Hot! Mercedes-Benz, What's Next?
- Thread starter Merc1
- Start date
Latest news, trending discussions, reviews, and major updates
Serpens
Torque Titan
It’s going to be two separate vehicles (hybrid/ice and electric) styled similarly. The facelift W223 isn’t even set to be unveiled until early 2026. New models aren’t coming until 2028. The EQS needs a full tech upgrade even if sales will continue to be dismal.
Wait a moment...
Massive decline in new registrations in China for Mercedes in July 2025
Car production in China rose by around 15% in July 2025. Mercedes is unable to benefit from this. Mercedes lost 46% of new registrations in July 2025 compared to the same month last year. Sales also fell by around 19% in the January to July period as a whole.
This means that Mercedes is losing more ground than BMW and Audi.
Mercedes realigns itself – with an eye on China
Mercedes-Benz is at a turning point. CEO Ola Källenius has therefore announced an ambitious program designed to make the group more efficient and redefine its position in the global market. The aim is to significantly reduce costs per vehicle while at the same time reinventing the brand. Instead of being purely a luxury car manufacturer, Mercedes wants to stand for something “special” in the future – for vehicles that are more than just status symbols and deliberately stand out from the crowd.
Källenius is under considerable pressure. He is currently being accused of several misjudgments: inappropriate model decisions, questionable design, too few cylinders in key model series, plus overcapacity in the factories and unplanned additional expenditure. These burdens have narrowed the group's scope for action – and explain why the CEO now has to take particularly decisive countermeasures.
The strategic focus is clearly on China. Not only is it Mercedes' largest sales market, it also sets the pace for future developments. Chinese buyers value innovation, design, and digital connectivity—features that Mercedes is increasingly integrating into its vehicles. The “special” is therefore not sought in pomp or excess, but in a combination of exclusive technology, striking design, and tailor-made services.
he realignment is even more evident in production. According to the company, “We are becoming even more Chinese.” The goal is ambitious: in the medium to long term, up to 100 percent of the so-called factor costs for locally manufactured models are to be incurred directly in the People's Republic. This is not yet the case today, as a number of components continue to be imported from the West. This quickly adds up to several thousand euros per vehicle. However, these flows of goods could dry up over time, with the result that value creation will increasingly be withdrawn from Europe and relocated to China.
For Mercedes, this move means that the desired cost reductions can best be achieved where economies of scale and a strong supplier network come together – and that is in China. At the same time, the group is securing its access to important future technologies such as batteries and electronic components, which are often more expensive and harder to obtain in Europe.
With this dual focus – cost discipline and a new brand promise – Mercedes wants to make a fresh start in the coming years. The company no longer wants to be just the classic luxury brand from Stuttgart, but a global provider that offers something special: vehicles that impress with their technology, quality, and uniqueness. This is a task that the company wants and needs to accomplish.
But this new planned path carries risks. The more Mercedes gets involved in China, the greater its dependence on a market that is not always predictable economically and politically. For Källenius, however, it is the logical step: only if Mercedes becomes more efficient and recharges its brand promise at the same time will the group have a chance to hold its own in global competition. The “special” is thus to become the new core of Mercedes – and China the decisive partner on this path.
jesmb.de
Massive decline in new registrations in China for Mercedes in July 2025
Car production in China rose by around 15% in July 2025. Mercedes is unable to benefit from this. Mercedes lost 46% of new registrations in July 2025 compared to the same month last year. Sales also fell by around 19% in the January to July period as a whole.
This means that Mercedes is losing more ground than BMW and Audi.
Mercedes realigns itself – with an eye on China
Mercedes-Benz is at a turning point. CEO Ola Källenius has therefore announced an ambitious program designed to make the group more efficient and redefine its position in the global market. The aim is to significantly reduce costs per vehicle while at the same time reinventing the brand. Instead of being purely a luxury car manufacturer, Mercedes wants to stand for something “special” in the future – for vehicles that are more than just status symbols and deliberately stand out from the crowd.
