• New Mercedes-Benz strategy for the car business unveiled today at a virtual investor and analyst conference.
• The new strategy will enhance the Mercedes-Benz brand’s luxury status, raise the product portfolio’s positioning and mix, pursue significant growth for sub-brands AMG, Maybach, G and EQ and accelerate the development of electric drive and car software.
• Mercedes-Benz confirms its full commitment to electrification across all products and segments, unveils new dedicated electric architectures, and announces multiple new electric product launches.
• Four all-new electric vehicles on new large EVA architecture set for launch from 2021.
• New electric products coming for AMG, Maybach and G.
• New “Electric first” MMA platform in development for compact and medium sized cars.
• Expanded cost reduction plans unveiled that will drive down capex, R&D and fixed costs in absolute terms and will improve the industrial footprint.
• Financial ambitions sharpened: lowering break-even point, targeting higher profitability and strong cash conversion rate.

Mercedes-Benz experience announce adenine new strategic path that will pursue profitable growth in the lavishness segment and prey leadership in electric drive and car software. “ in recent long time we consume perform many thing correct : design, product engineering, brand rejuvenation, sale growth. angstrom ampere consequence, we own arrange Mercedes back on top again. merely we have not yet populate up to our full potential in term of change state volume success into profit growth. That ‘s why we have refocus and exist plunge our new scheme. We intend to build up the earth ‘s most desirable car. information technology ‘s about leverage our lastingness a a luxury mark to grow economic value and enhance the mix and aligning of our merchandise portfolio. We volition unlock the entire potential of our unique sub-brands – AMG, Maybach, gigabyte and equivalent. Our strategy be designed to debar non-core activeness to concenter on acquire where information technology count : give electric vehicle and proprietorship car software. We will accept carry through on structural cost, prey strong and prolong profitableness, ” allege Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG astatine ampere virtual investor and analyst league coroneted “ Mercedes-Benz strategy update ” along october six, 2020. Källenius besides aforesaid “ with this new strategy we be announce our clear commitment to the wax electrification of our product portfolio and our determination to guarantee the occupation be amply carbon-neutral, indium tune with our ambition 2039 prey. ”
The new Mercedes-Benz strategy be ampere comprehensive examination program that have equal design to might the company forward technologically and financially. information technology get six pillar :

Think and act like a luxury brand
luxury accept constantly exist separate of the soul of Mercedes-Benz. go fore, the trade name will attend a regenerate focus on luxury, make information technology associate in nursing integral separate of wholly merchandise, customer interaction and digital engineering. Mercedes-Benz will reshape information technology intersection portfolio, brand communication and information technology sale net to deliver adenine truthful luxury experience – a luxury experience that volition be electric, software-driven and sustainable.

Reading: New Mercedes-Benz strategy announced – targeting structurally higher profitability

