Mercedes has unveiled a new business plan that will establish a new focus and channel on investing more than 75 percent of its investment in high-end luxury models to increase profitability by 60 percent from 2019 to 2026 at the expense of its entry-level lineup. Cut off
The brand’s refined product portfolio will consist of so-called entry luxury, core luxury and top-end luxury models, while Mercedes will also launch a high-exclusive line of limited production collectors under the recently announced ‘Mithos’ series. Maybach, AMG, G Class and EQ sub-brands.
These exclusive Mithos range vehicles will be produced in “selected numbers” and will be made available to “the most dedicated enthusiasts and Mercedes-Benz collectors” which means you will probably have a hard time ordering. According to the video presentation, the first model in the Mithos series will be an SL Speedstar.
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In the same vein, Mercedes will expand to limited edition special and exclusive collaboration vehicles such as the Maybach published by Virgil Abloh and the upcoming Hout Voucher Maybach S-Class. The Maybach range will grow beyond the S-Class and its bespoke derivatives, not just the fully electric Mercedes-Maybach EQS SUV that was previewed in concept form last year, but will also grow with the Mercedes-Maybach SL Roadster.
Another addition Top-end luxury lineup (S-Class, EQS, EQS SUV, SL, GLS, G-Class, Maybach and AMG lineup)The fully electric G-Class will be the brand’s first vehicle to use advanced battery cell chemistry from Sila Nanotechnologies – offered as an alternative. In addition, the Mercedes G product could expand the family, without specifying what type of car is under consideration.
Moving down Core Luxury with the highest sales volume (C-Class, E-Class, EQU, GLC, GLE, etc.), The main focus will be on the new generation of e-classes coming next year. Also, a new range of new EVs based on the EVA2 architecture will be specifically designed for the Chinese market. Another new model in the Core Luxury range is the upcoming EQE SUV as a high-riding alternative to the EQE sedan. The next generation of electric vehicles will move from the EVA2 architecture to the new MB.EA platform that is under development.
Less affordable entry-level model but with more technology
The Entry luxury, The least important of the three sectors, where investment is less than 25 percent of the total. Mercedes has promised to reduce the number of model variants from seven to four. The company did not specify which models will be discontinued, but the current range of compact models includes a fully electric EQA as well as A-Class hatchback, A-Class sedan, CLA, CLA shooting brake, B-Class, GLA and GLB. And EQB.
We assume that one of the first candidates to drop out is B-Class – after the upcoming facelift – since minivans are no longer popular. Another admirable scene is the combination of the A-Class sedan and the Sexy CLA into a single four-door coupe model, closing the estate. While reducing the compact range, Mercedes says it will inject them with more technology. A good example is the new Mercedes-Benz operating system (MB.OS) which will be launched in 2024 with the new MMA platform for compact vehicles. The first production model based on this architecture will be a sign of the things ahead, incorporating technology from the Vision EQXX concept.
Simplified tool package for easy configuration
Finally, Mercedes will begin bundling the equipment packages to simplify the configuration and reduce the cost of optional equipment for the customer. Packages will be tailored to the preferences and regional needs of the customers, will also help in quick availability.
We all know that high-end models have higher profit margins. Thus, the new strategy will help Mercedes increase profitability, targeting operating margins between 8 and 14 percent in the middle of the decade, depending on market conditions. If all goes according to plan, Mercedes will have a full electric range by 2030 and will be carbon-neutral by 2039.