Mercedes-Benz Clarifies Reports on Shifting Focus to More Affordable Gasoline Cars; Emphasizes Balance of Strategy

Feb 19, 2024 07:20 PM EST

RED INTERIOR OF A LUXURY CAR MERCEDES-BENZ — (Photo : PEXELS/Denys Gromov)

Recently, news about Mercedes-Benz gearing towards cheaper gasoline cars for profit surfaced. The luxury car brand clarified claims that is pivoting focus to cheaper gasoline cars. It released an official statement refuting such report.

Defense: Mercedes-Benz Junks Claims on Changing its Strategy

Buzz about Mercedes-Benz pivoting to more affordable gasoline cars circled lately. The claim is revealed the top-tier car manufacturer will employ such strategy to leverage profit. Mercedes-Benz was quick to response.

As shared in BenzInsider, Mercedes-Benz has recently addressed reports regarding its shift towards affordable gasoline cars, emphasizing its commitment to a long-term transition to electric vehicles (EVs) while considering market dynamics. The luxury automaker aims to strike a balance by utilizing its premium vehicle lineup and introducing electric and hybrid models to capitalize on short-term growth prospects and meet local market needs.

A spokesperson for Mercedes-Benz revealed their company's strategic vision to Motor1. He stated that their long-term plan involves transitioning entirely to electric vehicles in markets where conditions permit.

In the short term, they intend to capitalize on the strength of their premium vehicle portfolio while maintaining flexibility across internal combustion engine (ICE), electric vehicle (EV), and plug-in hybrid electric vehicle (PHEV) segments to optimize growth opportunities and meet local market demands.

The representative highlighted the company's efforts to drive growth in core segments for the current year, citing the introduction of new products such as the E-Class and improved supplies of the GLC compared to shortages in 2023. They also emphasized upcoming launches of high-end models like the S63e, G-Class, G-Class Electric, and AMG GT, signaling a robust product lineup.

Additionally, they disclosed plans to introduce 25 new products in 2024, including entirely new models in core segments, underscoring Mercedes-Benz's commitment to both short-term objectives and long-term goals, particularly in top-end segments.

Furthermore, BenzInsider shared that the luxury car brand is working in developing the "Little G". This is set to launch on the latest Mercedes Modular Architecture (MMA) platform by 2026. Such platform is designed with an "EV-first but not EV exclusive" strategy.

According to the report, this emphasizes Mercedes-Benz's nuanced strategy of embracing electric mobility without fully phasing out internal combustion engine (ICE)vehicles.

Targeting Profit: Shifting Focus to More Affordable Gasoline Cars

As reported in CarScoops, Mercedes-Benz has announced intentions to shift its attention to entry-level cars, with a bigger mix of combustion-powered vehicles in its inventory. The report further stated that to maintain sales figures, Mercedes reportedly told dealers at a January conference that it will shift its supply mix, focusing more on lower-priced models and less on EVs.

The GLC and other entry-level vehicles will be the first to be ordered. In addition, it will increase production of combustion and hybrid vehicles to suit client demand in the United States. That is similar to what Nissan is doing.

The report went on to say Mercedes has informed its dealers in the United States that it intends to boost the availability of traditional combustion and hybrid automobiles this year, introducing 25 new and revised models to the market. This involves adding plug-in hybrid variations to the S-Class and GLE models, as well as delivering an electrified GLC crossover in the fall.

It cited report from Automotive News that claimed that before this quarter ends, all well see a big change in the inventory mix with ICE supply being more than electric. One dealer shared to Automotive News. Additionally, Senol Bayrak, Mercedes-Benz USA Sales Director stated that the company is happy to deliver what is needed in the market - a right balance of ICE products, electric products, and now also putting PHEV into the mix.