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[BUSINESS] · Germany · 18 sources

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Mercedes-Benz implements AI strategy amid profitability crisis

Mercedes-Benz is undergoing a significant strategic shift to combat a profitability crisis and rising competition, particularly from Chinese manufacturers. The company is investing approximately 500 million euros in an AI-driven development system called PLM.AI. This technology aims to reduce the vehicle development cycle from an average of 56 months to 29 months, with significant efficiency gains expected in engineering processes such as crash simulations.

Simultaneously, the company is facing severe economic pressure. Unadjusted sales returns for the automotive division fell to 0.2 percent in the second quarter, and overall profits have seen a sharp decline. To mitigate costs, Mercedes-Benz is implementing a productivity offensive in Germany. This includes reducing the number of temporary workers, offering voluntary redundancy packages, and tightening remote work policies for office staff.

In addition to internal restructuring, the company is managing various regional shifts. While production of the Sprinter van is planned to move from Ludwigsfelde to Poland by the end of 2029, the company continues to face challenges in the Chinese market and rising costs from international trade factors.

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Aios · IG Metall · Jörg Burzer · KNDS · Mercedes-Benz · Volkswagen

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