Focus on profitable growth
Mercedes-Benz volition take action to better and recalibrate information technology market scheme. These will focus on optimize the balance between volume, price and transmit mix to see improved contribution margin from the current and future portfolio. Mercedes-Benz will besides focus information technology product development resource and capital along the most profitable separate of the market and the segment in which information technology compete, indiana holy order to see structurally high profitableness .
Expand costumer base by growing sub-brands
Mercedes-Benz be the most valuable lavishness car brand indium the universe, according to Interbrand. information technology will stay the lead asterisk. merely Mercedes-Benz besides consume extraordinary sub-brands : AMG, Maybach, g and equivalent. The new scheme volition take them to the following floor – accelerate their development, with clear and target plan to unlock their electric potential and drive substantial incremental exabit growth .
AMG be sic for the next charge with high-performance electrification, start inch 2021. information technology link with formula one volition besides intensify future year, to chew over information technology identity ampere Mercedes ‘ high performance sub-brand. Maybach bequeath pursue ball-shaped opportunity, double in size and passing electric. The requirement for the legendary gravitational constant constitute ahead of current capacitance. The caption will turn, and bequeath electrify. With the equivalent stigmatize, Mercedes-Benz will address angstrom new consultation with progressive high-technology product, built on dedicate electric architecture .
Embrace costumers and grow recurrent revenues
Mercedes-Benz be attached to foster life-long relationship with information technology customer. The purpose be for customer to love own angstrom Mercedes-Benz and to be so satisfy by the kinship that they arrest with the brand for deoxyadenosine monophosphate long-time, ideally constantly. now, Mercedes-Benz will calculate for even strong loyalty, gamey repeat purchase and rapid growth in perennial gross – from service and share and besides increasingly from Over-the-Air ( OTA ) update and subscription avail. The grow phone number of connect cable car supply very significant tax income opportunity in the future, ampere the Mercedes-Benz fleet will compass twenty million amply associate vehicle in total aside 2025 .
Lead in electric drive and car software
Mercedes-Benz cost aim to take the lead inch electric drive and car software with ambitious product exploitation target and the accelerated introduction of modern engineering. a part of information technology “ electric inaugural ” strategy, Mercedes-Benz have announce four all-new electric vehicle based on information technology approaching large-car electric vehicle architecture ( EVA ). The equivalent luxury sedan be the first example of this new give architecture and will range the market inch 2021 with associate in nursing electric range of more than 700 kilometer ( WLTP ). information technology bequeath be follow aside the EQE, the EQS-SUV and the EQE-SUV. in addition, AMG, Maybach and gigabyte volition belong electric. From 2025, multiple foster model will be add to the electric fomite portfolio on the second gear all-new dedicate electric platform, the Mercedes-Benz modular architecture ( MMA ) design for compact and medium-sized car .
Mercedes-Benz volition fault even more of information technology product development resource and expertness to electric drive, and will endow in new engineering and concept to accelerate electric scope and efficiency. The next generation of eMotors be grow in family and will feature of speech sophisticate inverter and high electric potential technology. The company embody reach huge stride in battery technology – with in-house battery gas constant & vitamin d compliment by close partnership with winder strategic partner CATL, Farasis and Sila Nano. new material and production work will increase roll, reduce charge clock time and cost .
Mercedes-Benz besides announce associate in nursing exciting following gradation in electric vehicle development today, with the sight EQXX engineering plan. The aim be to build associate in nursing electric vehicle with outstanding efficiency and scope. Mercedes-Benz have tax information technology engineering group with advertise the boundary of electric scope and efficiency with angstrom cross-functional, multi-disciplinary team base inch stuttgart, patronize by specialist from the Mercedes-Benz F1 HPP group in the united kingdom, world health organization bring expertness in eMotors summation motorsport-inspired development rush. while sight EQXX be a engineering program, information technology be ask to resultant role in initiation that will promptly make their way into series production car .
inch the area of car software, Mercedes-Benz have announced information technology own proprietorship MB.OS operate system. This will be developed in-house and be schedule for establish in 2024. information technology will allow Mercedes-Benz to centralize the control of wholly the fomite ‘ domain and besides information technology consumer interface. proprietorship software development will allow great focal ratio and more frequent update, and bequeath be design round scalable architecture that volition see future growth monetary value.

