The Mercedes repositions itself upwards

LET’S DISCOVER THE ECONOMY OF DESIRE – Event on the Côte d’Azur (and where else?) With an evocative name – Economics of Desire – to outline the strategic path of Mercedes-Benz. One of the luxury brands par excellence will further emphasize this connotation concentrating further on luxurywill further increase the level of its range, will accelerate the path already undertaken towards a future completely electric and will aim for greater structural profitability. The product portfolio will be redefined by allocating more than 75% of the investments to the development of products for the most profitable segments. This strategy should increase the share of end vehicles high on the total sales of the brand by about 60% by 2026 compared to 2019, with the aim of increasing profitability and resilience thanks to a operating margin of about 14% – much higher than the automotive average – by 2025, provided the market allows it. Ola Källenius said the Mercedes margin should not fall below 8% even in the most pessimistic scenario.

CRISIS-PROOF CUSTOMERS – In support of these decisions, the data that speak, for 2021, of an S-Class which registered + 40% compared to 2020 and of the Mercedes-AMG and Mercedes-Maybach models to set new records. “Very affluent” customers who have allowed these exploits will be able to tickle their wallets with Mercedes’ cars three categories: Top-End Luxury, Core Luxury e Entry Luxury. Il primo segmento Top-End Luxury will be populated by electric flagships of the caliber of EQS e EQS SUV (pictured above), all models AMG e Maybachthe models Classe S, G e GLS together unspecified “limited edition models and exclusive collaboration vehicles”. The models developed on the basis of the unbelievable are also part of the game Vision AMG (in the photo below), a concept based on the AMG.EA architecture dedicated to fully electric AMG models. All the components of the AMG powertrain have been developed from scratch: in addition to the platform itself also the high-performance, high-voltage battery, which is also responsible for the charging speed and maximum power delivered by the engines, and the driving technology defined as “revolutionary” . The electric heart of the Vision AMG is the axial flux engine developed by YASA, a company that also supplies Ferrari for its hybrids and which is now part of the Mercedes group.

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EVEN MORE EXCLUSIVE Beyond the wall of luxury are the Maybach EQS SUV, scheduled to launch in 2023, and the future Maybach SL. The special series, as mentioned, will also contribute to Mercedes’ luxury push. The Limited Edition Maybach by Virgil Abloh will be a special edition of the already exclusive Maybach S-Class and will be dedicated to the designer Virgil Abloh who died prematurely; only 150 will be built. The MYTHOS Series cars will also be exclusive not only in circulation but also in being available only to top Mercedes-Benz car enthusiasts and collectors. Niche electrification will also arrive on dirt roads thanks to the electric G-Class (who the presentation of the concept) which will be the first to have the advanced chemistry batteries allowed by the agreement with Sila Nanotechnologies as an option. The possibility of expanding the “G” product family is also being evaluated.

> The upward repositioning of the Mercedes could mean that the current A-Class (above) will not have an heir.

THE HEART OF LUXURY – Cars are cheaper, so to speak Core Luxury: it is the Mercedes Benz C, Class E and their derivatives, which generally sell even more. The Core Luxury group will be quickly made electric thanks to the EVA2 platform – on which the EQE and EQE SUVs are built) – and the subsequent MB.EA. The new GLC will arrive at the end of 2022, the E-Class will arrive on the market next year while the EVA2 platform will be used for another model designed specifically for the Chinese market.

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THE MOST ACCESSIBLE LUXURY – The most affordable segment, theEntry Luxuryit will be very thin as Mercedes-Benz intends reduce the number of models from the current 7 to 4. Ola Källenius did not specify which compact cars will be canceled, leaving the choice to the imagination of those present: it is easy to think about Class A e Classe B and perhaps some variations of the CLA e GLA. The orphans of the baby will be consoled by thinking that the “technological substance” of the surviving models will be greatly increased. The new MB.OS (the Mercedes-Benz Operating System) will be launched in 2024 on the compact MMA platform. The car-computers will also be functional to a customer experience that will allow him access at all times and through all channels. New marketing and sales paths – online and offline – will allow for seamless purchasing paths. Mercedes emphasizes that the ease of use and the quality of the experience will be the same at every “touch point”.

THE SIMPLIFIED LUXURY – The company then expects that by 2025 beyond the80% of sales in Europe it will be made of sales direct. The improving margins will come not only from a higher ranking of the range but also from simplifications of the range itself: the customer can choose between different equipment packages based on local preferences and needs. Translated: the versions available for the same model will be fewer than today, a simplification of the offer that speeds up online configuration and should lead to faster deliveries and a significant reduction in complexity for the company. The grouping of optional packages should increase the level of equipment even in the basic models, with a positive effect on maintaining the value of used vehicles.

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