- Way forward: Mercedes-Benz readies its biggest ever
product and tech launch campaign with dozens of new or refreshed
models until 2027.
- Design language: Mercedes-Benz to introduce a coherent,
status-oriented design language across the entire portfolio.
- Intelligent modularization and cutting-edge tech:
Mercedes-Benz Operating System (MB.OS) lays foundation for all
domains, especially infotainment and automated driving
functionalities. Electric drive units and batteries designed to be
modular and highly scalable.
- Performance: Comprehensive performance enhancement plan
(Next Level Performance) aims to raise the competitiveness and
resilience of Mercedes-Benz.
Mercedes-Benz Group AG (ticker symbol: MBG) delivered solid
financial results for 2024 and unveiled its biggest ever product
and tech launch program as well as performance enhancement measures
designed to deliver exceptional value to customers and
shareholders.
“As the custodians of this iconic brand we
ensure that Mercedes-Benz continues leveraging its full potential.
We're launching the company’s biggest ever product and tech
campaign and a comprehensive performance enhancement program.”
Ola Kaellenius, Chief Executive Officer of
Mercedes-Benz Group AG.
Building the most desirable cars
A Mercedes-Benz is a Mercedes-Benz – no matter how it’s powered.
This means: Every Mercedes is extraordinary. Its status derives
from exceptional design, advanced technology, superb refinement and
craftsmanship, a sublime ride and drivetrain, world class safety
systems and outstanding digital solutions – be it a
battery-electric vehicle (BEV), a hybrid, or a car with an
electrified high-tech combustion engine (ICE). Mercedes-Benz will
apply a coherent, status-oriented design across the entire
portfolio and customers will primarily decide on a model – and then
choose their preferred drive type. The all new CLA, which will be
offered as both a BEV and an ICE variant, takes a big step in this
direction. And there is more to come.
The concept offers drivetrain flexibility in the form of a pure
electric car with benchmark range, consumption and charging
performance; in addition to a highly efficient ICE variant using
small transverse high-tech electrified engines.
Even though the designs will be almost identical, in the Core
and Top-End Vehicles (TEV) segments, the rear-wheel-drive cars will
be based on separate, uncompromised BEV/ICE concepts. Cutting-edge
BEV and ICE models can exploit their respective strengths, without
sacrificing space, elegance, convenience, or efficiency. Thanks to
intelligent modularization, Mercedes can offer best-in-class
roominess and perfect proportions while keeping a tight grip on
costs and manufacturing flexibility.
By focusing on the most promising segments, Mercedes-Benz
retains the ambition to defend margins as the BEV share increases.
Mercedes-Benz plans to expand and protect the share of Top-End
Vehicles (TEV) and aims to leverage the potential of its luxury
brands such as G-Class, as the undisputed icon of adventurous
luxury; Maybach as the epitome of sophisticated luxury and
Mercedes-AMG as the performance luxury brand. The legendary G-Class
family will be expanded with a new smaller version. Mercedes-AMG
plans to outgrow the performance market, thanks to a heavily
refreshed model lineup from 2026 onwards and a strategic evolution
of its portfolio, which will include a next-generation, high-tech
electrified V8 and dedicated high-performance electric models based
on AMG.EA.
Biggest ever product launch campaign
Beginning with the all-new CLA this year, Mercedes-Benz will
start the most intense product launch program in its history,
including the major upgrade of the S-Class in 2026 as well as a
string of launches at Mercedes-AMG. Overall, Mercedes-Benz plans
for dozens of new or refreshed models to reach markets until
2027.
The CLA will be offered with an electric drivetrain or a 48-volt
electrified high-tech four-cylinder engine, paired to an
electrified eight-speed dual-clutch transmission. The electric
variant sets new standards in its class in terms of range,
consumption and charging power, thanks to know-how transferred from
the VISION EQXX technology program. The product substance in this
class will be elevated, while at the same time, the portfolio
complexity of its family will be reduced from seven to four
variants.
By launching all-new electric GLC and C-Class models,
Mercedes-Benz will close a gap in its electric core segment. An
all-new fully electric E-Class will round out the picture.
The pace of BEV adoption will continue to be determined by
market conditions, infrastructure and customer needs. Boosted by
new BEV model introductions, the Mercedes-Benz Group AG is
targeting an xEV share of more than 30% in 2027.
