- The business unit leverages its strong competitive advantage
due to its diversified portfolio, resilient business model and
premium strategy
- Focusing on the Top-End segments and the most profitable use
cases of the different light commercial vehicle industries
- The roll-out of the new purpose-built Vans Electric
Architecture (VAN.EA) will secure Mercedes-Benz Vans’ lead in
electric drive and digital experience for customers in the premium
light commercial vehicle segment
- Portfolio extension with VAN.EA: For the first time, luxurious
private electric midsize vans will be introduced in the United
States and China
- Mercedes-Benz Vans is targeting up to 20% BEV share by 2026 and
more than 50% by 2030
- Financial ambitions: double-digit ROS (adjusted) at
Mercedes-Benz Vans until end of decade; reduction of fixed costs of
around 20% by mid of decade
Mercedes-Benz Vans has outlined its focused strategy to target
profitable growth in the private and commercial van segments. Key
goals of the strategy include: further strengthening the brand’s
position in the upper market segments, raising ambition levels for
cost and industrial competitiveness, and leading the industry in
electric drive technology and digital experience. As a very
successful and fully integrated business unit within Mercedes-Benz
AG, Mercedes-Benz Vans is the founder and innovator of the light
commercial vehicle (LCV) segment – the segment that bridges cars
and trucks. Some 30 years ago, it created the “Sprinter” segment,
and still today the Sprinter is the flagship of the portfolio.
Mercedes-Benz Vans was also a frontrunner in electric vans: In
2010, the division introduced its first electric series production
van in Europe, the Vito E-CELL. Now, Mercedes-Benz Vans offers
fully electric variants in every segment, from small over midsize
to large vans in Europe and China and earlier this year revealed
the fully electric eSprinter in North America. With more than
40,000 eVans already sold worldwide, Mercedes-Benz Vans is
targeting strong growth and an EV share of up to 20% by 2026 and
more than 50% by 2030.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230516005292/en/
VAN.EA -- Mercedes-Benz Van Electric
Architecture (Photo: Business Wire)
“Our strategic plan for Mercedes-Benz is clear:
leveraging technology and the power of our brand to elevate our
market positioning and profitability. This applies not only to our
luxury car business but also to our strategy for Vans. Vans is a
successful, fully integrated business division within Mercedes-Benz
with the freedom to make all the decisions necessary to cater to
the individual needs of its customers. At the same time, the Vans
business has full access to and the benefits from technology- and
innovation-sharing with our cars business. Vans operates in an
attractive business and enjoys a unique premium market position,
enabling it to deliver strong returns that complement our luxury
car business.” Ola Källenius, Chairman of the Board of Management
of Mercedes-Benz Group AG
“As the leader of the premium van segment, it
is our goal to offer our customers the most desirable vans and
services. Today, we offer exceptional technology, outstanding
reliability, and tailored solutions for customers across profitable
markets and industries. And with VAN.EA, our new purpose-built
electric architecture, we’re setting the course to lead the light
commercial vehicle industry in electric drive and digital
experience.” Mathias Geisen, Head of Mercedes‑Benz Vans
The Mercedes-Benz Vans strategy is based on four pillars:
TARGET premium segments and focus on
profitable growth
Mercedes-Benz Vans will further target premium segments and
focus on profitable growth. The division concentrates on growing
high margin regions, channels, products, and industries. Serving
both private and commercial customers, Mercedes-Benz Vans will
pursue a differentiated approach to each segment. For private vans,
this translates into the adaptation of the overarching
Mercedes-Benz luxury strategy to make it an integral part of all
products, services, customer interactions and digital experiences.
This is why Mercedes-Benz Vans will further extend the top-end of
its product portfolio moving forward – for example, with the
upcoming new V-Class in Europe and China. Parallel to this, the
division is pursuing a premium strategy for the commercial vans
segment that represents around 80% of the division’s sales share
serving different industries.
Today, Europe is the division’s strongest market – with a 60%
share of total sales worldwide. In the United States, Mercedes-Benz
Vans doubled its market share from 8% in 2018 to 16% in 2022,
ensuring a strong market position as well.
