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Yahoo
4 days ago
- Automotive
- Yahoo
Mercedes-Benz begins production of next-gen electric CLA
Mercedes-Benz has initiated a new phase in automotive manufacturing with the commencement of the new CLA model's production at the Rastatt plant in Germany. Embracing a "Digital First" strategy, the company says it has integrated cutting-edge technologies such as artificial intelligence, digital twin, and the Mercedes-Benz Operating System ( into its MO360 digital production ecosystem. Mercedes-Benz has invested a significant amount in the Rastatt plant, gearing up for the production of the electric CLA. The plant benefits from a network of German sites supplying essential components: electric drive units and axles from Stuttgart-Untertürkheim, bodyshell components from Kuppenheim, and batteries from Kamenz. The Rastatt facility has undergone rapid transformation, setting a precedent for the "Digital First" approach across the Mercedes-Benz global production network. A virtual simulation aided the revamp of an assembly hall, leading to the swift and efficient setup of a new production line. This method also helps efficiency gains in terms of construction time and costs. Mercedes-Benz Group Board of Management chairman Ola Källenius said: "With the CLA, Mercedes-Benz is ushering in a new era. The best guarantee for the long-term success of electromobility is top-of-the-range products like the CLA. We as a company are investing to ensure that these can be 'made in Germany.' A key prerequisite to make this possible is that framework conditions remain competitive.' The Rastatt plant is a pioneer in utilising AI for process engineering in its top coat booths, achieving a 20% reduction in energy consumption and shorter ramp-up times. Committed to sustainability, the production at Rastatt is carbon-neutral, with the entire Mercedes-Benz production network being powered by 100 percent green electricity. Following the successful launch at Rastatt, Beijing Benz Automotive will also commence the production of the CLA for the Chinese market. Additionally, the Hungarian Mercedes-Benz plant in Kecskemét will produce further models of the new vehicle family, with batteries sourced from the company's own battery factory and electric drive units from the subsidiary plant in Sebes, Romania. "Mercedes-Benz begins production of next-gen electric CLA" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
13-03-2025
- Automotive
- Yahoo
2026 Mercedes-Benz CLA Is A Super Efficient Electric Car Designed With No Compromises
After seeing it in concept form in 2023 and letting us ride in a camouflaged prototype at the end of last year, Mercedes-Benz has unveiled the third-generation CLA, the compact four-door coupe that serves as the brand's entry point. While there will be a gas-powered hybrid version on the same platform, the new CLA was designed first and foremost as a zero-compromise EV, and the electric version will be one of the longest-range, fastest-charging and most-efficient electric cars you can buy. The electric CLA's platform, battery pack, electric motors, electrical systems and more were all previewed and real-world tested by the Vision EQXX, and it's the first Mercedes to debut the brand's new operating system and overhauled infotainment system, also previewed by the EQXX. Every bit of the CLA, from the powertrain to the tech stack, is totally new. When I got to see the new CLA in person in Germany a few weeks ago, I got to walk around the car with Mercedes CEO Ola Källenius, who described the CLA as resetting the company's clock as it will usher in a totally new era for the brand. While the brand will keep making internal combustion engines into the early 2030s, Källenius says there is no question that Mercedes' future is fully electric, and this new CLA is leading the way. Full disclosure: Mercedes-Benz flew me to Stuttgart and put me up in a car-themed hotel so I could get to see the new CLA under embargo and do deep dives into its engineering and design, as well as another car I can't tell you about yet. Read more: You Can Buy A 400-HP V-Series Cadillac For Less Than A Honda Accord The third-gen CLA rides on Mercedes' new modular MMA platform, which accommodates both fully EV and hybridized internal combustion powertrains but was designed first and foremost for the electric versions. That's definitely the way to go, versus something like the BMW i4 where an electric powertrain was shoved into a platform that was initially designed for just ICE cars. One big benefit? While the gas-powered CLA is front-wheel drive for better packaging, electric CLAs are rear-wheel drive (with all-wheel drive as an option) and they have a large frunk under the hood. In the U.S. we'll get the electric CLA in rear-wheel-drive CLA250+ and all-wheel-drive CLA350 4Matic guises, both of which get a silly "with EQ Technology" moniker added onto the name to denote the