Mercedes-Benz admits its G-Class EV is a "complete flop"
Launched last week in Australia, the Mercedes-Benz G580 with EQ Technology, as the G-Class electric vehicle (EV) is called, was revealed in 2024 as the production version of the 2021 EQG concept.
While the G-Class (often referred to as the G-Wagen or Geländewagen) has long been a favourite of celebrities, for many years it's also been inextricably linked with the V8 engine under the bonnet of the brawny Mercedes-AMG G63, which costs a cool $365,900 before on-road costs.
The move to electric power in the lengthily named G580 with EQ Technology has reportedly not only been met with a collective yawn from consumers, despite its significantly lower starting price ($249,000 in Australia), but could also impact the German automaker's future product plans.
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'The car is sitting like lead at dealers; it's a complete flop,' an unnamed Mercedes-Benz executive told German business newspaper Handelsblatt.
'People want a real G-Class – with six or eight cylinders,' reads another quote from an anonymous source.
Another insider had a more glass-half-full explanation, telling the media outlet: 'It's a niche model; production numbers are very low.'
According to the German publication, Mercedes-Benz is now considering launching the upcoming 'little G' – a smaller SUV with similarly boxy styling – with a petrol engine instead of offering it exclusively with electric power.
This model is due for launch in 2027.
This bad publicity over weak demand for the G-Class EV follows the response to the plug-in hybrid Mercedes-AMG C63 S E Performance, which has been dogged by reports of weak demand and heavy discounting in markets like Germany, as well as repeated rumours of a return to V8 power (or at least the adoption of a turbocharged inline six) for AMG's arch-rival to the BMW M3.
Unlike the C63, in which a four-cylinder plug-in hybrid powertrain completely replaced a twin-turbo V8, Mercedes-Benz's electric G-Wagen didn't come at the expense of much-loved combustion-powered variants of the legendary off-road wagon.
To that end, Mercedes-Benz can adjust its production mix to match buyer demand.
'Mercedes-Benz is prepared for all market scenarios. Into the 2030s, we can flexibly offer vehicles with both a fully electric drivetrain or an electrified high-tech combustion engine,' a Mercedes-Benz spokesperson told Motor1.
'Our customers decide what suits them best. This applies also for the G-Class.'
This year to the end of May, Mercedes-Benz has delivered 23 examples of the newly-released G-Class EV in Australia, compared to 133 combustion-powered variants in the same period.
According to Handelsblatt, Mercedes-Benz had sold 1450 G-Class EVs worldwide to the end of April, against around 9700 petrol and diesel G-Class vehicles.
Despite this, a spokesperson told the publication '[we are] on target with our sales figures'.
And despite its high-tech powertrain, the electric G-Class is cheaper than both the combustion-powered G450d and G500 in Germany, though it also lacks a towbar option and has a maximum payload of only 415kg.
But Mercedes-Benz hasn't offered a non-AMG, non-electric G-Class in Australia since it dropped the G400d in 2022, hence the $115,000-plus price gap between the G580 and G63 here.
Powering the G580 are four electric motors capable of producing up to 432kW and 1164Nm, propelling the circa-3000kg SUV from 0-100km/h in 4.7 seconds, and allowing it to perform 'tank turns' on the spot.
A huge 116kWh battery supplies power to the blocky EV, which has a claimed driving range of 473km on the WLTP test cycle.
The twin-turbo V8-powered G63 AMG, in contrast, produces 430kW and 850Nm. It's good for a 0-100km/h time of 4.4 seconds, thanks in large part to weighing around 400kg less than the electric model.
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ABOVE, clockwise from top left: New-generation A6, Q5, Q3, and A6 e-tron Sales in Europe fell 11.1 per cent, in China by 10.9 per cent, and the US by 14 per cent. In Australia, they fell by 19.5 per cent to 15,333. But Audi has been busily overhauling much of its product portfolio. A new Q3 small SUV enters production this year, following the launch of new-generation A5, Q5 and A6 models, plus new EVs in the A6 e-tron and Q6 e-tron. With a much fresher portfolio, Audi will enter 2026 on a more solid footing. Mr Döllner believes as much, telling BILD: "I think we're passing the low point." MORE: Everything Audi Content originally sourced from: Audi's CEO has been candid about the German automaker's performance at the moment, but says a turnaround is imminent. "I don't want to beat around the bush, we have to get back on track now," said Gernot Döllner in translated remarks published by German publication BILD. "We've needed the last two years to clean up." An unnamed source from within parent company Volkswagen Group's board was even more frank, telling BILD that "Audi is our crisis case" and calling its current models "okay – average". CarExpert can save you thousands on a new car. Click here to get a great deal. ABOVE: Audi TT Mr Döllner has a laundry list of things he wants to do to help burnish the brand's image, including more humour in its advertising and more "clarity" in its design. Audi is also looking ahead to an "identity builder" that'll be revealed shortly before this year's Munich motor show in September. It'll be an electric vehicle (EV) but also "a highly emotional sports car – not a TT, not an R8, but something in between". Mr Döllner even said, "I have a gut feeling that we are on the verge of such a TT moment," referring to the impact of the original TT which entered production in 1998. ABOVE: First-generation Audi TT That suggests not only the introduction of a distinctively styled and sporty vehicle, but also one that could set the design direction for the brand moving forward. September's reveal won't be a mere concept car either, with the Audi boss confirming it will enter production. It'll fill a gaping void in Audi's lineup too, as the TT and R8 have exited production and the brand no longer builds any coupes or convertibles. But a new sports car alone won't fix things at Audi. The company, like others within the VW Group, has had to contend with software delays and issues out of the recently reorganised Cariad division. ABOVE: Audi SQ7 As with brands like Porsche, it's also undertaking large-scale cost-cutting efforts. This includes removing a level of management, slashing the number of committees from 130 to 35, and warning more job cuts will come between now and 2029. As Mr Döllner told the publication: "Audi must become a different company." 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Audi recently delayed its transition to being an EV-only brand, with cooling demand for luxury EVs in major markets forcing the move as it has with many other brands. The brand had previously confirmed it would be EV-only outside of China by 2033, but now the goal has been shifted to 2035. After Audi's global deliveries rose 17.4 per cent in 2023 to 1,895,240, they slumped 11.8 per cent in 2024 to 1,671,218. Its EVs also took a 7.8 per cent hit, falling to 164,480 deliveries. ABOVE, clockwise from top left: New-generation A6, Q5, Q3, and A6 e-tron Sales in Europe fell 11.1 per cent, in China by 10.9 per cent, and the US by 14 per cent. In Australia, they fell by 19.5 per cent to 15,333. But Audi has been busily overhauling much of its product portfolio. A new Q3 small SUV enters production this year, following the launch of new-generation A5, Q5 and A6 models, plus new EVs in the A6 e-tron and Q6 e-tron. With a much fresher portfolio, Audi will enter 2026 on a more solid footing. Mr Döllner believes as much, telling BILD: "I think we're passing the low point." MORE: Everything Audi Content originally sourced from:
