Daimler: Mercedes-Benz unveils new strategy
(CercleFinance.com) - Mercedes-Benz announced a new strategy on Tuesday, with the luxury unit of German auto giant Daimler targeting a "structurally higher" profitability.
At a virtual investor and analyst conference today, the carmaker said it plans to reshape its product portfolio and its sales network to "think and act like a luxury brand”.
The Stuttgart-based company said it seeks to focus its product development resources and capital on the most profitable parts of the market, while expanding its customer base by growing sub-brands such as AMG and Maybach.
Mercedes-Benz said it also aims for a rapid growth in recurrent revenues - from parts and subscription services - as its fleet is expected to reach 20 million connected vehicles by 2025.
Simultaneously, the automaker plans to "take the lead" in electric drive and car software, it said.
Lastly, Mercedes-Benz said it will take new steps to reduce its cost base, saying its fixed costs will be cut by more than 20% by 2025 compared to the 2019 baseline.
The Daimler share was up 0.4% in Frankfurt after all these announcements.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
At a virtual investor and analyst conference today, the carmaker said it plans to reshape its product portfolio and its sales network to "think and act like a luxury brand”.
The Stuttgart-based company said it seeks to focus its product development resources and capital on the most profitable parts of the market, while expanding its customer base by growing sub-brands such as AMG and Maybach.
Mercedes-Benz said it also aims for a rapid growth in recurrent revenues - from parts and subscription services - as its fleet is expected to reach 20 million connected vehicles by 2025.
Simultaneously, the automaker plans to "take the lead" in electric drive and car software, it said.
Lastly, Mercedes-Benz said it will take new steps to reduce its cost base, saying its fixed costs will be cut by more than 20% by 2025 compared to the 2019 baseline.
The Daimler share was up 0.4% in Frankfurt after all these announcements.
Copyright (c) 2020 CercleFinance.com. All rights reserved.