electric powertrains. The single-motor CLA250 has 268 horsepower and 247 pound-feet of torque, with Mercedes claiming a 0-to-60-mph time of 6.6 seconds. That's three-tenths off from the current gas-powered CLA. Upgrade to the dual-motor CLA350 and you get 349 hp and 380 lb-ft — 47 hp and 85 lb-ft more than a current CLA35 and more torque than even the CLA45 S — which will hit 60 mph in 4.8 seconds, the same as the CLA35. Top speed for both models is a respectable 130 mph. Mercedes isn't giving full details about the CLA hybrid yet, as it's hitting dealerships about six months later than the EV, but we know it'll feature a turbocharged 1.5-liter inline-4 engine paired with an 8-speed dual-clutch automatic transmission, a 27-hp electric motor and a 1.3-kWh battery pack. Mercedes says the hybrid will be able to do up to 60 mph on electric power alone, and it can recuperate up to 25 kW of energy when braking. Källenius says the electric CLA is "orders of magnitude" more efficient than the gas car, being an electric equivalent of a one-liter car. Both electric CLAs have a nickel manganese cobalt battery pack with 85 kWh of usable capacity, and the MMA platform has an 800-volt architecture for mega charging speeds. It supports DC fast charging speeds of up to 320 kW — 120 kW more than the EQS — which can add up to 202 miles of range in just 10 minutes. The entry-level single-motor model, which has a longer range, needs just 22 minutes to charge from 10 to 80 percent, while the dual-motor car needs 33 minutes for the same amount of charge. The CLA supports AC charging at up to 11 kW, and in the U.S. the CLA will have the Tesla-style NACS port as standard as well as a J1772 port for slow chargers, with an adapter for CCS fast-chargers. The CLA will also be the first Mercedes EV to support bi-directional charging for vehicle-to-home and vehicle-to-grid. The original CLA had a drag coefficient of 0.24, impressive for any sort of car let alone a gas-powered compact, but the new CLA EV blows past it with a 0.21 drag coefficient, which is lower than any other production Mercedes save for the EQS and makes the CLA more aerodynamic than almost every other car on sale. Sometimes there can be a big variance in drag coefficient between model variants, but Mercedes says there's minimal difference with the CLAs, especially because most of the wheels have aero-focused designs. Every CLA also has pop-out door handles, which now have a mechanical release instead of an electric one for quicker operation, better feel and more durability. Slamming the CLA's door also provides a super satisfying thunk that better evokes hefty classic models. Another big boost to efficiency comes from the CLA's rear motor, which has a two-speed transmission like the Porsche Taycan. The first gear is for quick acceleration in city driving while the second gear is for highway cruising; the car will automatically shift depending on the drive mode and situation. In all-wheel-drive models the 107-hp front motor can disconnect when it's not needed, and Mercedes says the rear motor has 93 percent efficiency over long distances. The CLA also has a standard multi-source heat pump that uses ambient air, the battery and waste heat from the drive system to power the climate control system and other functions, as well as improve battery pre-conditioning. All that adds up to seriously long ranges for every version of the electric CLA. Mercedes says the dual-motor CLA350 has a range of 479 miles on the European WLTP cycle while the single-motor CLA250 will do up to 492 miles — that's nearly as good as the EQS, which will do 507 WLTP-cycle miles in its most efficient guise from a 33-kWh-larger battery pack. In the U.S. EPA cycle the longest-range EQS is rated at 390 miles, so expect the CLA's rating to come in at around 375 miles. Mercedes has said the CLA will have an average energy consumption figure of 5.2 miles per kWh, which bests the Lucid Air and Hyundai Ioniq 6, the two most efficient EVs currently on sale. In addition to being even more slippery, the new CLA's design looks really damn good as well. I've always been a fan of the CLA (and really any four-door coupe), but the new one is certainly Mercedes' best effort yet and a major step up from the outgoing CLA in terms of proportions, details and overall premium look and feel. The wheelbase has been stretched by 2.4 inches compared to the old car while overall length is up by 1.3 inches, and the new CLA is also an inch wider and just over an inch taller. One big contributing factor to the CLA's more upscale vibe is the additional side quarter windows, which not only give occupants more light inside and a better view out, but also makes the car appear even longer. Shorter overhangs help a lot, too, along with crisp lines above the wheel arches and slightly flared fenders. There will truly be no mistaking the CLA at night, especially if you go for the electric version. While the CLA hybrid (above) has a fairly normal grille up front — the only design difference for ICE vs. EV — the electric model comes standard with a black "grille" panel with a large central star that's surrounded by a pattern of 142 individual "chrome-effect" illuminated stars. These stars remain on while you're driving along with the central logo, and they animate when the car is unlocked or charging. I cannot even begin to tell you how much I love this. The CLA has a similar headlight shape and connected central lightbar as other Mercedes EVs, but the headlights themselves have three-pointed star elements, either in chrome on base models or as running lights if you opt for the fancier headlight setup; with the latter, the stars are separate from the high and low beams, so they'll always be visible when the lights are on. The taillights are similarly shaped, with three-pointed elements and a lightbar with dozens of short vertical segments. Open the frameless doors and you're greeted with Mercedes' next interior design era, which is inspired by zen gardens. As promised by the EQXX, the CLA is the first Benz to feature the company's new pillar-to-pillar screen setup, which is called Superscreen. Essentially the whole dashboard is one long glass panel, combining a 10.3-inch gauge cluster, a 14-inch central touchscreen and an optional 14-inch passenger touchscreen. If you don't want the passenger screen, there's a black panel with an illuminated star pattern that matches the ambient light color. Illuminated climate control vents are placed in either end of the screen, with additional thin vents below the center screen. The CLA's ambient lighting is nicely placed, not as overwhelming as it can get in cars like the new E-Class. At the front of the floating center console just below those vents is a row of touch-sensitive buttons for a few frequently used features, but otherwise the CLA is devoid of buttons, with basically everything controlled by your voice or the infotainment system (more on those two things later.) Mercedes finally redesigned its door-mounted seat controls at least, with the new ones being both better looking and actually moving when you adjust them, and the steering wheel has simplified haptic controls. Get your pitchforks out, though, because there are only two window switches with a button to choose between the front and rear windows, like on Volkswagen's ID cars and the latest Volvos and Polestars. That center console has a nicely sized cubby with an optional wireless charging pad, a pair of cupholders and a large open space below it; I didn't get to sit in the hybrid CLA, but it doesn't seem to have much less space if any than the EV thanks to its clever powertrain packaging. Under the armrest is a large enclosed storage space, and the new door panel design is also quite nice looking with spacious cubbys as well. Mercedes' color and materials designers got to have a lot of fun with the new CLA. Upholstery schemes for the sporty seats include bright brown leather, a lovely cream that even has a light-colored steering wheel, black with lime green accents, and a white and black motif with a mix of suede and leather with red accents. The center console, door cards and other areas can have real aluminum or wood trim, along with a new option of a finish made from recycled paper. There are lots of areas with nice material mixes and contrast stitching, and everything feels high quality and very well made, a big step up from the old CLA and even other more expensive models. The new CLA's 16.2 cubic feet of trunk space is actually down almost two cubes compared to the old model, but in person it seemed more spacious to me, so maybe the trunk shape has been better optimized. Under the hood you get a 2.5-cubic-foot frunk that's big enough to hold carry-on bags and other things, impressive engineering considering how tiny the frunks are in other EVs that have ICE versions — another benefit of MMA's EV-first approach. In terms of space for humans, despite having a standard fixed panoramic sunroof that extends extremely far back, the new CLA has 0.6 inch more headroom for front passengers and 1.1 inches more in the rear. Front legroom is slightly greater than the old car while rear legroom is slightly down, likely because of the batteries under the floor. Despite all of the above, the biggest deal when it comes to the new CLA might be its technology and infotainment system, as that is what will rapidly spread across the entire Mercedes lineup over the next two and a half years. Debuting in the CLA is the production version of the operating system that Mercedes has been teasing for a few years now, which was developed completely in-house and is powered by a new supercomputer and improved software and cloud connectivity. can handle over-the-air updates for every vehicle system, including things like driver-assist features. For instance, the CLA will have the necessary hardware for advanced Level 