Berlin se reports yeh hai ki Mercedes Benz ke CEO Ola Källenius ko ab investors ke nazar mein "last chance" mil raha hai company ko wapas track par lane ka. Unka kehna hai jo 2022 mein ultra-luxury strategy launch ki gayi thi, usse ab completely U-turn lena padega. Means full high-stakes wali situation hai.
Company ne apni luxury branding ko thoda halka start kar diya hai. Unhone announce bhi kiya ki A-class compact hatchback ki production 2 years or extend hogi, aur iss model ka successor develop karne ka plan bhi on cards hai. Analyst or investors ko lag raha hai ki Stuttgart-based automaker quietly apni strategy change kar raha hai. Means gears silently shift ho rahe hai.
Analysts bol rahe hai ki ab challenge kaafi clear hai. Källenius immediately strong steps lene honge so that company ke lower-end markets phir se revive ho sake. Especially wo German fleets wala segment, jo phele kaafi iconic tha. Yeh segment long term brand loyalty or sales volume ke liye kaafi important hai.
Källenius ne 2022 ke May mein "The Economics of Desire" name ka ek luxury-focused plan announce kiya tha. Usne company ko aur zyada premium direction mein steer kiya, means A-Class or B-Class jaise compact models ko thoda side pe kar diya, or Maybach or AMG or G-Class luxury SUVs ko more independence or spotlight de di.
Iss plan ke according, Mercedes approximately 14% ka margin expect kar rahi thi. 2022 mein margin 16.4% tha, 2023 mein 12.6% ho gaya. Or iss year ke third quarter mein adjusted car sales return sirf 4.8% raha.
The strategy was successful in the post-pandemic market
Analysts bolte hai ki yeh "pure luxury" wali strategy, jisme high-end models push karke prices high le jaate hai. basically ek temporary market ke liye hi kaam karti thi. post-pandemic time mein, jab supply kam thi or buyers paise wale the, tab yeh approach full on chal gayi. But aaj ke normal or competitive market mein yeh strategy bilkul `jam nahi rahi.
Mujhe lagta hai ki yeh strategy, itni extreme form mein, kaam nahi aayi, bola Stefan Bratzel, jo center of Automotive Management ke director hai.
Unhone kaha ki Mercedes sahi kar rahi hai isse thoda correct karke, yaani ek wider lineuep laake jisme woh log bhi participate kar sakein jinke paas thoda kam budget hota hai.
A Mercedes spokesperson ne automotive news ko bataya: hamari strategy sirf 'luxury strategy' tak limited nahi hai. Humara goal hai ki har segment mein customers ko sabse zyada desirable products dein. Aur haan, market condition or global developments ke according hi hum apni strategy ko continuously update or refine karte rehte hai.
Mercedes Margin shrinks
Analysts bolte hai ki pandemic ke baad Mercedes ne apni high-end cars par zyada depend kar liya tha. pehle toh benefit ho raha tha, but baad mein sab ulajh gaya because woh prices high nahi rakh sake or competition bhi kaafi heat-up ho gaya.
Post pandemic "value or volume" wala boost ab fade ho chuka hai, bolte hai automotive analysts Matthias Schmidt. Unka kehna hai ki brand ka upmarket move bhi tab ruk gaya jab key factories ka utilization gir gaya. Jab supply shortages ka artificial support khatam ho gaya or prices high rakhna difficult ho gaya, tab luxury-first strategy ki real weakness saamne aa gayi.
A changing competitive landscape
China ka competitive scene pura change ho gaya. Xiaomi, Xpeng, BYD aur Nio jaise Chinese brands ne premium EV tech ka gap super fast close kar diya, or woh log high-quality models kaafi affordable price mein de rahe hai. Mercedes ki luxury EVs jaise EQS , China mein utni chal hi nahi paayi or upar se US tariffs bhi unke margins ko hit kar rahe hai.
Bratzel ne bola ki Chinese competitors ab or zyada ho rahe hai jo kaafi innovative hai, or kuch areas mein toh unse bhi zyada innovative nikle.
Technology ka gap itna kam ho gaya hai ki German brands ka jo big price premium hota tha, woh ab itna high justify nahi hota," he said. Especially Europe mein, jahan Chinese brands ke competitively priced models with advanced software rapidly enter ho rahe hai.
