Hot! Mercedes-Benz, What's Next?

[Tuffode]

Mercedes-Benz is deeply rooted in engineering prowess and cutting edge innovation. In these particular aspects, it remains a formidable automotive force.

Maybe 20 years ago, not so much now.

 

[AbsoluteUnit]

Maybe 20 years ago, not so much now.

The engineering is still top notch, I don't think you can really argue that. The electromechanical and safety systems are very advanced. They have however, pointed their engineering might in questionable directions.

 

[Esp5]

 

[Merc1]

It still looks like an economy car to me.

M

 

[AbsoluteUnit]

I dunno. It looks alright. The profile is kind of like an older A5 or F-generation 4-grancoupe.

The devil is in the details. Interested to see how this comes together

 

[Merc1]

When do we see it?

M

 

[AbsoluteUnit]

When do we see it?

M

No clue. I would have thought IAA next week, but not sure if that's just GLC or not. We shall see

 

[Design FIRST]

Maybe 20 years ago, not so much now.

IMHO, "the spirit" remains pronounced within the realms of M-B payrolled researchers/developers, engineers and production line staff. However, that very "spirit" has been obstructed and often dismantled by elevated corporate bean counters in tandem with some myopic public relations people. This is nothing new. It is not that long ago that German media presented numerous accounts of anger and frustration directed at Jürgen Schrempp & Co. and Daimler-Benz AG (Daimler Chrysler AG) by the company's employees. Herr Källenius is on the fast track to filling those dubious shoes left by Herr Schrempp. Herr Schrempp and Dr. Reuter became vicitims of their own megalomania. Ola Källenius simply appears totally lost.

 

[Luca]

 

[Luca]

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[Merc1]

I don’t see the point in posting those.

M

 

[Luca]

I don’t see the point in posting those.

M

a look to the future......

 

[hannaz]

MERCEDES IS REORIENTING ITSELF – WITH A VIEW TO CHINA
Mercedes-Benz is at a turning point. CEO Ola Källenius has therefore announced an ambitious program designed to make the company more efficient and redefine its position on the global market. This will significantly reduce costs per vehicle, while simultaneously reinventing the brand. Instead of being a pure luxury car manufacturer, Mercedes will in future primarily stand for "exceptional" – for vehicles that are more than status symbols and consciously stand out from the crowd.

The Swede, Källenius, is under considerable pressure. He is currently being accused of several missteps: inappropriate model choices, questionable design , too few cylinders in key model series, overcapacity at the plants, and unplanned additional expenditures. These burdens have limited the company's flexibility – and explain why the CEO must now take particularly decisive countermeasures.

The strategic focus is clearly on China . This is not only Mercedes' largest sales market, but also the pacesetter for future developments. Chinese buyers value innovation, design, and digital connectivity – features that Mercedes is increasingly integrating into its vehicles. Thus, the "special" is not sought in pomp or excess, but in a blend of exclusive technology , striking design, and customized services.

The realignment is even more evident in production . The company states: " We are becoming even more Chinese. " The goal is ambitious: In the medium to long term, up to 100 percent of the so-called factor costs for locally manufactured models should be incurred directly in the People's Republic. This is not yet the case today, as a number of components continue to be imported from the West. Costs per vehicle can quickly reach several thousand euros. But these flows of goods could dry up over time – with the result that value creation will increasingly be diverted from Europe and relocated to China.

For Mercedes, this step means that the desired cost reduction can best be achieved where economies of scale and a strong supplier network converge – and that is in China. At the same time, the company is securing its access to important future technologies such as batteries and electronic components, which are often more expensive and difficult to obtain in Europe.

With this dual focus—cost discipline and a new brand promise—Mercedes aims to embark on a fresh start in the coming years. The company no longer aims to be just the classic luxury brand from Stuttgart , but a global provider offering something special: vehicles that impress with their technology, quality, and uniqueness. A mission that the company is willing and must achieve.

But this new planned path carries risks. The more Mercedes engages with China, the greater its dependence on a market that is not always economically and politically predictable. For Källenius, it is nevertheless the logical step: Only if Mercedes simultaneously becomes more efficient and recharges its brand promise will the company have a chance of asserting itself in global competition. This "special" quality will thus become the new core of Mercedes – and China a crucial partner on this path.

mbpassion.de

 

[Design FIRST]

MERCEDES IS REORIENTING ITSELF – WITH A VIEW TO CHINA
Mercedes-Benz is at a turning point. CEO Ola Källenius has therefore announced an ambitious program designed to make the company more efficient and redefine its position on the global market. This will significantly reduce costs per vehicle, while simultaneously reinventing the brand. Instead of being a pure luxury car manufacturer, Mercedes will in future primarily stand for "exceptional" – for vehicles that are more than status symbols and consciously stand out from the crowd.