2 hands-free systems that will become available after the car launches. Mercedes is still using the MBUX moniker for the infotainment itself, which has been overhauled to be more intuitive and personalizable. The slicker graphics are powered by the Unity Game Engine, and the system is designed so it requires fewer actions to accomplish tasks or navigate between menus. For instance, you can now swipe at the edges of the screen to go back to the previous page, and there are customizable folders and app grid layouts. The home screen, which always shows the map view and has shortcut controls for the climate menu, will also display recently used apps and show suggestions for apps or functions based on how you use the system. Mercedes says it is seeing big drops in Apple CarPlay usage as its current MBUX software improves, and this new system will lower that number even further. The navigation system, which uses Google Maps data, shows a real-time view of the car and the surroundings. It's constantly taking into account all sorts of data parameters to give you the fastest and most efficient route, dynamically responding to traffic or how you're driving. Sometimes the car will say two shorter stops is more efficient, or maybe just one longer stop, and it'll do all that decision-making and battery pre-conditioning for you. At Mercedes-Benz's branded charging stations, the CLA will automatically reserve a charger in advance 15 minutes before you arrive. If you get the third screen, your front seat passenger can stream videos using apps like Disney+ or YouTube, watch IMAX-enhanced movies on Ridevu or connect a gaming controller to play cloud-based video games like Forza through the Boosteroid service. People really do use these passenger screens, especially in China where Mercedes sees a 50-percent greater usage than when the EQS' Hyperscreen first debuted. Unlike cars like the E-Class, where the passenger screen has a special coating that makes it appear black to the driver, the CLA's passenger screen will turn off if the car's internal cameras sense the driver's eyes have looked over for a prolonged period of time. A 16-speaker Burmester 3D surround sound system with Dolby Atmos is available, with the Dolby tech now available for audiobooks on Audible — the Germans used 1984 as an example in our demo and didn't understand why us American journalists started cracking up. Mercedes' biggest standout feature is the CLA's MBUX Virtual Assistant, which incorporates AI technology from both Google and Microsoft. Mercedes says this upgraded assistant can accomplish "advanced, natural, multi-turn dialogue" and that it even has a "short-term memory." You can string multiple thoughts and questions together, or ask it to accomplish two separate tasks, like changing the temperature and the radio station at once. Examples that were demo'd for us included asking the car to pick out a restaurant for a dinner date, specifying that we wanted a specific price range and a table with a view. After presenting us with some options, the assistant asked if we wanted the car to call the restaurant so we could make a reservation. The assistant will even recognize your emotions, with the Mercedes logo in the top right corner of the screen changing color based on how you're talking. I've already thought that Mercedes' current voice assistant is one of the best in the business and this new version seems a couple steps up beyond that. Källenius says Mercedes' EQ lineup was hugely important for the brand, as it brought in many early EV adopters and customers that had never bought a Benz before and proved that the company's EV technology was more than competitive. Now, though, he says the company is refocusing and using the CLA strategy as a blueprint to chase mass EV adoption amid "ever-increasing" take rates. Classic model lines like the C-Class, E-Class and S-Class will gain next-gen electric variants, sharing more traditionally Benz styling with their gas equivalents in the same way as the CLA and G-wagen. We'll see the next-gen GLC debut this fall with a new design language for the company's rear-wheel-drive cars. Källenius describes the company's next few years of launches as Mercedes' biggest new product offensive in 100 years. Next up and also riding on this MMA platform will be a Shooting Brake wagon version of the CLA that won't come to America, and GLA and GLB crossovers that will. The GLA and GLB will share the CLA's electric-first approach. Also in the pipeline are AMG versions of the electric CLA, which will boast more aggressive styling and tons of power. But first, Mercedes needs to actually launch this CLA. The 2026 CLA EV will go on sale in the U.S. this fall, with the hybrid to follow about six months later. I expect it to start at in the low $50,000 range. Want more like this? Join the Jalopnik newsletter to get the latest auto news sent straight to your inbox... Read the original article on Jalopnik.
