100. Conversation with Mercedes-Benz Global CEO 康林松: A CEO in Transition and 139-Year-Old Mercedes-Benz in Transition
Summary
- 康林松 refuses to concede that Mercedes has lost the Chinese EV war, but calls the next 5 years a critical window to capture EV market share. China’s EV penetration rose from 4.7% in 2019 to 47.6% in 2024, but he argues that growth spreads upward from entry-level city cars and cannot be directly extrapolated to the premium market, where Mercedes still holds an edge. The next expansion of the product lineup will first cover entry-level SUVs, GLB, GLC, C-Class, the long-wheelbase all-electric CLA, and potentially the E-Class. “Absolutely not” has Mercedes already lost, but its existing advantage is “not enough.”
- Mercedes would rather protect the brand and residual values than join a price war to chase volume. Annual China sales still exceed 700,000 units, while premium mild hybrids, hybrid ICE vehicles, and the S-Class and high-end sedan markets remain areas of strength. 康林松 describes the luxury strategy and electrification as complementary because “financial strength equals innovation strength,” with profits from high-margin vehicles reinvested into technology and products at a scale of tens of billions of dollars.
- Mercedes has not framed its 2030 goal as a fully electric world, but as giving customers an EV option in every segment by 2030 at the latest. 康林松 admits that if asked 5 years ago to forecast Europe’s EV share in 2024, he would have said at least 25%; the actual figure was around 13%, with North America below 10% and China’s NEVs at roughly 50%. If the world has not reached 100% EV adoption by then, Mercedes will offer both ICE and electric options, while still completing a full EV lineup before 2030.
- The all-new CLA is not a one-car turnaround bet, but a vehicle for spreading next-generation electric drive and the “chip-to-cloud” MB.OS software stack across more than 40 models. Its highest-range version is certified for 866 km under CLTC, consumes about 11 kWh per 100 km, uses an 800-volt architecture, and can add more than 300 km of range in 10 minutes. MB.OS makes Mercedes the “chef in charge” and “conductor of the orchestra”: it develops core code such as battery management while integrating partners including Tencent, AutoNavi, and Qualcomm.
- China has moved from being Mercedes’ local execution arm to becoming a global R&D and product-export hub. Mercedes plans to invest RMB14B in next-generation products developed in China, while the Beijing and Shanghai R&D centers participate in near-24-hour global collaboration. A one-touch intelligent parking feature developed by the China team has already gone global, and the rear-seat entertainment system will also be exported. 康林松’s judgment is direct: “If you can succeed in China, you have a higher probability of succeeding in markets around the world.”
- AI lowers technology costs without making luxury irrelevant; instead, it raises the car from a decathlon to a 12-event competition. What 康林松 sees in DeepSeek is that “using smarter methods, innovation can happen overnight,” and cheaper AI will accelerate adoption. But feature parity is only the foundation of a luxury car; customization, craftsmanship, aesthetics, brand desirability, and vehicle engineering remain what distinguish an Italian bespoke suit from a well-made garment. Mercedes “will never become a mass-market brand.”
- 康林松 defines the job of a CEO in transition as stewarding the brand, not betting on one powertrain technology. Faced with 51:49 decisions, he favors choosing the 51 side first, then changing course immediately—“without worrying about losing face”—if new information proves it wrong. The final test is to hand over technology, brand value, customer experience, and financial strength together, leaving the company “in better shape than when I took over.”
Deep dive
1. China Is the Hardest Battlefield, and Mercedes Refuses to Trade Price for Volume
康林松’s first impression of China was “China speed”—“nobody wastes time; everyone is constantly moving forward.” The second was digital innovation, especially in intelligent driving, smart cockpits, and voice interaction. Mercedes therefore has to work with leading technology companies such as Tencent to bring into the car the functions Chinese users are accustomed to on their phones.
张小珺’s question went straight to the pressure point: Mercedes’ China market share has declined for 3 consecutive years, and EV sales have also fallen short of expectations. 康林松 did not deny that competition had intensified, but stressed that Beijing Benz had grown from a few thousand vehicles 20 years ago to sales in the hundreds of thousands annually, with more than 700,000 vehicles sold in China last year. The current situation, he argued, must be viewed against that scale.
Mercedes has chosen to avoid a competition based purely on volume because it must protect the residual value of its existing vehicles. 康林松 compares Mercedes with a finely crafted Swiss watch built to last longer: “You wouldn’t throw it away after 3 years.” His position is to preserve brand value, not chase the number on the sales table.
That does not mean he considers Mercedes’ position secure. Premium mild hybrids and hybrid ICE vehicles remain strengths, EVs are beginning to grow organically, and the Chinese market is being reshaped at different speeds. Mercedes will continue defending premium customers while expanding its NEV lineup.
