Automotive News Canada - June 2023 - 4

4
* JUNE 2023
What's 'beyond' for
Mercedes-Benz?
Dealers get a look at a mix of eight electric
and internal-combustion vehicles in the product
pipeline, and a sense from the company that it
will slow its EV pace and introduce hybrids
as part of the electrification transformation
By DOUG FIRBY
CALGARY CORRESPONDENT
MERCEDES-BENZ APPEARS TO BE
pumping the brakes on an ambitious transition
to electric vehicles, say Canadian
dealers who attended a North American
retailers meeting in Vancouver in midMay.
The
company cited consumer hesitancy
over expensive electric vehicles in an economy
that has been dampened by higher
interest rates and price
inflation of housing and
consumer goods, they
said.
McManes:
EVs aren't
popular in
every market
and certainly
not in the
cold of his
home city
of Calgary.
FILE PHOTO
" Electrification, we're
all eager for it, " said
Perry Itzcovitch, dealer
principal of MercedesBenz
Downtown in
Calgary. " But people are
value-conscious. Interest
rates have gone up, and
people are a little tighter "
with their money.
Jim McManes, dealer
principal of MercedesBenz
Country Hills in
Calgary, said he heard
from company representatives
that the automaker
is not making the transition
to EVs as quickly as it had initially
planned.
" They have come to the realization that
consumers have a role to play in this decision, "
McManes said. " They have to listen
to what consumers want. Many just can't
afford electric vehicles. "
Zak Paget, a spokesman for MercedesBenz
Canada, would not confirm a less
aggressive strategy and said the company
does not comment on private meetings
with dealers. He did say that statistics
suggest the momentum for its battery-electric
EQ vehicles is building.
" In Q1 2023, Mercedes-Benz Canada
" We are in the middle of a
transformation, " said Dimitris Psillakis,
Mercedes-Benz USA CEO. Dealers who
attended a North American retailers'
meeting in Vancouver saw " how
products and technology support " the
company's transition to all-electric
vehicles. PHOTO: MERCEDES-BENZ
set a new quarterly sales record for
Mercedes-EQ vehicles, " Paget wrote in an
email to Automotive News Canada, adding
that the target dates for electrification
are unchanged. " Led by the EQB SUV [136
units retailed], the company retailed a
total of 332 Mercedes-EQ units. "
The automaker's Ambition 2039 document
reinforces that " we want to offer
all-electric vehicles wherever market conditions
allow, " Paget said.
McManes said not all markets in
Canada are sold on the technology,
" Calgary included, where EVs aren't that
popular.
" It gets 30-below [Celsius] here, " he
said in reference to reduced electric range
in winter.
ALL-IN ON ELECTRIC
In mid-2021, Mercedes-Benz
announced that it would spend 40 billion
euros (Cdn $58 billion) between 2022 and
the end of the decade when the automaker
plans to have an all-electric lineup.
Paget said the company's supervisory
board has since approved an investment
plan for the years 2022 to 2026 of more
than 60 billion euros (Cdn $87.7 billion).
From 2025 forward, every new product
architecture will be electric-only, the
company said.
Mercedes-Benz's annual North
American dealer meeting, themed
" Beyond, " offered an early look at what
follows internal combustion. More than
350 U.S. and Canadian retailers attended.
" We are in the middle of a transformation, "
Dimitris Psillakis, MercedesBenz
USA CEO, told sibling publication
Automotive News. " We showed how
products and technology support the
strategy. "
Dealers McManes and Itzcovitch
heard Mercedes-Benz representatives
say the company had been overly aggressive
on its all-electric strategy will put
greater emphasis on hybrid vehicles
as well as support its vehicle lineup of
internal-combustion engines. Itzcovitch
said there was an emphasis on more-affordable
vehicles.
" For a while there, every car company
thought it was invincible, but we're
going into a new business model and a
new economy. It's a wake-up call for all
of us, " he said.
" [The company is] going to be more
nimble and adjust to what the market
dictates. "
EIGHT VEHICLES SHOWN
Dealers at the two-day event were presented
eight vehicles, including the redesigned
E-Class sedan, AMG SL 43 roadster
and Maybach EQS SUV.
