Mercedes-Benz hopes to increase its profits by slashing affordable models, and increasing expensive ones.
Mercedes-Benz has revealed plans to add more expensive models to its range, in a bid to become “the world’s most valuable luxury car brand.”
“Mercedes-Benz has the good fortune to have multiple iconic products and brands at the upper end of its portfolio – such as the S-Class, the SL, the G as well as the AMG and Maybach brands,” Mercedes-Benz Chairman Ola Kallenius said.
“We see great potential here to expand our top-end portfolio.”
In addition to the ‘top-end luxury’ category, Mercedes highlighted two other key areas in which to implement its future strategy: ‘core luxury’ and ‘entry luxury’.
The 2022 Mercedes-Benz C-Class, part of the brand’s “core luxury” segment.
Meanwhile, the company said it will downsize its ‘entry luxury’ segment – which includes cars built on its front-wheel drive MFA2 platform, like the A-Class sedan and hatch, B-Class, CLA, CLA Shooting Brake, GLA and GLB.
“In the entry luxury segment, Mercedes-Benz will reduce the number of model variants from seven to four while significantly elevating the technological substance of these products,” the company said.
If successful, the company said its strategy will see sales of top-end vehicles rise by 60 per cent by 2026 compared to 2019.
The company also plans to reduce its costs and simply vehicle configuration by bundling optional equipment into packages, while offering a higher level of equipment as standard on base variants.
“When configuring a vehicle in future, the customer will be able to choose from a number of different equipment packages based on preference and regional demands,” the strategy plan stated.
“The grouping of option packages is expected to also have a positive effect on residual values as a higher level of equipment is also available for base variants.”
It indicated it will also pivot away from offering traditional dealerships and showrooms, moving towards lifestyle experience stores like the AMG Store in Dubai and the Maybach Atelier in Shanghai.
Susannah Guthrie has been a journalist since she was 18, and has spent the last two years writing about cars for Drive, CarAdvice, CarSales and as a motoring columnist for several in-flight and hotel magazines. Susannah’s background is news journalism, followed by several years spent in celebrity journalism, entertainment journalism and fashion magazines and a brief stint hosting a travel TV show for Channel Ten. She joined Drive in 2020 after spending a year and a half at the helm of Harper’s BAZAAR and ELLE’s online platforms. Susannah holds a Bachelor in Media and Communications from the University of Melbourne and cut her teeth as an intern for Time Inc in New York City. She has also completed a television presenting course with the National Institute of Dramatic Art. She lives in Melbourne with her husband and her one-year-old son who, despite her best efforts, does not yet enjoy a good road trip.