Dimitris Psillakis, CEO of Mercedes-Benz USA, is overseeing an automaker undergoing two transitions. One is similar to that faced by every other OEM; the transition to an electrified line-up.
The other is specific to Mercedes-Benz, namely the thinning of its entry-level models in the U.S. market as the brand reasserts its identity within upper-end vehicle segments. The move is a repudiation of the marque’s move down-market, begun under former Daimler CEO Jürgen Schrempp and continued under his successor, Dieter Zetsche.
TheDetroitBureau.com recently caught up with Psillakis during Monterey Car Week and had a chance for a brief chat, which has been edited for clarity and length.
TheDetroitBureau.com: There’s been a de-emphasizing of the lower end of the line-up by Mercedes-Benz. Are we going to continue to see that as you further focus on premium products?
Dimitris Psillakis: We are moving forward to emphasize the premium end because that’s where Mercedes-Benz belongs. The entry point is a more congested space, and the air is thinner. And since we want to have a pure play luxury brand, we want to move up. We want to focus our resources not in a huge range of products, but reduced to a narrow range of products addressing this luxury end of the market.
TDB: In the last 5-to-10 years, there’s been a noticeable change in the appearance of Mercedes-Benz vehicles. They seem sleeker, more sophisticated, more cosmopolitan.
DP: I totally agree. I would say on the one hand, it’s more elegant, and at the same time lifestylish and distinguishable. So it’s not provoking. This is not the car which goes to the market. But if you see our designs, they are very homogeneous, very harmonic, bringing the sense of luxury, but also very techie. So inside, what is below the shell, it’s extremely advanced technologically.
TDB: Having Maybach as a top trim level on top brand seems to be working a bit better for you than having it as a separate brand.
DP: I think it’s addressing exactly what we want to do bring two brands up to the luxury end of Maybach. We can offer luxury, but also exclusivity as you see some here with the EQS Maybach SUV. And Maybach also is sustainable, it’s a brand persuing sustainability as we move into the electric SUVs, and with a hybrid version.
TDB: Sales of the Metris, while not exactly strong, but have been growing year after year and it seems to have been slow to find it audience. Yet it was finding an audience. Why pull it out of the market?
DP: We’re not pulling out of the market; we’re taking out the gasoline engine. This is basically where the market is moving. And don’t forget that soon, in the next couple of years to come, we’ll have electric products. We’re streamlining our portfolio based on demands.
TDB: So you’re selling all the electrics you can build right now.
DP: We sell every electric but also every internal combustion we can build. Nowadays, supply is the constraint. But you’re absolutely right; we have an increased demand on electric vehicles that we cannot fulfill. We come up with more models so you’re going to see more use of them, more products like the EQB and EQS SUV are coming to the market within the next four weeks. So we’ll be able to offer more product.
TDB: So the C-Class might be your lowest vehicle here in the U.S., with the slimming of the product portfolio.
DP: Yeah, basically CLA on the sedan, GLA on the SUV side will be our entry luxury models for the U.S. market.
TDB: You had a pretty diverse range at the lower end of the market, which was surprising for a luxury brand.
DP: Correct. Now we’re streamlining, specially designing for the U.S. market, which is de facto high engine and heavier on the luxury end. We’re pushing up.
TDB: How is your customer changing?
DP: He’s much more knowledgeable on the product, so he comes better studied on the product because he has access to information channels. But at the same time, the customer is looking more and more for convenience. And this is what we try to give, so we’re offering convenience of online information, online retail, if you want to go this this way, or offline with customer-experience-based dealerships. We are moving fast towards this direction of making our retail environment more attractive, more digital.
TDB: As some competing luxury brands are really pushing into lifestyle branding, residences and furniture and those types kind of ventures, is that something that Mercedes is considering or looking at?
DP: I think our focus is cars, and car products. At the moment, we don’t have any interactions with furniture or anything else.
This guy is a Eurotrash douche. All his customers are male, apparently, and requiring all employees to be vaccinated is ridiculous and unforgivable. Mercedes doesn’t stand a change with an idiot like that in charge. Used to be a great company.
got email saying a won a mercedes benz . are you giving a car away?
Carol, no ideas what you are referencing. Please email us a copy of any note that implies some sort of TDB giveaway. Thanks. Paul E.
