These are exciting times for the automotive industry, as advances in in-car technology are poised to revolutionise the car as we see it today. Mercedes-Benz is among those leading the charge, and in a roundtable discussion at the recent Frankfurt Motor Show, Daimler chairman Ola Källenius has revealed some of the company’s key ideas, as well as the challenges it will face over the coming years.
The 50-year-old Swede recounted the first time the carmaker participated in the Consumer Electronics Show (CES) in Las Vegas, previously the reserve of tech companies. “The very first time we went there, I think it was in 2008, people were asking themselves, “What is a carmaker doing here?”
“When I went to the CES at the beginning of this year, it felt like there were more cars than other devices! And the tech companies used cars to demonstrate their technology.” he said, referring to the high-profile showcases from tech giants like Nvidia, which roped in carmakers for the show.
The reason for this, according to Källenius, is that the opportunities for the integration of technology into vehicles have opened up. “Way back when, the car was a mechanical island. Today, it’s the ultimate mobile device. It really is a smartphone on wheels,” he said, adding that the arrival of 5G connectivity will only hasten the development of in-car tech.
We can already hear the luddites thinking, “But I replace my smartphone every year or two, I can’t replace my car every year!” To which Källenius replied that while a car of today may have the technology of a smartphone, it has been developed in a completely different way to make it durable and, hence, last longer.
“Needless to say the engineering target of a vehicle is very much different from, let’s say, the engineering target of a smartphone or some other electrical device, so we have to design it for longevity,” he said. As for the growing level of electrification in cars these days, Källenius said that an electric motor can “more or less go on forever”, with battery deterioration over time posing more of a challenge.
“Maybe there will be, at some point, some kind of backwards compatibility or new batteries in our vehicles,” he said. “It’s still early days. But we do design our vehicles and the electrical parts for longevity.”
Another concern users have these days is data privacy. Companies like Facebook and Google have gotten into hot soup recently over their alleged sharing of personal information to third parties for monetary gain, and while Källenius didn’t rule out Daimler potentially benefitting from the use of their own owners’ data, he said that at the end of the day, the company must serve the customer first.
To do this, the company is being transparent by allowing users to opt in and out of individual services as they see fit. “Most apps have one very long terms and conditions that most people don’t read and then they click, and they don’t know what they did,” he said. “With our Mercedes me services, we allow you to choose what you want, at the individual service level.”
Källenius adds that while Daimler could still make money through your data, it will only do so if it provides a meaningful benefit to you. “If we can offer you a use case that you want and that is beneficial to you, and at the same time it could be a business case for us, that’s what we’re pursuing.”
Mercedes is also in the midst of digitalising its sales and marketing processes in order to improve the buying experience and reduce costs. “You will still have offline [sales], but you will have an even more seamless online-to-offline experience.” he said.
Källenius added that the company is trialling new ways for buyers to purchase their cars, following in the footsteps of Tesla’s strategy of selling directly to consumers. “Actually, in my home country in Sweden, we’re experimenting with a direct sales model, with fixed pricing, where the customer actually buys directly from the manufacturer, and the dealer acts as an agent.
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I think the last Gen C300 is already having outdated Touch Screen UI and sensitivity compared to any smartphone launched in 2019.
Not sure which uncle will buy your idea.
At current age of 25, you need to work anothet 25 years to own a A Class. Work hard kid if you are lucky
Out of no where, the smartphone industry suddenly kena perli.
this is the exact point that you will loose to Tesla and all the status quo challengers. your 3 point star brand can only bring you that much.
Great company and now go make more great and durable vehicles for the world
A joke. put your money where your mouth is. Merc is unreliable af after passing the 150k mark or after 7 years.
Can share more details or any personal experience? What other brands / vehicles would you recommend with better long term reliability?
This guy for sure hasn’t owned a Merc in his life. I have. 2008 e class and it’s well maintained and reliable. Just stfu.
BMW salesmen detected. Mercedes’ quality is definitely better than BMW’s. I owned a E90 3-series and also a W205 C-Class previously and I can vouch for it.
For BMW, after 100,000km use better throw the car away.
His quote is outright since Daimler Benz is very good at hardware innovation but poor at AI software and middleware application.
Apples and oranges, learn the difference.