How Mercedes-Benz became so prestigious, and why it is challenged

Mercedes-Benz can brag that it gave the world the primary manufacturing car. It has lengthy been an innovator, a relentless pursuer of high quality and engineering excellence.

Many customers say proudly owning a Mercedes-Benz is an indication they’ve lastly made it in life. It is thought-about one of the aspirational manufacturers amongst bigger automakers — even by luxurious automobile consumers preferring vehicles from its opponents, based on analysis by trade survey agency AutoPacific.

But the automotive world is altering. Governments and a couple of customers are pushing for electrical automobiles, and corporations are racing to develop new types of transportation, together with vehicles that may drive themselves.

Some of those new applied sciences, corresponding to electrical energy trains, problem Mercedes-Benz’s conventional strengths. After all, one of many issues the three-pointed star was identified for was its superior engine expertise.

Mercedes-Benz, say some trade watchers, has been a bit slower than some to adapt to the electrification problem. Mercedes-Benz mentioned in early 2021 that it deliberate to delay the introduction of its EQC electrical sport utility automobile within the United States for the foreseeable future, though SUVs are the preferred gentle automobile within the American market right now. The company mentioned it nonetheless plans to launch its electrical sedan.

The German luxurious model and its conventional friends, corresponding to BMW and Audi, additionally face challenges within the rising and extraordinarily essential Chinese market from electrical upstarts like Tesla and Chinese makers corresponding to Li Auto, based on some analysts. Historically, the three huge German manufacturers have managed 60percentof the posh market in China, however that share is eroding as Tesla continues to open new shops in China, based on a report from Piper Sandler.

Mercedes-Benz has heritage, status, expertise and loads of expertise in its favor. But the automotive trade is making some huge pivots.

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