Mercedes-Benz will focus more on luxury and expensive models | to cut

The new strategic plans, presented on Thursday, include fewer entry-level Mercedes-Benz models on the market. In addition, from now on, investments will go mainly to more expensive cars. The manufacturer has noticed that there is a huge demand for luxury sedans lately and there is also a lot of profit to be made from this.

When asked if this will eventually mean the end of Mercedes’ compacts in the so-called A and B-class, Källenius has not yet given a clear answer. “I’ll leave the rest to your imagination,” said the Mercedes chief simply. There has been speculation in the media about such a move for some time.

Källenius has indicated that there will be a new E-Class in the luxury mid-range next year. An additional model designed specifically for the Chinese market is also planned. China is now the most important sales market for Mercedes. It was previously announced that Mercedes, like other car manufacturers, will focus more on electric cars. The ambition is to sell only electric cars by 2030.

Some analysts doubt whether Mercedes’ new strategy is smart. They note that the group has already been relying mainly on more expensive cars lately, but that it will also play a role in the fact that total deliveries are lower due to the lack of chips around the world. Experts question whether the higher margins, which are achieved in some cars, are also sustainable in the long run.