Mercedes-Benz is embarking on a significant transformation, unveiling its most ambitious product and technology launch campaign to date, alongside a comprehensive performance enhancement program. The strategy focuses on building the most desirable cars, leveraging cutting-edge technology, and optimizing efficiency to deliver exceptional value to customers and shareholders.
“As the custodians of this iconic brand we ensure that Mercedes-Benz continues leveraging its full potential,” says Ola Källenius, CEO of Mercedes-Benz Group AG. “We’re launching the company’s biggest ever product and tech campaign and a comprehensive performance enhancement programme.”
Mercedes-Benz’s vision is clear: a Mercedes-Benz is a Mercedes-Benz, regardless of its powertrain. Exceptional design, advanced technology, superb refinement, world-class safety, and outstanding digital solutions are the hallmarks of every Mercedes, whether it’s a battery-electric vehicle (BEV), a hybrid, or a car with an electrified combustion engine. A coherent, status-oriented design language will be applied across the entire portfolio, giving customers the freedom to choose their preferred drive type without compromising on style or substance. The all-new CLA, offered in both BEV and ICE variants, exemplifies this approach.
The company is committed to offering drivetrain flexibility, with pure electric models boasting benchmark range, consumption, and charging performance, alongside highly efficient ICE variants featuring small, transverse, high-tech electrified engines. In the Core and Top-End Vehicle segments, rear-wheel-drive cars will be based on separate, uncompromised BEV/ICE concepts, allowing each powertrain to shine without compromise. Intelligent modularization will enable best-in-class roominess and perfect proportions while controlling costs and maintaining manufacturing flexibility.
Mercedes-Benz plans to expand its share of Top-End Vehicles, leveraging the potential of its luxury brands like G-Class, Maybach, and Mercedes-AMG. The G-Class family will expand with a smaller version, while Mercedes-AMG aims to outgrow the performance market with a refreshed model lineup from 2026 onwards, including next-generation electrified V8s and dedicated high-performance electric models.
Beginning with the all-new CLA this year, Mercedes-Benz will launch the most intense product campaign in its history, with dozens of new or refreshed models reaching the market by 2027. This includes a major S-Class upgrade in 2026 and a series of launches at Mercedes-AMG. The CLA will offer both electric and 48-volt electrified engine options, with the electric variant setting new standards in range, consumption, and charging power. All-new electric GLC and C-Class models will close a gap in the electric core segment, while a fully electric E-Class will round out the picture. The pace of BEV adoption will be driven by market conditions, infrastructure, and customer demand, with Mercedes-Benz targeting an xEV share of over 30% by 2027.
“We will excite our customers with a full rollout of uncompromising cars,” says Markus Schaefer, Member of the Board of Management of Mercedes-Benz Group AG and Chief Technology Officer. “They will be an intelligent part of their life. All of them come with a fully integrated tech stack and leverage the latest developments in AI. They will be packed with advanced technologies like the latest ADAS systems and innovative tech features like a new steer-by-wire system. It all starts very soon with our new CLA, our first software-defined vehicle powered by our very own in-house operating system MB.OS.”
With the CLA’s launch, all new Mercedes vehicles will feature the AI-enhanced Mercedes-Benz Operating System (MB.OS), a chip-to-cloud system covering infotainment, automated driving, comfort, and driving & charging. MB.OS is scalable across all segments and tailored to each region. The BEV drivetrain portfolio will utilize modular electric drive units and batteries, including cost-effective LFP and advanced NMC batteries, as well as high-performance round cells. The newly developed Electric Drive Unit 2.0 (EDU 2.0) will offer two and four-wheel drive options. A full range of future-proof EU-7 ready combustion engines and transmissions will also be available.
Mercedes-Benz continues to push technological boundaries with features like a new steer-by-wire system and a fully integrated tech stack, including a water-cooled supercomputer. The all-new CLA will introduce MB.OS and the MBUX Virtual Assistant, incorporating multi-agent AI for a more proactive and human-like user experience. MB.OS also supports next-level automated driving, including Level 2++ point-to-point navigation. The company is also pushing the boundaries of automated driving, with Level 3 systems and even Level 4 testing underway.
China remains a key market, and Mercedes-Benz is committed to local development and production. Seven models dedicated to China will be launched across all segments and drivetrains. The company is also focused on optimizing its operations in China, targeting cost reductions and efficiency improvements.
Mercedes-Benz is prioritizing global R&D resources, focusing on the Mercedes-Benz Tech Stack. Investments are expected to peak in 2025 and ease from 2026 onwards. Investments in combustion engine technology will be limited.
The “Next Level Performance” plan includes significant cost-cutting measures. Production costs are targeted to decrease by 10% by 2027. Global production capacity for passenger cars will be reduced while maintaining flexibility. Greater use of digitalization and AI will streamline operations. Local-for-local production will increase, with new models planned for the US and China. Material costs will be reduced through collaboration with suppliers. Fixed costs are also targeted for further reduction.
“To ensure that the company can weather an even more dynamic geopolitical environment as well as challenging markets, efficiency measures are being intensified across the board,” says Harald Wilhelm, CFO of Mercedes-Benz Group AG. “Paired with strong product substance and our product launch plan, Mercedes-Benz is well positioned to recalibrate its operating point and to return to double-digit margins in the near future.”
- Mercedes-Benz unveils its largest product and technology launch campaign.
- Focus on building the most desirable cars with advanced technology and design.
- MB.OS, a new proprietary operating system, will power future vehicles.
Significant investments in electrification and automated driving technologies.
- Comprehensive performance enhancement program targeting cost reduction and efficiency.
Disclaimer: This information is provided for general knowledge and entertainment purposes only. It is not intended as an endorsement or recommendation for any specific vehicle or business strategy. All details and specifications should be verified with the manufacturer.
Source: Mercedes-Benz
This article was crafted with assistance from Gemini
