{"id":153924,"date":"2020-10-06T14:18:26","date_gmt":"2020-10-06T18:18:26","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=153924"},"modified":"2020-10-06T14:18:26","modified_gmt":"2020-10-06T18:18:26","slug":"new-mercedes-strategy-means-evs-coming-for-amg-maybach","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2020\/10\/new-mercedes-strategy-means-evs-coming-for-amg-maybach\/","title":{"rendered":"New Mercedes Strategy Means EVs Coming for AMG, Maybach"},"content":{"rendered":"
\"\"<\/a>
Daimler CEO Ola Kallenius is implementing changes at the company to improve profitability.<\/figcaption><\/figure>\n

Acknowledging the company has \u201cnot yet lived up to (its) full potential,\u201d Daimler AG Chairman and Mercedes-Benz brand boss Ola Kallenius outlined a new strategy for the German automaker emphasizing six strategic pillars that include driving down costs 20% by 2025, pushing up profits, putting more of an emphasis on sub-brands and taking a lead in the development of both luxury electric vehicles and in-car software.<\/p>\n

The new strategy means Mercedes will add even more battery-electric vehicles than previously announced \u2013 and that these will include products for both the ultra-luxurious AMG and Maybach brands. Among other things, the automaker revealed Tuesday, it has four new battery-electric vehicles, or BEVs, coming next year based on a \u201cnew large\u201d architecture. It also is developing a new \u201celectric first\u201d architecture, dubbed MMA, for compact and medium-sized cars.<\/p>\n

“In recent years we have done many things right: design, product engineering, brand rejuvenation, sales growth. As a result, we have put Mercedes back on top again. But we have not yet lived up to our full potential in terms of turning volume success into profit growth,\u201d Kallenius said in a statement outlining the new Daimler and Mercedes strategy. It is, among other things, meant to \u201cunlock the full potential of our unique sub-brands, AMG, Maybacj, G and EQ,\u201d he added.<\/p>\n

(Mercedes set to become first manufacturer to put solid-state batteries on the road.)<\/strong><\/span><\/em><\/a><\/p>\n

\"\"<\/a>
Kallenius said the company will continue to focus on cost cutting measures while pushing out even more electric vehicles.
Annual Press Conference Daimler AG Stuttgart 2020<\/figcaption><\/figure>\n

The Mercedes-EQ sub-brand is designed to be all-electric and is in the process of rolling out the brand\u2019s first BEVs, including the EQB and EQC crossovers. But Thursday\u2019s announcement shows that the automaker plans to seed all of its brands with electric-drive technology going forward.<\/p>\n

While all-electric technology originally was used in small, green-focused products, the technology is proving to have significant potential in premium and performance segments. Electric-drive systems are inherently smooth and quiet, especially since most eliminate the need for multi-gear transmissions.<\/p>\n

Electric motors, meanwhile, can deliver tremendous levels of power, while reaching maximum torque the moment they start spinning. New battery technology is beginning to minimize concerns about range, and luxury buyers are less impacted by the price premium for BEVs, according to industry analysts.<\/p>\n

\u201cWith this new strategy we are announcing our clear commitment to the full electrification of our product portfolio and our determination to ensure the business is fully carbon-neutral, in line with our Ambition 2030 target,\u201d Kallenius said.<\/p>\n

Among the BEVs touched on during the investors’ meeting, four will be based on the large EVA platform, including the S-Class equivalent sedan, the EQS due into showrooms next year, followed by the E-Class-like EQE, the EQS SUV, and the EQE SUV.<\/p>\n

\"\"<\/a>
Mercedes new EQC electric vehicle is already facing competition from Volkswagen’s new ID.3 hatchback.<\/figcaption><\/figure>\n

The platform is likely to be used for some upcoming Maybach and AMG models, as well.<\/p>\n

(Mercedes-Benz EQS offers strong hint of what\u00a0all-electric S-Class might look like.)<\/u><\/i><\/strong><\/span><\/a><\/p>\n

The dedicated modular MMA platform apparently will service smaller vehicles, such as a next-generation EQC. The automaker promises this \u201c\u201dno-compromise\u201d platform will yield the \u201clongest-range EV ever.\u201d<\/p>\n

Mercedes also announced the new Vision EQXX program aimed at building vehicles with \u201cspectacular\u201d range and performance.<\/p>\n

During a presentation to investors, Kallenius described the need to reemphasize the sort of vehicles that Mercedes was initially known for, such as the vaunted S-Class sedan flagship. While the brand has significantly expanded sales volumes with entry-luxury models like the A- and B-Class, he said, \u201cThis is not where the main thrust should go, we should not become a competitor of the volume makers,\u201d he said during a virtual meeting presentation.<\/p>\n

If anything, Mercedes will downplay its emphasis on sales growth, the CEO said, while pressing to create more profits by driving down costs at least 20% by 2025 and pushing up margins.<\/p>\n

\"\"<\/a>
The Mercedes-Benz Vision AVTR can travel 435 miles on a single charge with its revolutionary battery.<\/figcaption><\/figure>\n

That was echoed by Chief Financial Officer Harald Wilhem, who told investors, \u201cWe will pursue higher portfolio profitability, we will steer by contribution margin, we will move (the) existing portfolio margin up and move capital to luxury and high-end products.\u201d<\/p>\n

One way to get there is through an emphasis on design for manufacturing. The new S-Class, for one, will require 25% less time to assemble than the outgoing model.<\/p>\n

(Mercedes-Benz taking orders for New EQC e<\/strong><\/em>lectric crossover.)<\/i><\/b><\/a><\/span><\/p>\n

On the electric vehicle side, Daimler is pushing to drive down costs, especially when it comes to the batteries that typically comprise the most expensive part of a BEV. The automaker wants to get battery costs down to around 100 euros, or $118, per kilowatt-hour by 2025. That would be at least a 20 to 30% reduction from current pricing \u2013 though some competitors hope to get down to as little as $70 per kWh by then.<\/p>\n","protected":false},"excerpt":{"rendered":"

Acknowledging the company has \u201cnot yet lived up to (its) full potential,\u201d Daimler AG Chairman and Mercedes-Benz brand boss Ola Kallenius outlined a new strategy for the German automaker emphasizing six strategic pillars that includes driving down costs 20% by 2025. See the rest at TheDetroitBureau.com.<\/p>\n","protected":false},"author":2,"featured_media":143712,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5,10,12,9],"tags":[],"make":[48,85],"post-state":[],"category_old":[118,286,150,151,123,287,131,256,173,319,142,289,299,171,169,132,196,130,284,125,137,139,148,290,128,291,278,288],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/153924"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=153924"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/153924\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/143712"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=153924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=153924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=153924"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=153924"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=153924"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=153924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}