“We will excite our customers with a full
rollout of uncompromising cars. They will be an intelligent part of
their life. All of them come with a fully integrated tech stack and
leverage the latest developments in AI. They will be packed with
advanced technologies like the latest ADAS systems and innovative
tech features like a new steer-by-wire system. It all starts very
soon with our new CLA, our first software-defined vehicle powered
by our very own in-house operating system MB.OS. It will be
followed by our new electric GLC, which is a turning point in our
mid-size segment. This is the all-electric SUV our customers have
been waiting for.”
Markus Schaefer, Member of the Board of
Management of Mercedes-Benz Group AG. Chief Technology Officer,
Development & Procurement
Intelligent scalable modules
With the launch of the CLA, all new Mercedes vehicles will run
on the proprietary AI-enhanced Mercedes-Benz Operating System
(MB.OS), a chip-to-cloud software operating system which covers
infotainment, automated driving, comfort as well as driving &
charging. By having full control of all sensors and actuators,
Mercedes-Benz will be able to deliver a superior product
experience. MB.OS is scalable to fit every segment and can be
tailored to each region. For example, with navigation,
Mercedes-Benz will use Google in western markets, AMAP for China
and TMAP in Korea.
The BEV drivetrain portfolio will make use of highly modular
electric drive units and batteries which are scalable for all
segments, including cost-effective Lithium-Iron-Phosphate (LFP) and
advanced Nickel-Manganese-Cobalt (NMC) batteries, as well as
high-performance round cells.
For the batteries used in the CLA, the cost per kilowatt hour
has been cut by about 30% compared to its predecessor generation.
Further improvements in energy density and cost efficiency are
being worked on, in addition to advances in cell chemistry.
Lithium-Manganese-Oxide (LMO)/NMC blends will lower costs while
increasing energy density to NMC levels.
The newly developed, flexible Electric Drive Unit 2.0 (EDU 2.0)
will offer two and four-wheel options across all segments.
To also ensure a comprehensive portfolio of electrified
high-tech combustion-engine vehicles, Mercedes-Benz already has a
full range of future-proof EU-7 ready engines and transmissions
ranging from four to eight cylinders. In selected markets,
12-cylinder engines will continue to be offered.
Lead in tech
Mercedes-Benz continues to push boundaries with cutting-edge
technology, including a new steer-by-wire system and a fully
integrated tech stack, which includes a water-cooled supercomputer.
With the all-new CLA, Mercedes-Benz will introduce not just MB.OS,
but also the MBUX Virtual Assistant, which incorporates multi-agent
AI functionalities. Using the latest Large Language Models (LLM)
and incorporating conversational as well as behavioral AI, it makes
the user experience more proactive and human like. It can even
answer follow-up questions in a natural way for up to an hour,
thanks to memory.
MB.OS also supports next level automated driving, including
Level 2++ point-to-point navigation which handles complex urban
traffic. This feature will be available in China and the US with
the all-new CLA, and Europe will follow as soon as legislation
permits. Speeds for SAE Level 3 conditionally automated driving are
increasing, and the goal is to get a 130 km/h system on the road by
the end of the decade. Mercedes-Benz became the first international
car maker to gain approval for testing SAE Level 4 highly-automated
driving in Beijing on designated urban roads and highways.
Winning in China
The S-Class remains the undisputed market leader in its segment,
and Mercedes-Benz continues to lead the segments for vehicles
priced 1 million RMB and above. China is already home to
Mercedes-Benz's biggest and strongest research and development
network outside of Germany. Local facilities in Beijing and
Shanghai allow Mercedes-Benz to take full advantage of the local
ecosystem and supplier landscape. This enables Mercedes-Benz to
combine upholding its high internal standards while innovating at
“China speed.” Mercedes-Benz is already setting standards in
navigation with lane-level navigation and 3D maps.
Utilizing the China R&D network will allow Mercedes-Benz to
elevate the intelligence of its products while at the same time
greatly lowering complexity and cost. Products made for the Chinese
market will be locally developed and loaded with China-specific
apps and content, including dedicated infotainment and automated
driving features. As part of the announced product launch campaign
there will be seven models dedicated to China across all segments
and drivetrains.
Despite a challenging year 2024, the Mercedes-Benz China Joint
Venture operations achieved a strong return on sales. Mercedes-Benz
plans to optimize the BBAC joint venture together with its partner.