Yahoo
20-02-2025
- Automotive
- Yahoo
Mastering Transformation: Making Mercedes-Benz Leaner, Faster and Stronger
Way forward: Mercedes-Benz readies its biggest ever product and tech launch campaign with dozens of new or refreshed models until 2027. Design language: Mercedes-Benz to introduce a coherent, status-oriented design language across the entire portfolio. Intelligent modularization and cutting-edge tech: Mercedes-Benz Operating System ( lays foundation for all domains, especially infotainment and automated driving functionalities. Electric drive units and batteries designed to be modular and highly scalable. Performance: Comprehensive performance enhancement plan (Next Level Performance) aims to raise the competitiveness and resilience of Mercedes-Benz. STUTTGART, Germany, February 20, 2025--(BUSINESS WIRE)--Mercedes-Benz Group AG (ticker symbol: MBG) delivered solid financial results for 2024 and unveiled its biggest ever product and tech launch program as well as performance enhancement measures designed to deliver exceptional value to customers and shareholders. "As the custodians of this iconic brand we ensure that Mercedes-Benz continues leveraging its full potential. We're launching the company's biggest ever product and tech campaign and a comprehensive performance enhancement program." Ola Kaellenius, Chief Executive Officer of Mercedes-Benz Group AG. Building the most desirable cars A Mercedes-Benz is a Mercedes-Benz – no matter how it's powered. This means: Every Mercedes is extraordinary. Its status derives from exceptional design, advanced technology, superb refinement and craftsmanship, a sublime ride and drivetrain, world class safety systems and outstanding digital solutions – be it a battery-electric vehicle (BEV), a hybrid, or a car with an electrified high-tech combustion engine (ICE). Mercedes-Benz will apply a coherent, status-oriented design across the entire portfolio and customers will primarily decide on a model – and then choose their preferred drive type. The all new CLA, which will be offered as both a BEV and an ICE variant, takes a big step in this direction. And there is more to come. The concept offers drivetrain flexibility in the form of a pure electric car with benchmark range, consumption and charging performance; in addition to a highly efficient ICE variant using small transverse high-tech electrified engines. Even though the designs will be almost identical, in the Core and Top-End Vehicles (TEV) segments, the rear-wheel-drive cars will be based on separate, uncompromised BEV/ICE concepts. Cutting-edge BEV and ICE models can exploit their respective strengths, without sacrificing space, elegance, convenience, or efficiency. Thanks to intelligent modularization, Mercedes can offer best-in-class roominess and perfect proportions while keeping a tight grip on costs and manufacturing flexibility. By focusing on the most promising segments, Mercedes-Benz retains the ambition to defend margins as the BEV share increases. Mercedes-Benz plans to expand and protect the share of Top-End Vehicles (TEV) and aims to leverage the potential of its luxury brands such as G-Class, as the undisputed icon of adventurous luxury; Maybach as the epitome of sophisticated luxury and Mercedes-AMG as the performance luxury brand. The legendary G-Class family will be expanded with a new smaller version. Mercedes-AMG plans to outgrow the performance market, thanks to a heavily refreshed model lineup from 2026 onwards and a strategic evolution of its portfolio, which will include a next-generation, high-tech electrified V8 and dedicated high-performance electric models based on Biggest ever product launch campaign Beginning with the all-new CLA this year, Mercedes-Benz will start the most intense product launch program in its history, including the major upgrade of the S-Class in 2026 as well as a string of launches at Mercedes-AMG. Overall, Mercedes-Benz plans for dozens of new or refreshed models to reach markets until 2027. The CLA will be offered with an electric drivetrain or a 48-volt electrified high-tech four-cylinder engine, paired to an electrified eight-speed dual-clutch transmission. The electric variant sets new standards in its class in terms of range, consumption and charging power, thanks to know-how transferred from the VISION EQXX technology program. The product substance in this class will be elevated, while at the same time, the portfolio complexity of its family will be reduced from seven to four variants. By launching all-new electric GLC and C-Class models, Mercedes-Benz will close a gap in its electric core segment. An all-new fully electric E-Class will