November 28, 2022

Javier14mascherano

Born to perform

Mercedes to axe cheaper models and ramp up direct sales

1 min read

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Mercedes-Benz is to jettison some cheaper models and focus future investment in top end cars.

The company is launching a product offensive spearheaded by its Maybach luxury brand, AMG performance line-up, G-Class off-roader and the S-Class and the electric EQ range.

The aim is to drive shareholder value and deliver margins of between 13% and 15%.

Future plans include the rapid expansion of direct sales and dedicated “Brand Experience Centres” for top-end vehicles.

The company assumes that by 2025, more than 80% of sales in Europe will be direct sales.

Mercedes said more refined configuration will enable customers to choose from a number of different equipment packages based on preference and regional demands.

This simplified and speeds up configuiration and reduces complexity. The grouping of option packages is expected to also have a positive effect on residual values as a higher level of equipment is also available for base variants.

In parallel, Mercedes-Benz is remodelling physical sales locations. As good examples it cited  the AMG Store in Dubai, which opened its doors in December 2021, and the Maybach Atelier in Shanghai, which will open in a few months. It said the real life experience was critical.

 

 

 

 



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