Mercedes-Benz can boast that it gave the world the first production car. He has long been an innovator, a tireless seeker of engineering quality and excellence.
Many consumers say that owning a Mercedes-Benz is a sign that they have finally succeeded in life. It is considered one of the most aspirational brands among the largest carmakers – even by luxury car buyers who prefer cars to their competitors, according to research conducted by industry survey firm AutoPacific.
But the world of cars is changing. Governments and some consumers are pushing for electric vehicles, and companies are struggling to develop new forms of transportation, including self-driving cars.
Some of these new technologies, such as electric trains, provoke the traditional strengths of Mercedes-Benz. After all, one of the things the three-cornered star was known for was superior engine technology.
Mercedes-Benz, say some industry observers, was a little slower than some to adapt to the challenge of electrification. Mercedes-Benz said in early 2021 that it intends to delay the introduction of its EQC electric utility vehicle in the United States for the foreseeable future, even though SUVs are the most popular light vehicle on the US market today. The company said it intends to launch the electric sedan.
The German luxury brand and its traditional counterparts, such as BMW and Audi, are also facing extremely important challenges in the growing Chinese market from parent companies such as Tesla and Chinese manufacturers such as Li Auto, according to analysts. Historically, the three major German brands have controlled 60% of China’s luxury market, but that share is eroding as Tesla continues to open new stores in China, according to a report by Piper Sandler.
Mercedes-Benz has a legacy, prestige, talent and a lot of experience in its favor. But the car industry is making big pivots.