Mercedes-Benz says the latest changes to U.S. fuel-economy requirements will not alter its current product strategy because vehicles reaching the market today were developed well before the regulatory changes were announced.
Mercedes-Benz Says It Must Stay Flexible
Automakers face constantly changing regulations across global markets, and those changes can affect product planning and business decisions. After the Trump administration announced relaxed federal fuel-economy requirements for automakers, Mercedes-Benz was asked how the changes would affect the company’s U.S. product strategy.
“Zero,” said Christoph Starzynski, vice president of product strategy and product steering for Mercedes-Benz Cars, at a media event last week.
Starzynski said Mercedes-Benz and other automakers appreciate stability and reasonable predictability as regulations are introduced, but manufacturers also “have to be flexible.”
Why Mercedes Won’t Change Products Overnight
Starzynski’s main point was that Mercedes vehicles arriving on the market now were already in development before the latest changes from the Trump administration.
“For us, the products were set up,” Starzynski told journalists. “There is nothing you can do overnight and say, ‘Oh, I’m changing something.’”
He said smaller adjustments can be made without causing major disruption. Changing the precious metals content in a catalytic converter, for example, can be handled more easily than larger changes to a vehicle program.
Automakers Face Regulatory Changes Overseas, Too
Starzynski said automakers should avoid abandoning carefully developed plans whenever regulations change unexpectedly. “You have to have some confidence in what you have and just follow it,” he said.
He also noted that regulatory uncertainty is not limited to the U.S. market. “If you look at the big markets for us, there is a lot of uncertainty, and it’s not only emissions,” Starzynski said, pointing to emerging regulations involving driver-assistance technology and driver distraction.
While regulations can change repeatedly, Starzynski said an automaker’s core brand value “needs to be stable.” He also said it can help to design vehicles to meet the strictest standards in the world so they comply across different regions.
Mercedes Warns Against Overreacting to Regulation
As new regulations take effect, sometimes unexpectedly, Starzynski said automakers should “react in a reasonable way” rather than overreact, including when making decisions about powertrains.
“Developing new engines because of regulation changes is not a reasonable way,” Starzynski said.