Also unveiled was the electric CLA
sedan and GLC crossover, indicating the
automaker could drop the EQ branding
for its EV lineup.
The compact CLA, arriving next year,
is expected to provide 400 miles (about
640 kilometres) of maximum battery
range.
Sources described the sedan as larger
than the combustion-engine CLA but
with a sleeker profile. The interior carries
over the digital-first cockpit design of
Mercedes-Benz's current electric models.
The electric CLA will be the brand's
conquest vehicle for the EV age, aiming
to snag Tesla's young, tech-focused customers.
Itzcovitch:
People
want
EVs, but
interest rates
and inflation
are making
them more
" valueconscious. "
SUPPLIED
PHOTO
The
electric GLC is a successor to
the EQC electric crossover,
which was to be
Mercedes-Benz's first
mass-volume EV in
North America. That
launch was scuttled
because of the limited
range, which was
deemed inadequate
for the market. It will
arrive next year with
about 300 miles (480 kilometres)
of range and a
new design.
A dealer described the
GLC as having rounded
front and rear bodywork
as opposed to the boxier
styling of the combustion-engine
variant. The
EV had a pair of power
domes on the hood and a light signature
running across the front.
The automaker's light commercial
vehicle unit also got the spotlight: a battery-powered
Sprinter will come to North
America this year. A luxury midsize passenger
van and a range of electric RVs
will follow.
At the meeting, Mercedes also revealed
a large cargo van concept named
Sustaineer, with range-extending solar
panels on the roof. It's expected to arrive
in 2025 with a 275-mile (440-kilometre)
range. - ANC
- With files from Urvaksh Karkaria
of Automotive News
Programs geared to address shortage of skilled workers
Once trained,
participants will
transition into the
automotive workforce
By GREG LAYSON
DIGITAL AND MOBILE EDITOR
ONTARIO IS SPENDING $4.7
million on free training to help
people land full-time jobs in the
province's emerging electricvehicle
field.
The money will fund two
programs designed to provide
roughly 360 participants with
skills in machine operation,
assembly, quality control and
logistics, while also preparing
automotive technicians.
The first project, managed
by the Automotive Parts
Manufacturers' Association
(APMA), will include threemonth
paid job placements
through a network of more than
300 of its members.
Job seekers, including those
from underrepresented groups,
will complete online and handson
training focused on manufacturing
essentials, health and
safety, effective oral communication,
planning, troubleshooting
and other critical industry skills.
After completing the program,
each participant will
transition into full-time employment.
APMA
President Flavio Volpe
said the auto industry " continues
to face labour shortages "
and this program will help fill
jobs.
" Through our Diversity,
Equity and Inclusion program,
we are able to support employers
in their efforts to access,
train and retain meaningful
employment for new hires who
may have been historically
excluded from these careers, "
he said in a statement May 24.
The second project, managed
by the Automotive Industries
Association of Canada (AIA),
will help 90 technicians and
70 other job seekers gain the
skills needed to transition to
and launch careers in the electric-vehicle
industry.
Training will be offered at
Conestoga College (Guelph
Campus), Fanshawe College
(London Campus) and St.
Lawrence College (Cornwall
Campus) and will consist of
in-person classroom and shop
components.
" Getting our workers the
skills they need and more
people into the automotive
trades is essential, " said JeanFrançois
Champagne, president
of the Automotive Industries
Association of Canada.
Money for both programs will
be drawn from the $700-million
Skills Development Fund
Lauren Tedesco, the APMA's
senior vice-president, called the
fund " a thoughtful approach to
building up our resilient workforce
while investing in the next
generation of auto workers. "
Monte McNaughton, minister
of labour, immigration,
training and skills development,
said auto jobs of all kinds " are
meaningful, well-paying, and for
many people, offer a path to a
better life. " - ANC
Dealers who attended the annual Mercedes-Benz retailers meeting were
shown the redesigned E-Class sedan. Canadian dealers interviewed said
the automaker intends to continue its support of internal combustion.
PHOTO: MERCEDES-BENZ
Automotive News Canada - June 2023

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