If you want to say which of the global car companies has strong earning power, Mercedes-Benz must be at the forefront.
On February 22, the 2023 financial report showed that the group's turnover was 153.2 billion euros, a year-on-year increase of 2%, EBIT (earnings before interest and taxes) was 19.7 billion euros, and the profit margin was 12.6%。
Steady Mercedes
Mercedes-Benz passenger car sales were 20440,000 units, including 32 high-end models80,000 units (430,000, Mai**280,000, AMG1430,000, S high-end series 1710,000), core luxury model 10970,000 units, 61 entry-level models90,000 units. The overall situation of new energy vehicles is 4020,000 units, including 24 pure electric vehicles10,000 units, up 61% y/y.
Mercedes-Benz's leading position in high-end models is expanding more and more, which is due to the brand effect and forward-looking layout, with sales of Mercedes-Mai**, G-Class and Mercedes-AMG increasing by % and 4% year-on-year, respectively. The more these high-end models sell, the better they are, and Mercedes-Benz's profit level is naturally ***
The importance of China's contribution to the market is also self-evident. Mercedes-Benz's sales in China in 2023 will be 7650,000 units, accounting for nearly 30% of the global share.
Compared with five years ago, Kang Linsong has achieved the strategic goal of improving efficiency, streamlining the company and improving profitability with excellent financial indicators.
Average sales** from 510,000 euros, an increase of 7420,000 euros, the number of employees decreased by 7%, fixed costs decreased by 16%, R&D investment increased by 21%, and investment in fixed assets decreased by 41%.
Change tactics
However, Mercedes-Benz, which has a solid performance, has also begun to think about changes.
Specifically, it will remain strategically focused, tactically agile, and take the necessary steps to continue the transition to electrification.
The "all-electric" plan has been optimized to achieve 50% electrified vehicle sales in the next five years.
At the same time, Mercedes-Benz has made it clear that it is developing a new generation of luxury in the form of multiple drivesWhen it comes to products, we put the choice and willingness of customers at the core.
It should also be emphasized that Mercedes-Benz is not giving up on its electrification strategy, but focusing more on and optimizing.
A fact worth pondering is that while Chinese car companies are still frantically launching electrified new cars, crazy involution and price cuts, European and American car companies are beginning to calm down.
Audi, Ford, General Motors and other European and American car companies have slowed down their electric vehicle strategies, Volkswagen, Renault and Stellantis are exploring how to produce cheaper electric vehicles to survive, and even Musk has said that Tesla is preparing for a sharp slowdown in sales growth in 2024.
The United Kingdom and the European Union are postponing the date of banning the sale of gasoline vehicles, and the United States is also planning to relax car emissions and electric vehicle sales plans until 2030.
The reason is very simple, in electric vehicles, there are only a handful of car companies that make money. Looking at the world, Tesla and BYD have achieved both scale effect and money-making effect.
Over the past few years, Mercedes-Benz has invested heavily in electrification.
However, even in China, where electrification is the most acceptable, the electrification transformation of the high-end luxury car market is much slower than that of the low-end market, and transitional technologies such as plug-in hybrid and range extension have become more accepted by the market.
So, the strategy is firm, but the tactics have to change.
Focus on optimization
When it comes to spotlight optimization, change ensues.
The EQ brand may be being watered down. One detail is that the electric big G that Kang Linsong took a group photo has the nameplate that says "The Electric G".
The EQ series has been overthrowing the maverick front face design style.
The CLA concept car released at the Munich Motor Show has returned to the "Mercedes-Benz look" that is more recognized by the market.
In the middle of this year, the EQS may receive a mid-cycle facelift. Kang Linsong said frankly that the core changes include the change of the front face shape, the return of the standard and the improvement of the comfort of the rear row.
It is true that the new technology and intelligence of electric vehicles will be very important for Mercedes-Benz's sky-high R&D (10 billion euros in fiscal 2023, an increase of 176%), which is not that hard.
However, some stubbornness in the past has shackled the pace of Mercedes-Benz.
The show is coming
Kang Linsong decided to change, he said, we need to be focused enough and flexible enough to achieve our strategic goals.
In 2024 and 2025, we will see a lot of good things happening.
The first is to expand the top. Continue to strengthen the top luxury product line, big G, AMG, and Mai** will have blockbuster products debut. This year, the all-new pure electric G-class off-road vehicle and the all-new Mai**EQS pure electric SUV will be released.
The second is to stabilize the mainstream. The CLA electric vehicle and the E-class plug-in hybrid version will lead the electrification revolution of mainstream fuel vehicles.
The third is to fill in the gaps. Electrification products for GLC SUVs and more entry-level electrification products are expected to appear. This year, the next-generation EQA and EQB electric SUVs will be launched.
At this point, Luo Ji Auto Review has reason to believe that when the car inventor Mercedes-Benz is more pragmatic and flexible, optimizes tactics, listens to customer choices and wishes, and delivers more exciting products, the results will definitely affect the direction of the global auto market in the future.