How Is Leadership Change Driving Transformation At Mercedes?
Mercedes-Benz is reshuffling its leadership team, aiming to accelerate its transformation by focusing on efficiency and technological development.
Michael Schiebe, CEO of Mercedes-AMG GmbH, has been appointed Member of the Board of Management, responsible for production, quality and supply chain management. He is taking over from Jörg Burzer, who will be the brand’s new Chief Technology Officer (CTO) responsible for the Board Division of Development & Procurement.
The moves are part of the company’s strategy of 'maintaining experience and continuity of top management while providing fresh impetus and a deliberate rejuvenation on the Board of Management'.
Mercedes says that the Jörg’s appointment to CTO “stands for a renewal in times of transformation and dynamic market challenges”.
Following on from recent successes in its product initiatives, the appointment is creating room for new ideas and creative approaches “while sustainably consolidating the innovative strength of both organisation and products”, Mercedes added.
The changes are effective from 1 December 2025, with Markus Schäfer, the current CTO, retiring from the company at the conclusion of his contract after over 30 years.
Who are the new appointees?
In his current role as Member of the Board of Management, Jörg has transformed vehicle production through vision, consistency and a clear focus on innovation, flexibility and efficiency.
Martin Brudermüller, Chairman of the Supervisory Board of Mercedes-Benz Group AG, says: “His impressive strength in execution and his ability to combine technological developments with industrial realisation make him the ideal choice to lead and further develop development and procurement.”
Talking about Michael’s appointment, he says: “Micheal Schiebe brings more than 20 years of highly varied experience at Mercedes-Benz, which he will apply to leading and continuously enhancing the division of production, quality and supply chain management.
“Most recently at Mercedes-AMG, he has demonstrated how he combines strategic thinking and decisive action with operational excellence to great effort.”
Mercedes hopes for improvements in its competitiveness through this closer interwoven connection between production and “agile, efficient and innovative vehicle development”.
Part of Mercedes’ transformation
Mercedes announced in a press release in February 2025 its plan to undertake radical transformation to become leaner, faster and stronger while driving profitable growth.
At the heart of this shift is its Next Level Performance programme, aimed at fundamentally reforming operations, cost structure, and product delivery.
To underpin that strategic reset, Mercedes is cutting production costs, rebalancing its industrial footprint and aiming for a leaner fixed cost base.
According to Mercedes, the company has already reduced fixed costs by 19 % since 2019 and intends further reductions through 2027.
On the product front, the company is redefining its line-up with a clear focus on electrification and digital innovation.
Central to this is the new electric CLA Class, which marks the debut of the Mercedes-Benz Modular Architecture (MMA).
This model will also be the first to run MB.OS, the company’s in-house operating system, enabling new digital experiences and more efficient vehicle updates.
Complementing these internal transformations is a renewed customer and revenue strategy – tightening customer engagement through data-driven personalisation.
Harald Wilhelm, Member of Board of Management of Mercedes-Benz Group AG, says: “To ensure that the company can weather an even more dynamic geopolitical environment as well as challenging markets, efficiency measures are being intensified across the board.
Together, these strategic moves and the appointment of Michael and Jörg will aim to reposition Mercedes‑Benz for sustained competitiveness and an ability to deliver profitable growth across the shift to electrification.
