After the collapse of the sale of electric cars, which last year affected the Mercedes, now the German luxury car manufacturer wants to focus again on the offer of cars with exhaust engines. By the end of 2027, Mercedes intends to launch 19 new car models with combustion engines and 17 electric cars for batteries Reuters said.
New, old strategy
Most new models will be in the highest price shelf, which coincides with the company’s current strategy, i.e. less sold cars, but with a higher margin.
“The strategy of putting values over the amount remains in force – it has not been abandoned” – Reuters quotes the statement of financial director Harald Wilhelm, who also added that the good news for the margin is that it is the fact that Cars with internal combustion engines are still selling much better than electric cars.
Wilhelm also said that the company intends transfer most of the production to China and the United States, which is to protect it from growing trading tensionsincluding threats from the US President Donald Trump that from April he would impose a 25 % duty on the entire import of vehicles.
Dark perspectives
Mercedes-Benz announced that after 30 % decrease in profits in 2024 and a 40 % decline in the section of passenger carsthis year the decrease in profits will be even greater. This year, the company is expecting in the passenger car department Return rates of only 6-8 percent.
These gloomy prospects are in contradiction with the optimistic vision presented during the last day of the capital markets session in 2022, assuming a corrected rate of return from sales of up to 14 percent. in good times and not less than 8 percent. in difficult times.
Cost reduction
Mercedes-Benz plans to reduce production costs by 10 percent. until 2027 and double this amount by 2030, going beyond the ongoing plan started in 2020, which assumed a reduction of costs by a 20 %. in 2019–2025.
As the company’s financial director announced on Thursday, She does not intend to close the plants in Germanybut the production of one of your models PIt will carry from the domestic market to the plant in Hungary, where the costs are 70 percent. lower than in Germany.
