Mercedes-Benz Eyes Luxury People Mover Market with VLE Concept
The automotive industry is in a period of rapid transformation, with electrification and autonomous driving technology driving innovation and new vehicle segments. Among the latest developments is the introduction of the Mercedes-Benz VLE, a full-size luxury electric van positioned as a “grand limousine” rather than a traditional minivan.
“We are not using ‘the m word,’ ” says Chairman of the Board of Management and Mercedes-Benz Group CEO Ola Källenius of the VLE. “We decided to call it a ‘grand limousine,’ ” he says of the 2028 Mercedes-Benz VLE, a large luxury people mover with sliding doors.
His rationale: Its packaging and size (it is longer than a Cadillac Escalade) make it a lounge or living room on wheels. It is a size bigger than the vehicles in the traditional minivan segment.
Many versions of the VLE are in the works.
“I can see this vehicle in many different configurations,” says Källenius. “If you are a luxury hotel, that is the shuttle you have to have, no ifs or buts. If you have a large family, or coach a sports team, or have hobbies.”
It will be more of a niche vehicle as opposed to mainstream like SUVs. “I think we have a unique position with something in the upper end, the premium luxury space of that market that nobody else serves,” says the CEO. “So, we’re going to take that to the U.S. and see how it goes.”
Will it take off in the U.S.?
Value Over Volume
It is a vehicle where value is more important than volume, Källenius says. “It’s okay if it’s a niche product, but I think it’s a niche product with potential.”
Adam Chamberlain, CEO of Mercedes-Benz USA, thinks there is a market for the car at the right price. But it has to be done right. “We have to be on point and on target with how we try to sell that car.”
Mercedes says it has learned from its failed attempt to sell the Metris, a small van with sliding doors, in the U.S. It was discontinued at the end of the 2023 model year, having only sold about 60,000 units since 2015. “The Metris was too vanilla in everything it did,” Chamberlain says.
The VLE is still a ways out, but there is a mountain of work to do in preparation, he says. It is a luxury people mover and must be positioned as such.
Electric VLEs will launch first.
Many Versions of VLE Planned
North America will only get the long-wheelbase version of the luxury van, expected sometime in 2027 as a 2028 model. The 2028 VLE will come with two electric powertrains: the VLE300 with a single motor to drive the front wheels and the VLE400 4Matic with two motors for all-wheel drive. A top-of-the-line model will launch first, followed by a more affordable version. At some point there will be an even more luxurious VLS-Class.
After the electric models, there will be V-Classes with internal combustion engines. Mercedes has a new line of six-cylinder engines as well as a new family of V-8 engines with a flat-plane crankshaft.
The van has many configurations, able to seat as many as eight or as few as four with the rear passengers stretched out in recliner seats, enjoying the 31.3-inch screen that slides down from the headliner.
VLEs For VIPs
Done right, it represents a lot of opportunity, Chamberlain says. Not just for consumers, but also commercial customers as high-end livery vehicles. Hotel partners will be interested and it is also perfect as VIP transportation for events instead of many of the current shuttles available today.
The VLE is part of the largest product onslaught in Mercedes-Benz history with 40 new or updated vehicles launching in the next three years. With Mercedes’ focus on tech and innovation, the V-Class will be a software-defined vehicle, meaning it can be constantly updated with over-the-air updates. And it will have, at minimum, Level 2++ autonomous driving capability such that you can enter a destination in the navigation system and it will drive the vehicle from point to point. The driver must remain attentive with hands lightly on the wheel but the vehicle will do the accelerating, braking, steering, and lane changes. The infotainment system will be equally intelligent with an AI-driven assistant responding to conversational requests and commands.
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