Bratzel ne bola ki next 3-5 years Chinese premium brands Europe mein or aggressively enter karenge, jisse Mercedes, BMW or Audi par aur zyada pressure padega.
Us scale ke bina na, cost literally skyrocket ho jaati hai, or pricing margins handle hi nahi ho paate, Schmidt ne bola. Yeh structural automakers ko force karta hai ki woh scale maintain karein, chahe small, entry-level models paper par mushkil se hi profit dekhate ho.
Refocusing on entry-level could increase client retension
Mercedes ke liye yeh strategy sirf cheaper or small cars launch karne tak limited nahi hai. Baat actually yeh hai ki wo aapna old or loyal customer wala system wapas strong base banana chahte hai, jise analyst "traditional customer funnel" kehte hai.
Ingo Speich, jo Frankfurt mein Deka investment ke investor rep hai, unka kehna hai ki agar Mercedes phir se lower-priced segment mein jaati hai, toh isse jo brand ki strong premium image hai, woh border market mein dilute ho sakti hai.
Schmidt ne bola ki luxury pe zyada focus karne se brand ka ek core principal hi risk mein pad gaya hai. Unke according, Mercedes ko long-term loyalty wapas paani hai toh entry-level buyers ko phir se attract karna hoga, aur phir unko decades tak brand ke saath hi upscale journey pe leke jaana hoga.
Neeche ka part hataana humesha risky tha, because usse wo funnel wala principal lose ho sakta tha, Schmidt ne bola.
Mercedes ke down hote profits or entry-level models par wapas focus ne investors ko Källenius par aur zyada Skeptic or dhyaan-se dekhne wala bana diya hai.
Speich, jo Deka ka investor rep hai, bolta hai ki agar Källenius koi new entry-level model launch karta hai, iska straight message hoga ki "luxury strategy ka chapter close or basically fail ho gaya.
Unhone weak luxury EV performance or earnings par pressure ka reason bataya ki yeh sab Mercedes ki khud ki wrong judgement or market mein aayi unexpected developments ki wajah se hua.
Speich ne bola ki Marcus Schafer ko replace karke Jörg Burzer ko CTO banana, or Michael Schiebe ko production or supply chain ka head appoint karna yeh dikhata hai ki Mercedes cost cutting ko seriously le raha hai. But iss reshuffle se yeh question bhi raise hua ki agar yeh changes jaldi result na laaye, toh Källenius ki job kitni secure hai.
Last chance to get Mercedes back on track
Källenius khud hi luxury strategy se strongly connected feel karte hai. Board ka restructuring ek big step tha. Saath hi, Källenius ka last chance hai Mercedes ko track par lane ka, Speich ne automotive news Europe ko bataya.
Abhi ke liye, Bartzel bola ki Källenius ki job immediate danger mein nahi hai, usko "endangered" bolna thoda over hoga. But unse yeh bhi emphasize kiya ki Källenius ko ab prove karna hoga ki uski strategies actually kaam karti hai, especially profits ke according. Aur haan, cost cutting bhi company ke future performance ka ek bahut important part hai.
Schmidt ne jo new compact platform strategy batayi hai, jisme zyada expensive technology add ho rahi hai, B-Class models hat rahe hai, or A-Class ko or premium banaya ja raha hai. Usko unhone Källenius ka last throw of the dice bola.
Usne suggest kiya ki maybe entry-level models ki price kam ki ja sakti hai by using Mercedes ka connection Geely ke saath. Geely ek major shareholder hai, toh small models ko unke architecture par base kiya ja sakta hai, jaise Volvo ka successful fully-electric EX-30 small SUV hai. New CLA ek gasoline engine use karti hai, jo Mercedes ne develop kiya or China mein apni joint venture Geely ke saath manufactured kiya hai.
Mercedes ne analyst ke estimates ko beat kar diye Q3 mein, aur unka autos business margins bhi zyada strong tha, thanks to premium models ki better sales.
Ek accha quater aane se maybe Källenius ka pressure kam na ho. Company abhi-bhi China mein kaafi tough competition face kar rahi hai, or Tesla jaise rivals bhi hai, jinki global sales first time third quarter mein Mercedes ko beat kar gayi.
Ab sabki nazar Källenius par hai dekhne ke liye kya woh company ko wapas growth or zyada profitability ki taraf le ja paayege, especially itne tough competition or political pressure ke beach.