Member of the Board of Management, Human Relations (Director of Labor Relations / CHRO), Mercedes-Benz Group AG
DUIHK in dialogue with Britta Seeger, Member of the Board of Management of Daimler AG
The automotive industry is essential for both the German and the Hungarian economy - and it faces immense challenges ...
Transcript (38 segments)
Z
Zorman0:15
Foreign chambers for trade and commerce. Very happy to be able to meet you all in the framework of such an event. We have a series of such events and discussions, and it's now the fifth time this event is taking place at the UIHK in discussions. An interview with special guests. Today we have a very special interview, an exclusive interview with the representative of Mercedes-Benz who is responsible for marketing and sales. We're very happy that she could make it and accept our invitation. As a technical detail, you can select languages at the bottom of your screen in Zoom. The automotive industry is of great importance for Hungary and Germany. We're very much looking forward to the discussion with Britta Seeger, who is a member of the board of management of Mercedes-Benz AG and responsible for marketing and sales. She started her career with Mercedes in 1992 and has vast experience. We are now very happy to have this interview with Miss Seeger. We would like to start with a short video by our managing director. The manufacturing of cars is very important for Hungary and Germany. It is a crucial branch. About 100,000 employees work in 700 companies, responsible for about 5% of GDP. Foreign investors play a dominant role. Hungary is the fourth important production site for the German automotive industry. Thank you very much.
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Barbara7:07
I'll take over at this point. I would like to welcome all of you as well, and I would like to welcome Britta and all our guests that are following this discussion online. There is a second chair where you would have been invited to participate, but we are going to discuss online. First of all, let me congratulate you for your award, the fabulous five of female board members in Germany. What does it mean to you to have this award?
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Britta Seeger7:54
How did I get it? I had a call and I was asked whether I could have some time at this date, and that I would be awarded the prize the fabulous five. I'm really happy to have received this, not only because of my own person but I take it as a sign and feedback for everything we work for. This female five is to make sure we have as many female representatives in the world as possible. I was happy to take it, but I think this is also recognition of our performance and achievements in diversity within our company. Colleagues in the board found this very interesting and we're looking forward to meeting for the first time as the female five next year. I think this is really great that we are able to unite five young people in this board and introduce young talents into the business.
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Barbara9:41
We heard that you became a member of the management board in 2017 for Daimler AG. Can you give us an insight of your responsibilities with this role and what is your focus within this role?
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Britta Seeger9:58
The responsibility for sales and marketing involves all relevant Ps: marketing, product, pricing, promotion, and after-sales. We include customer requirements and trends in early product development. We are responsible for all Mercedes vehicles and after-sales services like repairs and parts availability worldwide. Also operational work with over 90 markets and selecting the right partners.
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Barbara12:03
The automotive world has changed a lot since the first time you were employed at Mercedes in Stuttgart. What was the most important change?
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Britta Seeger12:34
I think we can all see this change clearly. The question about sustainable mobility for the future is the most important thing in focus. Plug-in hybrids and further development of engines to reach CO2-free mobility are game changers. Customer behavior is changing too, with demand for alternative engines and digitalization. These two aspects require the right technology and digitization to meet customer requirements.
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Barbara14:15
We also heard recently that the road for Mercedes-Benz is going towards electric mobility. What does it currently look like in the field of engines?
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Britta Seeger14:38
In July this year we announced that we would use experience and regulations from all over the world and customer feedback. We saw based on developments that we are becoming from an electric-first company to electric-only from 2025 on. All architectures we bring to market will be electric only. This was a significant decision. We are participating in COP26 to take into account decisions there. We are considering electric only as our response to sustainability. We need to provide attractive products using green steel, recycled materials, sustainable engine solutions, and innovation. Infrastructure needs to be developed so customers can make the change. Third, we need green energy. As long as we don't have green energy, the production of an e-vehicle might be less sustainable. We need to resolve these challenges.
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Barbara20:11
I think there's still so much to say. I would like to ask more questions and encourage our audience to ask via chat. Mercedes-Benz is the only provider of e-vehicles currently and there were new licenses where you were even further ahead of other providers.
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Britta Seeger20:52
You asked whether this was an externally induced change, but it's actually a desire for sustainable mobility that exists in the markets. We are trying to create the offer for customers so they can choose. For us as Mercedes brand, this is a response we want to provide. Customers want to see our reaction. This gives us impetus in marketing. We believe in this change, so Mercedes will become electric only from 2025 on.
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Barbara22:24
We had a new kind of concept that was introduced in Munich regarding mobility offers. How did you like this concept?
