At the very top end of the product portfolio is an exclusive edition of the Mercedes-Maybach S-Class, known as the Limited Edition Maybach by Virgil Abloh - (Photo: Business Wire)

BIZ IT - Mercedes-Benz Sets out Long-term Ambitions

As the World’s Most Valuable Luxury Car Brand - Mercedes-Benz will recalibrate its product portfolio, allocating more than 75% of its investments to develop products for the most profitable market segments. As part of this sharpened strategy, Mercedes-Benz aims to grow the sales share of its Top-End vehicles by around 60% by 2026 versus 2019 and intends to achieve higher quality growth and a further significant increase in profitability and resilience

STUTTGART, Germany -- (BUSINESS WIRE)

Wednesday June 8, 2022

Mercedes-Benz (stock exchange code: MBG) hosted a strategy update on the Côte d’Azur. This ‘Economics of Desire’ event outlined the future of Mercedes-Benz as a dedicated pure-play luxury car company and provided details of its strategic course. The company will focus even further on luxury, elevate its product portfolio, accelerate its path to a fully electric future and target structurally higher profitability.

Mercedes-Benz will recalibrate its product portfolio, allocating more than 75% of its investments to develop products for the most profitable market segments. As part of this sharpened strategy, Mercedes-Benz aims to grow the sales share of its Top-End vehicles by around 60% by 2026 versus 2019 and intends to achieve higher quality growth and a further significant increase in profitability and resilience, striving for an operating margin target of approximately 14% by mid of the decade in favorable market conditions. This greater focus on the top end of the market should enable the company to deliver a strong financial result even under more challenging market conditions. The company’s strategic decision to become fully electric by 2030 – wherever market conditions allow – and the ambition to become CO2-neutral by 2039 are integral elements to enhance the connection between luxury and sustainability.

“What has always been the core of our brand is now also the core of our strategy: the luxury segment. We are further sharpening the focus of our business model and product portfolio in order to maximize the potential of Mercedes-Benz even in challenging conditions. At the heart of that is our goal to build the world’s most desirable cars,” says Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG.

Enhanced and elevated product mix as pure-play company – future focus on three product categories

The increased focus on luxury follows rising customer demand in this segment. In 2021, the Mercedes-Benz S-Class posted an increase of 40%, while Mercedes-AMG and Mercedes-Maybach likewise set new records. Mercedes-Benz intends to use its brand’s power even more effectively in a growing luxury market. Going forward, the company anticipates disproportionate growth in the Top-End vehicle segment and will use this as an opportunity to reconfigure the structure of its product portfolio.

In future, Mercedes-Benz will concentrate on three product categories: Top-End Luxury, Core Luxury and Entry Luxury. In the Top-End Luxury segment the product portfolio encompasses:

all vehicles from the Mercedes-AMG and Mercedes-Maybach brands

the Top-End models from Mercedes-EQ, including the EQS and the EQS SUV

the Mercedes-Benz S-Class and G-Class models as well as the full-size luxury GLS

limited edition models and exclusive collaboration vehicles

Mercedes-Maybach is expanding its product offering in the Top-End segment, led by the Mercedes-Maybach EQS SUV, which is scheduled for market launch next year. In addition, the preview of a Mercedes-Maybach SL reveals more about the future opportunities of the company’s most exclusive brand. Electrification across the board is also evident in the legendary “G”. The all-electric G-Class will be the first Mercedes-Benz vehicle to feature advanced battery cell chemistry from Sila Nanotechnologies as an option. Furthermore, steps to expand the G product family are being evaluated.

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