Core Viewpoint - The 2027 Mercedes-Benz S-Class represents a significant shift in the company's strategy, moving back to a core model-centric approach that integrates both traditional fuel and hybrid technologies, rather than solely focusing on electric vehicles [2][12]. Group 1: Product Strategy - The new S-Class is not merely a mid-cycle facelift but a clear signal of Mercedes-Benz's return to a balanced product strategy after the aggressive expansion of its EQ electric vehicle sub-brand [2][12]. - The 2027 S-Class will not directly replace any EQ models, maintaining its identity as a traditional flagship primarily powered by gasoline and plug-in hybrid systems [2][10]. Group 2: Design and Technology - The exterior design of the new S-Class enhances the presence of lighting as a design language, incorporating features like more recognizable daytime running lights and illuminated grilles, which were previously characteristics of EQ models [5][7]. - The interior integrates multiple screens into a cohesive system, emphasizing a continuous flow of information and user interaction, aligning with the "cockpit as a system" concept explored in EQ models [5][7]. Group 3: Market Positioning - The S-Class retains its traditional luxury sedan characteristics while incorporating advanced features from EQ models, ensuring it does not sacrifice its established visual authority for technological appeal [9][10]. - The powertrain options for the 2027 S-Class will include six-cylinder, V8, and plug-in hybrid variants, indicating a commitment to traditional power sources alongside future electric models [9][10]. Group 4: Strategic Implications - The shift in strategy suggests that the EQ sub-brand may be phased out, as consumer preference leans towards established models like the S-Class, E-Class, and C-Class, rather than newer electric sub-brands [12]. - The significance of the 2027 S-Class lies in its ability to integrate cutting-edge technology into a well-recognized model, reinforcing the idea that flagship vehicles should embody the latest advancements without being relegated to a separate electric identity [12].

Core Insights - Mercedes-Benz has demonstrated resilience in the luxury car market, maintaining a strong foothold despite industry challenges and competition from domestic electric vehicle brands [2][4][5] Sales Performance - In 2025, Mercedes-Benz sold 2.16 million passenger and light commercial vehicles, with a notable performance in core high-end categories, including a 7% year-on-year increase in AMG deliveries to 145,000 units and a record 49,700 units of G-Class vehicles [2] - For the first eleven months of 2025, Mercedes-Benz led the market for vehicles priced above 300,000 yuan with sales of 339,000 units, outperforming competitors like BMW and Audi [4] Market Position - Mercedes-Benz maintained its leading position in the 400,000 yuan and above luxury market, as well as in the 1 million yuan and above high-end luxury market, despite a 9% decline in global sales and a 19% drop in the Chinese market [2][5] - The brand's imported vehicle segment remains strong, with 91,000 units sold, ranking second in the overall import market [5] Product Strategy - In 2026, Mercedes-Benz plans to introduce over 15 new and updated models across various luxury segments, leveraging new electric platforms such as MB.EA, AMG.EA, and VAN.EA [6] - The launch of the new electric GLC SUV, along with the new generation S-Class and long-wheelbase GLE SUV, is expected to enhance market confidence [6] Digital Transformation - The company is focusing on digital transformation to improve efficiency, including optimizing its retail network and implementing a cost reduction plan aimed at saving 5 billion euros by 2027 [7] - Mercedes-Benz will enhance customer engagement through AI tools and digital operations, aiming to strengthen connections with its customer base [7]

Core Viewpoint - Mercedes-Benz is initiating its largest-ever layoff plan, aiming to cut 30,000 jobs to save €5 billion (approximately ¥41.3 billion) annually, which will be reinvested into the development of 36 new models, including 17 electric vehicles [1][5]. Group 1: Layoff and Cost-Saving Measures - The layoff plan includes attractive severance packages, with some employees eligible for up to €500,000 (approximately ¥4.13 million) in compensation [3]. - The company has already seen 4,000 employees voluntarily leave under this plan, with senior management receiving significant payouts [3]. - This marks the third major restructuring effort by Mercedes in four years, following previous layoffs of 10,000 in 2019 and additional cuts in 2023 [4][5]. Group 2: Sales Decline and Market Challenges - Mercedes reported a 12% year-on-year decline in global sales for Q3, with a staggering 27% drop in the Chinese market [6]. - The sales downturn is attributed to the competitive pressure from new electric vehicle entrants and the need for internal cost optimization [6][7]. Group 3: Shift in Electric Vehicle Strategy - The company initially pursued a "oil-to-electric" strategy with the EQC model, which faced significant market challenges and led to a reassessment of its approach [9][10]. - CEO Ola Källenius has shifted the strategy from "oil-to-electric" to a fully electric model, emphasizing the need for a dedicated electric platform [10][11]. - Despite setbacks with the EQS model, which failed to meet market expectations, Mercedes has ramped up its electric vehicle offerings, achieving a 67% increase in sales for electric models in 2022 [18]. Group 4: Strategic Adjustments and Future Outlook - The company has recognized the challenges of transitioning to electric vehicles and has adjusted its strategy to maintain a dual approach, balancing electric and internal combustion engine models [19]. - The target for electric vehicle sales to account for 50% of total sales has been postponed from 2025 to 2030, reflecting a more cautious approach [19]. - Mercedes is now focused on survival and adapting to market demands, with the understanding that the transition to electric vehicles is a long-term endeavor [20][21].

Group 1 - Mercedes-Benz is facing significant challenges in the Chinese market, with Q3 2025 deliveries dropping 27% year-on-year, marking the worst quarterly performance since 2016 [2] - The decline in sales reflects ongoing weakness in high-end automotive demand in China and highlights the strong competition from local electric vehicle brands like BYD and Xiaomi [2] - The drop in sales has negatively impacted Mercedes-Benz's global performance, with a 12% year-on-year decline in global deliveries and a 17% drop in the U.S. market due to tariff uncertainties [2] Group 2 - The sales decline is not limited to Mercedes-Benz; German competitors BMW and Porsche are also experiencing weakened sales and increased price competition in China [3] - BMW has lowered its full-year profit forecast due to the ongoing sluggishness in the Chinese market and increased dealer subsidy expenditures [3] - These trends indicate a deeper structural change in the Chinese automotive market, as traditional luxury brands are losing their appeal amid the electric vehicle wave [3]

Core Viewpoint - Honda has halted plans for a large electric SUV due to weaker-than-expected demand for sizable electric vehicles and the impact of President Trump's decision to cut EV incentives in the US [1][2][4]. Group 1: Honda's Decision - Honda has reportedly scrapped the development of a seven-seat electric SUV, which was initially planned to follow the five-seat SUV and sedan based on the Concept 0 unveiled at CES [1][4]. - The company has cut approximately $48 billion (¥7 trillion) from its research and development budget for electric vehicles [4]. Group 2: Market Context - Demand for large electric cars has been lower than anticipated, influencing Honda's decision to suspend its EV plans [2][9]. - Other manufacturers, including Ferrari and Lamborghini, have also delayed or pushed back their electric vehicle projects in response to market conditions [12]. Group 3: Broader Industry Trends - The electric vehicle market is facing challenges, as evidenced by Kia's EV9 selling only 165 units in Australia compared to 5,165 units of the combustion-powered Sorento in the first half of the year [8][11]. - Major brands like Mercedes and VW are experiencing significant sales ratios favoring combustion-powered models over their electric counterparts [11].