Källenius is under considerable pressure. He is currently being accused of several misjudgments: inappropriate model decisions, questionable design, too few cylinders in key model series, plus overcapacity in the factories and unplanned additional expenditure. These burdens have narrowed the group's scope for action – and explain why the CEO now has to take particularly decisive countermeasures.
The strategic focus is clearly on China. Not only is it Mercedes' largest sales market, it also sets the pace for future developments. Chinese buyers value innovation, design, and digital connectivity—features that Mercedes is increasingly integrating into its vehicles. The “special” is therefore not sought in pomp or excess, but in a combination of exclusive technology, striking design, and tailor-made services.
he realignment is even more evident in production. According to the company, “We are becoming even more Chinese.” The goal is ambitious: in the medium to long term, up to 100 percent of the so-called factor costs for locally manufactured models are to be incurred directly in the People's Republic. This is not yet the case today, as a number of components continue to be imported from the West. This quickly adds up to several thousand euros per vehicle. However, these flows of goods could dry up over time, with the result that value creation will increasingly be withdrawn from Europe and relocated to China.
For Mercedes, this move means that the desired cost reductions can best be achieved where economies of scale and a strong supplier network come together – and that is in China. At the same time, the group is securing its access to important future technologies such as batteries and electronic components, which are often more expensive and harder to obtain in Europe.
With this dual focus – cost discipline and a new brand promise – Mercedes wants to make a fresh start in the coming years. The company no longer wants to be just the classic luxury brand from Stuttgart, but a global provider that offers something special: vehicles that impress with their technology, quality, and uniqueness. This is a task that the company wants and needs to accomplish.
But this new planned path carries risks. The more Mercedes gets involved in China, the greater its dependence on a market that is not always predictable economically and politically. For Källenius, however, it is the logical step: only if Mercedes becomes more efficient and recharges its brand promise at the same time will the group have a chance to hold its own in global competition. The “special” is thus to become the new core of Mercedes – and China the decisive partner on this path.
Mercedes verliert massiv in China im Juli 2025
Massiver Rückgang der Neuzulassungen in China für Mercedes im Juli 2025 - Im Juli geht es für Mercedes über 46% bergab
jesmb.de
Design FIRST
Vorsprung Visionary
Tough, for some painful, realities of today's automotive market. Resting on brand equities alone are yesterday. M-B is learning this the hard way and now have the lofty task of "catching up" at hand. The massively increasing emphasis on China is a crucial modus operandi. VAG and M-B recognize this. Risks are high, of course. But when one's very existence comes under heavy fire, it is a necessary route to take.
In the case of VAG, one can expect cooperation with Xpeng to be significantly expanded in the relatively near future.
Merc1
Premium
I dunno, this:
"The aim is to significantly reduce costs per vehicle while at the same time reinventing the brand. Instead of being purely a luxury car manufacturer, Mercedes wants to stand for something “special” in the future – for vehicles that are more than just status symbols and deliberately stand out from the crowd."
Doesn't sound achievable to me. Their vehicles are already cost cut to the point of lower quality than what is acceptable in many segments. How you can possibly cut costs any further and reinvent the brand at the same time?
Now this:
"Källenius is under considerable pressure. He is currently being accused of several misjudgments: inappropriate model decisions, questionable design, too few cylinders in key model series, plus overcapacity in the factories and unplanned additional expenditure. These burdens have narrowed the group's scope for action – and explain why the CEO now has to take particularly decisive countermeasures."
Is exactly true. I say the fix is going back to way you used to make cars, within reason. The rest will sort itself.
M
"The aim is to significantly reduce costs per vehicle while at the same time reinventing the brand. Instead of being purely a luxury car manufacturer, Mercedes wants to stand for something “special” in the future – for vehicles that are more than just status symbols and deliberately stand out from the crowd."
Doesn't sound achievable to me. Their vehicles are already cost cut to the point of lower quality than what is acceptable in many segments. How you can possibly cut costs any further and reinvent the brand at the same time?
Now this:
"Källenius is under considerable pressure. He is currently being accused of several misjudgments: inappropriate model decisions, questionable design, too few cylinders in key model series, plus overcapacity in the factories and unplanned additional expenditure. These burdens have narrowed the group's scope for action – and explain why the CEO now has to take particularly decisive countermeasures."
