Annual Report 2020

Mercedes-Benz Vans strategy

“Moving transportation to the next level” expresses the core value and the fundamental attitude of Mercedes-Benz Vans. The word “moving” expresses our personal motivation to take the lead in the competitive environment, while “transportation” refers to the core element of our business: the transport of passengers and goods. Our striving for continuous improvement and further development for boosting the customer utility is expressed by the words “to the next level.”

Our aim is “to exceed customers’ expectations by offering them the most desirable vans and services.” Mercedes-Benz Vans produces premium vehicles that customers consider to be far more than just capital goods. We want to safeguard this position and focus our activities on thrilling customers and making their business more efficient on a lasting basis.

The Mercedes-Benz Vans strategy consists of five pillars:

Target premium segments

Mercedes-Benz Vans is proud to have greatly shaped the vans market worldwide since the very beginning and to be part of the Mercedes-Benz brand family. With our strategic realignment, we are enhancing our profile as premium suppliers of future-oriented transport solutions for commercial and private customers. The V-Class and the EQV (combined electricity consumption: 26.4-26.3 kWh/100 km; combined CO2 emissions: 0 g/km; range: 417–418 km)1 are already successfully established in the market for privately used vans. In the future, Mercedes-Benz Vans will offer the T-Class and its electric variant to private customers for families and leisure activities. For commercial customers, the Sprinter, the Vito and the Citan are premium vans that cover all van segments. In both the commercial and the private sectors, Mercedes-Benz Vans stands for the highest levels of quality, reliability and sustainability.

Focus on profitable growth

Another key element of the strategy is the increased focus on high-sales and high-margin markets. In parallel with the expansion of our activities in Europe, we also intend to further intensify our efforts in China, the United States and Canada, and align our portfolio even more closely with the respective market requirements. Among the various important new target groups that we have identified are up-and-coming sectors with great future potential such as camper vans. Here we are focusing on reducing complexity, a strategy that includes the continuous review of our product portfolio.

Embrace customers and grow recurrent revenues

Mercedes-Benz Vans will further intensify its cooperation with customers in order to strengthen and expand its long-term customer relationships. In order to increase our customers’ satisfaction and loyalty on a lasting basis, we aim to tailor our products and services precisely to their needs. A focus is here on co-creation — the joint development of segment-specific and user-specific solutions so that we can retain customers over the long term and generate potential revenue throughout the customer life cycle.

Lead in electric drive and digital solutions

We intend to set new standards for sustainable electric mobility and digital solutions. Our portfolio is now almost completely electrified. The successful launch of the eVito (combined electricity consumption: 26.2 kWh/100 km; combined CO2 emissions: 0 g/km; range: 421 km)1, eSprinter (combined electricity consumption: 37.1–32.5 kWh/100 km; combined CO2 emissions: 0 g/km; range: 120–168 km)1 and EQV (combined electricity consumption: 26.4–26.3 kWh/100 km; combined CO2 emissions: 0 g/km; range: 417–418 km)1 shows that we are on the right track. The successor of the Citan is rounding out the electrification of all of our van model series. In order to make our portfolio sustainable and future-proof, we are intensively studying new vehicle concepts. In doing so, we are focusing on the consistent further development of high-performing electrified variants. We already have a strong position when it comes to customer-oriented digital services and we want to further strengthen this position. We offer Mercedes me connect services for individual private use and the service platform Mercedes PRO for commercial customers. This platform features an extensive range of connectivity and vehicle-related services. In addition, we are continuing to work systematically on completely networking our vehicles and are creating innovative hardware and software solutions to this end.

Lower operating costs

We also want to substantially reduce costs at Mercedes-Benz Vans. We intend to continue to improve our processes, increase flexibility, reduce fixed costs and variable expenditures, and exploit the digitalization opportunities for improving efficiency and customer orientation. Digitalization also means connecting the digital services with Mercedes-Benz Cars, strengthening digital sales activities, and consolidating all digital customer contacts into a digital customer experience. In order to safeguard our competitiveness, we are systematically examining all of our expenditures so that we can significantly reduce our fixed costs in the long run.

Mercedes-Benz Vans is also committed to the sustainability targets and has firmly anchored them in the strategy.

Having highly motivated and committed employees is more important that ever in times of great change. By means of the program Leadership 20X, Mercedes-Benz Vans wants to increase the employees’ motivation and individual responsibility and offer them qualification measures that will make them fit for the transformation toward electric mobility and extensive digitalization.

1 Electricity consumption and range have been calculated on the basis of Commission Regulation (eC) No. 692/2008. electricity consumption and range depend on the vehicle configuration. the actual range also depends on the individual driving style, road and traffic conditions, out-side temperature, use of air conditioning/heating etc., and may vary.

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