2. Electrification Is Moving More Slowly Than Expected, So the 2030 Goal Is Full Coverage
康林松 admits he underestimated regional differences. If asked 5 years ago to forecast Europe’s EV share in 2024, he would have predicted at least 25%; the actual figure was around 13%. North America was even below 10%, while China’s NEVs, including plug-in hybrids and range extenders, had reached roughly 50%.
Mercedes still aims to give customers an EV option in every segment by 2030 at the latest, but has not locked itself into a single scenario. If the world has not reached 100% EV adoption by 2030, Mercedes will be able to offer both ICE and electric vehicles. What will not change is the completion of a full EV lineup before then.
张小珺 applied additional pressure with CADA data: China’s EV penetration rose from 4.7% in 2019 to 47.6% in 2024, moving from fewer than 5 cars per 100 to nearly half. 康林松’s answer was that Mercedes had “absolutely not” lost, because the transition begins with entry-level city cars and midsize sedans before spreading upward; the competitive structure in the premium market is different.
Mercedes dominates the S-Class sedan market. Although EVs account for a small share of total sales, Mercedes still holds the highest market share in the premium sedan segment. 康林松 acknowledges that “this is not enough.” The incremental battlefield over the next 5 years will include GLB, GLC, C-Class, the long-wheelbase all-electric CLA, and potentially the E-Class. He cites the long-wheelbase E-Class, launched in China last year and now leading its segment, to show that high-tech electric powertrains, plug-in hybrids, and luxury experience can coexist.
3. Luxury Cash Flow Is Not a Substitute for Electrification; It Funds R&D
张小珺 questioned whether Mercedes’ 2020 pivot toward high-margin models such as the S-Class, G-Class, AMG, and Maybach meant the luxury strategy had taken precedence over electrification. 康林松 countered that electrification is spreading from the top down: Mercedes has already launched an all-electric G-Class, and new electric architectures will support more models.
He states the commercial logic of the luxury strategy plainly: Mercedes is the world’s largest premium luxury-car manufacturer, and the segment generates profits and cash flow. That allows the company to become “its own venture capitalist.” “Financial strength equals innovation strength,” and the profits will be reinvested into technology and new products at a scale of tens of billions of dollars.
Moving upmarket does not mean exiting core segments such as C-Class, E-Class, GLC, and GLE. The China lineup will remain broadly similar, but undergo a major technology upgrade. The all-new CLA is only the entry point for the new architecture; over the next 3 years, Mercedes plans to launch more models than ever before, most of them EVs.
Asked about the Chinese consumer formula of “a large screen, refrigerator, and big sofa,” 康林松 did not reject the demand for a China-style experience. A hyperscreen can span the cockpit, the cabin should feel like a high-end living room, and getting into the car should feel like “coming home.” But aerodynamics, packaging, and efficiency must work together; the answer is not simply to pile on visible features.
4. The CLA Is a Platform Launch, Not a One-Model Gamble
Responding to the criticism that Tesla is 10 years ahead, 康林松 points to the CLA’s certified metrics: 866 km of CLTC range, consumption of about 11 kWh per 100 km, an 800-volt charging architecture, and more than 300 km of added range in 10 minutes. He believes it “could beat any existing car” in its segment, while preserving the qualifier “could.”
Mercedes adds 75 years of safety R&D, an optimized body structure, real-world driving safety, and potentially longer tested range to the CLA’s electric metrics. 康林松’s argument is not to ignore new rivals, but not to panic: improve efficiency, safety, quality, and value together, and market share will follow naturally.
He rejects putting the entire China turnaround on a single CLA. The CLA introduces 2 new technology platforms: an electric drive system that will power the EV series launched over the next 3 years, and a software stack redesigned alongside the hardware to cover compute, cloud connectivity, AI, and generative AI.
Mercedes has more than 40 models. The real task is to push its “chip-to-cloud” capabilities across the entire lineup. The CLA is emphasized because it is the first carrier of the next generation of technology, not because an entry-level model can change the company by itself.
5. China R&D Has Moved from Local Adaptation to “In China, for the World”
康林松 calls China Mercedes’ largest, fastest-moving, and most intensely competitive market. His causal judgment is direct: “If you can succeed in China,” the probability of succeeding elsewhere is higher. Mercedes therefore plans to invest RMB14B in China operations, new products, and upgrades over the coming years.
The Beijing R&D center initially focused mainly on local adaptations such as long-wheelbase models. It has now expanded into a new building and added engineering talent. The Shanghai center connects to local and surrounding technology clusters. Both feed into the global R&D network centered in Germany, creating near-24-hour continuous collaboration.
