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Mastering Transformation: Making Mercedes-Benz Leaner, Faster, and Stronger
Mercedes-Benz is once again pushing the boundaries of luxury automotive design and technology, preparing for an unprecedented transformation in the coming years. The Mercedes-Benz Group AG recently unveiled its bold plans for 2024 and beyond, showcasing a groundbreaking product launch program alongside a comprehensive strategy to enhance its performance and continue delivering exceptional value to both customers and shareholders.
Ola Kaellenius, CEO of Mercedes-Benz Group AG, emphasized the company's commitment to ensuring that the iconic brand continues to realize its full potential. The transformation includes the launch of the biggest product and tech campaign in the brand's history, and a focus on delivering a leaner, faster, and stronger future for the brand.
Designing Extraordinary Cars for Every Drive Type
Mercedes-Benz has long been known for its exceptional design, advanced technology, and superb refinement. Whether powered by a battery-electric vehicle (BEV), a hybrid, or a traditional high-tech combustion engine (ICE), the brand’s commitment to excellence remains unwavering. With the launch of new models like the CLA, available as both BEV and ICE variants, Mercedes-Benz is making significant strides toward providing customers with more flexibility in drivetrain options, without compromising on luxury and performance.
The new CLA will offer both electric and electrified high-tech combustion variants, featuring advanced engines that provide industry-leading efficiency, range, and performance. This new flexibility across the entire portfolio allows customers to choose the best model and powertrain combination based on their needs.
The Electrification of Mercedes-Benz’s Core Segments
One of the most significant aspects of the transformation is the company’s push to expand its electric vehicle (EV) lineup. With the launch of all-new fully electric models like the GLC, C-Class, and E-Class, Mercedes-Benz is closing the gap in its electric core segment. As part of this transition, Mercedes-Benz plans to increase its share of battery-electric vehicles (xEV) to more than 30% by 2027.
The brand is also accelerating its development of future-proof electrified engines, including small transverse high-tech engines, that will provide cost-effective and highly efficient solutions across multiple segments. With the all-new electric GLC and the electrification of its iconic performance models like the Mercedes-AMG lineup, Mercedes-Benz is poised to deliver a high-tech, electrified performance experience to customers in every segment.
Innovative Technology for the Future
Mercedes-Benz is investing heavily in cutting-edge technology to remain at the forefront of the automotive industry. The new CLA will introduce MB.OS, an in-house operating system powered by AI and designed to enhance every aspect of the driving experience, from infotainment to automated driving. This software-defined vehicle will feature advanced AI capabilities, including conversational and behavioral AI through the MBUX Virtual Assistant.
The technology will also enable advanced automated driving features such as SAE Level 2++ point-to-point navigation and even future Level 3 conditionally automated driving. These innovations represent a leap forward in Mercedes-Benz’s ambition to become the leader in tech-powered automotive experiences.
Leaner Production and Cost Efficiency
Mercedes-Benz is also focused on making its production processes more efficient to remain competitive in a rapidly changing market. The company plans to cut production costs by 10% by 2027 through streamlining its production footprint and optimizing the use of digitalization and AI to enhance its manufacturing capabilities. The brand is also increasing its focus on local-for-local production, with plans to raise this share from 60% to 70% by 2027.
In addition to its production efficiency measures, Mercedes-Benz is investing in a future-ready supply chain, working closely with suppliers to reduce material costs and further integrate sustainable practices into its operations.
A Strong Future for Mercedes-Benz Performance
The future of Mercedes-Benz is about more than just electrification and innovation. The brand is also committed to retaining its strong performance credentials through the continued expansion of its performance-driven divisions. Mercedes-AMG, for example, will undergo a significant lineup refresh starting in 2026, with new high-tech electrified V8 engines and dedicated high-performance electric models. The legendary G-Class family will also be expanded, introducing a new, smaller version to cater to a wider range of customers.
The Road Ahead
With a focus on delivering products that are leaner, faster, and stronger, Mercedes-Benz is entering an exciting new phase of its transformation. As the company looks toward the future, it will continue to shape the world of luxury vehicles, combining cutting-edge technology, exceptional design, and performance excellence across its entire portfolio.
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