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Mercedes-Benz Group AG is embarking on its most ambitious transformation yet, unveiling a comprehensive product and tech launch campaign alongside performance enhancement measures aimed at strengthening the brand’s global position.
The plan includes the introduction of dozens of new or refreshed models by 2027, a unified design language, and the integration of the proprietary Mercedes-Benz Operating System (MB.OS). The strategy focuses on making the brand leaner, faster, and stronger, all while enhancing customer value and boosting shareholder returns.
CEO Ola Kaellenius highlighted the brand’s commitment: “We’re launching the company’s biggest ever product and tech campaign and a comprehensive performance enhancement programme.”
Key Highlights:
- Biggest Product Launch Ever: Dozens of new or refreshed models by 2027, starting with the all-new CLA.
- Unified Design Language: A status-oriented design applied across all models, offering BEV, hybrid, and high-tech ICE variants.
- MB.OS Integration: A proprietary system enhancing infotainment, automated driving, and overall vehicle performance.
- Performance Enhancement Plan: The Next Level Performance initiative aims to boost competitiveness and resilience.
- Electrification Push: A targeted xEV share of over 30% by 2027 with highly modular electric drivetrains.
- China Expansion: Seven China-specific models, deeper localization, and R&D integration.
A New Era for Mercedes-Benz
At the core of this transformation is MB.OS, a chip-to-cloud operating system designed to unify vehicle domains, from infotainment to automated driving. The upcoming CLA will be the first to feature MB.OS, offering both BEV and high-tech 48-volt electrified ICE options, setting new standards in range, efficiency, and charging.
Mercedes-Benz is also focusing on intelligent modularisation, allowing flexibility across BEV and ICE platforms. This approach enhances manufacturing efficiency while maintaining luxury, performance, and design standards. Models like the G-Class, Maybach, and Mercedes-AMG will see expanded lineups, including high-performance electric versions.
Performance and Cost Optimization
The Next Level Performance plan includes a 10% reduction in production costs by 2027 and a focus on local-for-local manufacturing, increasing from 60% to 70%. Material and fixed costs are being targeted through supplier collaboration, design standardization, and enhanced digitalization. AI-driven tools like digital twins will streamline manufacturing processes, improving efficiency and flexibility.
Leading in Technology and Market Strategy
Mercedes-Benz continues to push the boundaries with innovations such as a steer-by-wire system, MBUX Virtual Assistant with multi-agent AI, and advancements in automated driving, including SAE Level 4 testing in Beijing.
In China, the brand leverages its largest R&D hub outside Germany, developing locally tailored vehicles equipped with region-specific features. Despite a challenging 2024, the company’s China Joint Venture achieved strong returns, with plans for deeper localization and reduced material costs.
Focused R&D and Future Investments
Mercedes-Benz is directing R&D resources toward customer-centric innovations, particularly in software development. Investment will peak in 2025 to support the massive product launch plan, then taper off post-2026. The brand aims to maintain leadership in both BEV and high-tech combustion segments while reducing powertrain complexity.
Harald Wilhelm, CFO of Mercedes-Benz Group AG, emphasized the brand’s resilience: “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.”
With this bold transformation strategy, Mercedes-Benz is positioning itself as a leader in luxury, performance, and innovation, shaping the future of mobility while staying true to its iconic heritage.
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