Looking ahead, significant growth potential is seen in the
United States for premium commercial large vans and in China for
luxury private vans. In the U.S., Mercedes-Benz Vans is aiming to
profitably and substantially increase sales by 2030 as well as to
expand the portfolio by adding VAN.EA-based commercial vans to the
line-up. For the first time in the United States, Mercedes-Benz
Vans aims to offer VAN.EA-based private vans in an exceptional
luxury positioning to strongly cater to the expectations of its
sophisticated customers and will introduce a privately positioned
midsize luxury van.
Mercedes-Benz Vans serves multiple industries spanning from
basic Courier, Express and Parcel (Last Mile Delivery) vehicles to
the highly profitable recreational vehicles (RVs). While they have
their own specific requirements and demands, they are all important
for keeping the world running smoothly.
The worldwide Last Mile Delivery market with an annual growth of
6% to 8% per year is a strong driver for fully electric intra- and
inter-urban mobility. Mercedes-Benz Vans focuses on the upper price
bands of the Last Mile Delivery industry, where it intends to offer
a VAN.EA-based Last Mile Delivery-specific version
“built-from-factory” for the first time1.
Mercedes-Benz Vans will also expand its portfolio of camper vans
“build-from-factory” with a new model line of fully electric
midsize and large camper vans, based on VAN.EA1. The division aims
to define the new industry standard with its international camper
business partners around the world.
“The premium segment positioning for commercial
vans and the luxury positioning for private vans will allow us to
further strengthen our focus on high margin regions, channels,
products, and industries. The broad range of industries we serve
makes our business resilient – which is a strong competitive
advantage.” Mathias Geisen, Head of Mercedes‑Benz Vans
EMBRACE customers and grow lifetime
revenues
Mercedes-Benz Vans is committed to fostering strong and
long-lasting relationships with its customers –whether private or
commercial. This level of loyalty is proven by the Sprinter
repurchase rate in Europe, which was 74% in 2021. Additionally, the
division’s commercial customer service, which is the backbone of
its business today, will become an even bigger differentiator in
the future: Mercedes-Benz Vans will continue to expand offerings
like its mobile repair service on-site at the customer premises,
and with field technicians for complex repair cases.
The division aims to sell more than 20% of its vehicles online
and to raise the proportion of direct sales in Europe to more than
75% by 2026 through an omnichannel sales experience. In addition,
Mercedes-Benz Vans is focused on creating incremental lifetime
revenues by offering a broad range of digital extras and
benchmark-setting customer service to maximize vehicle uptime.
LEAD in electric drive and digital
experience
With the 2010 launch of the Vito E-CELL in Europe, Mercedes-Benz
Vans was the first to introduce electric in the Light Commercial
Business (LCV). In 2023, Mercedes Benz Vans offers fully-electric
variants in every segment, from small over midsize to large vans in
Europe and China and recently revealed the eSprinter in North
America - targeting an EV share of more than 50% by 2030 for both
the private and the commercial model portfolio. All newly developed
vans will be based on an innovative, modular and scalable electric
architecture called VAN.EA. This architecture forms the foundation
for the Mercedes-Benz claim to lead in electric drive. All future
midsize and large vans will be built on it, whether for commercial
use as versatile premium all-rounders or as private luxury vans.
VAN.EA-based vehicles will focus on added value for customers and
their individual needs. VAN.EA has been developed from scratch for
a purpose battery electric vehicle (BEV) and will strengthen the
focus on efficiency and performance. The introduction of VAN.EA in
2026 will be an important milestone on the way to achieving the
division’s Ambition 2039 goals – a net carbon neutral new vehicle
fleet.
To date, the all-new Mercedes-Benz eSprinter is the most
versatile and efficient Mercedes-Benz eVan. In October 2022,
Mercedes-Benz Vans demonstrated its efficiency with a test drive
under real-world conditions of an express delivery. The route led
from Stuttgart to Munich and back on just one charge. Now, the
all-new eSprinter 2 completed another special test in the United
States: Equipped with the 113 kWh battery, the cargo van drove the
demanding route from Las Vegas, NV to the Mercedes-Benz Tech Center
in Long Beach, CA. This corresponds to 275 miles (443 kilometers)3
– the eSprinter completed the drive without recharging.
