The car manufacturer Mercedes Benz relies on luxury and wants to sell more top-of-the-line models such as the S-Class, Maybach or AMG in the future. “The company will focus even more on the luxury segment, further upgrade the product portfolio, accelerate the path to the all-electric future and strive for structurally higher profitability,” said the Dax group on Thursday.
As the largest luxury car manufacturer with a good 300,000 vehicles a year in this segment, the brand with the star wants to build the “most desirable cars in the world”, said Mercedes boss Ola Källenius (52). At an event with around 100 analysts, influencers and customers in Monaco, he announced that their share of sales should increase from 11 percent in 2019 to a good 17 percent in 2026.
According to Mercedes-Benz, the market for expensive, chic luxury cars will grow disproportionately in the coming years – not only in China, also in Europe and the USA. The number of dollar millionaires is estimated by CreditSuisse increase to 84 million people by 2025. The Swabians are therefore fanning out the range in the top of their three segments with cars that cost upwards of 100,000 euros.
Even more expensive special editions for collectors are to be built in small numbers in the manufactory. “Many customers are willing to pay a surcharge for this luxury,” said Head of Development Markus Schäfer (57).
Only four models left in the compact car segment
In contrast, Mercedes-Benz has reduced the entry-level segment of compact cars from seven to four models. It will be called “Entry Luxury” in the future. What will be completely eliminated from the A, B or C class in the age of electric cars remained open. The cheapest Mercedes should offer more comfort in the future, explained Schäfer. “We’re going up in terms of content and technology. We’re going to be massively enriching these vehicles.” Schäfer still wants to keep costs under control. digitalization designed to speed up development and simplify production.
So far, the compact cars have been used to comply with falling CO2 emission limits, said Källenius. With the now even more accelerated turnaround electric cars this equation is no longer valid. The brand with the star wants to cover up to 50 percent of its sales with partially and fully electric cars by 2025 and switch to 100 percent emission-free e-cars by 2030 if there is sufficient demand.
The clear double-digit return achieved since last year should become permanent, even under unfavorable market conditions. By the middle of the decade, a return on sales of around 14 percent is aimed for in a favorable environment, around 12 percent under normal market conditions, 10 percent in the unfavorable case and 8 percent in a miserable situation. So far, according to the weather map system presented in October 2020, the Swabians have only dared to achieve double-digit returns when the sun is shining.
An ambitious return target in Porsche regions
Before the special situation of corona pandemicthat too chip shortage, scarce supply of new cars and price increases, an operating return of 10 percent for the Stuttgart-based company was a record value that had rarely been achieved. With the new goal, Mercedes-Benz is working its way into a region that was previously the sports car manufacturer among German car manufacturers Porsche was reserved. Last year, the car division achieved an operating return of 12.4 percent, which was exceeded in the first quarter with 16.5 percent.
The lack of chips will pass, but according to Källenius, Mercedes-Benz will stick to “price discipline”, i.e. not increase the usual discounts in the competition again. After all, Mercedes does not compete with volume manufacturers and strives for value instead of high sales figures, he affirmed. Ultimately, the luxury strategy aims to drive up the share price in the long term. the title
however, fell significantly despite the new return targets.