Mercedes-AMG Electric GT Faces Internal Executive Criticism
A senior executive at Mercedes-Benz has reportedly voiced significant concerns over the introduction of the electric AMG GT, stating that the vehicle's very existence is questionable and that its development could no longer be stopped. This internal dissent highlights growing skepticism within the luxury automaker regarding its electric vehicle strategy, especially in the wake of reported substantial losses. The company's electric EQ models, in particular, have been identified as major missteps, with sales experiencing a dramatic decline.
Mercedes' Electric Ambitions Hit a Roadblock with Internal Backlash and Sales Decline
In a recent development shaking the automotive world, an unnamed Mercedes executive, as cited by Germany's Manager Magazin and subsequently reported by The Autopian, declared that the electric AMG GT “shouldn't even exist,” lamenting that the project had progressed too far to be canceled. This candid revelation underscores a deep-seated frustration within the company's leadership regarding its electrification push. The timing of this statement coincides with alarming figures: Mercedes-Benz's EQ electric vehicle lineup reportedly suffered a staggering 90% drop in sales during 2024. This precipitous decline has led the company's board to reportedly label these models as the "biggest failures in the company's history."
The financial implications of this strategic misstep are considerable. Reports indicate that the development of AMG electric vehicles alone has incurred costs exceeding $1 billion. This figure pales in comparison to the estimated 5 billion euros (approximately $5.7 million USD at 2026 rates) invested in the broader EQS and EQE SUV models. The initial push for these electric vehicles, spearheaded by Mercedes CEO Ola Källenius, was reportedly motivated by a desire to compete with Tesla's soaring market valuation.
While other manufacturers, such as Honda, have chosen to cancel electric vehicle projects, absorbing billions in development costs, Mercedes found itself too deeply committed to halt production. This predicament leaves the German luxury carmaker grappling with not only significant financial losses but also a palpable internal struggle over its future direction in the rapidly evolving electric vehicle market. The company is now faced with the challenge of navigating these internal and external pressures while striving to regain market confidence and chart a more successful course for its electric offerings.
This incident offers a crucial lesson for automotive manufacturers: the transition to electric vehicles, while inevitable, must be approached with meticulous planning, realistic market assessments, and agile decision-making. The Mercedes-Benz situation demonstrates that even established industry giants can miscalculate market demand and product desirability in the face of rapid technological shifts. It emphasizes the importance of balancing innovation with practicality, ensuring that ambitious projects align with consumer preferences and economic realities. Moving forward, Mercedes, and indeed the entire industry, must learn from these challenges to build electric futures that are both desirable and commercially viable, rather than rushing to emulate competitors without a solid internal consensus and market understanding.