every other retail establishment combined. The same guys have worked at my local one for so long that we’ve watched each other get old.
The problem with manufacturers doing the EV thing is they thought they’d do a Tesla. But they’re not Tesla. While Musk was in a position to say “Fuck it, I do what I want” the likes of Mercedes-Benz, and more importantly their executives are definitely not in such enviable position. Whatever I think about that shithead now, I cannot deny the dude had the balls, bravado, vision, patience and money to singlehandedly revolutionize the (EV) car market.
The problem w/ Mercedes is they saw Tesla taking their S Class customers for the Model S – So Mercedes decided they needed to compete, which was great.
The problem was Mercedes decided the solution was a Mercedes version of a Model S – jellybean styling, hatchback, big screens and everything for the EQS, and same thing but smaller and a trunk for the EQE – just like the Model 3.
When what Mercedes buyers wanted were EV S Classes and E Classes.
BMW figured it out correctly – and although the 7 Series styling is a horror show, buyers are showing up.
I quite like the style of the current 7. Gives me E32 vibes…
Another problem is that Mercedes also copied Model S build & materials quality. In what was supposed to be an S-Class
You mean quilted leather and star logos everywhere weren’t an upgrade?
Half true – the fact is, Musk just bought his way into Tesla. The actual shit he’s responsible for is hyping the stock and the brand and then subsequently destroying it worldwide. That and the Cybertruck, Cybercab and “Full Self Driving” which it isn’t. Musk is a hype man, but he’s never created anything useful in his life.
I don’t disagree, maybe he did and he is. Edison I hear was an uber asshole as well sometimes stealing people’s ideas as well. But I also don’t think Tesla and maybe even the wider EV industry would be where it is without that asshole. Whether he’s destroying the company now is another matter.
True that he bought his way in. But Tesla was headed a completely different direction before that asshole showed up.
With the help of massive federal subsidies at every step of the way he became the greediest man on earth. Like WOW dude, enjoy your overarching shitiness as a human being. Then again Ford SR was a Hitler backer and the skeletons in most Japanese closets are legion. Perhaps expecting humanist values from massive corporations is a mistake? /s
There hasn’t been Mercedes I would like since the Pagoda.
Best Mercedes? Streeter
COTD
“What’s the best car Mercedes currently makes?”
The E Class – Specifically the E300 Plug-in Hybrid Sedan and Wagon (Non-AMG, Non-4Matic, Non-Soft-Roader) – none of which are sold in the US, of course.
You can get the PHEV in E300 de for ultimate continent crossing ability.
(Unfortunately only available in 4Matic guise though)
Mercedes locked out owners of EQS vehicles from even opening their hoods.
No proper auto manufacturer worth their salt would do such a customer-antagonizing move like that.
That’s reason #72,481 why the Merc EV’s faceplanted so hard. You should check out the whole list.
Most Mercedes-Benz owners never open their own hood.
They have a mechanic for that.
Even if there’s an engine down there which requires maintenance – Which the EQS doesn’t have.
Charlie XCX isn’t someone I listen to, but how is there not a Fast & Furious movie coming out to drop this into‽
TBQ: I’m not a fan of most modern Mercedes designs. I wonder if a retro/throwback could work for the luxury segment like the other manufacturers who’ve tried it (Ford, Toyota)? An EV W123 would turn more heads than a car that looks like it’s 10 years old.
And yet, Honda had already retooled Marysville for the 0 platform, was damn near ready to start production, and killed that product at a loss of $15.5 billion.
Tell me again what “too late to stop it” means…
Came here to point this out. Sunk cost fallacy in action.
This kind of cowardice, mediocrity, and incompetence from execs at this level should be grounds for a quick firing.
Maybe the Mercedes EVs would have been better received if they weren’t weird blobs and you could see out the back window.
Yay the Staria needs to come over here 😀
TBQ- Mercedes-Maybach SL Roadster. Only a cool quarter-million, but I’m sure it’s a sweet ride.
The absolute smothering of that car with Maybach logos on every surface is one of the most gauche things I’ve ever seen though. I’m sure it does the luxury GT convertible thing incredibly well, but I would be so incredibly embarrassed being seen in one.
Having to drive around everywhere with a little purse dog in your lap would get pretty tiring too.
only because the dogs small enough to fit in a purse bark too much 😛
If they’re cute and well-behaved it’s no problem 🙂
I’ve been waiting for an EV commercial van with solid bones and rock bottom depreciation curve. This looks promising.
As far as the best car Mercedes makes? Sprinter or Unimog. Take your pick.
Name checks out.
NOT the current CLA. Rented a car for a 2500 mile round trip, and I was “upgraded” to a “luxury” which ended up a 2025 MB CLA from a “premium” which was supposed to be a Genesis G70. Ended up hating that car for any number of reasons.
Ooh, I’d like to hear what specific things made you hate it. Please, go into gory detail. I’ll make popcorn.
(No, really, I’m actually very interested)
Former MBZ Parts Advisor checking in.
