Mercedes launches exclusive Mythos brand in radical luxury shift
New SL-based speedster will be first from collector-focused Mythos brand
Stuttgart to cull entry-level models and introduce more high-end specials in push for higher margins
Mercedes-Benz has launched a dedicated sub-brand for "highly exclusive collectible cars", called Mythos, as part of a push to boost top-end vehicle sales by 60% by 2026 compared to 2019.
The new brand, announced today as the firm outlined its long-term product strategy plans, will produce low-volume special vehicles for "the most dedicated enthusiasts and collectors of Mercedes-Benz".
A preview image shown by Mercedes suggests the first Mythos car will be an open-roof speedster based on the new Mercedes-AMG SL, likely positioned as a rival to similarly conceived creations from Aston Martin, McLaren and Ferrari.
Mythos will, in effect, sit above Maybach in terms of Mercedes's brand portfolio.
Mercedes CEO Ola Källenius said: "Most luxury companies build their portfolio on the basis of one or two true icons. Mercedes-Benz has the good fortune to have multiple iconic products and brands at the upper end of its portfolio – such as the S-Class, the SL, the-Class as well as the AMG and Maybach brands.
"We see great potential here to expand our top-end portfolio with even more fascinating products for our customers."
By focusing on its most luxurious, highest-margin products, Mercedes aims to "deliver a strong financial result even under more challenging market conditions".
It is aiming for an operating margin of 14% by the middle of the decade, and supporting that goal by diverting 75% of its overall investments to development of these higher-margin cars.
Like many manufacturers, the brand has prioritised the production of more expensive models throughout the ongoing supply chain crisis, with a 30% uptick in demand for range-topping models helping to drive a 9% revenue increase for the German brand last year, even as production volumes dipped by 5%.
Mercedes said going forward it will focus on three distinct categories of car: top-end luxury, core luxury and entry luxury.
The former comprises all AMG and Maybach-badged vehicles; the most expensive EQ-badged EVs; Mercedes S-Class, Mercedes GLS and Mercedes G-Class derivatives and any limited-edition models.
A crucial component of this new strategy will be the Maybach version of the new Mercedes-Benz EQS SUV, which was previewed at last year's Munich motor show and is set to arrive in dealerships in 2023. There will also be a Maybach version of the SL, and a new Maybach coupé - which is likely to be based on the upcoming AMG GT.
The brand also said it is still evaluating an expansion of the 'G' family beyond today's G-Class off-roader. In 2024 it will launch an all-EV version of the rugged 4x4, badged EQG.
Core luxury, meanwhile, refers to the higher-volume Mercedes C-Class and Mercedes E-Class models, the latter of which will enter a new generation next year and "point the way forward for the segment".
The shift towards more luxurious products has significant implications for Mercedes's entry-level models - which Kallenius alluded to earlier this month in suggesting the brand would "rather be looking up than down".
Mercedes will cull its line-up of entry-level models from seven to four "while significantly elevating the technological substance of these products". The first compact EV atop the new MMA platform, arriving in 2024, will set the tone for a reinvention of this part of the line-up.
It is unclear exactly which models will be axed as part of this revamp, but a silhouette image hints at a new entry-level four-door coupé in the mould of the CLA.