Mercedes in Trouble? Latest in the "are they doomed" Series

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Mercedes in Trouble? Latest in the "are they doomed" Series

Mercedes-Benz is navigating significant challenges in maintaining its engineering excellence and safety standards while transitioning to electric vehicles, despite achieving record sales and showcasing impressive innovations like the EQ XX 

 

Questions to inspire discussion

Efficiency and Range

🔋Q: How does the 2024 Mercedes EQS SUV's efficiency compare to Tesla's Model X?
A: The 2024 EQS SUV uses 400-440 watts per mile, which is significantly less efficient than the Model X's 330 watts per mile, despite improvements over the 2023 model.

🚗Q: What impressive efficiency feat did the Mercedes VISION EQXX achieve?
A: The VISION EQXX demonstrated world-beating efficiency by traveling 1,000 km on a single charge with an average consumption of just 8.7 kWh/100 km.

Financial and Sales Performance

💰Q: What is Mercedes-Benz's current financial position?
A: Mercedes-Benz has a strong free cash flow with $24.51 billion in cash and cash equivalents, providing ample resources for product development and factory construction.

Electrification Strategy

Q: What is Mercedes-Benz's revised electrification goal for 2030?
A: Mercedes-Benz has shifted from its original all-electric promise to a target of 50% electric sales by 2030, now focusing on a mix of electric and hybrid vehicle sales.

Regulatory Challenges

🇪🇺Q: How might the EU's 2035 emissions regulations affect Mercedes-Benz?
A: The EU's 2035 ban on new petrol and diesel cars requiring zero CO2 emissions for all new vehicles could significantly impact Mercedes-Benz's sales and profitability.
 

 

Key Insights

Efficiency and Range

🚗Mercedes-Benz's 2024 EQS SUV shows improved EPA range but still lags in efficiency, consuming 400-440 watts per mile compared to Tesla Model X's 330 watts per mile.

🏆The VISION EQXX concept demonstrates Mercedes' potential for efficiency, achieving 1,000 km on a single charge with an average consumption of 8.7 kWh/100 km.

Financial and Sales Strategy

💰Mercedes-Benz maintains a strong financial position with $24.51B in cash and cash equivalents, enabling continued investment in innovation and production.

🔌The company has adjusted its electrification strategy, now aiming for 50% electric sales by 2030 instead of going fully electric, with a renewed focus on hybrid vehicles.

Regulatory Challenges

🚫The EU's 2035 ban on new petrol and diesel cars requiring zero CO2 emissions could significantly impact Mercedes-Benz's future sales and profitability in Europe. 

 

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Clips 

  • 00:00 🚗 Mercedes-Benz faces challenges in maintaining its engineering excellence and safety standards as it navigates the future of luxury automotive.
    • 00:58 ⚡ Mercedes is struggling with battery efficiency, showing high energy consumption compared to competitors like Tesla's Model X and Y.
      • 02:29 🚗 Mercedes showcases impressive engineering with the EQ XX, achieving 621 miles on a single charge and demonstrating exceptional efficiency.
        • 03:36 🚗 Mercedes has made progress in engineering and sales, achieving a record 2.49 million vehicle sales in 2023, but faces challenges in electric vehicle demand that they need to overcome.
          • 04:56 🚗 Mercedes is performing well with strong sales, effective cost controls, and substantial cash reserves, positioning them favorably for future growth.
            • 06:11 ⚡ Mercedes is struggling with its electrification roadmap, delaying its all-electric transition and lacking a clear commercialization strategy despite past successes.
              • 07:54 🚗 European car manufacturers, facing impending bans on petrol and diesel vehicles, are pushing to rethink regulations as they struggle to compete in the evolving market.
                • 09:00 📉 Mercedes faces tough ratings and challenges, indicating a difficult road ahead. 

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                Duration: 0:10:23

                Publication Date: 2024-10-27T20:57:50Z

                WatchUrl:https://www.youtube.com/watch?v=1nmGAR0zqM0

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