The wet clutch gearbox shifts so rough, it feels like the car is punching you in the back. The throttle is overly mushy until the back half when it will slingshot the car to top speed. The brakes are overly-grabby and the interior feels cheap.
On the mechanical end, the pistons in the early production engines had a tendency to grenade, the wet clutches can bind up, and there was a recall to add and anti-foaming agent to the transmission fluid to keep the transmission from turning into a paperweight.
The petrol CLA or EV CLA? The EV one has received mostly positive reviews. I am really not a huge fan of the direction in which Mercedes is going with their interiors, although I’ve never driven one so maybe they aren’t as bad as it seems.
Ugh, MB interiors are definitely headed the wrong direction IMO. I had a 2026 C-class as a loaner when my 2019 C-class was in for new tires. Same basic car, but the ’26 was somehow cramped and I couldn’t seem to get the seat in a good driving position. Also, the screen was overwhelming the inside of the cabin and the “classy” analog gusges are now computer screens. I’ll take my ’19 over the new stuff all day long.
I have some experience with the W206 and… it’s not that bad. Except for the haptic and touch controls on the steering wheels. Those can go to hell…
This exactly. Add in rough shifts, cheap uncomfortable interior, and the AC had a tough time keeping cool at driving speed, and pretty much stopped completely if in park.
I had a similar experience back in March (but only 500 miles: Chicago to KC). I too should have taken the Genesis!
[Ed Note: To be fair, pretty much every automaker saw Tesla’s stock price and proceeded to set billions of dollars on fire trying to chase it. Also, I like the way the new AMG GT looks. It’s wacky, and I like wacky. -DT]
To be fairer: every European OEM was told they had to go full EV or stop making cars. This wasn’t a choice, this was the only option, until the politicians walked it back a bit too late to save billions of Euros/Pounds.
Well, unless/until they are competitive with the Chinese brands on EVs, the market continues (within EU) to consume EVs.
Continuing to have conflict in the middle-east will only accelerate the trend to move away from ICE.
Mercedes, however, made ghastly EVs. They’re a failure in their own right.
There is no denying that MB have done a terrible job of EVs.
That is kind of true. The EU is pushing electrification via their corporate fuel economy rules that are set in g/km CO2. Miss the target and you have to pay a fine. So while it isn’t economically viable to make a gas Ford Puma in 2035 at the higher end of the market there is still the opportunity to sell the ICE version, pay the fine, and pass the cost to the customer. (Mercedes as done that for decades in the USA by basically ignoring CAFE)
The funny thing about the regulatory rollback of the 2035 target from 0 g/km to 10 g/km CO2 is that the new regulation has hard EV percentages for company and fleet cars sales similar to what CARB was doing with their ZEV mandate. It is massively overcomplicated and the percentage varies by EU country.
I think the automakers that where looking to go EV earlier than required we doing it for the potential cost savings and simplification.
My memory of working in the industry during all of this is senior management chaos. Everyone’s long term model plans got put in the bin, over and over again.
The cost saving included ICE development being immediately cancelled, people lost their jobs. I got lucky and started work on EDUs for EVs instead, which then got cancelled as the deadline moved back/softened. More people lost their jobs.
Oh it has been chaos. We set up a dedicated electric vehicle engineering group, then disbanded it. Build a new green field battery and assembly plant that is basically unused. Cancelled ICE engine programs. Ignored ICE fuel economy because we where going to meet GHG standards with an every increasing mix of BEVs. Based vehicle decisions on the requirement that federal manufacturing credits would push a unprofitable vehicle into the black….
The regulator market has been chaos as has been trade and tariffs.
The best car Mercedes makes is the same as the best car they have made since the 70s – the E-class station wagon. Shame we only get it in the States in the two stupid versions, either jacked up All-Terrain or pumped up AMG.
I just want one with a “simple” ~250-300hp n/a motor, no black plastic slather bullshit, and a normal comfort-oriented suspension with rear load-leveling, just like my ’14 E350 wagon. I’d settle for one of the mild hybrids they sell in Europe though.
Is the USDM C300 different from the EDM C300?
If it isn’t, you have a mild-hybrid Merc there.
We don’t get the C-class wagon here. I have zero interest in sedans.
We do get the 20hp mild-hybrid here. Meh.
>What’s the best car Mercedes currently makes?
The newest GLB, because it best demonstrates how much Mercedes lost its way.
Where luxury is nothing more than lots of screens, blue LED lighting, and logos.
I’ll stick to my 507HP 6.2L M156 in my C204 C63 I’m restoring.
I’ll be evaluating the manual swap option in due time as well.
I’m going with the AMG E53 wagon
No idea if it is actually any good but the fact a 500+HP PHEV wagon exists in 2026 deserves recognition.
Every review I’ve seen of it says the suspension and powertrain are not tuned well and it just seems incredibly half baked, which by current Mercedes standards seems about right unfortunately.
Best current Mercedes is still probably the G-Wagen, which is made by Magna Steyr
Then technically it doesn’t qualify?
“What’s the best car Mercedes currently makes?”
Then it would be the Mercedes-AMG F1 W17 E Performance