Mercedes-Benz’s commercial division is set to undertake a wide-ranging review of its global portfolio, in the wake of slowing diesel sales.
Reuters reports that Mercedes-Benz Vans chief Marcus Breitschwerdt has instructed a review of the commercial division, where sales have been impacted over concerns about the cleanliness of diesel engines.
The German executive specifically wants to revisit the Nissan Navara-based X-Class ute, conceding it isn’t delivering the sales volumes originally hoped for. It marks the second time in a month that doubt has been cast over the long-term future of the X-Class.
“In order to optimise our performance, this also means reviewing and realigning our strategic orientation,” said Breitschwerdt at the launch of the electric Mercedes-Benz EQV van.
Daimler will seek cost-saving opportunities, including through a review of the company’s’ product portfolio as part of the review, Breitschwerdt confirmed.
“We are looking at what we have and what we could have,” he said.
Breitschwerdt said the X-Class wasn’t delivering on expected sales targets.
“The X-Class is a niche product,” the Daimler manager said, adding that Mercedes-Benz was not interested in a full size pick-up ala Ford F150.
Last month, Automotive News reported Mercedes-Benz was considering axing the X-Class prematurely amid poor sales.
Based on the same platform as the Nissan Navara and Renault Alaskan, the Mercedes-Benz X-Class is currently offered four- and six-cylinder turbo-diesel engines.
It requires an inordinate amount of capital to develop a dual-cab ute from scratch, hence ‘Benz’s decision to get into bed with Nissan, which had a vehicle ready to roll.
The X-Class ute is built at a Nissan factory in Spain and is currently only sold in Australia, Europe and South Africa.
Breitschwerdt conceded the vans division had too many management complexities. He said the car-maker was looking at ways to cut costs without resorting to layoffs across its 26,000-strong workforce.