Above and beyond this, commercial van customers will have access
to the Mercedes-Benz High Power Charging network. It is planned to
expand it to up to 10,000 high-power chargers worldwide by the end
of the decade. Furthermore, B2B customers of the new eSprinter will
have access to the digital service Mercedes me connect3, which
currently offers 60,000+ charging points across the U.S., and will
be able to charge their vehicles comfortably and easily.
Mercedes-Benz Vans has already proven its expertise and strong
track record in the development of vehicle software and digital
extras. Today, the division offers a selection of around 30 digital
extras via the Mercedes me connect app4 and store and will rapidly
expand and optimize this selection. Building on this, its digital
strategy follows a comprehensive, straightforward,
three-layer-approach to create software-enabled revenues. In the
first layer, Mercedes-Benz Vans offers vehicle-related functions –
for example, tailored navigation for oversized vehicles like
recreational vehicles (RVs) that require special routing to
accommodate road restrictions for large vehicles. The second layer
consists of customer-specific digital extras, provided by a unique
in-house developed device, the Onboard Logic Unit (OLU)5, which
enables customers to integrate the division’s products into their
own specific digital infrastructure. One example is the individual
intelligent charging and load management that was developed with
and for DPDHL. This digital solution is based on the Onboard Logic
Unit4 which enables the integration of our electric vans in the
existing enterprise system of DPDHL in a seamless way. This way
DPDHL can realize intelligent charging for their whole fleet. In
the future, the third layer will extend Mercedes-Benz Vans’ digital
offerings with a selection of commodity services and third-party
applications integrated into the operating system MB.OS that will
be an integral part of all VAN.EA based vehicles from 2026
onwards.
Mercedes-Benz is currently developing MB.OS as its proprietary
operating system, a flexible, modular and service-based
chip-to-cloud architecture designed for its B2B-specific software
offerings. MB.OS will enable Mercedes-Benz Vans to rapidly expand
and optimize its digital extras and services in the future,
allowing it to offer even more customized commercial applications
for its customers. For the first time, Mercedes-Benz Vans will
offer a comprehensive range of new and existing third-party apps
that are relevant for commercial customers and the division’s core
industries. The operating system will also serve as the basis for a
much faster and far-reaching Over the Air (OTA) update
functionality and as an enabler for the development of automated
driving capabilities from SAE Level 2 upwards. Based on MB.OS and
its technical capabilities, the division wants to achieve SAE Level
3 for private customers by end of the decade. With the launch of
VAN.EA-based vehicles, the company will provide SAE Level 2
capabilities. For the commercial segment SAE Level 4 is planned to
be realized by end of the decade to address the business potential
of driverless transportation.6
LOWER total cost base and improve
industrial footprint
To improve profitability and increase competitiveness,
Mercedes-Benz Vans has implemented a comprehensive cost initiative
on a company, operations and product level. On the company side,
the division intends to reduce fixed costs especially by
streamlining and digitalizing processes – aiming for a reduction of
around 20% by mid-decade compared to 2019. In addition,
Mercedes-Benz Vans will further strengthen its competitive
advantage through synergies with Mercedes-Benz AG.
Mercedes-Benz Vans aims for significant improvements throughout
its production processes and lower production costs. The increase
in performance will be driven by reducing the complexity of the
product portfolio, focusing on efficiency in the core production
processes by reducing hours per vehicle up to 25% by 2025 compared
to 2019, optimizing energy consumption and using digital technology
to increase efficiency across all owned operations.
With the focus on an appropriate capital allocation and an
optimized fixed-cost structure, Mercedes-Benz Vans has also
reorganized its global industrial footprint. The division is
transforming its global production network to make it more
efficient, flexible, and geared towards an electric future of
mobility. VAN.EA vehicles will be built in the plants located in
Jawor/ Poland, Vitoria/Spain and Düsseldorf/Germany and others will
follow. This will be accompanied by transformational changes that
enhance productivity. The multi-site footprint also maintains the
ability to react to rapidly changing market conditions, while
optimizing the cost position.
