Mercedes-Benz to boost its electrification drive after a fruitful 2021

German premium automaker Mercedes-Benz is reportedly planning for a rapid transformation of its electric vehicles segment after experiencing a successful electrification campaign in 2021.

It is worth noting that while the global chip shortage had prompted many supply chain disruptions across the globe, it had severely affected several automakers, including Mercedes-Benz whose sales fell 5% to 2.33 million units in 2021.

Despite the obvious crisis, the company managed to record a revenue of USD 122.63 billion, which was 11% higher than that recorded in 2020, while earnings before income and tax (EBIT) increased by 105% to USD 15.56 billion.

Mercedes-Benz Group Chairman of the Board of Management Ola Källenius stated that 2021 was a year of strategic progress for the company and that the momentum of its revolution was defined by three variables.

Statistics revealed that the top-end vehicle segments elevated by 30%, electric vehicle revenue rose by 64%, and EBIT improved by 105%.

The CEO further said that Mercedes-Benz has been persistently expounding on supply chain management and cost-effectiveness to stimulate their expansion plans.

The automotive behemoth was found to be carefully strategizing its moves to prioritize the EV segment to increase volume and grow its luxury business. Following the introduction of four electric models last year, Mercedes-Benz is now expected to launch a new set of EVs this year, namely the EQE and EQS SUV.

People close to the situation asserted that the automotive corporation expects large volumes of delivery this year compared to 2021, as the chip crisis appears to be softening and will likely be completely resolved by the end of 2022.

Mercedes has been putting the spotlight on deep sourcing, and as a result, their interactions with numerous direct suppliers and semiconductor manufacturers have increased. The company is further preparing to build a strong system for the future by concentrating heavily on its electric and high-end vehicles.

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