On October 6th Mercedes-Benz unveiled a new strategy for its passenger-car business at its online investor and analyst conference.

      The core of the new strategy is to focus on electrification and own software development capability to achieve structural profitability improvement. Electrification and profitability are the two key words of this conference. How to balance the two is a test for Daimler's chief executive, Jens Konlinson, the decision maker.

        At the meeting, kanglinsong set a new written pledge to fulfill a military order, that is, by 2025, the major divisions will strive to achieve high single-digit profit margins, even if the market conditions are not good; If the environment is strong, then pursue double-digit profit margins.

       That is an ambitious goal, given that it will be harder than ever to make a big profit on the journey down the luxury ladder, not to mention the expensive transition to electric cars that Mercedes is making in the meantime.

      "We have not reached our full potential in the transition from sales growth to earnings growth," says Mr Kang. "We will invest where we can win."

      Specifically, Mercedes-Benz will focus its product development resources and capital on the most profitable segment of the market, as well as its most competitive market segments, to improve the marginal revenue of its product lineup. Reduce non-core activities to focus on key areas of advantage.

      As an important part of reforms aimed at internal efficiency, Mercedes will cut fixed costs, capital expenditure and research and development costs by more than 20 percent by 2025 compared with 2019 levels.

      The good news is that Daimler has been less affected than expected thanks to its strong performance in The Chinese market. Group sales grew 3.9% in the third quarter, with a total of 223,631 Mercedes-Benz brand new vehicles delivered to Customers in China, up 23.4% year on year; In the first nine months, 569,698 new cars were delivered to Chinese customers, up 8.3% from the same period last year.

      If these are all the things that can be done to increase revenue and reduce expenditure, then another key word looks less easy.

      With the "vision 2039" as its goal, Daimler is committed to a clear plan for electrification of its entire product lineup and achieving full carbon neutrality. Mercedes Benz is committed to the electrification of its entire line of products and its various market segments.

       As part of its "electric first" strategy, Mercedes-Benz announced that it will launch four new pure electric products based on the EVA platform of its upcoming large vehicle pure electric model. Among them, EQS is the first representative of this pure electric vehicle platform, which will be available in 2021, with WLTP electric range exceeding 700 km. Next, there will be EQE, EQS SUV and EQE SUV three models in succession. In addition, AMG, Maybach, G class cars will also provide electric products.

       Starting in 2025, Mercedes-Benz will further improve its electric product lineup by introducing more electric models based on its second exclusive electric platform, the MMA modular platform designed for compact and mid-sized vehicles.

       Mercedes-benz will shift more of its product development resources and expertise to the electric drive sector and invest in new technologies and concepts to improve battery life and energy efficiency. The new generation of motors will be developed in-house by Mercedes-Benz and will be equipped with sophisticated inverters and high voltage technology.

      Mercedes-benz also announced the next step in the development of electric products by announcing the "EQXX Vision" technology project. "By 2030, while electric models account for more than half of new car sales, Mercedes' investment in internal combustion engine models will rapidly decline, with the number of traditional internal combustion engine models falling by 70 per cent."

      In the automotive software arena, Mercedes-Benz also announced its own  OPERATING system, MB.OS. The operating system will be developed in-house and is expected to be released in 2024. With the operating system, Mercedes-Benz will be able to retain control of all vehicle architectures and user interfaces.

       From 2021, AMG will achieve the overall promotion of the brand through high-performance electric; Meanwhile, AMG's links with the Formula One World Championship will continue to strengthen next year, further highlighting its positioning of the Mercedes high-performance sub-brand. Maybach will be distributed in the global market, doubling the size and electrifying the products. The Legendary G-Class is currently in short supply, and the volume of this legendary model will continue to grow, and its product line will also offer electric options. With the help of EQ electric technology brand, Mercedes-Benz will create pioneering high-tech products based on the exclusive electric platform to meet the diverse needs of new customer groups. (Compile/Hill)