Our previous two posts highlighted India as major center of investment for Mercedes-Benz next generation OS, and the financial implications of moving towards a subscription model. This post focuses on how MB.OS fits in to the regulatory framework in Europe and elsewhere.
Mercedes-Benz seeks to return control of revenues post-sales (of the vehicle) from dealers and other service providers back to MB. Global movements for “right to repair” are colliding with regulatory and legal demands. Climate change will drive governments to demand products and features to meet goals other than product performance and brand features. MB sees development and control of MB.OS as a key positioning to meet government demands and control more consumer revenues.
MB plans to spend more than €40B to transform production and products to electric vehicles by 2030. Goals are for 25% of product sales in 2025 to be hybrid or all-electric vehicles. From 2025 all new MB vehicle platforms will be electric-architectures and all product lines will feature an electric platform choice. An indicator of transformational change is MB’s use of the term ‘Gigafactories’ first coined by Tesla. Product transformation will also lead to revenue-driven transformation of MB as an enterprise.
Transformation of MB’s global revenue model will bring extensive changes. Dealers and consumers will see changes in manufacturer communications and services. MB will restructure relationships to new enterprise partners (cloud and network communications), critical supply chains and production partners (NVidia, electric components, locations), and delivery/operations participants (charging networks, rideshare, and compliance), Control of the revenue flows will retain control of volume relationships not tightly held by MB.
Governments’ desires for controls to facilitate reaching climate change goals will value tight controls by manufacturers to enforce, reinforce, and control vehicles throughout their life cycles.
The next post in the series talks about MB.OS from the perspective of how it affects Mercedes-Benz ability to respond to compliance requests from regulators.
If you’d like to read the first post in this series, you can find it here – https://www.ekalore.com/post/india-in-the-driver-s-seat
Or if you’d like to see other articles about Alien Invasions (overwhelming competitors from outside the marketplace) https://www.ekalore.com/alien-invaders
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