The decision-making mechanism has also changed. In the past, Germany typically decided and other regions executed; now many initiatives begin in China. One-touch intelligent parking developed by the China team has gone global, while the next-generation rear-seat entertainment system is also being developed in China. It will support movies, games, music, and video conferences, and serve other markets.
When 张小珺 asked whether a product designed entirely by a China team might emerge, 康林松 gave a cautious but open answer: “We have not done that yet, but never say never.”
6. MB.OS Gives Mercedes Architectural Control While Preserving External Innovation Speed
康林松 explains the technology boundary through cooking: “You can choose ingredients from different places, but you yourself must be the chef.” MB.OS is the kitchen and Mercedes owns the overall operating-system architecture, integrating partner software while developing core vehicle functions in-house. He also describes the approach as almost open-source in spirit: nearly anything can be integrated.
Battery-management software is one area Mercedes insists on writing itself. 康林松 traces that experience back to the electric smart launched in 2007. MB.OS brings those capabilities into a complete stack, allowing Mercedes to control the digital experience without being limited to internal resources.
张小珺 used Tesla’s vertically integrated model to question Mercedes’ future path. 康林松 rejects the idea that there is a one-size-fits-all golden rule. Mercedes has hired thousands of software engineers and must control the car’s intelligent brain and central nervous system; partners such as Qualcomm, Tencent, and AutoNavi can provide better modules, and an automaker does not need to write every line of code.
His second analogy is an orchestra: Mercedes must be the conductor who understands the music, then invite other musicians to join. Even tires are not low-tech components; grip and braking distance require joint development. An automaker’s capability lies in coordinating the physical and digital domains and deciding flexibly what to develop in-house and what to source externally.
7. Battery Efficiency Is the “New Currency”; Production Still Waits for Validation
康林松 calls battery efficiency a new currency for EVs, but notes that range is not determined by the cells alone. The CLA’s ability to exceed 850 km comes from aerodynamics, drag control, design, and countless small optimizations. “A perfect result requires getting every small point right.”
Mercedes has deep vertically integrated R&D capabilities in battery technology and chemistry, while also choosing to adapt technologies with the best partners. Current efforts include developing different solid-state battery versions with 2 or 3 partners, as well as high-silicon-content anodes. A 100% silicon-content anode may be possible in the future; he does not present that research goal as a certainty.
A recent solid-state battery demonstration enabled an EQS to travel more than 1,000 km on a single charge, but 康林松 gave no timetable for readiness. The technology will reach customer products only after sufficient testing and completion of all engineering work.
8. AI First Delivers Safety and Time, Then Evolves into an In-Car “Jarvis”
Asked about the idea that China’s NEV brands will become AI companies, 康林松 says: “We are still a physical automaker.” But combining AI with physical products can raise the car to a higher level, especially by reducing human error and bringing Mercedes closer to its vision of zero accidents.
He cites the fully certified Level 3 intelligent driving system as an example and calls Mercedes the first company in the world to genuinely bring the technology to market. It launched first in Germany and then entered the United States, with the permitted speed increasing from 60 km/h to 95 km/h. What users truly receive is “the most precious gift”—time to chat, listen to music, watch movies, process information, or join video conferences, provided the experience is safe and convenient.
The CLA is called Mercedes’ first AI vehicle, but 康林松 makes clear that “this is only the first version; it still needs improvement.” Over the next 5 to 10 years, AI will change how people understand the auto industry, while intelligent driving, cockpits, and AI-driven machines will continue to connect and integrate.
Mercedes had a first version of its virtual assistant 7 or 8 years ago. With a cloud-based AI agent, 康林松 compares it with “Jarvis” from Iron Man. His long-term vision is for everyone to have a superintelligence resembling a friend or “another self,” providing help inside and outside the car.
9. DeepSeek Shows That Low-Cost Innovation Can Accelerate the Democratization of Technology
When 康林松 first read reports about DeepSeek, he called a Chinese strategy executive working between Beijing and Stuttgart to verify them. After researching the matter, the executive replied, “It looks real.” The reaction preserves his initial uncertainty rather than recasting the breakthrough as obvious in hindsight.
What matters most to him is not the size of the investment, but original thinking that pushes technology to a new level at lower cost: “This is not blind development; you can throw money at anything.” DeepSeek shows that “using smarter methods, innovation can happen overnight.”
For a technology user and integrator such as Mercedes, lower costs mean large language models and generative AI can develop and spread faster and more economically. 康林松 says he is willing to experiment with partnerships: “If I can get more benefits at a lower cost, why not try it?”
