Mercedes-Benz Prepares Historic Transformation With 40 New Models

Mercedes-Benz is entering the most ambitious development cycle in its history. By 2027, the German manufacturer plans to introduce more than 40 completely new models, with a strong focus on electrification. The Indy Auto Man Indiana dealership experts claim that this initiative represents not only a renewal of the product lineup but also a radical restructuring of the company’s manufacturing strategy and long-term market positioning. So, the lovers of the current assortment of Benz used cars should rush to choose one before these radical changes.

To facilitate the transition, Mercedes-Benz has already invested more than € 2 billion in upgrading its European manufacturing facilities. These reconstructions prepare production lines for new electric platforms while maintaining flexibility for potential demand from combustion engines in certain regions during the transition period.

Beyond Europe, Mercedes-Benz has significant plans for its American facilities, particularly in Alabama. The Tuscaloosa plant in Alabama, historically the hub for SUV production, has already begun building electric models as part of the EQ lineup. The facility produces the EQE SUV and EQS SUV, which are crucial for the North American market, where mid-size and large SUVs dominate.

Tuscaloosa facilities have been supplemented by a new battery plant in Bibb County, Alabama, which supports local EV production and reduces dependence on overseas supply chains. This facility assembles advanced lithium-ion batteries tailored specifically for the EQ line. Future expansions are expected to equip the plant to handle higher-capacity battery technologies and prepare for next-generation EV architectures that will be shared globally.

These investments strengthen Mercedes-Benz’s foothold in the critical U.S. market, where domestic production allows the brand to remain competitive against American and Asian manufacturers, particularly as government incentives and consumer demand increasingly favor locally built EVs.

The upcoming model launches are not limited to luxury flagships. Mercedes-Benz aims to tap into additional market segments, ensuring its vehicles appeal to an expansive customer base. Several important future models include:

• A fully electric minivan (VLE) on the new Van Electric Architecture, designed for both private and commercial use.

• Next-generation compact crossovers, including redesigned electric versions of the GLA and GLB.

• An updated S-Class is expected to showcase the highest levels of in-car digitalization and driver assistance technology.

• A smaller electric SUV inspired by the G-Class, to capture younger audiences as well as fans of the iconic off-road look.

While the new models garner headlines, the transformation of Mercedes-Benz factories is equally significant. The company has implemented the MO360 and MO360 Data Platform ecosystems, which create so-called digital twins of production lines. This allows engineers to test, refine, and optimize processes in virtual environments before applying them on the factory floor.

Virtualization significantly reduces error rates and improves efficiency. The company projects that cost savings from digitalization, combined with the introduction of artificial intelligence, renewable energy, and streamlined logistics, will lead to a 10% reduction in operating costs between 2024 and 2027.

Electrification at Mercedes-Benz does not come at the expense of performance. The AMG division, traditionally associated with high-performance combustion cars, is undergoing one of the most dramatic transformations within the company.

The long-rumored AMG GT XX concept will transition into a production version. Early indications suggest it will deliver acceleration and handling dynamics capable of rivaling — or surpassing — traditional supercars.

This ensures the AMG brand continues to appeal to enthusiasts while broadening the reach of Mercedes’ electric strategy.

By 2027, the Mercedes-Benz model lineup will look significantly different from what consumers can buy today in Indiana. With more than 40 new products across multiple body types and price categories, the brand is preparing to redefine itself for the electric era.

The scale of the investment and the breadth of the product offensive also point toward new dynamics in the pre-owned market. Current and near-future combustion models are likely to gain importance as transitional vehicles, potentially holding collectible value as production shifts fully to electrics. At the same time, by 2027, there will be a much broader offering of pre-owned electric Mercedes-Benz models, ranging from compact EVs to high-performance AMGs.

The strategy announced by CEO Ola Källenius signals not just incremental changes but a definitive break with the past. The company is leveraging German engineering expertise, global manufacturing scale, and advanced digital technologies to remain competitive in a rapidly evolving automotive environment.

The combination of 40 new models, a digitally reimagined production process, and a strong push into both the luxury and mass-market EV segments places Mercedes-Benz in a unique position to influence global automotive trends well into the 2030s.

If successful, the initiative will allow customers to experience the brand across every stage of electrification — from compact urban EVs to powerful AMG performance cars — with the hallmark refinement associated with the three-pointed star.