Mercedes-Benz Turns To AI To Match China's Fast Car Development Pace

Mercedes-Benz has acknowledged the speed at which Chinese automakers develop new vehicles and is turning to artificial intelligence to shorten its own development cycles. The company's new PLM.AI system is designed to connect information across the business and could cut vehicle development time by up to 30 percent.

What Mercedes Said

Speaking with Australia's Drive magazine, Mercedes' newly appointed Chief Technology Officer, Jorg Burzer, described the speed of development among Chinese automakers as "outstanding." He said competition is good for the customer and that Mercedes has the self-confidence to compete both in China and Europe.

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"What is obviously outstanding is the speed of developing in a way that the customer really... in terms of customer focus. Competition is good. It's good for the customer. On the one hand, I have a lot of respect. On the other hand, we also have self-confidence that we can compete with these guys in China but also in Europe," Burzer said.

PLM.AI

Mercedes is betting heavily on AI to shorten development times. PLM.AI is an AI-powered digital backbone linking vehicle development, purchasing, production, sales and after-sales services.

The system aims to make information more accessible across departments, allowing engineers to identify problems, assess technical trade-offs and make decisions earlier in the development process. Mercedes says PLM.AI could reduce overall development time by up to 30 percent while improving efficiency in individual engineering processes by up to 50 percent.

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AI agents already assist with tasks such as optimising material costs, handling certification and homologation, identifying faults and supporting software development. PLM.AI takes things further by connecting these previously separate applications through standardised data models, giving teams access to relevant information in real time.

Mercedes insists that faster development will not come at the expense of quality or safety. Engineers will remain responsible for final decisions, with AI serving as a tool to help them work more efficiently rather than replacing their expertise.

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The company also expects AI-powered simulations and digital development processes to reduce the need for physical testing by as much as 50 percent over time.

Upcoming Products

Mercedes has an ambitious product offensive planned, with a wave of new and updated models across its line-up. A new entry-level model is in the works, alongside the next-generation CLA, an electric E-Class, a baby G-Class and the return of the G-Class Convertible.