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Mercedes-Benz has unveiled a new strategy that aims at profitable growth in the luxury sector while establishing its leadership in the field of automotive electrics and software.
At the virtual investor and analyst conference Mercedes-Benz Strategy Update on October 6, 2020, the Chairman of the Board of Directors of Daimler AG and Mercedes-Benz AG, Ola Källenius, announced a new plan for the future of the brand.
“In recent years we have done a lot of things right … but we have not yet reached our full potential in terms of turning volume success into profit growth. This is why we have refocused and are launching our new strategy. It is about leveraging our strengths as a luxury brand to increase economic value and improve the composition and positioning of our product range. We will unleash the full potential of our subsidiaries – AMG, Maybach, G and EQ. Our strategy is designed to stop non-core activities in order to focus on what really matters: dedicated electric vehicles and automotive software. We will take action on structural costs and aim for strong and sustainable profitability“.
As a result, the automotive giant plans to improve its market strategy with the aim of achieving more profitable growth. The program includes expanding the customer base, with the development of its subsidiaries. Mercedes-Benz has high-potential subsidiaries such as AMG, Maybach, G and EQ, which the brand plans to develop to accelerate their growth.
Deepening the luxury experience
The program of the new Mercedes-Benz strategy is based on several fundamental pillars. The first is to refocus on the premium segment. As Mercedes-Benz has always been a luxury brand, its challenge today is to reinvent itself to offer a true “luxury experience” to customers. Indeed, Mercedes-Benz will rework its product offering, but also its brand communication and sales network, in order to integrate luxury at all levels of the company. This new brand strategy includes customer interaction and new digital technologies to deliver a unique high-end experience.
An ambitious plan for Mercedes-Benz, which is, according to Interbrand, the most valuable luxury car brand in the world.
For a complete electrification of the range by 2039
But the main ambition of this new strategy lies in the desire to electrify the entire product range of the German company. Indeed, at the heart of Mercedes-Benz’s strategy is the desire to take the lead in the electric motor market. In this way, the brand could also increase its recurring revenues. The growing number of connected cars offers very significant revenue opportunities in the future, as the Mercedes-Benz empire will reach a total of 20 million fully connected vehicles by 2025. The goal is to reduce the brand’s industrial footprint, while reducing costs and improving business performance.
The President expresses the brand’s ambition by going even further: “With this new strategy, we are announcing our clear commitment to the full electrification of our product range and our determination to make the company totally carbon neutral, in line with our Ambition 2039 objective“.
Photo à la Une : Facebook © Mercedes-Benz[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]
Mercedes-Benz has unveiled a new strategy that aims at profitable growth in the luxury sector while establishing its leadership in the field of automotive electrics and software.
At the virtual investor and analyst conference Mercedes-Benz Strategy Update on October 6, 2020, the Chairman of the Board of Directors of Daimler AG and Mercedes-Benz AG, Ola Källenius, announced a new plan for the future of the brand.
“In recent years we have done a lot of things right … but we have not yet reached our full potential in terms of turning volume success into profit growth. This is why we have refocused and are launching our new strategy. It is about leveraging our strengths as a luxury brand to increase economic value and improve the composition and positioning of our product range. We will unleash the full potential of our subsidiaries – AMG, Maybach, G and EQ. Our strategy is designed to stop non-core activities in order to focus on what really matters: dedicated electric vehicles and automotive software. We will take action on structural costs and aim for strong and sustainable profitability.”
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Mercedes-Benz has unveiled a new strategy that aims at profitable growth in the luxury sector while establishing its leadership in the field of automotive electrics and software.
At the virtual investor and analyst conference Mercedes-Benz Strategy Update on October 6, 2020, the Chairman of the Board of Directors of Daimler AG and Mercedes-Benz AG, Ola Källenius, announced a new plan for the future of the brand.
“In recent years we have done a lot of things right … but we have not yet reached our full potential in terms of turning volume success into profit growth. This is why we have refocused and are launching our new strategy. It is about leveraging our strengths as a luxury brand to increase economic value and improve the composition and positioning of our product range. We will unleash the full potential of our subsidiaries – AMG, Maybach, G and EQ. Our strategy is designed to stop non-core activities in order to focus on what really matters: dedicated electric vehicles and automotive software. We will take action on structural costs and aim for strong and sustainable profitability.”
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