Mercedes-Benz launches ultra-exclusive 'MYTHOS Series' sub-brand for rich car collectors
What's the story
German automaker Mercedes-Benz has decided to place its bets on top-end luxury cars with the announcement of a new, ultra-exclusive sub-brand dubbed 'MYTHOS Series.'
According to the company, MYTHOS will produce only less number of special vehicles for "the most dedicated enthusiasts and collectors of Mercedes-Benz."
The first offering from MYTHOS will be an open-roof speedster that is based on Mercedes-AMG SL.
Context
Why does this story matter?
With the introduction of the MYTHOS Series, Mercedes-Benz has announced its desire to concentrate on top-end luxury cars. In terms of the brand portfolio, it will sit above the Maybach line-up.
This radical shift in direction was announced at the 'Economics of Desire' strategy summit.
The company aims to increase its profit margin even with less production volume with this decision.
New categories
Mercedes will concentrate on three distinguished categories of vehicles
Mercedes-Benz aims to become the most valuable luxury car brand in the world. The company will henceforth focus on three categories - top-end luxury, core luxury, and entry luxury.
MYTHOS will fall in the former along with AMG, Maybach, EQ-branded EVs, S-Class, GLS, and G-Class vehicles.
The other categories include the C-Class and E-Class models, which form the bulk of the company's sales.
Target
Mercedes-Benz to divert 75% of investments to manufacture high-end vehicles
The ongoing supply-chain crisis has made manufacturers concentrate on the production of more expensive models. Mercedes, along with other automakers, has also seen an increase in demand for range-topping models.
The company aims to have an operating income margin of 14% by the middle of this decade. To achieve that, it plans to divert 75% of investments to manufacture top-of-the-line cars.
New direction
The automaker will reduce its entry-level models
Mercedes aims to amp up its sale of top-end vehicles by 60%. The company's CEO Ola Kallenius had said that it would "rather be looking up than down."
As a part of this new direction, the automaker plans to cut down its entry-level models from seven to four. However, they will have an elevated technological substance with the introduction of the Mercedes-Benz Operating System.