Mercedes CEO in US reorganises company after discovering major issue

A century-old car built in a piano factory is offering a timely lesson for today’s auto industry, according to Mercedes CEO, Jason Hoff.

Speaking during a US tour marking Mercedes-Benz’s 140th anniversary, Hoff pointed to a rare 1906 model—constructed in a Long Island facility owned by Steinway & Sons—as proof that today’s challenges are not new.

“It was built there because of tariffs,” Hoff noted, drawing parallels between past and present pressures shaping the automotive sector.

The vintage vehicle, believed to be among the last of its kind, is being showcased alongside a modern S-Class sedan, symbolising the brand’s blend of heritage and innovation.

Hoff said the same forces that drove early localisation—trade barriers, shifting consumer needs and evolving technology—remain at play today, albeit at a faster pace.

As he nears one year in his role, Hoff identified internal inefficiencies as a key hurdle for the company’s North American operations.

Plans are underway to streamline teams and improve collaboration, including the launch of a $34 million technical hub in Atlanta aimed at bringing engineering and production closer together.

Mercedes is also adapting its strategy amid industry shifts, offering flexible manufacturing that supports electric, hybrid and combustion vehicles on the same production lines.

While the company has scaled back its earlier goal of going fully electric by 2030, Hoff said the focus is now on giving customers more choice.

Despite ongoing tariff pressures and rising competition from BMW, Hoff remains confident. “The industry is resilient,” he said. “And adaptability is what keeps us moving forward.”