round out the picture. The pace of BEV adoption will continue to be determined by market conditions, infrastructure and customer needs. Boosted by new BEV model introductions, the Mercedes-Benz Group AG is targeting an xEV share of more than 30% in 2027. "We will excite our customers with a full rollout of uncompromising cars. They will be an intelligent part of their life. All of them come with a fully integrated tech stack and leverage the latest developments in AI. They will be packed with advanced technologies like the latest ADAS systems and innovative tech features like a new steer-by-wire system. It all starts very soon with our new CLA, our first software-defined vehicle powered by our very own in-house operating system It will be followed by our new electric GLC, which is a turning point in our mid-size segment. This is the all-electric SUV our customers have been waiting for." Markus Schaefer, Member of the Board of Management of Mercedes-Benz Group AG. Chief Technology Officer, Development & Procurement Intelligent scalable modules With the launch of the CLA, all new Mercedes vehicles will run on the proprietary AI-enhanced Mercedes-Benz Operating System ( a chip-to-cloud software operating system which covers infotainment, automated driving, comfort as well as driving & charging. By having full control of all sensors and actuators, Mercedes-Benz will be able to deliver a superior product experience. is scalable to fit every segment and can be tailored to each region. For example, with navigation, Mercedes-Benz will use Google in western markets, AMAP for China and TMAP in Korea. The BEV drivetrain portfolio will make use of highly modular electric drive units and batteries which are scalable for all segments, including cost-effective Lithium-Iron-Phosphate (LFP) and advanced Nickel-Manganese-Cobalt (NMC) batteries, as well as high-performance round cells. For the batteries used in the CLA, the cost per kilowatt hour has been cut by about 30% compared to its predecessor generation. Further improvements in energy density and cost efficiency are being worked on, in addition to advances in cell chemistry. Lithium-Manganese-Oxide (LMO)/NMC blends will lower costs while increasing energy density to NMC levels. The newly developed, flexible Electric Drive Unit 2.0 (EDU 2.0) will offer two and four-wheel options across all segments. To also ensure a comprehensive portfolio of electrified high-tech combustion-engine vehicles, Mercedes-Benz already has a full range of future-proof EU-7 ready engines and transmissions ranging from four to eight cylinders. In selected markets, 12-cylinder engines will continue to be offered. Lead in tech Mercedes-Benz continues to push boundaries with cutting-edge technology, including a new steer-by-wire system and a fully integrated tech stack, which includes a water-cooled supercomputer. With the all-new CLA, Mercedes-Benz will introduce not just but also the MBUX Virtual Assistant, which incorporates multi-agent AI functionalities. Using the latest Large Language Models (LLM) and incorporating conversational as well as behavioral AI, it makes the user experience more proactive and human like. It can even answer follow-up questions in a natural way for up to an hour, thanks to memory. also supports next level automated driving, including Level 2++ point-to-point navigation which handles complex urban traffic. This feature will be available in China and the US with the all-new CLA, and Europe will follow as soon as legislation permits. Speeds for SAE Level 3 conditionally automated driving are increasing, and the goal is to get a 130 km/h system on the road by the end of the decade. Mercedes-Benz became the first international car maker to gain approval for testing SAE Level 4 highly-automated driving in Beijing on designated urban roads and highways. Winning in China The S-Class remains the undisputed market leader in its segment, and Mercedes-Benz continues to lead the segments for vehicles priced 1 million RMB and above. China is already home to Mercedes-Benz's biggest and strongest research and development network outside of Germany. Local facilities in Beijing and Shanghai allow Mercedes-Benz to take full advantage of the local ecosystem and supplier landscape. This enables Mercedes-Benz to combine upholding its high internal standards while innovating at "China speed." Mercedes-Benz is already setting standards in navigation with lane-level navigation and 3D maps. Utilizing the China R&D network will allow Mercedes-Benz to elevate the intelligence of its products while at the same time greatly lowering complexity and cost. Products made for the Chinese market