A 10% reduction in material costs is targeted through deeper
localization of parts in the China supply chain. Variable
production costs and fixed costs are set to be reduced as well.
Potential adjustments to the dealer network and production
footprint are also being evaluated.
R&D costs
Mercedes-Benz is prioritizing global R&D resources with a
laser focus on the customer. The company will continue investing in
the Mercedes-Benz Tech Stack to defend and expand its position in
software and hardware. The vertical integration of MB.OS will allow
for a continuous, iterative approach to product development with an
increased emphasis on software. The use of digital tools also
allows Mercedes-Benz to achieve greater levels of efficiency in its
use of hardware and test fleets.
Investments are expected to reach their peak in 2025 due to the
massive product launch plan and will ease from 2026 onwards. The
majority of investments for the CLA family of vehicles, the
electric GLC and C-Class as well as AMG.EA models will be completed
by 2027, with products on the road. Investments into combustion
engine technology will remain limited, thanks to a reduction in
powertrain complexity and the use of intelligent modularization
between BEV and electrified high-tech ICE products. The highly
efficient four-cylinder engine for the all-new CLA was developed
and designed by Mercedes-Benz and is being industrialized with a
partner in China.
Next Level Performance:
Production: Mercedes-Benz Group is adapting its cost base with a
raft of measures. The company plans to cut production costs by 10%
until 2027 after using the past years to adjust its nominal
production capacity. This, among other factors, resulted in an exit
from plants in Hambach (France), Iracemapolis (Brazil) as well as
CKD plants in Russia and Indonesia. A powertrain plant in Poland is
being transformed into a future production site for Vans and the
sale of a Van plant in Argentina is another step towards adapting
the company’s global production footprint. Global production
capacity for passenger cars is planned to be reduced from 2.5
million in 2024 to between 2 - 2.2 million units by 2027, while
retaining the flexibility to readjust, as the product launch
campaign gains traction. There are no plans to shut down plants in
Germany. Production capacity at each German plant is being balanced
at an average 300,000 units. A core segment model will be added to
the production lineup in Kecskemet (Hungary), where capacity is
being added to take advantage of factor costs which are roughly 70%
lower than in Germany.
Mercedes-Benz will make greater use of digitalization and AI,
adopting a ‘digital first’ approach. Thanks to digital twins,
Mercedes-Benz can plan potential moves of models between plants,
including ramp up times, and retooling of the plans without having
to significantly interrupt real world production.
Local for local: By 2027 the share of local-for-local production
is planned to be increased from 60% to 70%. An additional Core
segment model could be allocated to the United States and a
long-wheelbase version of the GLE will be localized in China by
mid-2026.
Material Costs: Suppliers are engaged in a dialogue with
Mercedes-Benz procurement and engineering teams to reduce material
costs by challenging specifications and the design of components to
identify where cost can be reduced through standardization and
technical refinement. One result is earlier and deeper integration
of key suppliers in the development process. Material costs will be
tackled in close collaboration with suppliers. The BEAT26 program
aims to jointly achieve long-term and sustainable changes to cost
structures in procurement for both Mercedes-Benz and its
partners.
Fixed Costs: Mercedes-Benz achieved a 19% reduction in fixed
costs between 2019 and 2024, net of inflation. An additional
reduction of more than 10% is being targeted over the next three
years. To achieve this, the company is constructively discussing
measures with its works council. Moreover, opportunities are being
evaluated to determine how Mercedes-Benz sales and financial
services organizations can work more closely together, to cater to
customers across the different touchpoints more efficiently. In
addition to selling its own retail business in Germany to
experienced dealer groups, the company plans to further reduce
management positions and increase the use of digitalization and
generative AI to streamline processes.
“To ensure that the company can weather an even
more dynamic geopolitical environment as well as challenging
markets, efficiency measures are being intensified across the
board. 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.”
Harald Wilhelm, Chief Financial Officer of
Mercedes-Benz Group AG
Link to capital market presentation:
https://group.mercedes-benz.com/results-2024/ Pictures of the event
will be available here: group-media.mercedes-benz.com
Further information about Mercedes-Benz Group is available at:
media.mercedes-benz.com and group.mercedes-benz.com
The figures in this document are preliminary and have neither
been approved yet by the Supervisory Board nor audited by the
external auditor.
