Mercedes CEO Ola Källenius defends the brand’s luxury strategy and is unimpressed by the price war with Tesla. He emphasizes that a summer sale does not fit the brand’s desirable positioning. For him, the higher price of a Mercedes is part of the brand identity.
Mercedes: Luxury instead of a discount battle
Mercedes boss Ola Källenius does not want to know anything about the discount battle for electric cars. Customers cannot expect cheap cars from Mercedes. Instead, one would like to stick to the chosen luxury strategy. Previously, some Mercedes dealers had called for an immediate course correction, including a new pricing policy. Mercedes must adapt to the changed market conditions, as stated in an internal letter from the dealer association to the company’s top managers.
Källenius gives the requested change a clear rejection. In an interview he states that a summer sale “not to a desirable brand like Mercedes” would fit. A Mercedes just offers more than a simple average car, which is why the higher price is justified (source: Handelsblatt).
Die Discount battle sparked by Tesla apparently leaves Källenius cold. At the end of last year, Tesla lowered the prices for its electric cars in many countries and offered further discounts. Recently, Tesla boss Elon Musk promised renewed price cuts.
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At the IAA Mobility, the Stuttgart-based company wants to show that Mercedes is keeping an eye on the middle class. Mercedes gives one there first preview of the future electric entry-level model, which could appear in the middle of the decade. A price below a VW ID.3 or Opel Astra-E is not to be expected.
Mercedes: E-car budget could grow
Mercedes is responsible for research and development in the field of electric drives Budget of 40 billion euros available. However, the amount could increase, according to Källenius. However, the Mercedes boss has not announced a specific sum.
Meanwhile, Mercedes has one important target corrected from 2025 to 2026. The manufacturer actually wanted the majority of the vehicles manufactured to be electric by 2025, but the goal is now to be achieved a year later. Customers would decide exactly when the last combustion engine would roll off the assembly line.