Mercedes to simplify model line-up in a bid to cut cost

Mercedes to simplify model line-up in a bid to cut cost

Mercedes-Benz’s rampant model introduction over the past few years has seen its portfolio ballooned to 45 models currently, and according to an Autocar report, the automaker is planning to ‘drastically’ trim down the line-up to reduce complexity and optimise profit.

Apparently, the culling is part of a streamlining process, one which will see some of its platforms and powertrain options be axed as well. Company R&D boss Markus Schafer told the publication that the move came as a result of its focus on electric vehicles. In fact, the number of production lines may also reduce, with emphasis on commonalising parts.

“We are reviewing our product portfolio, especially as we announced so many pure EVs. Knowing the complexity after the growth in the last couple of years means we are definitely reviewing our current lie-up. The idea is to streamline – taking car variants out, but also platforms, powertrains and components,” Schafer said. However, it’s unclear how many cars would be sent to the chopping block.

So far, Schafer named the G-Class, SL, AMG GT, S-Class, and a few others as having their own platform currently. “There are many single platforms right now and the idea is to reduce this. In the future, we will have the same underpinnings with various cars and you will see the results pretty soon,” he noted.

Mercedes to simplify model line-up in a bid to cut cost

Meanwhile, for engines, Schafer said there’s no immediate plan to discontinue the serving duties of its V8 and V12 engines, “so long as there is customer demand.” However, the incoming Euro7 legislation may force the automaker to rethink its powertrain offerings, and the possibility of reducing the engine line-up is real.

“Probably, yes, [powertrain] variants will reduce. Of course, four-cylinder engines will make more sense than a V12. Let’s see what Euro7 requirements are and go from there,” Schafer said.

But Mercedes-Benz’s family of four petrol and diesel engines from its four- and six-cylinder range can be scaled to respond to any market changes immediately. They are built on the same line, and Schafer said “we planned this protection a couple of years ago in order to protect us in terms of different demands and regulations.” What do you guys think?

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Matthew H Tong

An ardent believer that fun cars need not be fast and fast cars may not always be fun. Matt advocates the purity and simplicity of manually swapping cogs while coping in silence of its impending doom. Matt's not hot. Never hot.

 

Comments

  • Mercedes volvo Geely can share same platforms.

    Like or Dislike: Thumb up 0 Thumb down 3
  • Such a big company, now they only know what is 80/20….haaa

    Like or Dislike: Thumb up 2 Thumb down 0
  • the driver on Mar 05, 2020 at 12:53 pm

    Knock some sense into the minds of German consumers and their manufacturers. German domestic models have a multitude of engine and trim choices for their consumers – talk about fickle. Whereas other manufacturers were consolidating their model choices – not the Germans

    Like or Dislike: Thumb up 1 Thumb down 0
    • potato on Mar 05, 2020 at 3:15 pm

      they have too much pride. also more models & variants means more means to upgrade their factory so more undertable money. they cover the cost of offering many options to their european customers via profits gained from outside europe. only in “Yourope ” you get micro-options like seat heating, Aircon, Speakers etc. In most of the world they come with limited to no options.

      Like or Dislike: Thumb up 3 Thumb down 1
  • potato on Mar 05, 2020 at 3:10 pm

    Mercedes & BMW will become like Nokia during early smartphone era when they grow too big and come up with too many models & variants and have to face the rising competition from all over the world especially China. They may be sharing platforms & engines but still customizing each variant will add up the cost it’s different from HP slapping in an i5 instead of i7 processor into their laptops and also adds more complexity in their assembly line & schedule.

    worst case is Mercedes & BMW each are following the same design base design so most of their cars looks similar and this confuses the consumer resulting in Mercedes/BMW model fighting each other for sales instead of Mercedes vs BMW.

    i mean who really cares nowadays if you drive a C Class or E Class they look all the same.

    Like or Dislike: Thumb up 5 Thumb down 4
  • Jet li on Mar 05, 2020 at 10:31 pm

    The SL would be the first to go. S-class cabriolet offers a better solution and they are chasing the same market. G-class owners is a distinctive market.

    The S-class will be in question. It’s either going to be a stretch e-class or the e-class will be a short wheel base of the S. Time will tell. They should already had a plan today as the new s-class is going to be revealed this summer.

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