Mercedes-Benz Revamps The Roadmap: New Electric E-Class And New Strategies
Mercedes Plans A 30% Electrified Vehicle Share By 2027, With New Platforms, Cost-Cutting Strategies, And Heavy R&D And Production Investments
Mercedes-Benz announced a detailed transformation plan that includes the introduction of an all-electric E-Class. This sweeping initiative, described by the company as its “biggest ever product and tech campaign,” encompasses dozens of new or refreshed models scheduled for release by 2027.
Electric E-Class Signals Branding Shift
The announcement of an electric E-Class describes a notable change in Mercedes’ naming strategy. This change follows the pattern set by the electric G-Class, which abandoned the EQ designation in favor of being called the G 580 with EQ technology. As a result, this move might signal the end of the EQE line, which has not met sales expectations, allowing Mercedes to present a fresh start with new technology and branding.
Separate Platforms for EVs and ICEs
For their core and top-end segments, Mercedes will develop separate platforms for electric and internal combustion engine (ICE) vehicles, though the designs will appear nearly identical. This strategy differs from their approach with the new CLA, which will share a single platform for both electric and mild hybrid variants. The company explains this decision enables them to maximize the strengths of each powertrain type without compromising on space, elegance, or efficiency.
In addition, Mercedes-Benz is introducing its proprietary Mercedes-Benz Operating System (MB.OS), a comprehensive chip-to-cloud platform that will debut in the new CLA. This system integrates various vehicle domains, from infotainment to automated driving capabilities.
Cost-Cutting and Global Production Strategy
However, these plans arrive at a challenging time for the Mercedes-Benz. The company’s 2024 operating results showed a 31% decline to 13.6 billion euros, with passenger car segment margins falling from 12.6% to 8.1%. In response, Mercedes has outlined a performance enhancement program that includes major cost-cutting measures. While maintaining their German plants, the company plans to increase production in locations with lower wage structures from 15% to 30% by 2027, with plants like the Hungarian plant in Kecskemét offering 70% lower costs compared to German operations.
Despite these challenges, Mercedes-Benz is targeting an electrified vehicle (xEV) share of more than 30% by 2027. The company’s CFO, Harald Wilhelm, expressed confidence in the strategy stating, “Paired with strong product substance and our product launch plan, Mercedes-Benz is well positioned to recalibrate its operating point and to return to double-digit margins in the near future.”
The transformation plan also includes noteworthy investments in research and development, with a particular focus on China, where Mercedes operates its largest R&D hub outside Germany. The company plans to develop seven China-specific models and deepen its localization efforts in this market.
By combining innovative technology, strategic cost management, and a unified design approach across its vehicle lineup, Mercedes aims to strengthen its market position while preserving its reputation for luxury and innovation.
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