New Direction, Wrong Direction

Sometimes I wonder how people stay afloat.  Here’s the latest example:

Mercedes’ upcoming baby-G was supposed to be the cute, chunky electric-only gateway into G-Class ownership. But the automotive market is changing fast, and so are Benz’s plans, as it reacts to cooling demand for EVs in some markets, especially for its own electric cars. As a result, the boxy SUV will now come with hybrid power.

Internally nicknamed Little G, Autocar reports, the compact, GLB-sized, two-row off-roader is due in 2027 and will still be available as a pure EV. But a companion hybrid model is now in development, using the turbocharged four-cylinder from the latest Mercedes-Benz CLA sedan.

The change speaks to a wider reset inside Mercedes. The company has stepped back from its earlier EV-only plans, with CEO Ola Källenius confirming it will keep selling combustion models well into the 2030s to stay flexible across different markets. Tepid demand for the electric G-Class has, by most accounts, helped concentrate minds.

Okay, I would ordinarily be crowing at MB’s total stupidity in chasing after the Net Zero-inspired push to all–electric-and-only-electric mantra, and gleefully pointing at their corporate privates at having to change course.  Been there, done that.

But here’s where stupidity crosses the line into gibbering idiocy, because about that four-banger they’re going to use?

The hybridized 1.5-liter unit is designed by Mercedes and built by Horse Powertrain in China, a joint venture involving Geely and Renault.

So much for that vaunted German engineering and manufacturing prowess, hey?

Now let’s just talk a little about MB’s other idiocy, this time in marketing:

After years of speculation and teasers, Mercedes-Benz’s smaller G-Class is finally edging closer to production, The compact G-Wagen sticks closely to the blocky proportions of its full-sized counterpart, aiming to carry over much of its tough, go-anywhere character.

Shrunk in scale but not in identity, it’s being positioned to take on Land Rover’s downsized Defender in the growing premium off-roader market.

The whole point of the G-wagen is that it represented a badass vibe:  mil-spec toughness, powerful engine, and serious offroad capability.  The fact that it had the aerodynamic qualities of a brick and used gasoline faster than you could throw it out the window in 5-gallon cans was just another middle finger to the eco-fairies, and the G-wagen’s stratospheric price made its target market all the more likely to be use it mostly in suburban commuting rather than where it outperformed almost every other UV on the market:  in challenging offroad adventuring.

In short, the G-wagen was always just an exercise in conspicuous consumption (both of money and of fuel), as was (and is) the Range Rover.

What I find quite risible is that MB is going to use the “Baby G” (good name, guys) to compete with the effeminate new version of the Defender (on which I have poured scorn before).

Here’s what’s going to happen:  Baby G is going to cannibalize sales from Big G, not from the Defender.  And as Big G’s sales start to dip, the marketing rationale for Big G will likewise start to erode until MB has to pull it off the market.  And the massive profits currently earned by Big G will be replaced by the much-smaller profits from Baby G.

You heard it here first.

Leave a Reply