More than three-quarters of Benz’s investments will go to high-end models.
AMG will greatly benefit from this move.
The “A” class models will be trimmed down.
Owning a Mercedes-Benz is a dream many have. Although most will never manage to afford an S-Class, many can effortlessly get behind the wheel of a CLA or a GLA. These two models are likely safe but from the seven “A” class models on offer, Benz will cut three out.
The plan is simple enough: Lower-priced models make less money for the company. This is why Benz will stop producing some entry-level models in the near future. In North America, the B-Class left a short while ago, and soon, the A-Class will be gone altogether. Looking ahead, Mercedes-Benz will focus on its more premium and expensive models, as they are far more profitable.
“We are further sharpening the focus of our business model and product portfolio in order to maximize the potential of Mercedes-Benz even in challenging conditions,” CEO Ola Kallenius said in a statement as reported by Automotive News Europe. He adds: “At the heart of that is our goal to build the world’s most desirable cars,”
Mercedes-Benz understands that its customers are ready and willing to pay for more luxury. Despite lower sales so far this year, profits are up 20%. As well, cutting down on models will help reduce production complexities.