MERCEDES-BENZ

The brand wants to increase its market value by associating itself with electric vehicles and digital technologies

The Daimler boss believes its value will increase significantly after the renaming to Mercedes-Benz – it is assumed that the “new” name will be associated with electric vehicles and digital technologies.

After Daimler's freight division was spun off into a separate company last December, the automaker is gearing up to change its name to Mercedes-Benz as early as February 1. It is expected that this move demonstrates the company's flexibility, capable of maintaining itself as one of the market leaders in a scenario of transformation of the entire industry. By the end of this year, Mercedes-Benz will launch electric models in all segments in which the company operates.

Classic automakers, including Mercedes-Benz and Volkswagen, are now actively trying to increase their market capitalization, especially after launching their own electric models on the market. However, this turns out not to be so easy, and the fight against new competitors like Tesla and others is complicated due to the financial power of the latter. Mercedes-Benz CEO Ola Kallenius is restructuring the company, focusing on high-end self-driving models, in a bid to increase revenue and improve overall financial performance. This is paying off: in the last 12 months, the company's value has grown by around 40% and reached the €74 billion mark.

In the third quarter of last year, the company experienced serious problems due to a shortage of semiconductors. In the fourth quarter, they were partially resolved, but for the first time since 2015, Mercedes lost its lead in premium car sales to its main competitor, BMW. The 2021 financial results report is scheduled for February 24. 

Image source: mercedes-benz.ru