Mercedes-Benz, long synonymous with prestige, appears to be stepping away from the word “luxury” to embrace a more inclusive, volume-driven identity.
Mercedes-Benz, long synonymous with prestige, appears to be stepping away from the word “luxury” to embrace a more inclusive, volume-driven identity.
The “L-Word” Fades
Insiders suggest the company is phasing out the word “luxury” from its branding, signaling a dramatic strategic pivot. While CEO Ola Källenius reaffirmed Mercedes’ commitment to delivering “the most desirable products in all our segments,” the long emphasis on exclusivity is being recalibrated against today’s economic realities.
Cheap Over Chic — A New Production Ethos
The push toward higher production is gaining momentum inside the company. Employee representatives argue that manufacturing fewer than two million units annually is not sustainable.
To correct course, Mercedes is pulling back on ultra-premium Maybach and AMG models that carry six-figure price tags. While iconic, these halo cars haven’t provided the stability needed for the wider business.
Profit Crunch Fuels Product Flood
Profit margins have fallen sharply, from highs near 15% in past years to just 5.3% in the first half of 2025. Källenius described the situation by saying the industry is being hit by “heavy rain, hail, storms, and snow at the same time.”
In response, Mercedes plans to unleash 36 new models by 2027. That rollout will include 19 new or refreshed combustion-engine vehicles and 17 electric vehicles. The message is clear: volume will once again take priority over exclusivity.
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