Sadly, this may be the SOLE route leading to possible salvation for German-branded manufacturers. I can hardly be sanguine regarding the near-to-mid term prospects of the German economy, (still) the EU's largest consumer market. And the U.S. market has become so unpredictable that it has becoming very far from a "safe bet". Does M-B brand equity carry as much weight as was the case in the past ? Sub-par management and a political environment in Germany/EU that is, for the most part, beyond M-B's control has led to this dilemma.

 

[kiki voinea]

MERCEDES IS REORIENTING ITSELF – WITH A VIEW TO CHINA
Mercedes-Benz is at a turning point. CEO Ola Källenius has therefore announced an ambitious program designed to make the company more efficient and redefine its position on the global market. This will significantly reduce costs per vehicle, while simultaneously reinventing the brand. Instead of being a pure luxury car manufacturer, Mercedes will in future primarily stand for "exceptional" – for vehicles that are more than status symbols and consciously stand out from the crowd.

But , how is making MBs more "chinese focused" better?

Even if they would sell only in China , is dumb .

Why make MB buyers even more enraged with chinese-designed and focused cars ?

And the most important thing: How can you make them affordable ?

In the past 2 years ( if I am not wrong ; data based ) , chinese market has shifted a little to it's manufacturers because they make competitive quality cars with way better pricing.

I know branding is a thing , but , all german manufacturers have LOST market share in the past 2-3 years.

Ola should retire before he will bring MB to it's death

 

[Merc1]

I still say build what you made you famous in the first place and it won't matter which market it is and the rest will take care of itself.

"Instead of being a pure luxury car manufacturer, Mercedes will in future primarily stand for "exceptional" – for vehicles that are more than status symbols and consciously stand out from the crowd."

I guess I really don't understand this. Isn't that what a Mercedes was back in the day anyways?

M

 

[Sunny]

Sadly, this may be the SOLE route leading to possible salvation for German-branded manufacturers

But how though? Chinese market is set on BEVs. Also known as German car industry's achilles heels. To even stand a chance to compete they should have moved on BEVs 10 years before they did. But they didn't. And now it is too late. And it is not just a matter of catching up. The issue is, when it comes to BEVs, any idea of superior German engineering was blown wide open by the plethora of shitty BEVs they launched in China in the last 5 years. So if you are in China, if you buy a German BEV now, you are just overpaying for some past glory. Like Jaguar elsewhere.

Yes, there will be a shrinking market for ICEV in China that they can try and milk.

All just MHO.

 

[Merc1]

China is clearly it not the answer. Returning to their roots, in both ICE and EV is the key IMO.

M

 

[Design FIRST]

But , how is making MBs more "chinese focused" better?

China has not only become the largest automobile market, but also a highly discerning one.

Even if they would sell only in China , is dumb .

It is quite possible, if not even probable, that the global acceptance of vehicles manufactured in China will expand quickly. Anecdotal: I recently was able to have a look at an Xpeng G6. Must say, I was impressed by what I saw.

Why make MB buyers even more enraged with chinese-designed and focused cars ?

Arguably a "political thing". Or a thing anchored in rapidly evaporating "old school" brand loyalties. Not to mention shifting consumer demographics.

And the most important thing: How can you make them affordable ?

Yes, A significant issue indeed.

In the past 2 years ( if I am not wrong ; data based ) , chinese market has shifted a little to it's manufacturers because they make competitive quality cars with way better pricing.

Yes. Although I suspect that it has probably shifted more than "a little".

I know branding is a thing , but , all german manufacturers have LOST market share in the past 2-3 years.

Ola should retire before he will bring MB to it's death

Ola certainly may be "the wrong man for the job". It is also my opinion that he has been granted too many lifelines.

All my own opinion as well.

 

[Merc1]

But how though? Chinese market is set on BEVs. Also known as German car industry's achilles heels. To even stand a chance to compete they should have moved on BEVs 10 years before they did. But they didn't. And now it is too late. And it is not just a matter of catching up. The issue is, when it comes to BEVs, any idea of superior German engineering was blown wide open by the plethora of shitty BEVs they launched in China in the last 5 years. So if you are in China, if you buy a German BEV now, you are just overpaying for some past glory. Like Jaguar elsewhere.

Yes, there will be a shrinking market for ICEV in China that they can try and milk.

All just MHO.

I agree with most of this, but moving to just EVs 10 years ago was not an option for them. Too many other markets were not ready. Being legacy companies ensures they're going to have to straddle the EV/ICE fence for a while worldwide. This is why I say companies like Lotus, Cadillac, etc who have been suffering for years or don't have big presence in a lot of markets can go EV and not risk much. It's a boon for them and every startup. Lucid and Rivian are only going to grow at someone' expense. I think they need to go back to their roots and the appeal will be there no matter the market. Cars that display what the premium is for the moment you open the door, like Mercedes' back in the day.

M