The end of entry-level models: Mercedes wants fewer variants, more luxury

The end of entry-level models
Mercedes wants fewer variants, more luxury

Mercedes wants to focus more on luxury. Only absolutely noble customers should ride. This will then also affect the price. This should mean the end of the current entry-level models. Class B should already be deleted.

Mercedes wants to focus even more systematically than before on luxury. Much of future development investment in the passenger car sector is expected to go to the brand’s premium models, while the entry-level segment will be slimmed down. In addition, the brand wants to focus more on exclusive special models for collectors and enthusiasts.

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The Mercedes EQS is likely to be one of the spearheads of all-electric luxury SUVs in the future.

(Picture: Mercedes)

In the future, the car lineup will be divided into three categories. In addition to the S-Class and the refined Maybach models, the “Top-End Luxury” group also includes the G-Class off-roader, which has become a luxury off-roader over the years. It should go electric mid-decade and possibly have an offshoot as well. The top of the range also includes the sporty AMG models, which are also moving towards electric drives. The company from Affalterbach has already presented a corresponding study. Over the next few years, more than 75% of the development budget will go to these vehicles. The share of sales should increase to 60%.

The “Myth Series”

Mercedes sees special special models as another mainstay of the premium sector. They shouldn’t drive sales like other brands, but serve as collectibles and flagship cars. Certain particularly exclusive models are launched in a very limited “Mythos Series”, intended for a particularly loyal clientele.

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Mercedes also wants to stick with the Maybach label, although it has long ceased to be a sub-brand, but only an upgraded S-Class.

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Below the “Top End” level, Mercedes evolves into the “Core Luxury” level. You will find the models of classes C and E as well as their current and future electrical versions. A special electric model for the Chinese market was also announced. The “Entry Luxury” vehicles, which include successors to the current A-Class and B-Class, are meant to serve as an introduction to the world of Mercedes. The entry-level segment, which includes brands such as the A-Class, GLB and CLA, is to be reduced from seven to four body variants from 2024.

Elaborate technology, high price

If you believe the inside information, Class B will definitely exit the portfolio. The A-Class will soon no longer exist in its current form. Thanks to more complex technology, compact models are to be positioned significantly higher than their predecessors in terms of prestige and price, and the number of body variants is to be reduced from the current seven to four. In addition, Mercedes will reduce the complexity of its product range and the number of equipment variants to reduce costs and ensure faster availability.

The objective of the luxury strategy is better profitability in an increasingly difficult market. Mercedes is aiming for a 14% return on sales by the middle of the decade. The switch to direct selling should also help here. By 2025, around 80% of sales in Europe are expected to go through this channel.

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