Mercedes-Benz plans modular production shift for 2030s

Mercedes-Benz is developing a new product architecture for its next generation of vehicles, expected to enter the market in the 2030s. Moving away from traditional vehicle platforms, the company intends to implement a modular 'building block' principle. This approach involves breaking down vehicle components—such as the front, rear, sides, and floor—into separate modules that can be combined to suit different vehicle sizes.

Management aims to utilize these modular 'tech stacks' to reduce costs, increase efficiency, and accelerate production speeds. This strategic shift aligns Mercedes-Benz with manufacturing concepts used by competitors like Tesla, Chinese automakers, and Stellantis.

In tandem with this technical restructuring, the company is also pursuing personnel reductions. A new severance program is expected to launch in December, which will extend offers to senior executives for the first time as the company seeks to adapt its cost structures to a challenging market environment.