Mercedes-Benz SUVs of the future: GLA, MLC, GLC and more to come

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Sports Utility Vehicle will never go old-fashioned or at least not in the next 10 to 15 years. Mercedes-Benz, as inventor of the modern SUV with the first generation M-Class (W 163) back in 1997, has mastered a strategy to increase profitability and revenue, in addition to exploring new fields and attracting new clients towards the brand. The plan is to fill any niche and any gap still left empty with all-rounding models such as crossovers and SUVs in almost all classes and size categories.

The portfolio of Mercedes-Benz is already heavily filled with various SUVs to suit different tastes. The GLK is the dynamic lifestyle to travel around in big cities, the M-Class is the all-time leader and the most faithful business partner, the GL-Class is suitable for those who want to set themselves apart from the crowd and admire true luxury and sheer elegance, the G-Class is for the adventurous client looking for off-road excitement, whereas the R-Class is a one-of-a-kind proposal in the automotive industry, combining the attributes of a modern station wagon, a van and an all-terrain vehicle into a VIP shuttle body of a crossover.

Five distinct models, each having their targeted customer group and clearly defined role, is still not enough, according to the plans we have found out. Mercedes-Benz mulls over several new additions to the fleet in the next years. The first to come out is the all new GLA, company's first compact SUV. Entitled Cross Activity Vehicle (CAV), the new model has already been previewed at the Auto China 2013, where Mercedes-Benz unveiled the Concept GLA. The serial version comes in September at Frankfurt and will basically be fairly similar to the showcar, like the A-Class and CLA-Class in their respective cases. The muscular, yet very dynamic and coupe-ish silhouette, combined with the higher ground clearance and the multiple appointments, will certainly translate into a boost of sales right from the market release of the X 156.

MLC, company's first Sports Utility Coupe, is next on the list. The C 292 project will become reality as soon as late 2014, with production starting at Tuscaloosa the following year. The new MLC-Class will get the underpinnings from the M-Class, but engineers will further tweak the platform to make it sportier and more responsive. Styling will be totally different, with the new rakish roof line setting the model apart from the standard SUV in the lineup. The four-door/four-seat architecture will add a dose of practicality and exclusiveness. The latest breakthroughs in ride management, assistance technology and telematics will find their onto the new SUC from Mercedes-Benz: the upgraded COMAND Online with touchpad, the Head-Up Display, the enhanced ATTENTION ASSIST, the Night View Assist Plus with improved person/animal recognition, the new generation 4MATIC and the state-of-the-art ON&OFFROAD Package available as an option. Most engines to power the new MLC will be brand new. If the petrol choices will consist of efficient BlueDIRECT V6 and V8 units, the diesel version will carry the BlueTEC badge. As the MLC is an upscale niche model, the baseline variant will be the MLC 250 BlueTEC with 211 hp, followed by the MLC 300 with 252 hp and the MLC 350 BlueTEC with 258 hp. Further, the MLC 350 with 306 hp might still be kept for a while, whereas the MLC 400 will reach 333 hp. The range-topping models will be the MLC 500 with 435 hp (or 455 hp) and the MLC 63 AMG with 557 hp coming towards 2016.

In 2015, one year after the 205 series for C-Class is unveiled, the second generation GLK is slated to showcase during spring. The new X 205 will be a complete departure from the current boxy model. A different philosophy will make the GLK look modern and youthful, with barely any direct linkage to the G-Class like the current model has. The new mid-sized SUV will be underpinned by the new MRA rear-wheel-driven platform that will be accomodated to receive the 4MATIC all-wheel-drive system, which shall be available on most versions except for the entry-level GLKs. From 2016, an SUC will also join the portfolio. The future GLC will follow the footprints of the MLC, which means a coupe greenhouse fitted to a four-door body. The GLC-Class will share the technical equipment with the new GLK, which also borrows its systems and engines from the new C-Class. While AMG models are still in doubt, the new GLK 400 and GLC 400, both boasting a maximum output of 333 hp from a 3.0-litre V6 BlueDIRECT engine, will be the available high-end variants. The new straight-six petrol powerplants with bi- or tri-turbocharging are prone to debut in around three years from now, so probably the current "V" units will then be replaced for the GLK and GLC as well, together with a power boost up to around 360 hp.

We have previously reported on the so-entitled GLG mini-sized city SUV. It seems rumors are intensifying and this all new, retro-styled crossover harking to the G-Class is closer and closer to production form. Last year's ENER-G-FORCE study revealed at the LA Auto Show in November might hint at the design direction adopted for the GLG. Anyway, the new lifestyle crossover will have a total length of exactly 4 meters and will use the MFA chassis, in an adapted variant, from the new GLA. 4MATIC will be an option, otherwise front drive will be the standard architecture for the GLG. The engines will consist of efficient Daimler-Renault developed powerplants; the anticipated 3-cylinder low displacement diesel and gasoline units could also power the GLG beginning with 2017. An AMG version is ruled out at the moment, as the GLG 250 4MATIC with 211 hp and the 7G-DCT automatic gearbox is simply more than enough for the needs of the targeted clients. If it ever gets greenlighted, the baby G-Class should hit streets by mid-2016.