10. Technology Democratization Has Not Erased Luxury; It Has Raised the All-Round Bar
张小珺’s central challenge was this: if intelligent technology becomes ordinary and easy to access, why would consumers still need a luxury car? 康林松 answers, “Of course they do,” because building a luxury car is like competing in an Olympic decathlon. Electrification and AI have raised the number of disciplines from 10 to 12, and that is still only the foundation of a luxury vehicle.
He compares ready-to-wear with an Italian bespoke suit, and a branded handbag with a functional schoolbag. Basic functions can become widely available, but customers still want more distinctive aesthetics, craftsmanship, details, and personalization. The G-Class can be specified in special colors and interiors, while the CLA must offer unexpected space and differentiation within its segment.
康林松 draws the strategic boundary clearly: “We will never become a mass-market brand.” Mercedes must offer made-to-measure choices while making safety, efficiency, software, and engineering capability foundational to luxury.
Luxury is not a static inheritance. He calls for looking “through the windshield” and knowing where the company came from without becoming absorbed by the rear-view mirror. The spirit of the times is to keep rewriting the definition of luxury while preserving “excellent craftsmanship and timeless beauty.”
11. A Century-Scale Transition Requires Mercedes to Invent the Future and Preserve Its Identity
康林松 says the industry has seen only the first chapter of a fundamental transformation: “This is a once-in-a-century change.” The 2 main axes are zero emissions and intelligence and AI powered by compute. China leads in NEVs, but different regions of the world will not move in sync.
A single chip in the CLA can perform 2.7 quadrillion calculations per second. When that compute is combined with vehicle sensors, the AI stack, generative AI, and end-to-end models, the boundaries of what a car can do will change. But Mercedes must carry safety, quality, driving feel, and aesthetics into the future rather than being reduced to 2 fashionable technologies.
康林松 defines innovation through the founder’s mindset: not making a horseshoe lighter so the horse can run faster, but “removing the horse from the equation” and creating an entirely new industry. Daimler and Maybach represent the engineering and innovative aesthetics that make people say, “I want it,” while Carl Benz was more rational and oriented toward practical commercial vehicles. Together they form Mercedes’ dual character.
Facing old and new rivals, he advocates staying curious and personally driving competitors’ vehicles, but says “comparisons cannot replace original thinking.” Some old rivals may be competitors Mercedes has known for more than 100 years, but Mercedes cannot chase 5 rivals at once. It must know who it is and carry its own brand promise into the future.
12. A CEO in Transition Manages Uncertainty with 51:49 Discipline
康林松 became CEO on May 22, 2019, after learning of the arrangement roughly 6 months earlier. He was also the first non-German CEO to take the top job in Mercedes’ history. Only after actually taking office did he feel that “looking back, there is nobody else—only you.” Ultimate responsibility could no longer be passed upward, while strength had to come from a team of more than 160,000 employees across more than 150 countries.
The hardest decisions are not clear 80:20 calls, but 51:49 choices under uncertainty. His discipline is to choose the 51 first; if new information shows the reality is the opposite, do not get trapped by what cannot be undone and “do not be afraid of losing face”—change direction immediately.
张小珺 questioned whether a professional-manager system is more conservative than a founder-led company. 康林松 acknowledges that a mature company faces both quarterly earnings and transformation pressure, but his conclusion is: “Don’t play it safe; conservatism does not work.” Mercedes is investing in new capital, engineers, R&D resources, factories, and technology partnerships at the highest level in its history.
A multi-model strategy and a lean organization may appear contradictory. He responds with football: efficiency, speed, and cost control are mandatory, but the team must also put forwards on the pitch trying to score. “If you only have goalkeepers, you can only keep retreating.” What gets cut is hierarchy, process, and “too many cooks in the kitchen,” not the product attack.
13. The “Brand Steward” Ultimately Hands Over Technology, Brand, and Finances Together
After 32 years in the auto industry, 康林松 does not describe the transformation as painful; he says, “I have never been this excited.” But it requires strong nerves: anyone seeking stability or an accurate forecast of what will happen 5 years from now should not enter the auto industry.
He defines his personal mission as being “the steward of the Mercedes-Benz brand.” Success is not measured only by market share, margin, or technological leadership, but by jointly improving technology, brand value, customer perception, every touchpoint in the experience, and financial resilience—so the company is in better shape when handed to his successor than when he took over.
Financial constraints are not the opposite of technological ambition: “If you focus only on technology and do not make money, it is not sustainable.” Mercedes must possess both innovation strength and financial strength to preserve strategic autonomy through a long transformation.
康林松 believes the industry’s fundamental direction is zero emissions, but refuses to bind Mercedes to any specific technology. Battery-electric vehicles and high-tech electrified engines will both exist for the foreseeable future. Powertrain formats will change; what Mercedes must carry forward is the brand itself.