Mercedes-Benz releases new strategy and sets five-year profit targets, new energy vehicle layout will be fully accelerated

Mercedes-Benz has thrown out a series of important future plans to investors on the development of the passenger car sector.

"The new strategy aims to reduce the development of non-core activities in order to focus on the advantages in key areas-electric models based on exclusive platforms and our own car software; we will cut structural costs and achieve considerable and sustained profitability.

Mercedes-Benz plans to improve its performance through a more reasonable combination and pricing, a better product lineup, and increased recurring revenue.

The after-interest and tax profit margin of Mercedes-Benz passenger cars in 2019 is 5.

First, redefine luxury.

In order to create this luxury experience, Mercedes-Benz also announced that it will reshape its product lineup, brand communication and sales network.

Secondly, Mercedes-Benz will take actions to improve and precisely adjust its market strategy.

(Mercedes-Benz 4S shop, the pictures in this article are all provided by the company)

Thirdly, to develop the potential of four sub-brands, namely Saidex-AMG, Mercedes-Maybach, Mercedes-Benz G-Class and EQ electric technology brand.
Beginning in 2021, AMG will achieve a comprehensive brand upgrade through high-performance electrification.
At the same time, the relationship between AMG and the F1 World Formula One Championship will continue to be strengthened next year to strengthen its Mercedes-Benz high-performance sub-brand positioning.
Maybach will deploy the global market, double the volume and electrify its products; Mercedes-Benz G-Class is currently in short supply, and its product sequence will also provide electrification options; under the EQ brand, Mercedes-Benz will build products based on its exclusive electrification platform.

　　The fourth is to increase recurring income.
Mercedes-Benz hopes to change the current structure of revenue sources, from services to parts business, and OTA remote wireless upgrades to subscription services are all considered sources of innovative revenue.
Mercedes-Benz plans to have 20 million fully connected vehicles by 2025, and this continuously growing connected business is also seen as an important profit opportunity in the future.

　　The fifth is a more detailed electric and interconnection plan.
Mercedes-Benz stated that it looks forward to achieving a lead in the development stage of electric drives and automotive software through "ambitious" product development goals and faster introduction of new technologies.
Mercedes-Benz announced that it will release 4 new pure electric products based on the EVA platform of the upcoming large pure electric models.
Among them, EQS is the first representative of this pure electric vehicle platform, which will be launched in 2021, and the WLTP electric cruising range exceeds 700 kilometers.
Next, there will be three models of EQE, EQS SUV and EQE SUV coming out one after another.

　　In addition, AMG, Maybach, and G-class vehicles will also provide electrified products.
Starting in 2025, Mercedes-Benz will launch more electrified models based on its second brand-new dedicated electrification platform-the MMA modular platform designed for compact and medium-sized cars, and further improve the electrified product lineup.

　　Mercedes-Benz said that in the future, it will shift more product development resources and expertise to the electric drive field, and invest in new technologies and concepts to improve electric battery life and energy efficiency.
The new generation of motors will be independently developed by Mercedes-Benz and equipped with sophisticated inverters and high-voltage technology.
On October 6, Mercedes-Benz also announced its technical project called "EQXX Vision" and announced the next step in the development of electrified products.

　　"We plan to achieve considerable marginal revenue on the new model architecture platform from 2025.
By 2030, while electric models account for more than half of new car sales, our investment in internal combustion engine models will rapidly decrease.
The number will be reduced by 70%.
" Daimler AG's board member responsible for group research and development, Mercedes-Benz AG board member and chief operating officer Markus Schfer (Markus Schfer) said.

　　In the field of automotive software, Mercedes-Benz also announced that it will launch its own MB.
OS operating system.
This operating system will be developed internally by the company and is expected to be released in 2024.

　　The last "pillar" is to reduce costs.
Mercedes-Benz announced that it will increase its profitability and cash appreciation capabilities, while facing the future, accelerate the pace of transformation to electric drive.
Mercedes-Benz believes that the company's current profit and loss balance point is too high, and further actions are needed to meet the challenges of future transformation.
To this end, before 2025, Mercedes-Benz will implement important new measures to reduce the cost base and enhance the industrial layout.

　　By 2025, fixed costs will be reduced by more than 20% compared to 2019 by cutting expenditures, adjusting production capacity, and reducing personnel costs; capital and R&D expenditures will be reduced by more than 20% compared with 2019; by increasing and extending material cost savings targets, This will result in a net decrease of 1% per year compared to 2019.
The above target does not include the possible impact of the increase in the proportion of electrified vehicles.

　　"Although the Mercedes-Benz brand has once again aspired to the luxury car market before.
However, in the process of transforming from sales growth to profit growth, we have not yet fully realized our potential.
This is why we reorganized and released a new strategy.
"Kang Linsong pointed out.

　　And Harald Wilhelm, a member of the board of directors of Daimler AG in charge of financial control and travel, and a member of the board of directors of Mercedes-Benz AG in charge of financial control, when talking about Mercedes-Benz’s vision for 2039.
, Showing a deeper reason-"The company has taken comprehensive measures to lower the balance point of profit and loss to adjust the company's scale and operation scale to a reasonable level.
All efforts are aimed at improving our anti-risk ability, so that the company can cope with the transformation of the industry.
And the ability to maintain an attractive profitability level when the market is difficult.
"

　　In 2019, Daimler released its 2039 Vision, which set several important goals, including: 1.
By 2039, strive to achieve carbon neutrality in the new passenger car product lineup; 2.
By 2030 Electric vehicles (including pure electric and plug-in hybrid vehicles) will account for more than half of new passenger car sales in 2010; 3.
By 2022, achieve carbon neutral vehicle production in Europe.
In Germany, almost all factories will use 100% electricity from renewable resources; 4.
In the long run, the value chain needs to be transformed into a value ring, including the entire supply chain.
5.
Electric mobility will be the core business of Mercedes-Benz.
The future model architecture will be developed based on electric mobility from the beginning, and will have its corresponding electric platform.

　　The new development strategy of Mercedes-Benz passenger cars can also be regarded as the first stage of the Daimler Group’s 2039 vision.
In terms of new development strategies, it seems that at a critical moment in the process of transformation of the auto industry, Mercedes-Benz is making its own adjustments to ensure key resources such as technology and capital for future transformation.
(Economic Observer Network reporter Wang Guoxin Liu Xiaolin)

Transfer from: Economic Observer