Just hours prior to the unveiling of the new Mercedes-Benz VLE electric luxury van, the CEO of the renowned manufacturer engaged with the media to explain the rationale behind this innovation. The sense of assurance was palpable, suggesting that a new market segment might be emerging before us.
Mercedes-Benz CEO Ola Källenius shared with The Drive, “I think the first occasion when we revealed it to a select group of our American dealers who, of course, understand their customer base and possess in-depth knowledge of the American market. That was the first moment I sensed them reacting, wow, what the heck is this? This is something unique.”
This is not your ordinary family minivan. Only the long wheelbase variant will be available in the U.S. market, meaning the VLE we receive will essentially be an 18-foot luxurious lounge on wheels. Källenius stated, “I believe we have a significant chance here, and it transcends the five-star hotel sector that seeks the finest people mover in the world to transport their guests from, I don’t know, the Upper East Side to Broadway or wherever it might be. That market is a clear win. But I can envision this people mover, which is larger than a minivan, right? And I believe that’s one of the unique selling points. It differs from that. It’s a more spacious vehicle. And being inside it, it feels like being in a living room, like a lounge in some way.”
He is right. The VLE is unlike any other consumer van currently available. Besides being electric with an estimated range of about 375 miles (Mercedes claims 700 miles on the more optimistic European WLTP cycle), the VLE features air suspension, rear-wheel steering that reduces the turning radius to a mere 35.75 feet, comparable to the smaller CLA-Class, and that’s just touching on its interior features.
“When you now observe those captain seats and all the amenities, with the cinema screen and everything else, along with the Mercedes Ambiance, the rear axle steering, air suspension and so on. The first time I drove it, in its prototype form, I thought, what have you guys created? This feels like an S-Class. I mean, your mind says, oh, I’m entering a people mover. It doesn’t feel that way. It feels akin to an E-Class or an S-Class in terms of its tightness and how wonderfully it drives. It’s genuinely remarkable,” Källenius expressed.
When posed with the question of whether Källenius believes the VLE will succeed in the U.S. market, where vans carry a certain stigma, and the affluent are consuming G-Class and GLS-Class SUVs as quickly as Mercedes can produce them, the executive replied, “Do I believe that can succeed in the States? Absolutely, I do.”
The VLE could attract buyers who might already own or are considering a GLS or S-Class, according to the CEO. Källenius recounted, “During my last visit to the U.S., at our roadshow following the announcement of our annual results, I interacted with notable high-profile bankers in New York, where one might expect an S-Class or perhaps an AMG GT for weekend drives. No fewer than two CEOs I encountered expressed their desire to purchase this. Naturally, these individuals own multiple vehicles, but this one stands out with its eight, seven, or even five-seat configurations if more luggage is needed. Is there a more luxurious way to transport your family and loved ones from Manhattan to Montauk? Absolutely not. Well, maybe a helicopter. But if traveling by road, there’s nothing better than this. Therefore, I believe we can also penetrate the segment that perhaps hasn’t been explored much. That is our belief.”
Källenius and Mercedes-Benz are not alone in this vision. Lexus has already indicated that sedans are on the decline, suggesting that the LS, the premier luxury sedan that disrupted Mercedes-Benz and has now been phased out after 37 years, could potentially be revived as a luxury van. But for now, Mercedes has outpaced Lexus in this arena.
Mercedes-Benz provided The Drive with travel, accommodations, schnitzel, and access to the vehicle and executives for the purpose of this report.