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Mercedes-Benz's success in China key to its global growth, says executive

Xinhua | Updated: 2024-11-13 17:52
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Visitors look at a Mercedes-Benz at the 2024 Beijing International Automotive Exhibition in April. CHINA DAILY

STUTTGART, Germany - "We need to be successful in China to be even more successful in the world," said the top executive of Germany's luxury automaker Mercedes-Benz, depicting China as a key partner in technology innovation, electrification, and decarbonization.

In a recent interview with Xinhua, Ola Kaellenius, chairman of the board of management of Mercedes-Benz, voiced confidence that this biggest car market in the world has great potential and also growth potential in the long term.

To give the company's decision-makers firsthand experience of the dynamism, innovation, and competition in the Chinese market, the company moved its annual strategy week from its usual home turf to Beijing in December 2023.

It was necessary "to make all the decision-makers and stakeholders at Mercedes-Benz aware that you need to be successful in China to be even more successful in the world," said Kaellenius.

Kaellenius was amazed by the rapid development in China, and the "Chinese speed" constantly reminds him to keep pace with fast-evolving technology.

It has been revealed that next year, Mercedes-Benz will launch multiple new products globally, marking the largest product offensive in the company's history. All these electric vehicles will feature the full first comprehensive version of Mercedes-Benz Operating System (MB.OS), with new technologies also being integrated into the combustion fleet in the coming years.

Over the past two decades, Mercedes-Benz has been expanding its presence in China with its Chinese partners such as BAIC and Geely, as well as suppliers.

"Let's not forget that we have wide-ranging cooperation with Chinese supply partners, not just in China, they're coming to Europe," said the executive.

Now that many Chinese automakers and suppliers are establishing factories in Europe, Kaellenius applauded the move, noting that Mercedes-Benz doesn't have to "arrange its supply chain or production to deal with it."

"The right direction would be to sit down with our Chinese partners, discuss a level playing field, and make sure that we come to some kind of a negotiated solution that both parties continue to have access to markets that are opening up and are not creating borders," he said.

Protectionism in the form of tariffs, as Kaellenius sees it, "is the wrong way to go, because we believe it stifles growth, it stifles innovation, and it does not create a win-win situation for everybody."

The invisible hand of the market will sort things out, promote growth, and help build bridges, he noted, especially in an era when protectionism is making a comeback.

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