To simplify the customer experience, personalized services and upgrades will translate into three convenient bundles: MB.CONNECT, MB.CHARGE, MB.DRIVE3. Vehicle functions such as Navigation, Remote, Guard 360°, Entertainment and Communication, as well as many others, will be united in the MB.CONNECT bundle – and kept up to date via over-the-air updates. With MB.CHARGE, electric vehicle customers will have access to flexible and attractive tariffs depending on how much they drive. MB.CHARGE provides maximum transparency thanks to fixed-price charging rates as well as priority access to the Mercedes-Benz high-power charging network.
With MB.DRIVE, customers will have the chance to expand the functions of advanced driver assistance systems in their cars. All new models will have the necessary sensing technology on board to enable Level 2 assisted driving. Selected models can be ordered with enhanced assisted driving or Level 3 conditionally automated driving with a fixed-term contract. From 2025 onwards, certain functionalities can be upgraded over the vehicle lifecycle through the Mercedes me Store. To explore new functions and make purchases, customers can access the Mercedes me Store via app, the web or from inside the car.
Unlocking financial opportunity
The company is confident that this strategic approach to software and hardware development will be the basis for lifetime revenues as well as additional contributions. Already in 2022, Mercedes-Benz generated more than 1 billion euro in software-enabled revenues with products and services such as navigation, Live Traffic or online map updates.
Further down the road, the company expects total software-enabled revenues coming from MB.CONNECT and MB.DRIVE to grow to a low-to-mid single-digit billion euro figure by mid-decade; evolving to a high single-digit billion euro figure by the end of the decade. As of today, the company is on track to exceed its own goal of 1 billion euro EBIT from digital services in 2025, which is already part of the existing profit targets.
Software will become a substantial part of the company’s product development process and investment plan, with 25 percent of R&D budget allocated to software by mid-decade. The Group’s midterm investment reduction goals will not be affected.
Forward-looking statements:
This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” ”can,” “could,” “plan,” “project,” “should” and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates, customs and foreign trade provisions; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel, raw materials or energy; disruption of production due to shortages of materials or energy, labour strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending governmental investigations or of investigations requested by governments and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which are described under the heading “Risk and Opportunity Report” in this Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.
Mercedes-Benz Group at a glance
Mercedes-Benz Group AG is one of the world's most successful automotive companies. With Mercedes-Benz AG, the Group is one of the leading global suppliers of high-end passenger cars and premium vans. Mercedes-Benz Mobility AG offers financing, leasing, car subscription and car rental, fleet management, digital services for charging and payment, insurance brokerage, as well as innovative mobility services. The company founders, Gottlieb Daimler and Carl Benz, made history by inventing the automobile in 1886. As a pioneer of automotive engineering, Mercedes-Benz sees shaping the future of mobility in a safe and sustainable way as both a motivation and obligation. The company's focus therefore remains on innovative and green technologies as well as on safe and superior vehicles that both captivate and inspire. Mercedes-Benz continues to invest systematically in the development of efficient powertrains and sets the course for an all-electric future: The brand with the three-pointed star pursues the goal to go all-electric by 2030, where market conditions allow. Shifting from electric-first to electric-only, the world’s pre-eminent car company is accelerating toward a fully electric and software-driven future. The company's efforts are also focused on the intelligent connectivity of its vehicles, autonomous driving and new mobility concepts as Mercedes-Benz regards it as its aspiration and obligation to live up to its responsibility to society and the environment. Mercedes-Benz sells its vehicles and services in nearly every country of the world and has production facilities in Europe, North and Latin America, Asia and Africa. In addition to Mercedes-Benz, the world's most valuable luxury automotive brand (source: Interbrand study, 03 Nov. 2022), Mercedes-AMG, Mercedes-Maybach, Mercedes-EQ and Mercedes me as well as the brands of Mercedes-Benz Mobility: Mercedes-Benz Bank, Mercedes-Benz Financial Services and Athlon. The company is listed on the Frankfurt and Stuttgart stock exchanges (ticker symbol MBG). In 2022, the Group had a workforce of around 170,000 and sold around 2.5 million vehicles. Group revenues amounted to €150.0 billion and Group EBIT to €20.5 billion.
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1 According to “Best Global Brands 2022“
2 All Generation 2020 MBUX (NTG7) vehicles with navigation in connect markets except China, Japan and Korea. Series: 223, 206, 295, 297, 296, 294, 254, 232, 177 (from production 12/2022, model year 22/2), W247 (from production 12/2022, model year 22/2), V167 (from production 12/2022, model year 22/2).
3 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230222005724/en/
Contact:
Tobias Just, Tel.: +49 (0) 160 868 7568,
tobias.just@mercedes-benz.com
Katja Bott, Tel.: +49 (0) 160 861 0452,
katja.bott@mercedes-benz.com
Andrea Berg, Tel. +1 917 667 2391,
andrea.a.berg@mercedes-benz.com
Further information on Mercedes-Benz Group is available at:
group-media.mercedes-benz.com and
group.mercedes-benz.com
