Mercedes-AMG commits to next-gen V8

One of the world’s most recognisable automakers is being forced to ditch EV plans and slash costs after a costly fail.

Mercedes has joined the ranks of manufacturers putting the brakes on electric cars, even promising to bring back V8s in a bid to win back customers.

The luxury giant has promised to introduce “a next-generation, hi-tech electrified V8” in premium models.

The cars rumoured to receive V8 power include a larger spiritual successor to the Mercedes-AMG C63 Coupe, a car that delivered thumping V8 grunt to thousands of muscle car fans.

It should come as welcome news to folks not inspired by the sophisticated but less visceral Mercedes-AMG C63 that swapped V8 power for a four-cylinder hybrid engine.

The Mercedes-AMG C63 S E-Performance is a relatively rare sight on the road.

Company spokesman Markus Schäfer says the company “will excite our customers with a full rollout of uncompromising cars”.

Those will include new V8 models – but also an all-electric SUV similar to Tesla’s Model Y, in a next-gen Mercedes-Benz GLC.

Mercedes will cut costs by 10 per cent and reduce production from 2.5 million to somewhere between 2.0 and 2.2 million vehicles in the next two years.

Harald Wilhelm says the new direction for Mercedes will ensure a viable future for the company. Picture: AP

Mercedes chief financial officer Harald Wilhelm said the cuts will “ensure that the company can weather an even more dynamic geopolitical environment as well as challenging markets”.

Noting that EV sales have not been as strong as expected, the company said the adoption of electric cars “will continue to be determined by market conditions, infrastructure and customer needs”.

Mercedes sales in Australia fell by 5.5 per cent in 2022, 9.3 per cent in 2023 and 17.8 per cent in 2024, driven in part by a switch to a fixed-price “agency model” and a simplified range of better-equipped, more expensive models.

Photo of the Mercedes-Benz EQS SUV. Picture: Thomas Wielecki

The brand is not alone in reviewing its commitment to electric cars.

Porsche recently revealed plans to invest €800 million ($1.3b) in conventional combustion engines following slow sales for its electric cars.

The company is even rumoured to be working on a way to introduce petrol engines for the all-electric Macan SUV and battery-powered Porsche Boxster sports car currently under development.

BMW has reassured petrolheads that the next M3 performance car will be built in two forms – as an electric vehicle, and a combustion-powered car with a traditional six-cylinder engine.

The slowing uptake of electric cars isn’t restricted to the top end of town.

Volkswagen has softened its stance on the future of petrol powered cars and Chevrolet reportedly pulled the pin on an electric successor to the Camaro sports car – possibly due to the underperformance of Ford’s Mustang Mach-E.

Ford’s Mustang Mach E GT Performance. Supplied

Suzuki president Toshihiro Suzuki recently told investors “the sales situation of BEVs is not favourable, particularly in Europe”.

Tesla recorded a particularly severe European sales drop in January, with sales in Germany and France falling by 59 per cent and 63 per cent.

Argus market analyst Dylan Khoo told Business Insider that “the big picture is a shrinking EV market across Europe. But Tesla is shrinking faster than that, and in specific markets, it is outpacing that decline”.

Originally published as Mercedes-AMG commits to next-gen V8