Further information about Mercedes-Benz Group is
available at: media.mercedes-benz.com and
group.mercedes-benz.com
Forward-looking statements
This document contains forward-looking statements that reflect
our current views about future events. The words “anticipate”,
“assume”, “believe”, “estimate”, “expect”, “intend”, “may”, “can”,
“could”, “plan”, “project”, “should” and similar expressions are
used to identify forward-looking statements. These statements are
subject to many risks and uncertainties, including an adverse
development of global economic conditions, in particular a negative
change in market conditions in our most important markets; a
deterioration of our refinancing possibilities on the credit and
financial markets; events of force majeure including natural
disasters, pandemics, acts of terrorism, political unrest, armed
conflicts, industrial accidents and their effects on our sales,
purchasing, production or financial services activities; changes in
currency exchange rates, customs and foreign trade provisions;
changes in laws, regulations and government policies (or changes in
their interpretation), particularly those relating to vehicle
emissions, fuel economy and safety or to ESG reporting
(environmental, social or governance topics); price increases for
fuel, raw materials or energy; disruption of production due to
shortages of materials or energy, labour strikes or supplier
insolvencies; a shift in consumer preferences towards smaller,
lower-margin vehicles; a limited demand for all-electric vehicles;
a possible lack of acceptance of our products or services which
limits our ability to achieve prices and adequately utilize our
production capacities; a decline in resale prices of used vehicles;
the effective implementation of cost-reduction and
efficiency-optimization measures; the business outlook for
companies in which we hold a significant equity interest; the
successful implementation of strategic cooperations and joint
ventures; the resolution of pending governmental investigations or
of investigations requested by governments and the outcome of
pending or threatened future legal proceedings; and other risks and
uncertainties, some of which are described under the heading “Risk
and Opportunity Report” in the current Annual Report or in the
current Interim Report. If any of these risks and uncertainties
materialises or if the assumptions underlying any of our forward-
looking statements prove to be incorrect, the actual results may be
materially different from those we express or imply by such
statements. We do not intend or assume any obligation to update
these forward-looking statements since they are based solely on the
circumstances at the date of publication.
Mercedes-Benz Group at a glance
Mercedes-Benz Group AG is one of the world’s most successful
automotive companies. With Mercedes-Benz AG, the Group is one of
the leading global suppliers of high-end passenger cars and premium
vans. Mercedes-Benz Mobility AG specialises in financial and
mobility services. The products range from financing, leasing,
vehicle subscription, rental and fleet management to insurance,
innovative mobility services, digital payment solutions as well as
products and services around charging. The company founders,
Gottlieb Daimler and Carl Benz, made history by inventing the
automobile in 1886. As a pioneer of automotive engineering,
Mercedes-Benz sees shaping the future of mobility in a safe and
sustainable way as both a motivation and obligation. The company’s
focus therefore remains on innovative and green technologies as
well as on safe and superior vehicles that both captivate and
inspire.
Mercedes-Benz continues to invest systematically in the
development of efficient powertrains and sets the course for an
all-electric future. Mercedes-Benz is consistently implementing its
strategy to transform itself toward a fully electric and
software-driven future. The company’s efforts are also focused on
the intelligent connectivity of its vehicles, autonomous driving
and new mobility concepts as Mercedes-Benz regards it as its
aspiration and obligation to live up to its responsibility to
society and the environment. Mercedes-Benz sells its vehicles and
services in nearly every country of the world and has production
facilities in Europe, North and Latin America, Asia and Africa. In
addition to Mercedes-Benz, the world’s most valuable luxury
automotive brand (source: Interbrand study, 10. Oct. 2024),
Mercedes-AMG, Mercedes-Maybach as well as the brands of
Mercedes-Benz Mobility: Mercedes-Benz Bank, Mercedes-Benz Financial
Services and Athlon. The company is listed on the Frankfurt and
Stuttgart stock exchanges (ticker symbol MBG). In 2024, the Group
had a workforce of around 175,000 and sold around 2.4 million
vehicles. Group revenues amounted to €145.8 billion and Group EBIT
to €13.7 billion.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250219817693/en/
Willem Spelten, +49 151 5862 4395,
willem.spelten@mercedes-benz.com Edward Taylor, +49 176 3094 1776,
edward.taylor@mercedes-benz.com Tobias Mueller, +49 160 862 0035,
tobias.mueller@mercedes-benz.com Andrea Berg, +1 917 667 2391,
andrea.a.berg@mercedes-benz.com
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