"Only cars for sheikhs and the rich": Minister of Transport criticizes Mercedes-Benz strategy

Created: 2022-12-07 04:54

By: Nadja Pohr

Baden-Württemberg's Minister of Transport, Winfried Hermann, considers it a risk that Mercedes-Benz is only concentrating on the luxury segment.

© Photomontage BW24/dpa/Marijan Murat/Press photo Mercedes-Benz

While Minister of Transport Winfried Hermann has words of praise for Porsche's climate-neutral strategy, he is critical of Mercedes-Benz's focus on luxury.

Stuttgart - The car manufacturers Mercedes-Benz and Porsche from Stuttgart are an important part of the economy in Baden-Württemberg.

The auto industry not only achieves record profits, but also employs numerous people from the region.

The Swabian Transport Minister Winfried Hermann (Greens) also sees the two car manufacturers as important partners when it comes to climate protection.

As far as this is concerned, however, Mercedes-Benz and Porsche are pursuing different strategies.

In an interview with the

, Minister of Transport Hermann praised the sports car manufacturer Porsche, which is primarily committed to e-fuels and e-mobility.

"I am very pleased that Porsche is helping to drive the transformation to climate-neutral mobility," says Hermann.

In contrast, he takes a rather critical view of Mercedes-Benz's new luxury strategy.

"Wouldn't pursue such a strategy": Hermann criticizes the luxury orientation of Mercedes-Benz

The Stuttgart-based carmaker Mercedes announced in May that the company would focus even more on luxury in the future.

As Mercedes strategy chief Carolin Strauss explained in an exclusive interview with

, this strategy offers enormous potential.

Minister of Transport Winfried Hermann sees it differently.

He explains the thinning out of the lower segment so that the largest shareholders of Mercedes - Chinese manufacturers - produce small electric cars themselves and want to conquer the European market.

Therefore, they should have "little interest in Mercedes competing with them".

"If I were a car manager, I would not pursue such a strategy," said the Green politician to the

.

He suspects that the market shift will lead to Chinese manufacturers gaining a foothold in Germany.

“Relying on just one type of vehicle is a risk in itself,” explains Hermann.

He fears that Mercedes will lose recognition as a result.

"If you only produce cars for sheikhs and the rich of this world, you get a problem with acceptance," criticizes the transport minister.

"If you want to set up a production site here again, some will say: We won't give up our beautiful landscape for that." He therefore recommends that the German car industry bring affordable electric cars onto the market.

Luxury strategy and Mercedes business in China have recently been criticized more often

Recently, Mercedes has often been criticized for its strategy.

Car expert Ferdinand Dudenhöffer warned, for example, that the Swabian car manufacturer should "reconsider the luxury strategy very carefully".

The background was that Mercedes had to lower prices for some models in China.

In general, experts see it as a problem that the car manufacturer is now heavily dependent on the world's largest car market in China - also in view of the current difficult situation in the country.

Mercedes boss Ola Källenius does not see this as a threat, but as a success.

"Limiting yourself in China would make us weaker," he said in an interview with

.

Källenius also warned against a separation of the market economies, which would have dramatic consequences for the world economy.

"If you think that the Chinese economy can be unbundled from the European or the American, it is a complete illusion," he said clearly.