In the near future, Mercedes-Benz will prioritize sales performance with affordable and mid-range models instead of pursuing profit margins.
In a recent meeting with its dealer network in the US, Mercedes-Benz announced a new strategy to boost sales with affordable or mid-range cars. According to information from a participating dealer, the German automaker will increase investment in the C-Class, E-Class, GLC, and GLE models, while also focusing on the development of petrol and hybrid cars.
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In 2024, Mercedes-Benz will introduce 25 new car models. The soon-to-be-released names include the E-Class, CLE coupe/convertible, and GLC PHEV. This group will be priced in the mid-range of the Mercedes-Benz product range and will receive priority from the company.
Additionally, the underperformance of EQE and EQS models has led Mercedes-Benz to currently reduce its focus on the electric vehicle segment, at least until the new electric vehicle platform, named MMA (Mercedes-Benz Modular Architecture), is put into use.
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Thus, Mercedes-Benz’s new plan contradicts the product strategy announced by the company in 2022. At that time, the three-pointed star brand stated that it would concentrate on producing high-priced models with high profit margins such as the S-Class, SL, and G-Class, as well as high-performance AMG models and the luxury Maybach cars.
This change by Mercedes-Benz is explained by the fluctuations in the automotive market over the past two years. In 2022, the auto market faced difficulties due to component supply crises. From the second half of 2023 until now, the supply issue has improved, allowing the automaker to expand its production volume. Furthermore, the development of the electric vehicle market has been slower than expected, causing the German automaker to no longer be overly enthusiastic about “burning money” on developing new electric car models.
Thai Son (Tuoitrethudo)
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