I have purchased Mercedes since 1975 and over the years contributed millions to service and buying your cars. Recently I experienced the worst service I have ever experienced since 1975. I had no idea Mercedes had gone so far downhill. Not only did you have my car in service for an entire month because you had a shortage of laborers and could not get to it but you had no loaners either. So I spent a fortune on a car rental just because you had no mechanics. Also you would not honor my extended $3600.00 warranty which I still pay $50.00 a month for in my contract and have NEVER used. You would’t cover a measly $1900.00 fuel pump. I will never buy another Mercedes again and since I am still paying for this one I may have you repo it and quit payments…I was treated like garbage. No one was nice, no one returned my calls no one gave a damn. Deplorable service…I could get more from a sleazy used car lot. I won’t need Mercedes Financial again because this was the worst experience of my entire life in dealing with Mercedes. I am seriously thinking about quitting payments just to get somebody to pay attention to my dire situation and that is pathetic. When you bless somone and they curse you. You then become the cursed. I have blessed Mercedes for years investing in new engines.(my 82 is still on the road) I have overpaid for cars over and over because I was so happy with the service provided. But this experience on 12/6/22 has been a nightmare beyond my wildest disappointment. I have been treated like garbage….after being a loyal customer all over the world since 1975. and I cant get anyones attention everyone in your customer service are liars and do not return calls and frankly don’t give a damn. Well then neither do I. I may have you repo it just because I am so upset and infuriated.
Jennifer, it is clear you have issues. We are just a news magazine. Have you reached out to the factory rep? There’s usually a contact listed in the owner’s manual.
Paul E.
Att: Mr. Psillakis
As you can see from the email below I am having a major safety issue with our 6th and final Mercedes. The information that the rep has given us is not only wrong and puts our lives in danger as well as others with this issue.On the way home from the dealership the TPMS light came on at that point the SUV had 5 miles on it. I got out and looked at the tire and it looked fine. Upon getting home I checked the pressure and found out it had 31 pounds in the right rear tire, a little low but it could have been due to PDI. I added the correct pressure, but found out the next morning the tire was down to 18 pounds. I called Hilton Head Mercedes and they said to bring it right in. Upon inspection they found a screw on the corner of the tire,unrepairable. I instructed them to get a new tire but after both the dealer and I checked, we found out that these tires are European only, not imported to the US. This was confirmed by several managers at Continental.Now comes the problem, Andrea at Mercedes corp said ” should I have a flat that another type of tire can be installed as long as it’s the same size, tread pattern has no effect” After 40 years in the industry I know better. Not only will this affect the transaxle but it will cause problems with driving. I tried to explain to her that the difference in tread depth could create an issue too. Anything over 3/32nds is a problem on an AWD, both tires on the axel should be replaced. We purchased an AWD SUV in the south mainly because we drive to our cabin north of Asheville every August. The cabin is 20 miles off road at which 7 has zero phone reception. Should we get a flat we are stranded. The dealership has been a lifesaver and was willing to remove the same tire from a new unit, thanks to Hilton Head Mercedes, they went way overboard, unlike corp. Somehow they had been able to find one due to their tire rep.at Continental.What I didn’t say is that in the last few years I have sold a lot of units for them into fleet and for friends.I also have a CLE on order that I will probably cancel due to this issue. The only thing I request as of now is another set of DOT approved tires for this SUV that I feel safe with. When I asked Continental for the DOT number they couldn’t give it to me, this is normally on the inside of the tire. I looked but could not find any?
Please respond before this turns into something that will leave me with no choice put to take this further. This is not how Mercedes should treat their loyal customers. It is a shame but both my wife and I love the new GLC, but this has left a very bad taste in our mouth. We presently own over 8 makes from a Lexus LC 500 to Ferrari California T and several classic Porsches but this has to be my wifes favorite, Please dont ruin it for her. She has no clue about these tires.I am afraid to let her drive up to the cabin even more so at night.
Tires in question:
Continental EcoContact 6Q 285/40/20 Rears
255/40/20 Front
According to Continental the tread depth is 6/32nds CPO requires 5/32. Does not leave many miles of wear.
Thank you for your time,
Best Regards,
Alan Wagner
410-241-0XXX
Case Number 2-41348210457
Second Case Number 2-42004266003
Spoke to Ashley on 7/14/23 @ 9:54. Very rude
I have passed this on to an attribute connection at Mercedes. I cannot tell you, however, if or when they will reply.
Paul E.