On the Dash:
- Mercedes is tightening executive control as CEO Ola Källenius doubles down on a luxury-led strategy ahead of a make-or-break 2026.
- AMG performance is offsetting EV softness, with high-end electric models struggling while AMG deliveries surge.
- China and margin pressure remain central risks, with declining market share, tariff impacts and rising EV development costs weighing on profitability.
Mercedes-Benz Group announced a sweeping management overhaul that includes the departure of longtime design chief Gorden Wagener, underscoring CEO Ola Källenius’ effort to consolidate control as the automaker approaches a critical 2026.
Effective Feb. 1, 2026, Bastian Baudy, currently head of design at Mercedes-AMG, will succeed Wagener. The leadership changes elevate executives closely tied to Mercedes’ luxury and performance strategy, which aims to increase the share of higher-margin vehicles.
The move comes as Mercedes faces uneven results from its upmarket push. While sales of high-end electric vehicles such as the EQS and EQE have lagged, AMG deliveries have surged, with performance models helping offset softness elsewhere in the portfolio.
Wagener joined Mercedes-Benz in 1997 and became chief designer in 2016. He helped reshape the brand’s styling direction with his “Sensual Purity” philosophy, moving away from the long, lean design language established under former design chief Bruno Sacco. While the approach broadened Mercedes’ appeal, some EV designs drew criticism for their rounded, aerodynamic profiles. Wagener’s responsibilities extended beyond vehicles to include projects such as helicopters, yachts, and Mercedes-Benz Places residential towers in Dubai and Miami.
The reshuffle comes as Mercedes works to reverse declining market share in China, one of its most important markets. The automaker plans to launch more than 40 new models by 2027 as it seeks to regain momentum. Recent EV introductions have struggled, with the electric G-Wagon gaining limited traction and the EQS and EQE failing to resonate with Chinese consumers.
Those challenges have intensified scrutiny of Källenius’ luxury-first strategy, introduced in 2022, which targets a car-sales return of at least 8% even in adverse conditions. Instead, margins fell to 4.8% in the third quarter, pressured by high development costs for next-generation EVs and software, new Trump-era tariffs on European imports and an escalating price war in China.
Additional executive changes reinforce Källenius’ consolidation of authority. Stefanie Choritz, finance chief for AMG and top-end vehicles, will become head of operations and supply chain, while earlier moves placed key allies in technology and luxury brand leadership roles.
