Mercedes-Benz CEO Ola Källenius shared his views o

Mercedes-Benz CEO Ola Källenius shared his views on the development of Mercedes-Benz at an event organized by IfA:

Viewpoint 1: The automotive industry transformation will take longer

The transformation of the automotive industry is taking longer than initially anticipated. Unlike the predictions made four years ago, the development of electric vehicles has not been as rapid in many markets. Under current circumstances, if market conditions permit, the product portfolio will expand towards selling only pure electric models by the end of this decade. However, due to numerous uncertainties, the actual demand scale is difficult to estimate accurately. Therefore, Mercedes-Benz needs to maintain flexibility to cope with this uncertainty.

Viewpoint 2: Internal combustion engine product iteration

Mercedes-Benz will adapt its internal combustion engine product portfolio for the future. Internal combustion engine technology will remain at the top level until the 2030s and will be continuously adjusted and optimized according to upcoming emission regulations. Recently, the company announced the suspension of the new electric platform for the S-Class, opting instead to update the internal combustion engine generation once again. This highlights the importance of internal combustion engines to the company at this stage and for the foreseeable future.

Viewpoint 3: Complexity brought by model transformation

The transformation of the automotive industry presents a formidable task for the company, and the complexity of models will persist longer than expected. From 2025 to 2028, Mercedes-Benz plans to launch the largest model offensive in its history, introducing an unprecedented number of new models. During this process, the company must address the challenges posed by the parallel development of internal combustion engines and electric vehicles while meeting diverse market demands and providing customers with more choices.

Mercedes-Benz has always adhered to a luxury strategy, which has two core themes: innovation and technology, as well as product uniqueness. In the compact car segment, the lineup has been reduced from seven models to four (CLA, CLA Shooting Brake, GLA, and GLB), aiming to elevate the overall product portfolio rather than producing models similar to the Volkswagen Golf, as Mercedes-Benz's cost structure does not allow for it. Although the introduction of the A-Class sedan faced skepticism in the past, it was intended for economies of scale and attracting younger buyers—a philosophy that remains unchanged today.

Källenius called on European politicians to swiftly implement the Draghi report to improve industry framework conditions, such as further deregulation. He believes that any measures that increase company revenue or reduce costs are correct, as profits must first be generated ("baking the cake") before they can be distributed. Using Switzerland as an example, he pointed out differences between Germany and Switzerland in terms of working hours and sick leave policies. If framework conditions do not change, capital migration may intensify in the future. Mercedes-Benz also faces the task of improving productivity. While German car production has declined, employment numbers have remained almost unchanged. The company must continue to invest in innovation to bring products that meet customer needs to the market.