Mercedes is recalibrating its technique, aiming to extend its presence within the higher-priced super-luxury market and trim a few of its least-expensive fashions.
The transfer displays traits in American automotive procuring habits — at the same time as the worth of the typical new automotive has risen, customers have sought out extra luxurious vehicles in recent times. Luxurious autos made up greater than 17% of the vehicles Individuals purchased final month – a near-record.
In a session for buyers final week, Mercedes famous that gross sales of its flagship S-Class sedan elevated 40% final 12 months. Its ultra-luxury Maybach and expensive high-performance AMG sub-brands set gross sales data.
The corporate stories that it bought 10% fewer fashions within the first quarter of 2022 than one 12 months earlier than however was 20% extra worthwhile due to gross sales of higher-end fashions.
Reducing Cheaper Fashions
Over the previous twenty years, Mercedes has engaged in a three-way dogfight with BMW and Audi to grow to be the German luxurious model with probably the most in depth lineup. That could be over.
In a press release, the corporate stated it plans to refocus on “our purpose to construct the world’s most fascinating vehicles.”
CEO Ola Källenius advised the Irish Examiner that will imply chopping some entry-level fashions. “We are going to nonetheless cater to the entry-level luxurious phase,” he stated. “However we are going to trim the portfolio. Right this moment we’ve got seven fashions in that phase; sooner or later, we may have 4,” he added.
Since Källenius was chatting with a European press outlet, his calculations may embrace some fashions not bought within the U.S.
However, he defined, “we’re not going to go in and compete with the amount makers — that’s not our place.”
Extra Exclusivity: Mercedes Mythos
Mercedes could pull again on its choices for entry-level patrons. However it’s doing the alternative on the different finish of the market.
In a session for buyers final week, Mercedes unveiled plans for a brand new super-luxury sub-brand: Mercedes Mythos. Mercedes revealed little concerning the plan, saying solely that its merchandise will enchantment to “probably the most devoted lovers and collectors of Mercedes-Benz.” A slide proven to buyers final week appeared to indicate a retooled SL Speedster, closely shadowed, beneath the Mythos badge.
Electrical Plans Not Altering
In asserting their new technique, executives clarified that Mercedes’ electrical automotive plans haven’t modified. Final 12 months, the corporate introduced plans to go all-electric by 2030 in markets that construct sufficient infrastructure to help the transition.
Mercedes has begun introducing electrical options to a lot of its autos, with a gas-powered and an electrical providing in every market phase. The ultra-luxe EQS, as an example, performs the same flagship position to the S-Class.