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Britta Seeger22:41
I would like to answer independently of Mercedes. For us as a representative in Germany, it was great to see that fairs cannot take place in the old way. We thought about how to address customers in the future with new mobility. We need to make it attractive and leave fair halls. Customers said they still need the fair concept but more concise, smaller, target-oriented. We discussed with Munich how to meet people where they are. We opened our doors with a COVID test and it was fantastic to see people interested. We could answer their questions and make them passionate about new solutions. We had a connection between the fair and inner city for test drives. The easy accessibility resulted in intensive conversations about sustainability. Despite some protests, we had very positive feedback. It showed we can have a new idea of a fair in Germany.
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Barbara27:09
Did you see criticism as well? And what kind of learnings did you get from this experience?
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Britta Seeger27:30
From these discussions, there is some underrated uncertainty among customers about the significance of this mobility, how it works, how expensive it is, the life cycle. Those thinking about transformation need intense support. Some don't want a car but prefer a mobility budget. There are also critics who want none of the available solutions. Chip scarcity also affects the automotive industry. Customers realize they need to change purchasing behavior and sometimes have to wait.
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Barbara28:47
How do you deal with these bottlenecks you're currently experiencing?
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Britta Seeger29:12
There is always agility needed. We see a lack of transparency in the value chain. We have to react on short notice. This goes for tier one and further on. The chip crisis has been present throughout the year. We try to buy from other sources but it's a problem. We need to work with chip manufacturers for more transparency. We either need extra capacity, but it sometimes takes longer to set up new lines. Other external factors like COVID waves also affect. We need to be prepared to react and be agile. We assume by next summer and beyond we can react, but tier one suppliers are very important so we work closely with them.
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Barbara31:53
A completely different question. Interbrand has called Mercedes-Benz a very special company within Europe with a very strong brand. What does this mean for you to be a strong brand?
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Britta Seeger32:22
For us, it's very important for the customer. Brands have an effect on our actions and give orientation. We are proud to be on top of Interbrand's list for the fourth time in a row, proof of our work. Brands give orientation to customers. These days, classic corridors to clients are closed and behaviors are changing. Communication changes. We need to speak to customers in situations where they don't expect discussions. For example, if you read an article online, we try to understand your interests and create a profile, then send you relevant messages. We need to have a strong position as a brand. Expectations are high. Sustainability is an area where we need to provide orientation for customers about what Mercedes can provide.
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Barbara35:46
I understand what you say. This leads to my next question: How do you see the future? There was a LinkedIn video from you. Is this something you would like to repeat regularly?
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Britta Seeger36:10
At Mercedes, we have two commitments: the more digital our world becomes, the more important physical contact with customers will be. Second, car sellers will undergo an important transformation. Brands have to be lived where customers are. We need to make ourselves available. Personal experience of the brand is essential. But customers, even luxury customers, need an additional commitment. They want to experience something, and digital space comes into play. They want to experience without being forced to do various things. The digital experience together with personal aspect is the only channel experience. Customers move between these two worlds. More and more customers will buy cars digitally, maybe after visiting traders. This trend will accelerate due to COVID. We need to further develop this.
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Barbara39:48
I would like to go a bit further forward because you mentioned the Green Deal. Can you explain more about what you currently do in your company to prepare for the Green Deal and meet its requirements?
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Britta Seeger40:08
I spoke earlier about the product. It's not only about batteries and electric engines, but how we reduce CO2 with all our suppliers. We need to make all parts of the car sustainable. Suppliers know these requirements and we need to go this road together. The Green Deal is a major challenge. We discuss how to involve recycled materials. We'll have a workshop on this tomorrow. Also the production footprint worldwide: we need to use less water, save resources. We have a clear commitment with our retail distribution to become CO2 carbon neutral and use green energy. All battery electric vehicles can be produced with green regenerative electricity in Europe and the US; in China we are still working on it. We are in continuous discussion with suppliers. We are all conscious this is a major challenge. Although we haven't found all answers, the commitment is there. The questions are how fast we can clarify and what it means for transformation jobs and rescaling of employees.
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Barbara43:31
I think also topics like supply bottlenecks and sustainability in general are part of our reflections. My colleagues are working on that. How does the current COVID situation affect?
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Britta Seeger44:01
COVID and the current situation are affecting us. Magnesium and these questions are moving us. How well we can deliver responses depends not only on Mercedes but working together. I spoke with a company from a different branch about whether the Green Deal puts a lot of responsibility on suppliers. I can't understand that stance. We too thought about how to deal with carbon provisions. Many stakeholders still don't know how to achieve results. We work for the best possible results. Not all solutions are clear. We are waiting for end of 2026 for new instructions. But as an OEM, we shouldn't lean back and rely on suppliers only.
