Mercedes-Benz is keen to enter the market for high-end, ultra-luxury vehicles that are also zero-emission. Certainly, those in the dough will find a lack of choice, with most ultra-luxury manufacturers still offering mild hybrid or combustion engine options across their lineup. The plan is to use the Maybach name and pair that brand with variants of the EQS sedan that will finally debut next year. Speaking to Bloomberg, CEO Ola Kallenius said he was quite confident about whether to take a large chunk of this specific market.
“There is room to do more with the Maybach brand,” said Kallenius. “The electric platform offers opportunities.” It’s part of Kallenius’ supposed strategy to help bring back bigger margins for Mercedes. Evolving large luxury cars into an electric future will ensure higher profits that can be used to fund larger projects such as new technology, software operations and cover restructuring costs.
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Overall costs have come down this year despite work on new vehicles packed with the latest Mercedes additions, such as the updated S-Class and EQS. Kallenius attributes this improved capital performance to efficiency measures introduced last year. Mercedes cars have had a solid footing in recent years, edging out rivals such as BMW and Audi, but returns have been hampered by poor efficiency. Of course, these profit margins are expected to increase in the future, with small steps in the right direction. “We need to improve the financial performance of the company,” Kallenius said. “No one here underestimates the challenges of transforming the industry, but the opportunities for us outweigh.”
The Maybach badge has enjoyed popularity in markets like China, which also happens to be Mercedes’ biggest selling region. As demand in China has started to pick up in recent weeks, income streams look good, with the possibility of continuing with expansion plans beyond traditional industrial activity. “I see substantial potential for value creation – as a luxury brand, through transformation, and from an additional profit pool across digital business areas,” said Kallenius.