Mercedes-Benz can boast that it gave the world the first production car. He has long been an innovator, a relentless pursuer of quality and excellence in engineering.
Many consumers say that owning a Mercedes-Benz is a sign that they have finally made it in life. It is considered one of the most aspiring brands among the largest carmakers, even by luxury car buyers who prefer the cars of their competitors, according to an investigation by the AutoPacific industry survey firm.
But the automotive world is changing. Governments and a few consumers are pushing for electric vehicles and companies are competing to develop new forms of transportation, including cars they can drive themselves.
Some of these new technologies, such as electric trains, challenge the traditional strengths of Mercedes-Benz. After all, one of the things the three-pointed star was known for was its superior engine technology.
Mercedes-Benz, according to some industry observers, has been a bit slower than some to adapt to the electrification challenge. Mercedes-Benz said in early 2021 that it planned to delay the introduction of its EQC electric sports utility vehicle in the United States for the foreseeable future, even though SUVs are the most popular light vehicle on the U.S. market today. The company said it still plans to launch its electric sedan.
According to some analysts, the German luxury brand and its traditional partners, such as BMW and Audi, are also facing challenges in the growing and extremely important Chinese market from electrical appliances such as Tesla and Chinese manufacturers such as Li Auto. Historically, the three major German brands controlled 60% of the luxury market in China, but that share is eroding as Tesla continues to open new stores in China, according to a report by Piper Sandler.
Mercedes-Benz has heritage, prestige, talent and a lot of experience in its favor. But the auto industry is making big strides.