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Barbara45:56
Actually our time is almost over. We will allow the audience to ask questions. But before that, I would like to address two questions. We know each other from Korea, as was obvious from your CV. What did you bring from Asia that you can use in your work as a member of the management board?
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Britta Seeger46:36
I think we learned one thing: body, body, fast, fast or quick, quick was a motto we all learned. Also openness towards new technologies. If I look at Germany, it still needs to catch up in enthusiasm. It was great to see a different setting in a society that wants to grow and achieve. This is different from our country. I also saw this enthusiasm in Turkey. These countries can add a lot of value. In Hungary, there are many Korean companies that will enrich the market and mobility engine production. This is important for your respect as well.
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Barbara48:05
Women in economy – I think this is inevitable since we are discussing together today. There are more provisions for higher gender diversity, but what is your opinion or experience why there are still less women in responsible positions than possible?
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Britta Seeger48:44
First of all, it's much better now but we still have a long way to go. From my perception, there are various reasons. In various jobs, women are underrepresented. My daughter started a study in environmental technologies and out of all students there are only two female students – about one percent. In certain branches, equal chances are not really given. Second, we need to want to achieve it ourselves. We need to look for international talent and women talents. We need to work for this every day. Diverse teams, including gender diversity and other forms, provide added value. But there is a mass that still doesn't move. We need to try to make them more enthusiastic towards these values and take them along on this journey.
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Barbara51:00
I think we're all on this road together. We also have a project called Tech Chicks, where we give insights into technological professions for girls. Thank you very much for this interview. I had a lot of fun. There are many questions we could have asked. But I would like to introduce the colleague who collected the questions for us from the audience.
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Moderator51:54
Good afternoon. We have two questions in the chat that are actually connected with the topics discussed earlier. First, about e-mobility: is there a plan B for Daimler in case e-mobility is not the right track? Could hydrogen or synthetic fuel play a role? Second, how do you manage waste and batteries?
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Britta Seeger52:42
I'll start with the last question. For batteries, the most important thing is if a battery is broken, we analyze if it can be repaired, then remanufactured and reintroduced. If too old, second life as local electricity storage. We have our own activities and are identifying partners. If no longer usable for that, then recycling. We work on removing valuable materials. All car manufacturers face these challenges. We have a closed loop system for circular economy. For the plan B question: For fuel, it's still not clear how energy needs will be provided. We are pioneers in fuel cell technology for personal cars but don't see short-term chance due to cost. However, our truck colleagues face the same challenge for long tracks. We work with Volvo on joint technology for trucks. We also consider innovation for personal cars.
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Moderator56:50
Thank you very much. We had the opportunity to ask questions ahead of the interview and we had a question from North Macedonia regarding Tesla. This is a topic we hear a lot. The market value of Tesla is larger than the largest German companies. Does Daimler want to catch up? Is it possible that the three German manufacturers could create an alliance in software?
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Britta Seeger57:35
As we got the first question regarding our strategy, I think you would like to hear about product strategy rather than market capitalization. We launched electric vehicles and next year we will go on with electric SUVs. Our task is to make these products available for customers. Until the end of next year 2022, we will provide an electric vehicle in all our car classes. With the vehicles we have launched, we have proven we are very competitive and have good feedback. This is the road we will continue.
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Barbara58:42
Thank you very much. We know you have a next appointment in a few minutes, but maybe a general question to finish up: Regarding the automotive industry and mobility service providers, how good do you see your position for providing new mobility solutions to your customers beyond car manufacturing?
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Britta Seeger59:10
I don't know if you know, but together with BMW we have a joint venture for car sharing in many places in Europe. Beyond that, we provide a platform. We learn a lot in this market. It's interesting to see the development of the past few years where we spoke a lot about shared mobility and car sharing, but we see a renaissance of car ownership. We will see how to find a sustainable solution. Our colleagues from Wolfsburg also join us. As OEMs, we have important insights and learn many lessons. It will be interesting to see how customers perceive other forms of mobility.
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Barbara1:00:41
Thank you very much. There are still some open questions, but we don't want to block you from your next obligation. I will pass the floor back to our managing director, Mr. Zorman.
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Zorman1:00:55
Thank you very much for the time you have spent with us and for this interview. It was really interesting to have this direct discussion with you and to hear more about you and your company. Thank you to the audience who were with us from our office and from Bulgaria, Croatia, Macedonia, Slovakia, Czech Republic, Germany, Hungary. These are the countries represented today. Thank you to the members who are invited to the next event about the digital healthcare system tomorrow with our finance minister Varga. And then Automotive Hungary people have a stand for our chamber. We offer a professional forum. Greetings to Stuttgart to you, Britta. Thank you very much for coming. See you soon. Bye.