Mercedes exec calls electric version of iconic SUV a 'complete flop'

A Mercedes-Benz executive has described the new electric version of one of its most iconic models as a 'complete flop' that dealers are struggling to shift.
It is reportedly being outsold seven to one by the petrol variant of the same SUV model, which for years has been a massive hit among celebrities and especially professional footballers.
The car in question is the G-Class - or 'G-Wagon' - which has been reinvented for an electric generation with the arrival of the £154,870 'G580' EV last year.
Only 1,450 examples have been delivered since its launch whereas the £133,500 gas-guzzling alternative continues to prove popular among well-heeled clients who snapped up 9,700 units over the same period to the end of April, German business newspaper Handelsblatt claims.
It reported that one exec said: 'The car is sitting like lead at dealers; it's a complete flop,' as they referenced its poor sales performance amidst a wider EV slowdown.
Mercedes-Benz earlier this year announced plans to bring more new petrol and diesel cars than electrics to market for its new product range in a bid to revive margins as it braced for a sharp drop in earnings in 2025 on the back of stalling EV sales.
The German paper claims another Mercedes 'manager' had attempted to defend the small sale volumes of G580 EVs, saying it is a 'niche model' with 'very low' production output.
This is Money contacted Mercedes-Benz, with a spokesman telling us: 'The G-Class continues to prove popular.
'The G-Class achieved its best-ever sales quarter in Q4 2024 and continued its strong sales performance in the first quarter of 2025 with sales up 18 per cent compared to last year.
'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.
'Our customers decide what suits them best. This applies also for the G-Class.'
The G580 was first unveiled last April. It is on sale in the UK for £154,870, which is a £20k mark-up on the petrol version
In keeping with its 45-years tradition, the new all-electric G-Wagon has a ladder-frame chassis.
It uses a huge 116kWh battery that provides energy for four e-motors located near the wheels to produce 579bhp.
However, because of its extra half-tonne of bulk over the petrol alternatives, it is 0.4 seconds slower to 62mph (4.7 seconds for the G580) than the burbling 4.0-litre twin-turbo V8 G63 AMG and its 112mpg top speed is down on the AMG's 149mph.
The additional heft of the battery pack also limits the electric G-Class' full-charge battery range, which is just 292 miles, according to the WLTP test cycle used in the UK and Europe.
This is almost 200 miles shy of its CLA electric saloon's market-leading single-charge range of 492 miles - and that's from a car costing from just £45,000.
In the US, one of the G-Class' biggest markets, the G580 EV's EPA-certified range is even lower, at just 239 miles.
Other factors are limiting the G580's appeal to customers include its steep premium over a six-cylinder internal combustion engine variant, a disappointing maximum payload of just 415kg and the lack of a practical towbar as an option.
Handelsblatt also reported this week that the disappointing demand for the electric G-Wagon has forced Mercedes to rethink plans for a smaller model Junior G-Class variant.
The forthcoming 'Little G' has been rumoured for 2027 and had been expected to launch exclusively with electric power.
However, Mercedes could now make it available as a hybrid as part of a wider strategy to push more combustion engine models into the market in the coming years.
In February, the Stuttgart luxury car maker said it will release 19 new combustion engine models and 17 battery-electric cars by the end of 2027, in a sign of a renewed focus on the former after its EV sales collapsed by a quarter last year.
Most of the new models will be in its top-end price tier, showing its commitment to its strategy of selling a lower volume of higher-margin vehicles, despite some investors and labour representatives expressing concern in recent months that the strategy had failed.
'The strategy of value over volume remains in place - it has not been abandoned,' CFO Harald Wilhelm said earlier this year, adding it was good news for its margin that combustion engine cars were still far outselling EVs.
Daimler-Benz first introduced the original G-Class in 1979, having developed the off-road in partnership with Steyr-Daimler-Puch in Austria.
Originally called the 'Wolf', it was designed as a robust military off-roader capable of taking on all terrains.
But in more recent times, the SUV has become the choice of footballers, celebs and social media stars wanting to show off their vast wealth and love of enormous - and hugely powerful - vehicles.
There have been a number of oddball modified examples too, not least the six-wheeled G63 6x6 and the Project Mondo G built in collaboration with premium coat company Moncler, which ultimately put a puffer jacket on a Mercedes G-Class.
Car makers scrambling to adjust EV strategies
Mercedes is among a raft of car makers grappling with a slower-than-expected uptake of EVs.
On Wednesday, Volvo Cars confirmed it had sold 59,822 cars in May, down 12 per cent year-on-year, primarily due to a lack of EV appetite.
The Swedish car maker, majority-owned by China's Geely, said in a statement that sales of fully electric cars fell 27 per cent to account for a fifth of its total sales volumes.
It also confirmed in May that it will cut 3,000 mostly white-collar jobs - around 15 per cent of its global workforce - as it contends with a slowdown in EV demand, higher operating costs and trade uncertainty triggered by US President Donald Trump.
Volvo UK declined to comment to This is Money when asked how many UK jobs could be impacted.
Legendary Italian marque Alfa Romeo has also hit headlines in recent days following reports from sources that it has delayed the launch of its new electric Stelvio SUV, which was due to go into production this year at its Cassino vehicle plant in central Italy.
Reuters said on Thursday that insiders had suggested it has been postponed to 2026 as it 'reassesses its strategy' amid tepid demand for electric cars, with the likelihood it will also be sold with hybrid power.
This would follow a similar strategy used by other Stellantis-owed brands, including Fiat, Citroen, and Jeep.
Fiat will make available a hybrid version of its latest 500 from next year, despite promises to only sell it as an EV. It also made a last-minute call to do the same with its bigger 600 last year.
The Citroen C4 X and Jeep Avenger - also both promised to be EV-only - now have hybrid powertrain options too.
This is Money contacted Alfa Romeo too.
A spokesperson on behalf of the bran told us: 'Stellantis has announced, through a company spokesperson, that it is working on an update to its plan for Italy.
'The plan includes an expansion and reshaping of activities in the country, in light of current market conditions, uncertainties surrounding EU regulations, and the impact of tariffs.
'A constructive dialogue is underway in the appropriate forums.'

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