Is exactly true. I say the fix is going back to way you used to make cars, within reason. The rest will sort itself.
M
Mercedes will need to have a plant in China that is 100% local material sourced in order to be competitive in the Chinese market and keep its costs lower. Maybe its hookup with Geely will have to increase to secure lower cost local parts and materials. They may have to keep the plants in Germany for the European and other Asian, African and South American markets and then also have a plant in the US that produces cars only for the US market and cut out imports from its German plants. Local source for everything but technology and R&D etc. coming from parent German Head Quarters.
I also put a huge question mark to this statement. They already have done alot of cost cutting and it can clearly be seen in the lower quality interiors. How on earth will they keep the quality high and cut costs? Will they only focus on the design to be different to catch more sales? They have been in this situation before in the 90s and it backfired hugely with reduced customer satisfaction and crap quality cars. The only way in my opinion to reduce costs significantly is to produce cars from 100% Chinese sourced materials and parts and the Chinese market will be catered for a manufacturing plant in China and also one in the US that produces all US cars there instead of importing some from Germany.
AbsoluteUnit
Stuttgart Specialist
Would definitely make it stand out. But if the SL680 didn't get it...
Design FIRST
Vorsprung Visionary
I cannot help escape my impression that Herr Källenius is frantically flailing his arms in an attempt to hold his head above the waters of treacherous currents that lead to a rock studded waterfall. Gorden Wagener has often been exposed to vitriol. Herr Wagener is NOT the problem. Ola will need the talents of a dozen Houdinis in order to escape a predictament that is, not exclusively, but for a large part of his own making. Really not wanting to sound like a xenophobe, but M-B desperately needs a CEO and other elevated directors that are German, Austrian and British AUTOMOTIVE ENGINEERS. And accomplished Chinese production process experts. Not to mention the closest of ties with Chinese and South Korean electronics engineers.
Design FIRST
Vorsprung Visionary
...and...
I'd rather be seated in one of these interiors than that of current M-B products:
NIO ES8
Xpeng G9:
BYD Yangwang U8:
Genesis G90:
"Stuttgart-Untertürkheim...You've got a problem.".
I'd rather be seated in one of these interiors than that of current M-B products:
NIO ES8
Xpeng G9:
BYD Yangwang U8:
Genesis G90:
"Stuttgart-Untertürkheim...You've got a problem.".
AbsoluteUnit
Stuttgart Specialist
I'd need to sit in them to know for sure. But they do look nice....and...
I'd rather be seated in one of these interiors than that of current M-B products:
NIO ES8
Xpeng G9:
BYD Yangwang U8:
Genesis G90:
"Stuttgart-Untertürkheim...You've got a problem.".
But honestly, aside from Genesis, the Chinese interiors are just as screen-spammy. And not in a way that is necessarily better than Mercedes.
I do think that Ola is a bit clueless and needs to be replaced with someone with greater ambition.
Design FIRST
Vorsprung Visionary
Simply farting around with AI imaging.
Electric MY 2028 W224 M-B S-Class sedan.
Michael Leiters Would be my choice.
His wife is a tree hugger what do you expect.
China as a market is dead for all western companies, or it’ll become it.
Therefore I wouldn’t bother. It’s the same with expensive watches from Switzerland and smartwatches.
They need to concentrate on small series luxury items.
Similar threads
- Locked
Mercedes-Benz
Mercedes-Benz Group AG is headquartered in Stuttgart, Germany.
Established in 1926, Mercedes-Benz Group produces consumer luxury
vehicles and light commercial vehicles badged as Mercedes-Benz, Mercedes-AMG,
and Mercedes-Maybach.
Its origin lies in Daimler-Motoren-Gesellschaft's 1901 Mercedes
and Carl Benz's 1886 Benz Patent-Motorwagen, which is widely regarded
as the first internal combustion engine in a self-propelled automobile.
The slogan for the brand is "the best or nothing".
Official website: Mercedes-Benz (Global), Mercedes-Benz (USA)
Official website: Mercedes-Benz (Global), Mercedes-Benz (USA)
