Mercedes-Benz Group AG unveiled a revamped version of its best-selling E-Class sedan in a crucial test for the German automaker’s push further upmarket.
(Bloomberg) — Mercedes-Benz Group AG unveiled a revamped version of its best-selling E-Class sedan in a crucial test for the German automaker’s push further upmarket.
The new E-Class, the brand’s most popular model for decades, will hit showrooms this fall, Mercedes said Tuesday. The manufacturer wants to boost the average selling price of the mid-size vehicle that currently starts at around €50,000 ($55,140) by a quarter.
“It’s a very clear statement of where we’re going with our luxury strategy,” said development head Markus Schäfer, pointing to features like massage seats and video conferencing technology.
Chief Executive Officer Ola Källenius is trying to bolster margins to help fund a costly shift to electric cars. The plan involves focusing resources on top-end vehicles including the Maybach limousines, AMG performance cars and G-Wagon offroader, while shifting away from less profitable entry-level models like the compact A-Class.
Read More: Mercedes-Maybach Trumpets Electric Era With Hulking EQS SUV
The E-Class has helped build the brand’s reputation for elegant design, high build quality and durability. Versions built in the 1970s and 1980s are prized as taxis in North Africa as they can last well over 1 million miles on rough roads. Still, applying the luxury strategy to the model could represent a bumpier challenge.
Unlike the top-end S-Class, the E-Class has been a staple with middle-class families that may not be able to afford the higher price tag. There also are numerous alternatives, ranging from BMW AG’s revamped 5-Series to mid-sized sport utility vehicles from Volkswagen AG’s Porsche and Audi brands.
Mercedes wants to also burnish its credentials for software technology to defend market share in China, where homegrown rivals are luring younger customers with offerings like in-car karaoke. The new E-Class will feature options for a pillar-to-pillar infotainment screen, allowing passengers to play the Angry Birds game or access social-media platform TikTok.
While Mercedes will offer a plug-in hybrid E-Class, it won’t sell a fully electric version, instead sticking with the similarly-sized EQE model built on its dedicated EV platform. That car hasn’t proved as popular as Mercedes had hoped, leading to price cuts in China.
Read More: Mercedes Slashes China EV Prices by Up to $33,000 as Sales Lag
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