Mercedes’ 2022 “Economics of Want” technique outlined a shift in the direction of extra worthwhile high-end automobiles. It allotted over 75 p.c of R&D funds for merchandise competing in probably the most worthwhile market segments, together with the “Prime-Finish” vehicles such because the S-Class, SL, and G-Class, in addition to the AMG and Maybach manufacturers. Nonetheless, Automotive Information reviews the three-pointed star may be reversing its upmarket push in the US.
Whereas the wealthy might get richer, Mercedes allegedly conveyed to sellers at a gathering in Las Vegas this month that 2024 would be the 12 months when the main target shifts to lower-priced vehicles to drive gross sales. In response to a supplier who attended the assembly, an govt for the German luxurious model acknowledged: “Final 12 months was about profitability; this 12 months is about gross sales development.” The plan is to extend the provision of gasoline and hybrid vehicles, counting on the C-Class and E-Class, together with the equal GLC and GLE, to be their bread and butter.
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In 2024, Mercedes plans to unveil the substitute for the CLA, though gross sales in the US won’t start till 2025. Pictured right here is final 12 months’s namesake idea, which, regardless of being absolutely electrical, can accommodate combustion engines with its Mercedes Modular Structure. The brand new household of compact vehicles will embrace two crossovers and a taking pictures brake, already teased as probably the next-gen GLA, GLB, and CLA Taking pictures Brake. It is unclear whether or not the latter is coming to the US, although it appears unlikely provided that Mercedes is not even promoting the C-Class wagon right here.
Mercedes can even use the upcoming MMA platform for the already teased “Little G” believed to come back out in 2026. The brand new structure has been developed as “EV-first however not EV-exclusive, and the compromise will relaxation on the ICE facet, not the EV facet,” in response to an announcement made to Motor1 by Christoph Starzynski, Mercedes-Benz vice chairman of growth for electrical drive. A lot for “the perfect or nothing” slogan…
In protection of Mercedes, specializing in high-end vehicles within the aftermath of the coronavirus pandemic made sense. In 2022, provide bottlenecks attributable to the dearth of semiconductors have been prevalent. The corporate determined to allocate obtainable elements to larger and dearer vehicles that yielded greater earnings.
In 2024, because the EV market seems to be cooling down and rates of interest are excessive, prioritizing volume-oriented merchandise is comprehensible. Nonetheless, this choice does pose a contradiction to the model’s intention of shifting upmarket. That is nonetheless partially occurring since there are plans to simplify the compact automotive lineup. Fashions such because the A-Class hatchback, A-Class sedan (which died within the US after the 2022 mannequin 12 months), and the B-Class minivan are prone to be discontinued.
Within the US, Mercedes knowledgeable sellers on the assembly that no fewer than 25 new and up to date fashions would go on sale in 2024. One supplier consultant interviewed by AN was happy with the change of plan towards cheaper vehicles, emphasizing that these are simpler to promote:
“I might fairly have entry-level automobiles with a flip fee of lower than 30 days that I could make a small revenue on than carry $100,000 [electric] automobiles for half a 12 months and lose cash on.”
The aim for 2024 is to ship over 300,000 vehicles within the US the place Mercedes offered 282,229 automobiles (excluding vans) in 2023, down by roughly 4,500 items in comparison with the 12 months earlier than.
