Mercedes-Benz CEO, Ola Källenius Adhering to brand value, will not adjust prices as arbitrarily as Tesla

Mercedes-Benz CEO, Ola Källenius, will not adjust prices as arbitrarily as Tesla, staying true to the brand's values

【phoneauto News】Tesla is the leader in the electric vehicle industry, and its Supercharger network covers most of North America, providing convenience and safety for electric vehicle users. However, Tesla’s pricing strategy has always been unpredictable, sometimes lowering prices and sometimes raising prices, causing great uncertainty for consumers and negatively impacting the shopping experience.

Recently, Mercedes-Benz announced that its electric vehicle users will be able to use Tesla’s Supercharger stations, and starting from 2025, its electric vehicles will fully adopt Tesla’s North American Charging Standard (NACS). This means that Mercedes-Benz will achieve interoperability with Tesla in terms of charging, providing consumers with more choices and convenience. However, Mercedes-Benz does not intend to follow Tesla’s pricing strategy, but insists on price stability and brand value.

Mercedes-Benz CEO Ola Kllenius recently stated in an interview, “For a brand like Mercedes-Benz, you always have to look at the supply and demand balance in each market. However, extreme price fluctuations are usually not the right approach for Mercedes-Benz.” He believes that ensuring long-term stable residual value and other advantages of Mercedes-Benz vehicles is the highest priority.

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Mercedes-Benz is undergoing a corporate transformation and plans to achieve zero emissions by 2039. For this purpose, Mercedes-Benz has invested billions of dollars and launched a new series of electric vehicles such as EQE and EQS. However, this transformation is not easy in the current global economic situation. Kllenius pointed out that inflation and rising interest rates in major economies have led to a slowdown in the macroeconomy. In addition, the Chinese market, which Mercedes-Benz had high hopes for, has also shown weak sales performance.

Therefore, Mercedes-Benz must be flexible in responding to market changes and adjust the production ratio of its electric and internal combustion engine vehicles according to demand. Lin Song Kang said, “Using our large businesses in the southeast and Alabama as an example, we can simultaneously build in both regions. So, we can go with the flow. The same thing is happening in Germany, China, and other parts of the world. So yes, we have production flexibility, but we are preparing for the future of electrification.”

In summary, Mercedes-Benz will not follow Tesla’s pricing strategy, but will adhere to its own brand philosophy and market positioning. Mercedes-Benz will cooperate with Tesla in terms of charging, but will maintain stability and high-end positioning in terms of pricing.

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