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· Posted on
February 21, 2024

No pit stop for Mercedes Benz who calls in its F1 team to help speed up its electrification

Mercedes is partnering with its F1 team to build more efficient electric vehicles faster.

What's the key learning?

  • This partnership between Mercedes and it F1 team has allowed the German car maker to drastically cut development times by a quarter or more.
  • Time is money in the world of car manufacturing - the faster a company can develop and produce a new model, the better their chances of staying competitive in the market.
  • By using Formula One technology and expertise, Mercedes-Benz has reduced its new vehicle development time to the low 40 months.

👉 Background: Mercedez Benz as the luxury car brand that started back in Germany in 1926. It's a big deal globally - in fact, it's ranked as the 8th most valuable brand in the world, according to Interbrand.

👉 What happened: Despite being a leader in combustion-engine technology, Mercedes has lagged behind Tesla in the electric vehicle market. So now, Mercedes is partnering with its F1 team to build more efficient electric vehicles... faster.

👉 What else: This partnership has allowed Mercedes to drastically cut development times by a quarter or more... We’re talking new vehicle development time having dropped from an average of 58 months to mass production to "the low 40s".

What's the key learning?

💡In the world of car manufacturing, time is money. The faster a company can develop and produce a new model, the better their chances of staying competitive in the market.

💡For example, Chinese EV makers have managed to cut development time to an average of 2.5 years aka 30 months. So by using Formula One technology and expertise, Mercedes-Benz has reduced its new vehicle development time to the low 40 months.

💡This move significantly improves Mercedes-Benz's speed to market and significantly increases their chances of competing head-on with the leading EV makers in the world.

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