Mercedes-Benz: Mainstream car segment could become a public tram

"We don't want to build trams."

The predicted rise of car-sharing programs in major cities around the world could deal a substantial blow to the mainstream car segment, according to a top Mercedes-Benz executive. The company wants to avoid falling into that trap at all costs.

Speaking to Digital Trends, Mercedes design boss Gorden Wagener explained that car-sharing is important for the German firm but he doesn't think it should entirely replace the ownership model a majority of motorists are familiar with in 2019. He predicted many drivers will still want to own their car in the foreseeable future.

"For rich people, safety and security matter. Lots of people want privacy, security, and so on. They love having their own thing that can be driven autonomously but also manually," Wagener pointed out.

Mercedes operates a car-sharing program named Car2Go that gives anyone who signs up with a smartphone access to a CLA or a GLA. The company recently merged its program with BMW's DriveNow in a bid to secure a greater share of the car-sharing market in key regions. Car2Go works well for urbanites who occasionally need a car to run an errand, but Mercedes wants to ensure it continues to build cars people aspire to own.

"I see a big difference between the luxury segment and the mainstream segment. That is at risk of becoming a public tram. And we don't want to build trams. We will always make sure to stay on the luxury side of things," Wagener concluded.