Mercedes-Benz has announced their intention of becoming “the world’s most valuable luxury car brand.” In pursuit of this, the automaker plans on reducing entry level models and shifting focus on high end, high profit margin vehicle.
Mercedes is dividing its lineup into three categories—Top-End Luxury, Core Luxury, and Entry Luxury. The Entry Luxury models will be cut from the the current seven variants to four. This level comprises of all A Class variants and the B Class minivan, no details were given on which ones will be axed.
Core Luxury level will consist of the C-Class, E-Class models plus an additional variant for the Chinese market. This level has upcoming electric versions such as the EQE and EQE SUV.
Top-End Luxury category encompass all products from the AMG and Maybach divisions, along with the S-Class, G-Class, and the GLS. Additionally, the EQS models will be apart of this category as well as “limited edition models and exclusive collaboration vehicles” such as the Maybach collaboration with Virgil Abloh, the late iconic Louis Vuitton fashion designer. A new version, the SL, will be joining this top tier plus an electric G Wagon called the EQG
A new series will be created to be part of the Top Luxury tier, it will be known “MYTHOS”. It will consist of limited-run special cars that will be sold strictly “to the most dedicated enthusiasts and collectors of Mercedes-Benz.” The upcoming Mercedes Maybach SL will be the first car in the MYTHOS series.
There will be less focus on compact cars going forward as the plan calls for more than 75 percent of investments to be made in the bigger and more expensive vehicles, which usually have higher profit margins. Benz is it’s targeting an operating margin of around 14 percent by the middle of the decade by boosting sales of Top-End Luxury cars by approximately 60 percent by 2026 compared to 2019.