Visual EQX_10

Our strategy.

We have been moving people and goods for more than 130 years. Building outstanding, fascinating vehicles is what we do best, and by doing so we inspire our customers, both today and tomorrow.

The world is changing rapidly. Sustainability, and protecting the environment and climate, are some of the most urgent challenges we face. We are taking on these challenges. With our actions, we want to set standards for sustainable mobility in the future.

We are convinced that personal mobility will remain a fundamental need. We assume that the market for sustainable luxury in the automotive sector will continue to grow. The transportation of people and goods will also remain a cornerstone of our economy. We expect this demand to continue growing around the world. We see additional opportunities for growth and profit in the fields of financial services, fleet management and digital, networked mobility solutions.

Our Goal: We will build the world’s most desirable cars

Driven by a highly qualified, motivated and entrepreneurial team – sustainability, integrity and diversity as our foundation
  • The combination of brand and technology are the origins of our success. For more than 130 years we have built products for the world's most demanding customers — to exacting quality standards and based on outstanding engineering.
  • With sales of approximately 300,000 top-end luxury vehicles, Mercedes-Benz today is the global market leader in this segment. Innovations such as the world’s first certified level 3 automated driving system prove that we remain innovation pioneers.
  • Our financial strength is the foundation for our power to innovate. We invest €7 billion per year in Research and Development.
  • By 2026 we want to achieve about five percent more sales per year. Our focus is on growth in the segments that promise high and stable returns: Top-End Luxury and Core Luxury.
  • Forecasts show that the number of wealthy customers will continue to rise across the globe in the long term. This will increase our sales opportunities for core and Top-End vehicles — not just in Asia, but in Europe and the U.S. as well.
  • Studies show that luxury brands are more resilient to crises and are able to recover more quickly from economic downturns. This is how we protect our company and jobs, even in challenging times.
  • We will continue to offer models which provide an entry point into the world of Mercedes. However, we are reducing the variants and thus the complexity in this segment: We are going from seven compact models today to four in the future.
  • We will not reduce our sales volume in the entry luxury segment. Our plant capacity utilization therefore remains unchanged, plants such as Rastatt, Kecskemét and Beijing continue to be indispensable.
  • What will noticeably change is the technological substance of our vehicles. Based on the new MMA platform, our future entry-luxury models will be true drivers of innovation. A key proof point will be the introduction of our MB.OS operating system in 2024 in the entry-luxury segment.
  • Luxury and sustainability belong together. Demanding customers in particular want to be pioneers also in this area. Our decarbonization strategy is one of the most ambitious in the entire automotive industry.
  • For us the way forward is not based on abstinence, but on technological progress. We are working on bringing green steel into our vehicles; not just purchasing green electricity but producing it ourselves; minimizing the use of raw materials such as cobalt; and maximizing the energy density of our batteries. For example, by developing solid-state batteries.
  • Our VISION EQXX underlines this strategic path. With this concept vehicle, we have taken the efficiency of electric vehicles to a whole new level. Under real-world conditions it can cover more than 1,200 kilometers (covered almost 750 miles) on a single battery charge.
  • Price pressure is greatest in the volume segment. We cannot win a price war with our cost structures. This is particularly true in Germany, where wages are high. In our home market we generate 10 percent of our sales, but employ 67 percent of our workforce.
  • Now add to this, the fact that a powertrain for an electric car costs several thousand euros more than a comparable combustion engine. This is mainly due to the high cost of the battery. We can probably narrow this gap in the next few years, but not close it.
  • Precisely because we have decided to move away from the combustion engine, we are also focusing on what has always distinguished Mercedes-Benz: high-quality products which offer that special something. This way, we can also shoulder the extensive investments into electrification and digitalization.
  • Our technical innovations have never been intended solely for elite circles, although they are initially financed by them. Airbags, ESP and ABS were first installed in the S-Class — today this is standard equipment in all vehicle segments.
  • Mercedes-Benz will continue to stand for technological progress in the future.
  • With the help of our pioneering work and with the ingenuity of our engineers, we will make road traffic even safer, more comfortable and more sustainable.
  • We are responsible for our more than 170,000 colleagues from 145 nations — and for hundreds of thousands of other people in indirect employment, such as those who work for our suppliers and partners.
  • We uphold human and employee rights not just at home, but demand it from our suppliers and partners.
  • We have a strong commitment to education and training. As part of our Turn2Learn initiative, by 2030 we will invest alone in Germany more than €1.3 billion in the qualifications and further training of our employees.
  • And with the proceeds from the auction of one of the two Uhlenhaut coupés, we will set up a global Mercedes-Benz Fund, which will make educational and research grants in the fields of environmental science and decarbonization possible for young people.
  • There are many different expectations towards Mercedes-Benz: Our customers expect top products. Our colleagues expect future-proof jobs. Our shareholders expect an appropriate return on their investment. Society expects a commitment which extends beyond our factory gates.
  • All of these claims are legitimate. The best way to deliver on them is to make our proud company economically successful — sustainable, profitable, weatherproof.