Welcome to the Daily 5 report for Monday, Feb. 24.
In an automotive world annoyingly complicated by convoluted car-naming conventions, we have been forced for years to endure automakers' machinations about what to name their electric vehicles. We're subjected to things like an "IQ" or an "EQ" at the end of an EV name.
At the same time, some automakers and suppliers decided to invent new names based on consultant-inspired nonwords (read: Stellantis, Aptiv, Forvia). We'll come back to that.
So your friends at Automotive News were amused by this story by Peter Sigal of Automotive News Europe, describing how Mercedes-Benz is grappling with its recent decision to stand by existing internal-combustion vehicles.
The story says Mercedes models will offer both full-electric and combustion-based powertrains, in a reversal of a strategy that led to a separate EQ lineup for its E- and S-Class sedans and utilities.
But now EQ will no longer be the main designation for EVs. New Mercedes models will have both electric and combustion versions, with "EQ Technology" used as a label for EVs and "EQ Hybrid Technology" for plug-in hybrids, a spokesman told Sigal.
For example, the full-electric version of the new CLA, coming by midyear, will be called the "CLA with EQ Technology."
Really, we're not making this up.
Mercedes signaled the shift last year to U.S. dealers, who sought more powertrain flexibility amid slow sales of the EQE and EQS models.
One can only take pity on a Mercedes salesperson whose livelihood depends on understanding these naming conventions. It's not an optimaliq way to do business.
Back to Starship Stellantis — dealing with its own word soup of 14 global brands — Chairman John Elkann apparently wants his new CEO to be willing to bite the bullet and kill off some brand names. And here's another telling line from today's story from Reuters: "Low consumer recognition of the Stellantis corporate name, unlike rivals such as VW or Toyota, is another handicap."
It begs the question: Would Elkann's new CEO not only kill brands but change the name of the company back to something recognizable?
Back to EVs, Laurence Iliff's preview today of Lucid Motors' fourth-quarter earnings report highlights a compelling strategic opportunity for the money-losing EV startup. Instead of hemorrhaging billions of dollars building its EVs, could Lucid's business thrive by licensing its highly regarded EV technologies?
As our story says, CEO Peter Rawlinson said earlier this month that he sees the company as both an automaker and supplier of EV technology. "I'd love it to be 20-80. Twenty percent doing cars, 80 percent licensing," Rawlinson told an online publication.
Finally today, Bloomberg is reporting Tesla Inc. is readying a software update for customers in China to offer driver-assistance capabilities similar to those marketed as Full Self-Driving in the U.S. The update planned for the coming days will allow Tesla owners to use driver-assist features on city streets, a person familiar with the matter told Bloomberg.
Look for our coverage of Consumer Reports' 10 top car picks list for 2025 on Tuesday. This influential annual report moves the metal in a lot of showrooms.
That's it for today. Have a great rest of your day.
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— Philip Nussel, online editor
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