Mercedes faces the biggest challenge of its rich history?

Mercedes-Benz has announced its largest product and technology renewal program to date.

A vast update program orchestrated by Mercedes with dozens of new models or updated versions planned by 2027. This plan aims to enhance the company’s competitiveness while adapting to changes in the automotive market.

The brand will adopt a unified design and a strong identity across its portfolio. Mercedes is turning away from fully electric vehicles with new models that will offer flexibility in powertrains, including electric, hybrid, and electrified internal combustion versions. The upcoming CLA illustrates this strategy, with an electric version featuring optimized range and a combustion version incorporating advanced technologies. It’s a strange choice considering that fully electric vehicles allow for particular designs, but Mercedes is learning from its first unsuccessful electric offensive.

Mercedes follows an electrified strategy rather than an electric one

The in-house MB.OS system will equip all new models. This software platform covers areas such as infotainment, automated driving, and energy management. The batteries and propulsion systems, designed to be modular, will improve profitability and energy efficiency. For example, the batteries used in the CLA will show a cost reduction of 30% compared to the previous generation.

Mercedes plans to launch new electric models, including electric versions of the GLC and the E-Class, to complement its portfolio. The goal is to achieve a 30% share of electrified vehicles in global sales by 2027. The aim of phasing out internal combustion engines by 2035 seems more than ever just a sweet dream of technocrats.

The company is striving to reduce its fixed costs by an additional 10% by 2027, after a 19% reduction between 2019 and 2024. Global production capacity will be adjusted from 2.5 million to 2.2 million units while maintaining sufficient flexibility to meet demand. Additionally, local production will be increased, aiming for a 70% share by 2027.

China remains a key market for Mercedes, with models and features specifically tailored. The brand is strengthening its research and development capabilities there to better meet local expectations and optimize costs.

This program aims to position Mercedes as a leading player in the electric and high-end segments while improving operational efficiency and maintaining solid financial performance. But isn’t that the goal of all manufacturers?

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