Not only BMW, but perhaps Mercedes-Benz will end up producing small models with internal combustion engines. In this case, it is a Class A, with question marks hanging after the company’s CEO Ola Källenius has made it clear that its future is under discussion.
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He did not say anything specific, but he said that “it is not the goal to be a competitor of mass producers. That’s not what the Mercedes-Benz brand means. ”
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Sales numbers of small Mercedes have not been very high lately, as the carmaker, with the supply of scarce chips, preferred more profitable models. Källenius confirmed that this was the idea of how the company could become more profitable.
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Mercedes-AMG A35 4Matic (Illustrative photo)
Photo: Mercedes-AMG
“Before supply constraints began, we made it clear that our strategy was not to target volume, but value for our customers and our company,” Källenius continued.
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“We started to make sure we track margins and pricing well – and in that respect, supply constraints were like an unwanted experiment. Profitability was robust even at this time, “he added.
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In 2021, the carmaker reported sales of approximately 14 billion euros, ie 349 billion crowns. However, the increase in commodity prices alone is expected to cost Mercedes-Benz around 2.5 billion euros (62.3 billion crowns) this year.
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