A large-scale strategic announcement today included plans for how it will reduce investment in combustion engines, lower manufacturing costs for electric vehicles, and maintain today’s profit margins. Specifically, it will introduce four brand new bespoke EV platforms by 2025 for use across its product line, and it has committed to building eight new EV battery factories around the world, including four in Europe.
Key to the new strategy is the commitment to prioritize profit over volume, which will allow Mercedes to increase sales of premium models and standardize the majority of components it uses in production. vehicles.
EV options in all segments
Accelerating a number of targets revealed in its previous Ambition 2039 strategy, the firm will now offer a BEV in all segments from 2022 and will offer an EV option for all its models from 2025.
Following the launch of the new MMA EV architecture for small vehicles in 2024, all Mercedes platforms developed will be EV uniquely, and in 2025 it will launch three brand new architectures spanning its entire portfolio.
The new MB.EA platform will underpin midsize and large passenger vehicles, such as SUVs; AMG.EA will be developed by Mercedes’ internal performance division for future electric sports cars; and the Van.EA platform will be used for light commercial vehicles (LCV).
Following the launches of the EQC, EQA, EQB, EQV and EQS, Mercedes will launch the new EQE sedan, EQE SUV and EQS SUV in 2022, giving it a total of eight electric vehicles in the passenger car market.
Two new versions of the EQS sedan are also expected shortly: an AMG-badged performance option and a Maybach top-of-the-range luxury.
Long-range plug-in hybrid models (such as the new C300e, which has a claimed range of 62 miles) will continue to play an important role in Mercedes’ product strategy, but “more and more customers are turning” to vehicles. pure electric. , the firm has therefore accelerated its transition to support the shift.
Increased investment but margins maintained
Mercedes CEO Ola Kallenius said: “The shift to electric vehicles is accelerating, especially in the luxury segment, to which Mercedes-Benz belongs. this decade.
“This step marks a profound reallocation of capital. By managing this faster transformation while maintaining our profitability goals, we will ensure the lasting success of Mercedes-Benz. With our highly skilled and motivated workforce, I have no doubts that we will be successful. in this exciting new era.