will be locally developed and loaded with China-specific apps and content, including dedicated infotainment and automated driving features. As part of the announced product launch campaign there will be seven models dedicated to China across all segments and drivetrains. Despite a challenging year 2024, the Mercedes-Benz China Joint Venture operations achieved a strong return on sales. Mercedes-Benz plans to optimize the BBAC joint venture together with its partner. A 10% reduction in material costs is targeted through deeper localization of parts in the China supply chain. Variable production costs and fixed costs are set to be reduced as well. Potential adjustments to the dealer network and production footprint are also being evaluated. R&D costs Mercedes-Benz is prioritizing global R&D resources with a laser focus on the customer. The company will continue investing in the Mercedes-Benz Tech Stack to defend and expand its position in software and hardware. The vertical integration of will allow for a continuous, iterative approach to product development with an increased emphasis on software. The use of digital tools also allows Mercedes-Benz to achieve greater levels of efficiency in its use of hardware and test fleets. Investments are expected to reach their peak in 2025 due to the massive product launch plan and will ease from 2026 onwards. The majority of investments for the CLA family of vehicles, the electric GLC and C-Class as well as models will be completed by 2027, with products on the road. Investments into combustion engine technology will remain limited, thanks to a reduction in powertrain complexity and the use of intelligent modularization between BEV and electrified high-tech ICE products. The highly efficient four-cylinder engine for the all-new CLA was developed and designed by Mercedes-Benz and is being industrialized with a partner in China. Next Level Performance: Production: Mercedes-Benz Group is adapting its cost base with a raft of measures. The company plans to cut production costs by 10% until 2027 after using the past years to adjust its nominal production capacity. This, among other factors, resulted in an exit from plants in Hambach (France), Iracemapolis (Brazil) as well as CKD plants in Russia and Indonesia. A powertrain plant in Poland is being transformed into a future production site for Vans and the sale of a Van plant in Argentina is another step towards adapting the company's global production footprint. Global production capacity for passenger cars is planned to be reduced from 2.5 million in 2024 to between 2 - 2.2 million units by 2027, while retaining the flexibility to readjust, as the product launch campaign gains traction. There are no plans to shut down plants in Germany. Production capacity at each German plant is being balanced at an average 300,000 units. A core segment model will be added to the production lineup in Kecskemet (Hungary), where capacity is being added to take advantage of factor costs which are roughly 70% lower than in Germany. Mercedes-Benz will make greater use of digitalization and AI, adopting a 'digital first' approach. Thanks to digital twins, Mercedes-Benz can plan potential moves of models between plants, including ramp up times, and retooling of the plans without having to significantly interrupt real world production. Local for local: By 2027 the share of local-for-local production is planned to be increased from 60% to 70%. An additional Core segment model could be allocated to the United States and a long-wheelbase version of the GLE will be localized in China by mid-2026. Material Costs: Suppliers are engaged in a dialogue with Mercedes-Benz procurement and engineering teams to reduce material costs by challenging specifications and the design of components to identify where cost can be reduced through standardization and technical refinement. One result is earlier and deeper integration of key suppliers in the development process. Material costs will be tackled in close collaboration with suppliers. The BEAT26 program aims to jointly achieve long-term and sustainable changes to cost structures in procurement for both Mercedes-Benz and its partners. Fixed Costs: Mercedes-Benz achieved a 19% reduction in fixed costs between 2019 and 2024, net of inflation. An additional reduction of more than 10% is being targeted over the next three years. To achieve this, the company is constructively discussing measures with its works council. Moreover, opportunities are being evaluated to determine how Mercedes-Benz sales and financial services organizations can work more closely together, to cater to customers across the different touchpoints more efficiently. In addition to selling its own retail business in Germany to experienced dealer groups, the company plans to further reduce management positions and increase the use of digitalization and generative AI to streamline processes. "To ensure that the company can weather an even more dynamic geopolitical environment as well as challenging markets, efficiency measures are being intensified across the board. 