Turning the van into an object of desire will help justify significant investment in a dedicated platform for electric commercial vehicles.
(Bloomberg) — Vans haven’t always been objects of desire. When Fiat launched its Multipla model in the late 1990s, supporters of the soccer team Juventus — many of whom worked for the Italian carmaker — were subjected to stadium banners calling them as unpleasant-looking as the van they built.
While Mercedes-Benz’s passenger car division likes to trumpet its popularity among royalty and world leaders, its vans division has long been more of the people. It’s had a longstanding cooperation with mass manufacturer Renault.
That’s all about to change. Mercedes wants to spruce up its van lineup for when its new platform for light commercial electric vehicles launches in 2026. In addition to not spewing tailpipe emissions, the new models are likely to feature interior materials more commonly found in plush vehicles like the flagship S-Class sedan and G-Wagon SUV. New editions of the V-Class touring van point to a future with kitchenettes and the kind of wooden flooring seen on yachts anchored on the French Riviera.
This is all part of Chief Executive Officer Ola Källenius’s plan to boost profitability by pushing the automaker’s products further upmarket. That move is needed to fund Mercedes’s multibillion-euro push to catch up with EV market leaders like Tesla and China’s BYD. The company is expecting its vans division to contribute double-digit margins through 2030.
Mercedes is betting that a pandemic trend of spending more time in the great outdoors is here to stay. Sales of outdoor goods surged during the pandemic as consumers engaged in physically distanced outdoor activities. But there are signs that may have been a flash in the pan, according to a study from McKinsey. The consultancy expects high inflation, rising interest rates and sinking consumer confidence to weigh on sales of recreational vehicles.
Mercedes also won’t have the market for outdoorsy EVs completely to itself. Volkswagen last year launched the ID. Buzz, a modern take on its classic 1960s camper van.
While it’s probably safe to rule out Porsche ever planning a van, it’ll happily sell star-gazers $5,000 branded tents that owners of $100,000-plus Taycan Cross Turismo EVs can stick on the roof.
To appeal to well-healed younger customers in China and the US — the main target markets for these products — Mercedes will eventually pack its vans with high-tech features off its proprietary MB.OS operating system, allowing them to stream movies and video games on the dashboard.
Who’d have thought the crime-fighting radar screens in Scooby Doo’s Mystery Machine would turn out to be so prophetic?
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