Mercedes-Benz introduces CLA electric vehicle to compete

Ola Källenius, the CEO of Mercedes-Benz, shared insights about the company's new CLA sedan during its unveiling on March 13. The CLA is the only electric vehicle (EV) Mercedes plans to release this year. Following the launch, Källenius expressed optimism, especially as Tesla's sales have fallen significantly in Germany. In February, Tesla experienced a 76 percent drop in sales in that market. The CLA sedan, which is expected to cost around €10,000 more than Tesla’s Model 3, aims to attract customers shifting away from Tesla. The new vehicle comes with an advanced operating system, known as MB.OS. Källenius stated that this could help lure buyers from both traditional rivals and new entrants in the EV market. Despite facing challenges, such as a decline in sales both globally and in China, Mercedes-Benz is focusing on innovation. The company sold 1.98 million vehicles in 2024, down slightly from the previous year. The CEO mentioned that appealing to younger consumers in China is crucial, as the average age there is about 40 compared to 50 globally. Mercedes plans to offer a variety of vehicles, including combustion engines alongside electric models. Källenius emphasized that it makes sense to continue producing both types of vehicles to meet market demand. The CLA has a driving range of 492 miles and can charge up to 200 miles in just 10 minutes, addressing common concerns about EVs. Though the gas-powered 2025 CLA starts at about $44,000, the electric version may cost around $10,000 more, making it important to manage pricing effectively. Källenius hopes for a positive approach in trade negotiations, considering Mercedes’ long history and investment in the U.S. market, which he sees as vital for the company's growth.