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." Harald Wilhelm, Chief Financial Officer of Mercedes-Benz Group AG Link to capital market presentation: Pictures of the event will be available here: Further information about Mercedes-Benz Group is available at: and The figures in this document are preliminary and have neither been approved yet by the Supervisory Board nor audited by the external auditor. Further information about Mercedes-Benz Group is available at: and Forward-looking statements This document contains forward-looking statements that reflect our current views about future events. The words "anticipate", "assume", "believe", "estimate", "expect", "intend", "may", "can", "could", "plan", "project", "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a negative change in market conditions in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates, customs and foreign trade provisions; changes in laws, regulations and government policies (or changes in their interpretation), particularly those relating to vehicle emissions, fuel economy and safety or to ESG reporting (environmental, social or governance topics); price increases for fuel, raw materials or energy; disruption of production due to shortages of materials or energy, labour strikes or supplier insolvencies; a shift in consumer preferences towards smaller, lower-margin vehicles; a limited demand for all-electric vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; the resolution of pending governmental investigations or of investigations requested by governments and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which are described under the heading "Risk and Opportunity Report" in the current Annual Report or in the current Interim Report. If any of these risks and uncertainties materialises or if the assumptions underlying any of our forward- looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication. Mercedes-Benz Group at a glance Mercedes-Benz Group AG is one of the world's most successful automotive companies. With Mercedes-Benz AG, the Group is one of the leading global suppliers of high-end passenger cars and premium vans. Mercedes-Benz Mobility AG specialises in financial and mobility services. The products range from financing, leasing, vehicle subscription, rental and fleet management to insurance, innovative mobility services, digital payment solutions as well as products and services around charging. The company founders, Gottlieb Daimler and Carl Benz, made history by inventing the automobile in 1886. As a pioneer of automotive engineering, Mercedes-Benz sees shaping the future of mobility in a safe and sustainable way as both a motivation and obligation. The company's focus therefore remains on innovative and green technologies as well as on safe and superior vehicles that both captivate and inspire. Mercedes-Benz continues to invest systematically in the development of efficient powertrains and sets the course for an all-electric future. Mercedes-Benz is consistently implementing its strategy to transform itself toward a fully electric and software-driven future. The company's efforts are also focused on the intelligent connectivity of its vehicles, autonomous driving and new mobility concepts as Mercedes-Benz regards it as its aspiration and obligation to live up to its responsibility to society and the environment. Mercedes-Benz sells its vehicles and services in nearly every country of the world and has production facilities in Europe, North and Latin America, Asia and Africa. In addition to Mercedes-Benz, the world's most valuable luxury automotive brand (source: Interbrand study, 10. Oct. 2024), Mercedes-AMG, Mercedes-Maybach as well as the brands of Mercedes-Benz Mobility: Mercedes-Benz Bank, Mercedes-Benz Financial Services and Athlon. The company is listed on the Frankfurt and Stuttgart stock exchanges (ticker symbol MBG). In 2024, the Group had a workforce of around 175,000 and sold around 2.4 million vehicles. Group revenues amounted to €145.8 billion and Group EBIT to €13.7 billion. View source version on Contacts Willem Spelten, +49 151 5862 4395, Edward Taylor, +49 176 3094 1776, Tobias Mueller, +49 160 862 0035, Andrea Berg, +1 917 667 2391,