We also suspect Mercedes-Benz is looking at the possibility of releasing a top luxury class SUV in the new S-Class portfolio. With over five meters in length, a high-grade design and bespoke technology from the W 222 generation, the new top 4x4 car should be entitled GLS and concur other exquisite opponents such as the future Bentley and Rolls-Royce SUVs. If such a model gets the approval of the executive board of Daimler AG, then we could witness the appearance of the GLS on streets around 2017 or 2018.

It is still unclear whether Mercedes-Benz will axe the R-Class or it will release a new generation of the model after 2015. Past reports were indicating the future R-Class will be strongly based on the next generation E-Class (W 213) scheduled to bow in around two years. The car would retain the wagon body, but also get more dynamic, appealing and garnished with the latest technology.

This is, all in all, the sketch of the new outlook for the future at Mercedes-Benz. Along with the standard high-volume models like the C-Class and E-Class, the SUV/SUC range will ensure a substantial growth for the Stuttgart-based constructor in the following years. As a consistent part of the Mercedes-Benz 2020 strategy, through which the Germans target the top position in the premium automotive industry by the end of this decade, the new lineup of niche vehicles must be close to perfect, if not fully perfect, to succeed in a world with ever more competitors.

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REPORT: Mercedes-Benz reconsiders growth strategy amid the global economic crisis

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The economic downturn, which ones again seems to affect the entire world like it did beginning with the end of 2008, is proving to be hard contender to fight with in the automotive industry as well. The absence of liquidities and the inevitable inabilities to meet payment terms in some cases lead to the postponement or even cancellation of initial plans. The crisis does not take its toll on the standard, large automobile constructors only. Premium carmakers like Mercedes-Benz are also faced with problems in these difficult times.

No sooner than the end of September, two days before the Paris Motor Show officially opened its gates for public, Daimler executives have announced that the company was forced to lower the profit margin by 10 percent for the Mercedes-Benz Cars division in the prospect of 2013. The initial plans were disturbed by some market factors, which led to this decision. A cautios, yet necessary step, if you ask us, as it is always better to deal with reality than play with fantasy.

Even though chief Dr. Dieter Zetsche is fully aware Mercedes-Benz and smart will sell less units in the next years, he admits improving quality and efficiency will be the main targets to achieve in the next period in order to counteract and reduce the effects of the economic crisis. Most probably, the previously sketched 2020 growth plan may have suffered some important alterations.

According to Dr. Wolfgang Bernhard, member of the Board of Management of Daimler AG in charge with supervising the procurement and production activities at the company, is confident that Mercedes-Benz needs to focus on respecting four principal attributes that best describes the German entity: BRAND, TRADITION, HERITAGE and DESIGN. We are talking about an all new strategy which looks to substantially develop the core flagships of portfolio, such as the compact class models, the future C-Class, the new E-Class, the SUV range, the upcoming S-Class and the SL-Class, in order to achieve a sustainable, long-term performance. This means the officials might have already ditched plans on several versions that were rumored to be released in the next years. One example is the SLC AMG supercar rivaling the Porsche 911, which we have talked about frequently in the past. On the other hand, Mercedes-Benz will reportedly extend its crossover lineup by up to four new models in the coming years: the compact GLA, the rugged GLG - a modern interpretation of the G-Class in a compact size, the dynamic GLC - a compact Sports Utility Coupe with five doors, and the MLC (or GLS) - the M-Class Coupe, if you don't mind.

Moreover, the development of new, state-of-the-art technologies in the domains of safety, telematics and powertrain solutions (mind the future tri-turbo diesel and petrol units and the I6 engines coming in the next 3-4 years, as well as the expansion of the electric and hybrid model portfolio) will certainly be a crucial engine for the growth of Daimler, which targets to be the summit in the premium automakers league by the end of this decade.

