Mercedes-Benz aims for more luxury in model line-up

　　div classBodysc17zpet90 cdBBJodivpBy Victoria Waldersee and Ilona Wissenbachp

　　pBERLIN Reuters – MercedesBenz is honing its identity as a luxury company, its chief technology officer CTO said on Thursday, cutting out entrylevel models and releasing limited collectibles.pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pThe premium carmaker is reducing the number of models in its entry level segment to four from seven and will bring up its lowest segment by a minimum of “half a class”, COT Markus Schaefer said in an interview at the carmakers strategy day.p

　　pThe carmaker is also focusing on simplifying some of its production processes, saving costs and making the company less vulnerable to supply chain bottlenecks for specific parts.p

　　p“We will reduce complexity in many areas… that dramatically changes logistics,” Schaefer said, with factories set up differently in different regions depending on the most preferred types of vehicles in each market.p

　　pCustomers will be offered preset packages when configuring their cars based on regional preferences, according to a statement released on Thursday, simplifying production in comparison to buildtoorder models.p

　　pMercedesBenz announced a move to put 75 of investment into topend vehicles and its highestselling segment of CClass and EClass models. It projected a 60 rise in the sales share of its topend cars to 1718 by 2026 from 2019 levels.[L5N2XB308]p

　　p“The willingness to pay is there,” Schaefer said. “Many, many customers are ready to pay the extra price for luxury.”p

　　pBringing down the cost of batteries for electric cars remains a top priority, Schaefer said.p

　　p“Id like to halve the size and weight of batteries in cars,” Schaefer said, citing energy efficiency and cost.p

　　pTaking more control of the supply chain through direct supply contracts and being more strategic about material choice would also help lower costs, he said, predicting that cobalt, a common battery material, was likely to be phased out of production.p

　　pRising prices for cobalt, sourced mostly from Democratic Republic of Congo, are pushing battery makers to explore cobaltfree technologies.p

　　pMercedesBenz earlier this week announced it was the first automotive customer of battery startup Sila Nanotechnologies silicon anode chemistry.p

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　　pp Reporting by Victoria Waldersee, editing by Kirsti Knolle and Elaine Hardcastlep

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