In Ludwigsfelde, Germany the division will continue to produce
Sprinter and eSprinter. The plant will also become a competence
center for eVan customization, for example recreational vehicles
(RVs).
The first electric only Light Commercial Vehicle (eLCV) plant in
Jawor, Poland, aims to set new standards in terms of productivity,
lean operations, and sustainability for the manufacturing of
premium eLCVs worldwide. The production at Jawor will be net
carbon-neutral – as all of Mercedes-Benz Vans’ owned plants.
However, for the first time, Mercedes-Benz Vans plans to cover 100%
of the plant's energy needs through renewable energy.
Mercedes-Benz aims for a combination of different renewable
energy sources to cover the electricity and heat requirements.
These are expected to include electricity from maximized use of
photovoltaics, wind power and heat generation via air heat pumps,
geothermal and solar thermal energy and, if necessary, as fallback
in peak times, a small amount of biogas.
The newest plant will foster leaner and more cost-efficient
production and will go hand-in-hand with the other significant
changes to the division’s manufacturing footprint. All these
measures combined will lead to significant improvements in the cost
structure, and will lay the groundwork for a profitable, 100%
electric drive portfolio in the future as well as our ambition of
double-digit return on sales (adjusted) till end of decade.
“Our success factors are: a product and service
portfolio that is geared towards the luxury and premium segments, a
broad mix of industries served as well as the highest level of
pricing power and customer loyalty. Besides a clear focus on the
most profitable market segments we concentrate on cost measures to
further improve our cost position. We are thus focusing on a clear
way forward – with a highly ambitious technology roadmap to lead
the industry into an all-electric future.” Mathias Geisen, Head of
Mercedes‑Benz Vans
The Mercedes-Benz Vans strategy is underlined by three guiding
principles: sustainability, digitalization, and a highly motivated
team.
As a part of Mercedes-Benz AG, Mercedes-Benz Vans is fully
committed to the Group’s sustainable business strategy. One of the
most important transformation goals for the Group is
decarburization, which is a firm component of its sustainable
business strategy. This goal is reflected in “Ambition 2039” and
the “electric-only” approach. Aiming for an EV share of up to 20%
by 2026 and more than 50% by 2030, Mercedes-Benz Vans is targeting
a significant reduction in CO2 emissions across the entire
lifecycle in new vans.
Additional information on the first strategic update fully
dedicated to Mercedes-Benz Vans will be available at:
https://media.mercedes-benz.com/2023-strategy-update-mercedes-benz-vans
About Mercedes Benz
Mercedes-Benz USA (MBUSA), headquartered in Atlanta, is
responsible for the distribution, marketing and customer service
for all Mercedes-Benz products in the United States. MBUSA offers
drivers the most diverse lineup in the luxury segment with 18 model
lines ranging from the sporty GLA SUV to the flagship S-Class and
the dynamic all-electric Mercedes-EQ family. MBUSA is also
responsible for Mercedes-Benz Vans in the U.S. More information on
MBUSA and its products can be found at www.mbusa.com and
www.mbvans.com.
Accredited journalists can visit our media site at
www.media.mbusa.com.
_______________________________ 1 Country restrictions may
apply. Some features or products might not be available and will
depend on the respective market. 2 The vehicle is currently still
under development and is not yet available for sale. 3 No EPA range
estimate is available. Range depends on many factors and consumers
may not achieve the same performance as observed in this
non-scientific test. 4 To use the Mercedes me connect services, you
must create a Mercedes me ID and agree to the terms of use for the
Mercedes me connect services. The services presented and their
availability and functionalities depend in particular on time, the
vehicle model, year of manufacture, selected optional equipment and
country. 5 Country restrictions apply. Some features might not be
available and will depend on the respective market. 6 The functions
described are visions for the future, some of which might not be
available at market launch and will depend on the respective
vehicle model, the individual configuration and the respective
market.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230516005292/en/
Andrea Berg, andrea.a.berg@mercedes-benz.com Cathleen Decker,
cathleen.decker@mbusa.com
MercedesBenz (TG:MBG)
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