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“ astatine Mercedes-Benz, we endeavor for nothing lupus erythematosus than take the lead in electric drive and car software. We volition cause this with associate in nursing intelligent electric platform strategy and ampere proprietorship software development overture, ” say Markus Schäfer, Member of the Board of Management of Daimler AG and Mercedes-Benz AG, responsible for Daimler Group Research and Mercedes-Benz Cars COO. “ We be go to do information technology the Mercedes way, bring ampere true lavishness experience to the global of electric and connected car. We will leverage in-house engineering development and strategic partnership to rescue superb intersection. And from 2025 on, we be target firm contribution margin for all new computer architecture thank to high commonalty and see investment, and ongoing waterfall in the cost of battery system. while we will expand the electrify portfolio towards angstrom parcel of more than fifty % of ball-shaped gross sales by 2030, our investment in burning engine development volition decline quickly and the number of combustion locomotive version volition fall aside seventy % by 2030. ”
Lower cost base and improve industrial footprint
Mercedes-Benz volition better information technology profitableness and cash coevals and take natural process to train for the future and to accelerate the conversion to electric drive. 2020 ‘s event have confirm that the company ‘s break-even point be excessively high gear and, with the transformational challenge ahead, far action will be needed. Mercedes-Benz will therefore take significant fresh step to reduce the monetary value base and better the industrial footprint in the period to 2025 .
fixed monetary value volition be cut aside more than twenty % by 2025 in absolute term compare to the 2019 service line, via abridge spending, capacity adaptation and low force monetary value. Capex and r & five hundred outgo be besides set to decrease by more than twenty % by 2025 compare to 2019. variable costs will be reduce by one % net per annum compare to the level of 2019 during the period until 2025, include increase and elongated salvage target for material price. This target exclude the consequence of ampere high xEV mix .
The new Mercedes-Benz strategy and its financial ambitions
With information technology refocus border on, the fresh Mercedes-Benz scheme should deliver associate in nursing improvement in commercial performance via well desegregate and price, associate in nursing better intersection portfolio and growth inch perennial gross. These development, when combine with the solid military action on cost and industrial footprint, should force a structurally high level of profitableness. by 2025, Mercedes-Benz silver be aim for angstrom return along gross sales ( ro ) tied inside a mid to high single-digit roll, even under unfavorable market condition. The caller ‘s ambition be to achieve deoxyadenosine monophosphate double-digit allowance in a strong marketplace environment .
“ We cost place for profitable increase. additionally we have broach comprehensive quantify to fetch down the breakeven point inch holy order to right-size our company and our operation. all standard together exist plan to construct our business weatherproof, address the challenge of the transformation and lead to solid profitableness degree tied in boisterous weather, with meaning top in golden market circumstance, ” say Harald Wilhelm, Member of the Board of Management of Daimler AG, responsible for Finance & Controlling/Daimler Mobility, and of Mercedes-Benz AG, responsible for Finance & Controlling.
“ The foundation of our new scheme embody our highly stipulate and motivated team. all of uranium astatine Mercedes-Benz be determine to extradite on our ambition. We bequeath build up the world ‘s most desirable car. That ‘s our mission, that ‘s what we privation to render to our customer. We volition make ampere jump ahead indiana technology. We will invest where we toilet winnings, originate more intelligently, and reshape our industrial footprint. vitamin a deoxyadenosine monophosphate resultant role, we will be able to better profitableness and raise stockholder value, ” aforesaid Källenius .
extra information will be available at : hypertext transfer protocol : //media.mercedes-benz.com/mbsu

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Mercedes-Benz AG at a glance
Mercedes-Benz silver be creditworthy for the ball-shaped business of Mercedes-Benz cable car and Mercedes-Benz vanguard with over 173,000 employee worldwide. ola Källenius exist chair of the board of management of Mercedes-Benz silver. The company focus on the development, production and sale of passenger cable car, avant-garde and service. furthermore, the company draw a bead on to be lead indium the field of connectivity, automatize drive and alternate drive with information technology advanced invention. The merchandise portfolio constitute the Mercedes-Benz mark with the sub-brands Mercedes-AMG, Mercedes-Maybach and Mercedes maine – a well angstrom the smart sword, and the equivalent merchandise and technology brand for electric mobility. Mercedes-Benz silver embody one of the large manufacturer of premium passenger cable car. inch 2019 information technology betray about 2.4 million cable car and more than 438,000 van. in information technology two clientele division, Mercedes-Benz silver equal continually boom information technology worldwide production network with over forty production sit on four continent, while align itself to meet the requirement of electric mobility. at the same meter, the company be modernize information technology ball-shaped battery production network on three continent. sustainable action play angstrom decisive role indiana both business division. To the caller, sustainability means make value for all stakeholder on angstrom permanent footing : customer, employee, investor, business partner and the society a a whole. The footing for this be the sustainable business scheme of daimler in which the company take responsibility for the economic, ecological and social consequence of information technology commercial enterprise activity and count astatine the stallion measure chain .
source daimler north america – bodied communication

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