Over decades, the Gold standard in luxury berths has been defined in the Mercedes S- Class, which chauffeurs around industry captains and head of state. But as more consumers are pursuing the advanced technology of SUVs and electric cars, Daimler AG must demonstrate that its focus remains relevant. The most recent iteration of the S-Klasse presented by the German carmaker on Wednesday is intended to please you to taste both old and new-not only the powerful combustion variant, but also an improved hybrid version.
The S-Class still pulls big money for Daimler, especially in Chinese markets, despite its roots in the 1950s, where the company sells more than anywhere else from the more expensive model, Maybach. Competitors BMW AG and Volkswagen AG Audi have been attempting for many years to achieve a greater market share, but they have never succeeded in breaking Daimler’s leadership. There could hardly be any greater stakes for the latest model version. Traditional car manufacturers spend billions of euros on the electrification of their fleets while relying on burning cars to make profits.
Tesla Inc. has zoomed over the sedans to defeat the deepest industrial slump in the years that led the COVID 19 pandemic and became by far the world’s most valuable automobile company. Arthur D. Little GmbH Consultant Roman Mathyssek said, “The new S-class must be the top car in the world in all aspects. The hybrid model features a 100 kilogramme enhanced battery system, with software to allow level 3 autonomous driving, including lane shifting and a system that keeps the car frozen.
“In Tesla, the autonomous driving or level-5 requirements of the business are nearly being met. CEO Elon Musk has also been successfully marketing his self-driving technology.
Tesla’s stock quintupled this year to $464 billion. Daimler is the world’s leading luxury car manufacturer and the largest commercial vehicle maker, worth USD 55 billion. In a paper, Philippe Houchois, an analyst at Jefferies, said last week, the valuation gap between Tesla and its peers “is going to remain large or wider before carmakers have a viable business with electric vehicles.
” Daimler CEO Ola Kallenius accelerated turnaround efforts to recover profits after the coronavirus outbreak shuttled factories and showrooms. Mercedes’s revenue over the past few years has continued to rise with BMW and Audi. The underlying profits have declined to owe to compliance costs, new technology ballast and low performance. Kallenius is committed to concentrating more resources on luxury cars such as S-Class or GLE SUV to raise profits, with Stuttgart’s manufacturer aiming to slash more than 15 000 jobs worldwide.
Their strong presence in the luxury automotive sector will be crucial to German manufacturers’ competition in the future during the accelerating shift to electric cars, said Juergen Pieper, the analyst at the Bankhaus Metzler. “It’s exciting to see that Kallenius and his new team now seem to be starting to change things from scratch after years of efforts to become more efficient,” said Pieper.
