Mercedes COO: "Full-Blown Sales Crisis"
Reuters reports that Mercedes COO Rainer Schmueckle says his company is in a “full blown sales crisis.” In other words, he’s checking his pension plan and prepping his people for a big ass round of layoffs. “While it [Mercedes] has not yet discussed reduced working hours, it has already cut the number of temporary workers. As of the end of June, Daimler’s Mercedes-Benz Cars division that also includes its Smart badge of microcars employed a staff of 98,000 worldwide.” And as that’s about it for this one, how about a tidbit from the world of Mercedes onership, via Kenya’s The Standard? “Police have questioned High Court Judge GBM Kariuki over the stabbing of a motorist after a minor road accident in the city… Police said Justice Kariuki and Kamau were driving from opposite directions on Lower Kabete Road at about 8pm on Saturday when their vehicles were involved in a minor accident. The judge, who was driving his official Mercedes Benz car, was alone at the time of the incident, while Kamau had two passengers in his Toyota Corolla vehicle… The judge seemed disturbed when journalists arrived at the police stations to take his pictures. At one point, he shouted at them, saying they were free to ‘take even his buttocks.'” And do what with them, precisely?
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I agree. MB has gone from the bank vault permanent car to a blingy Honda. Serious sport is only available from AMG. The standard MB is not aimed at the sports guy. Sports Packages tend to be lacking, or automatic only, which is odd as MB makes some nice manuals "over there". Rich people are not (save some entertainers) usually stupid. Buying one "permanent" MB and driving it for ten years before giving it to your teen is cheaper over that time than running out two or three lesser cars, and you get the benefit of quality and snob appeal. The manufacturer has to live with a product that the owner expects to run for 2-300K, not become tissue paper once the odo clicks "out of warranty". It is a different market, smaller, and with a customer that will have higher loyalty unless you screw them. MB owned this market when BMW was an annoying puppy snapping at the heels. MB has to some extent lost track, while BMW rose. The Japanese have come in to eat all the buyers who just want luxo-comfort. In this way, instead of retreating up market, they went after the high end Honda buyer, who if they could stretch, could get that subvented lease on the C or E. This tide has now receded, leaving a lot of MB cars with no "unique selling point". The C Class is not competition for a Sport Package 3 series, unless you step up to AMG, at which (price) point you are in a different world. Years ago, I recall a car show in NYC where the MB was the best built car. Perfect shutlines and high quality interiors, if germanically spartan. Today, all cars have decent shutlines (well, most) and the overall standard of construction is much closer from the crappiest to the classiest. MB has not pulled the bar higher. I will note that the E46 is better built inside than the E90, but at least BMW still has the "permanent car" feeling. If it had not been such a Cluster*F, the Damiler Chryco deal would have worked. Upgrade Chry with last gen MB. MB retreats upmarket with no overlap between stores. I knew that one was doomed when, in the year of the merger, I was in Germany, watching a Soccer Game. Mercedes-Benz TRUCKS was the "new sponsor" of the stadium.....because no way were the Germans changing the name in the home market.
Cool! I guess it's time to take the checkbook and talk to the local Benz shop about an E63 wagon.