Mercedes-Benz chairman Ola Källenius said the company is adjusting its product and cost strategy under competitive pressure in China, and that product planning must be built entirely around Chinese consumer preferences, according to a November 11 report by German magazine Automobilwoche.
On size, Källenius said that "in China, cars must be big, very big, incredibly big". He warned that Mercedes would be "eliminated" if it failed to keep up with rivals on dimensions, space design and digital intelligence. On costs, he said the company in principle needs to localise its cost structure 100%, since building cars in China while still relying on components exported from Germany and on value added in Germany no longer works.
The first model developed on this basis is an all-new battery-electric E-Class, due to launch in 2027. Källenius said it takes time for a strategy shift to deliver results: "Decisions made today may only show results in three, four or even five years." Mercedes has launched the largest product offensive in its history, planning to launch or refresh 40 models within three years.