In a stark strategy change for the German car giant, it has announced plans to ditch its cheaper models and hike prices for increased profits.
Mercedes-Benz is set to axe three of its most affordable models, as part of as upcoming business restructure aimed at boosting profits.
While the manufacturer is yet to confirm which variants face the chopping block, it’s possible the A-Class sedan, B-Class hatchback, and CLA wagon could be under threat.
Meanwhile, the entry-level models which are retained in the line-up are set to adopt price hikes to “maximise the potential of Mercedes-Benz.”
A greater focus will be placed on expensive cars, with “75 per cent of [new company] investments to develop products for the most profitable market segments.”
The range of limited edition and bespoke models is also expected to be expanded – likely across the Maybach (below), AMG, and G-Class sub-brands.
“What has always been the core of our brand is now also the core of our strategy: the luxury segment,” Mercedes-Benz executive Ola Källenius said in a media statement.
The move represents a stark repositioning for the German automotive giant, which since the 1990s has attempted to boost sales volume with a range of lower-cost vehicles.
While the old strategy attempted to broaden access to the brand and widen its net of potential buyers, Mercedes-Benz now claims low-volume and high cost cars will deliver higher returns.
Many manufacturers have hiked prices and axed entry level models over the past two years, amid stock shortages, slowed semiconductor production, and supply chain disruptions.
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