Crisis Makes Us Stronger - Interview with Mercedes-Benz Korea CEO

Welcome to Issue #52 of The German Autopreneur!

Today marks something new. I'll start bringing you conversations with automotive professionals who shape our industry's future. My goal? Give you direct insights from people driving change worldwide.

First up is Mathias Vaitl, CEO of Mercedes-Benz Korea. We worked together during my Mercedes days and recently met in Seoul. South Korea fascinates me - it's where you'll find more Maybachs than almost anywhere else. It's also Mercedes' largest export market for the E-Class and third-largest for the S-Class.

Here's what I learned:

Speed Defines Everything: The "Palli Palli" Culture

"Korea runs at incredible speed," Mathias says. They call it "Palli Palli" - meaning fast, fast. "You see it everywhere. People don't walk here anymore - they run." This speed creates opportunities but also challenges. What stands out to Mathias? "Even when things go wrong, everyone shares one mindset: Let's make it better. Let's solve it now."

Luxury Drives Status

South Koreans spend more on luxury goods per person than anyone else worldwide. "Status matters hugely here," Mathias explains. "Your car shows your success. That's why appearance and brand mean everything."

This shows in Mercedes' sales. Their top-end models far outsell entry-level cars. Seoul's streets showcase more Maybachs than almost any other city worldwide.

Technology Sets the Pace

South Korea leads global trends - not just in K-pop and fashion. Customers here demand the latest tech and highest quality. "You can't slow down," Mathias warns. "Miss one trend, and you'll struggle - even with a strong brand."

This affects everything, especially digital features. "What we once planned to sell as extras, customers now expect as standard. Without cutting-edge tech, you can't compete here."

Current Market Reality

Korea faces challenges too. "The car market is down 8%," Mathias shares. "Local brands like Hyundai, Kia, and Genesis see their lowest sales in 16 years."

Yet Mathias stays positive: "Germans perform best during tough times." He sees opportunity in crisis: "Sometimes companies need these moments to refocus."

Mercedes' Core Strength

What makes Mercedes special? "It's everything together," Mathias says. "Not just safety. Not just quality. Not just the brand. It's the whole package."

Some call Mercedes slow. But Mathias explains: "Our customers expect perfection. Yes, we test thoroughly. Yes, we take time to get things right. It might look slow from outside - but inside, we move incredibly fast."

Message to Future Talent

Despite today's challenges, Mathias encourages young people to join automotive: "Our industry always cycles. During COVID, we had too many customers, too few cars. Now it's tougher. That's normal."

His key message: "Stay strong - better times always come. This industry remains exciting and full of opportunities. Yes, it's different now - more digital, more software. But the potential? Bigger than ever."

The full interview is available in my Podcast (in German only 🙁).

That's all for today.

Feel free to reply to this email with your thoughts.

Until next week,
— Philipp

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