“I’d promote Mercedes”, “Nothing is occurring there”, “Mercedes is the worst positioned for the electrical future” – I’ve seen these statements just lately right here within the sub and wish to present why I clearly disagree right here and can maintain my shares.
Mercedes-Benz’s Luxurious Technique
Mercedes’ strategic resolution to concentrate on the posh phase has been extensively (and critically) reported. In my view, it’s daring and 100% right.
In a battery-electric automobile market, the experience wanted for combustion engines is not value something. Sooner or later, anybody can construct electrical vehicles.
There are two choices to cope with this modification:
For a German producer that already produces high-quality vehicles, solely the second choice actually is smart, as a result of:
The worth chain for e-cars is principally situated the place the lithium mines and battery factories are, e.g. in China. Buying and selling these key constructing blocks inside a rustic is easy, which is why China is ready to produce cheap e-cars extra simply – to not point out the personnel prices and authorized necessities. The technique of “mass as an alternative of sophistication” would most likely not work for a German producer.
Conversely, Mercedes already has a excessive degree of experience in terms of the “{hardware}” of the automobile. It could be wasted potential to not use this information to supply high-end autos.
The luxurious phase provides considerably greater margins and is nearly crisis-proof.
Due to this fact, I discover the transfer to the posh phase reflective, sincere, and commendable.
Elementary Improvement of Mercedes-Benz
I additionally like the elemental growth of Mercedes. For my part, Mercedes is the very best positioned of all German automakers for the electrical future.
I am not shopping for the corporate, I am shopping for the CEO. The brand new CEO of Mercedes comes from Analysis & Improvement himself, could be very progressive and engineering-driven, and needs to solely design car platforms for electrical vehicles as of 2025.
About 2 weeks in the past, an organization received clearance for autonomous driving at SAE degree 3 within the US for the primary time. That firm was not Tesla, however Mercedes.
Mercedes is investing in its personal future in a really large method: 60 billion growth funds till 2025 (evaluate Tesla: 2.6 billion per yr), development of a quick charging community with 10,000 charging stations, binding provide agreements with Rock Tech Lithium, and so forth.
Mercedes dares to design fully new platforms for e-cars, e.g. with the EQE – whereas BMW, for instance, doesn’t need to scare away prospects and builds a number of e-cars that will work properly as a combustion engine automobile however are literally suboptimal as an e-car.
VW can also be sticking too intently to what they already know and might do. That is what the brand new ID.4 seems to be like from the within, and accordingly, the mannequin flopped within the tech-savvy Chinese language market. Mercedes, alternatively, manages to promote a 3rd of its vehicles on this market.
Due to this fact: I presently have 18 shares in MBG. Though there may be typically discuss of promoting them, I am holding them for now.
