Mercedes-Benz It is cutting back on the number of smaller models it offers while releasing more high-end vehicles targeting higher margins.
The company said it expects “disproportionate growth” in its top-end automotive segment, citing a 40 percent increase in S-Class sales last year as well as a “record” sales of Mercedes-Maybach.
This internal segment includes all Mercedes-AMG and Mercedes-Maybach vehicles, as well as G-Class and basically everything including S: GLS, EQS, EQS SUV and S-Class.
A Mercedes-Maybach EQS SUV will be next year, when the company teases a Mercedes-Maybach SL.
In addition to the more exclusive collector’s edition under the Maybach brand, the Mercedes-Benz “Ultra-Exclusive Collector Car” is launching a new program, similar to the Virbil Ablo’s limited edition Maybach.
These will come under the Mythos series banner and will be exclusively available to the most dedicated Mercedes-Benz enthusiasts and collectors.
It has released a single teaser of a Mithos car, which looks like an SL-based speedster.
At the other end of its lineup, Mercedes will reduce the range of its entry luxury models from seven to four, although it is not leaving this part of the market.
Rather, it will launch a new compact MMA platform in 2024 that will introduce the new Mercedes-Benz operating system (MB.OS).
The company said the changes would “restore Mercedes-Benz in the segment, more specifically respecting the wishes of discerning customers”.
Mercedes-Benz currently sells A-Class hatches and sedans, CLA coupes and shooting brakes, B-Class MPVs, and GLA and GLB crossovers.
It is possible that Mercedes-Benz will combine A-Class sedans and CLAs into one product due to earlier disappointing sales in the US market.
Other models in the chopping block are B-Class and CLA shooting brakes.
Mercedes-Benz’s original luxury offers include top-end and entry-luxury.
These represent the heart of the brand and include the upcoming models of Mercedes-Benz C-Class and E-Class, electric EQE and EQE SUV and new MB.EA architecture.
Mercedes has teased the next generation of e-Class before its launch next year.
The company will also launch another vehicle specifically designed for the Chinese market on EQE’s EVA2 platform.
The company’s restructured product strategy will see it allocate more than 75 percent of its investment to develop products for the most profitable market segment.
It aims to increase its top-end vehicle sales share by about 60 percent by 2026 compared to 2019, with operating margin targets reaching 14 percent in the mid-decade under favorable market conditions.
At the very least, it expects an eight percent margin in “very unfavorable” situations.
The goals are part of a strategic course set in 2020, with a focus on reducing specific costs and increasing profits.
It plans to bundle equipment packages to simplify configuration, and says that in the future customers will be able to choose different packages “based on preferences and regional needs”.
It still plans to move to EV only by 2030, with the exception of “wherever market conditions permit”, and aims to be CO2-neutral by 2039.
Last year it announced three dedicated EV architectures: MB.EA for medium to large vehicles; AMG.EA for performance vehicles; And VAN.EA, naturally, for vans.
All platforms launched after 2025 will be for EV only.