Mercedes-Benz shifts strategy to boost profits

Mercedes-Benz is adjusting its priorities with a broader range of combustion-powered vehicles, while cutting production costs in response to a difficult economic environment.

 

The German automaker has announced a series of measures designed to strengthen margins and boost profits in the face of an uncertain market. In response to falling demand for its electric vehicles, the German brand is refocusing on combustion engines while continuing its transition to electrification. This strategy could mark a turning point in the automaker’s approach.

 

Electrification in slow motion

 

In its new product strategy, Mercedes-Benz plans to launch 19 combustion engine models and 17 electric vehicles by 2027. This choice marks an inflexion after a difficult year, in which sales of battery-electric vehicles fell by 25%.

 

Mercedes-Benz has thus confirmed a slowdown in its transition to electrification, including in the LCV sector. Although the company plans to launch an all-electric range for its commercial vehicles from 2026, it has announced an investment in the continued production of vehicles with internal combustion engines, for models such as the Vito and Sprinter.

 



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Read also > Mercedes-Benz reports lower sales in 2024, despite a more favorable fourth quarter

 

Featured photo : © Mercedes-Benz

Picture of Anthony Conan
Anthony Conan
Graduated as a multimedia journalist in 2019, Anthony Conan has multiplied his experiences, notably as an editorial assistant at TF1 and as a radio journalist at RCF Bordeaux. He specializes in video editing in addition to writing, and has developed a particular interest in economics.
Luxus Magazine Automne/Hiver 2024

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