(CercleFinance.com) – Mercedes-Benz presented its new strategic direction on Tuesday. The brand is aiming for 'structurally higher' profitability in the luxury segment and is targeting leadership in the automotive software and electric car market.
During a virtual conference of investors and analysts, the automaker said it plans to reshape its product portfolio and sales network to 'think and act like a luxury brand'.
The Stuttgart-based company said it is looking to focus its product development resources and capital on the most profitable parts of the market, while expanding its customer base by developing sub-brands such as AMG and Maybach.
Mercedes-Benz said it is also aiming for rapid growth in revenue from parts sales and subscription services as its fleet is expected to reach 20 million connected vehicles by 2025.
Finally, the automaker said it would take further steps to reduce its cost base, targeting a fixed charge cut of around 20% by 2025 compared to the 2019 baseline.
Daimler shares were up 0.4% in Frankfurt after all these announcements.