Read further articles on similar topics:

- Mercedes-Benz consistently implements its 2020 growth strategy
- Outlining the future of the automobile: The Mercedes-Benz 2015 model offensive
- Daimler's Dr. Z confirms the future S-Class lineup will total six different models
- J.D. Power Study 2012: Mercedes-Benz drivers are the most satisfied
- REPORT: Mercedes-Benz on the trail of becoming leader of the premium segment
- PREVIEW: 2014 Mercedes-Benz GLC
- REPORT: Mercedes-Benz supposedly readying two very different compact SUVs - the GLA and the GLG
- The new 2015 Mercedes-Benz SUV coupe previewed at the Tuscaloosa plantThe new 2015 Mercedes-Benz SUV coupe previewed at the Tuscaloosa plant
- REPORT: 2015 Mercedes-Benz SLC AMG launch delayed

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Mercedes-Benz consistently implements its 2020 growth strategy

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Daimler AG sees Mercedes-Benz well on its way to achieving the goals of its 2020 growth strategy and reclaiming the number one position in the premium segment by the end of the decade.

Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, stated to investors and analysts at the opening of the new plant in Kecskemét, Hungary: “Mercedes-Benz is consistently implementing its growth strategy. We have a fighting spirit in the entire organization to become the leading manufacturer of premium automobiles once again also in terms of unit sales. We are aware of the challenges and we will master them.”

Following the successful year 2011, in which the division posted new records for unit sales, revenue and earnings, the year 2012 has also started well. Mercedes-Benz Cars is expected to report the best unit sales it has ever achieved in a first quarter.

With its Mercedes-Benz 2020 growth strategy, the Mercedes-Benz Cars division intends to occupy the number one position in the premium segment not only in terms of brand, products and profitability, but also of unit sales. Zetsche left no doubt that all efforts are being made to achieve those four goals, with the support of a large number of activities. 

With regards to the Mercedes-Benz brand, Daimler is further strengthening its core brand values of fascination, perfection and responsibility to broaden the customer base and address younger customers. This will be facilitated by the five new models of the new-generation compact car, and also by highly emotive vehicles such as the CLS Shooting Brake.

With products, the automobile portfolio is being rejuvenated and a third product offensive has been started with 10 new derivatives for which no predecessor models exist to be launched by the year 2015. For example, the luxury segment will be enlarged by expanding the S-Class range from three to six models with highly profitable derivatives.

The planned activities also include further reductions in fuel consumption and CO2 emissions. “We are convinced that ‘cool’ and ‘green’ can peacefully coexist in our garages,” said Zetsche. Mercedes-Benz Cars will be able to reduce the average CO2 emissions of its automobiles sold in the European Union from today’s 150 grams per kilometer to 125 g/km by the year 2016. The new A-Class will start with emissions of 99 g/km.

In order to further increase unit sales, the automobile portfolio will be successively expanded and geographical presence will be broadened by expanding sales structures and production capacities, especially in the NAFTA region and in China.

There will be a positive impact on the progress to the top of the premium segment from the fact that the automotive industry continues to be a growth industry. According to forecasts, worldwide car sales will increase from 60 million units in 2011 to 100 million units in 2020. China is already the world’s biggest market in terms of unit sales and will remain so in 2020, but the country’s car market will have doubled by then. China therefore remains a cornerstone of Mercedes-Benz Cars’ growth strategy. The second-most important sales market, the United States, is projected to have an annual average growth rate in the premium segment of 5.6%. And India will advance to become the world’s third-largest car market by 2020.

Irrespective of this development, a clear target has been set of “achieving above-average growth in those markets and of further improving our competitive position,” stated Zetsche. In this context, he affirmed the medium-term target for unit sales of Mercedes-Benz: sales of more than 1.5 million vehicles in 2014 and more than 1.6 million in 2015 (2011: 1,279,100). Zetsche pointed out that the emphasis was on the word “more.”

Mercedes-Benz Cars will further improve its profitability by means of project-related cooperation such as with Renault/Nissan, as well as through savings achieved from the module and platform strategies and improved efficiency in the value chain. At the same time, the enhanced flexibility of the international production network will make it possible to react faster to fluctuations in demand.

Due to savings from the module strategy and further efficiency actions, the division will be able to compensate for the cost burden anticipated in the automotive industry from rising raw-material prices and investments to reduce CO2 emissions, thus safeguarding its profitability targets. “At Mercedes-Benz Cars, we are approaching our targeted return on sales of 10 percent, which we want to achieve on a sustained basis as of 2013 – on the assumption that our business environment will remain stable,” emphasized Zetsche.

How the Mercedes-Benz 2020 growth strategy works in practice can first be seen in the compact-car segment. The new plant in Kecskemét is a state-of-the-art factory for Mercedes-Benz Cars; it will produce cars in conjunction with the plant in Rastatt and will make a key contribution to economy through volume flexibility.

Profitability in the compact-car segment will be additionally improved compared with the predecessor generation by producing a significantly higher volume of five different cars from the same architecture instead of two, and by spreading the production network over three plants (Rastatt, Kecskemét and Beijing).

On the occasion of the opening of the new plant for the production of the new B-Class, Daimler had invited investors and analysts to attend a division day in Kecskemét in Hungary.
Credits: Daimler AG

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