Future of Mercedes-Benz. Betting on trams and subbrands AMG, Maybach and G

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In a phase where the automobile industry “faces”, at the same time, the effects of a pandemic and a phase of profound change with the electrification of the automobile, the Mercedes-Benz's new strategic plan appears as a "map" that aims to guide the fate of the German brand in the near future.

Unveiled today, this plan not only confirms Mercedes-Benz' commitment to the electrification of its range, but also makes known the strategy through which the brand intends to increase its status as a luxury brand, expand its model portfolio and, above all, increase profits.

From new platforms to a strong commitment to its sub-brands, you are aware of the details of Mercedes-Benz's new strategic plan.

Mercedes-Benz Plan
Left to right: Harald Wilhelm, CFO of Mercedes-Benz AG; Ola Källenius, CEO of Mercedes-Benz AG and Markus Schäfer, COO of Mercedes-Benz AG.

Winning new customers is the goal

One of the main objectives of the new Mercedes-Benz strategy is to win new customers and to do this the German brand has a simple plan: to develop its sub-brands.

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Thus, in addition to the well-known Mercedes-AMG and Mercedes-Maybach, the bet is to boost the sub-brand of electric models EQ and create the “G” sub-brand which, as the name indicates, will have the iconic Mercedes-Benz at its base Class G.

With this new strategy, we are announcing our clear commitment to the total electrification of our product portfolio.

Ola Källenius, Chairman of the Management Board of Daimler AG and Mercedes-Benz AG.

Different subbrands, different goals

starting with Mercedes-AMG , the plan is, first of all, to start as early as 2021 with the electrification of its range. At the same time, Mercedes-Benz's new strategic plan calls for Mercedes-AMG to further capitalize on the success it has seen in Formula 1.

As for the Mercedes-Maybach , it should seek to take advantage of global opportunities (such as the Chinese market's strong demand for luxury models). For this, the luxury sub-brand will see its range double in size, and its electrification is also confirmed.

Mercedes-Benz Plan
For the CEO of Mercedes-Benz AG, the goal must be to increase profits.

The new “G” sub-brand takes advantage of the tremendous demand that the iconic jeep continues to know (since 1979, close to 400 thousand units have already been sold), and it has only been confirmed that it will also feature electric models.

Finally, with regard to what is perhaps the most modern of the Mercedes-Benz sub-brands, the EQ , the bet is to capture a new audience thanks to the investment in technology and the development of models based on dedicated electric platforms.

EQS on the way, but there's more

Speaking of dedicated electric platforms, it is impossible to talk about these and the new Mercedes-Benz strategic plan without addressing the new Mercedes-Benz EQS.

Already in the final testing phase, the Mercedes-Benz EQS should reach the market in 2021 and will debut a dedicated platform, EVA (Electric Vehicle Architecture). In addition to the EQS, this platform will also originate the EQS SUV, the EQE (both scheduled to arrive in 2022) and also an EQE SUV.

Mercedes-Benz Plan
The EQS will be joined by three more models developed based on its platform: a sedan and two SUVs.

In addition to these models, the electrification of Mercedes-Benz will also be based on more modest models such as the EQA and EQB, whose arrival is scheduled for 2021.

All these new models will join the already commercialized Mercedes-Benz EQC and EQV in the 100% electric Mercedes-Benz offer.

Also in line with the new Mercedes-Benz strategic plan, the German brand is developing a second platform exclusively dedicated to electric models. Designated MMA (Mercedes-Benz Modular Architecture) it will serve as the basis for compact or medium-sized models.

Mercedes-Benz Plan
In addition to the EQS platform, Mercedes-Benz is developing another platform exclusively for electric models.

Software is also a bet

In addition to new 100% electric models, a bet on sub-brands and plans to cut its fixed costs in 2025 by more than 20% compared to 2019, Mercedes-Benz's new strategic plan also aims to invest in the area of ​​software for automobiles.

At Mercedes-Benz, we strive for nothing less than leadership among manufacturers of electric models and software for automobiles.

Markus Schäfer, Member of the Management Board of Daimler AG and Mercedes-Benz AG, responsible for Daimler Group Research and Mercedes-Benz Cars COO.

For this reason, the German brand made known the MB.OS operating system. Developed by Mercedes-Benz itself, this will allow the brand to centralize the control of the various systems of its models as well as the interfaces used by consumers.

Scheduled for release in 2024, this proprietary software also allows for more frequent updates and will be developed with a view to creating economies of scale that allow for an effective reduction in costs.

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