The company aims to have battery-powered models in all its segments in 2022, a staging post for its ambition to sell only electric cars by 2030.Mercedes-Benz will cut back its entry-level suite of cars as part of a strategic overhaul that will channel more than three-quarters of the carmaker’s investment to its higher-end vehicles.
The strategy builds on a trend that pushed profitability to record levels during the semiconductor crunch, but the jury is out on whether it would be as effective if supply constraints ease and automakers return to chasing market share. While Mercedes sold 10% fewer vehicles in the first quarter compared to a year ago, profit surged 20%.
Mercedes will launch its next car operating system on an entry-level compact car and brand them as flagships for affluent, tech-savvy buyers. The carmaker will unveil a prototype car based on its future electric AMG platform later on Thursday. Famous for its roaring V8 engines, the division faces a challenge in convincing performance-car enthusiasts to switch to all-electric models.
While the carmaker is Europe’s most valuable company brand, according to consultancy Interbrand, Tesla boasts a market capitalisation ten times greater than the Stuttgart, Germany-based firm. And Volkswagen’s Porsche sports-car unit would command a valuation of about €95bn should a planned share sale go ahead, according to Bloomberg Intelligence. That compares to Mercedes at about €74bn.
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