Mercedes Benz has just unveiled its new business strategy which will divide the product lineup into several categories, such as high-end luxury cars, mid-range luxury cars, and entry-level luxury cars or affordable luxury cars.
The German car manufacturer confirmed that the entry-level luxury car will consist of four models and will introduce a new platform and operating system.
The new Mercedes Modular Architecture (MMA) platform will be introduced in 2024 and supports a quartet of vehicles, the first of which is an all-electric model.
Currently, the Modular Front Architecture (MFA2) platform underpins the compact models in the Mercedes-Benz lineup, such as the AMG CLA 45.
See also: Mercedes Benz expects to have factories producing exclusively electric vehicles after 2025
According to Mercedes Benz CEO Ola Kallenius, the new platform will set new standards for Mercedes Benz and be called an “electric first” capable of accommodating ICE drivetrains.
“This new MMA architecture ushers in a new generation of technology, both in terms of internal drivetrain, battery chemistry and efficiency.” he added.
Kallenius also said, Mercedes Benz intends to position its entry-level vehicles more upscale to get more significant profits.
While Mercedes Benz rival BMW has publicly acknowledged it has prioritized high-end cars during the ongoing chip crisis and both have reported bigger profits in recent years.
See also: Entry-Level Tesla Model Y will be delivery In January 2023
“The entry-level Mercedes Benz powered by the MMA platform will prove to be more profitable than the MFA2 platform.” said the company’s CFO Harald Wilhelm.
By the middle of the decade, the world’s oldest automaker hopes to hit a 14 percent margin, with prices set to increase in the future.
