Mercedes-Benz unveils new flagship S-Class sedan
FRANKFURT — Daimler AG on Wednesday unveiled the new version of its Mercedes-Benz S-Class luxury sedan, the company’s most important model and one it hopes will generate fat profits to help the Stuttgart-based automaker through the COVID-19 recession and wrenching structural changes to the auto industry.
Daimler CEO Ola Kallenius called the long, sleek S-Class “the heart of our brand” during an on-line event Wednesday in which he touted the car’s highly personalized luxury technology.
The company will be relying on profits from its internal combustion-driven luxury vehicles like the S-Class and SUVs to finance investment in new, low-emission technology. Ferdinand Dudenhoeffer, director of the Center for Automotive Research in Duisburg, called the S-Class “very important” for Daimler and its Mercedes-Benz luxury division because it generates 15-20% of operating earnings from only 3% of sales.
Kallenius is carrying out a cost-cutting drive to conserve cash during the recession, as well as to find the money for expensive investment in the electric and digital technologies that are transforming the car industry under pressure from regulators and competitors from the tech sector.