C-Class (W203) 2001-2007, C160, C180, C200, C220, C230, C240, C270, C280, C300, C320, C230K, C350, Coupe
View Poll Results: is the c-coupe hurting the MB image?
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is the C-Coupe hurting the MB image?

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Old 03-20-2002, 02:40 PM
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is the C-Coupe hurting the MB image?

- sorry about the first run at the poll... the subject and poll question were contradictory and thus the results were ambiguous. i also apologize for deleting the comments...

here's the auto.com article on the introduction of these new entry models for jag, rover, mb, etc.

do you think that introducing these entry models is hurting their respective manufacturer's reputations? or do you think the typical buyers will move up in the line later and it is a successful strategy?
Old 03-20-2002, 02:43 PM
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I don't believe this is a C-Coupe issue. Last year, MB-USA was running TV spots advertising "4-5 models available under $40,000." Remember? To, me, this says that MB is making a conscious effort to expand their penetration down-market across several models in the product line, and not meant in a bad way.

MB-USA has more than 500 dealers in the US. They cannot sell just 2,600 CLs, 3,600 SLs, and 19,000 S-Class cars per year in the US and hope to keep a sales network that large in business.

Regardless of the tripe the avg MB salesman will tell you about not wanting to sell the entry level cars, the facts are that the C, ML, and base SLK models (all base-priced below $40K) represent HALF of MB's US sales last year (77,632 sales out of 150,105 total through 9/30/01).

If MB is not to become a specialty coachwork manufacturer in the US (like Ferrari/Lambo/Aston, and soon to be Porsche) they will need to entice several different types of "entry level" buyers to form a cash flow necessary for long-term success. The ML appeals to a different base than the C-Coupe, which is different from the C-Sedan, etc. They all contribute together to create a solid base.

The media LOVES to kick a big dog when they perceive they are down. So, it's fashionable to pan MB for any quality issue they can find. What the media fails to realize is that MB has a well-conceived business plan for their long-term survival which dictates appealing to a wider crossection of American buyers.

I have a feeling, based on what we hear about MB abroad, that they would succeed if they never sold another car in the US. However, as long as they want to play here, (and it IS important to play in the US) they are struggling to find ways to attract new buyers. Let's face it. 150,000 total yearly sales in the US barely blips the radar screen at GM, or Ford, in their worst years.
Old 03-20-2002, 03:39 PM
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Bob is dead-on. why do you think that BMW is the most profitable company in the business, because the 3-series is approachable, affordable, and feasable for thousands of people WORLDWIDE... this is just the numbers...

Z3 sales + Z8 sales + 7er sales + 5er sales + X5 sales < 3er sales.

all those 3er buyers either buy another 3er when its time or they move up to the 5er or X5, etc. MBs biggest-selling single model is their E-class (last I saw), which is too expensive to build a base on, just simple math.
Old 03-20-2002, 04:00 PM
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Bob answers the question "Is moving down market / the Hatchback a good business decision for MB." He makes a good argument for that (although I don't think I agree with it entirely).

But to the specific question of "Does the Hatchback hurt MBs image in the US?" the answer is clearly yes. Rightly or wrongly, you just can't pic up an automotive (or other, including Newsweek, etc.) magazine these days without seeing articles on MB's "4 door, cloth interior Hatchback." Clearly, it hurts their image in the US.

And, MB knows it does. I've read lots of articles where MB execs themselves say they knew the risk. But they think the sales increase is worth the risk.

Its really a matter of how far should they go. I think most would agree it would be a bad idea for MB to sell a 90hp, 3 cylinder, $15,000 Geo Metro competitor hatchback in the US. Clearly, that would dilute their image and brand in the US. The C class sedans were already big sellers, esp. the current version. Did they really need the Hatch, given the brand and image dilution that goes with it (as evidenced by the constant drubbings in the press)?

Maybe, maybe not. I think that is actually a tough call, with good arguments on either side. But, for sure, time will tell.
Old 03-20-2002, 04:01 PM
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Originally posted by dasMafia
MBs biggest-selling single model is their E-class (last I saw), which is too expensive to build a base on, just simple math.
US sales figures first 3-quarters of 2001 show 33953 Es, 35374 Cs and 33156 MLs sold. Although I would bet the E is the best selling model overall if all of the European fleet sales (taxis. etc) are taken into account.

Originally posted by MB-BOB
I have a feeling, based on what we hear about MB abroad, that they would succeed if they never sold another car in the US.
The US sales were 18% of total world-wide sales during this period.

Cheers, BT
Old 03-20-2002, 04:10 PM
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Trench, that is true for 2001, but that is only because the E class is at the end of its product line (and sales always go down towards the end), and the C is brand new. MB is most highly dependent on the E, for both sales and profits.

From March 11 Autoweek:

"Since the launch of the current E in 1995, Mercedes’ midsizer has outsold every other car in the stable and has hovered near the 50,000 sales mark in the United States since 1998. Even more impressive, the E-Class has made up more than 45 percent of the German automaker’s worldwide car production since its introduction in 1947. So while the S-Class remains the Mercedes flagship and the SL its ultimate statement vehicle, the E forms the backbone of the Mercedes ideal: elegant yet powerful, executive-sized yet a great driver.

But then something happened. Last year Mercedes’ redesigned C-Class ******ed the sales lead from the E. To expand its reach, Stuttgart began pushing into the downward end of the luxury market, with cars like the C230 Sports Coupe and its cheaper interior materials, tractor-like Kompressor motor and less than $26,000 sticker. Mercedes had hoped the C would draw more people to the brand, at an earlier age and lower income level, and so far it looks like it’s succeeded on the demographic score.

But don’t count on the little car to stay on top in total sales, because the E is Mercedes’ bread-and-butter—and there’s a new one on its way. “Our goal for E-Class is nothing short of absolutely dominating the segment,” says Karen Makris, North American product manager for Mercedes sedans."
Old 03-20-2002, 04:18 PM
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I see an interesting contradiction with this: Here's a subject about how it is/isn't bad that Mercedes is diluting their image with a cheaper vehicle, yet we can also find posts that talk about how "everyone" who sees their C230 thinks it's an expensive car...

So one question would be, if they sell a less expensive car, but most people don't realize it's less expensive... how much is their image being hurt?

Just a thought...
Old 03-20-2002, 04:23 PM
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OK, I stand corrected on the hoped for sales figures for the new E in the US.

Originally posted by SoCal240/6

From March 11 Autoweek:
"with cars like the C230 Sports Coupe and its cheaper interior materials, tractor-like Kompressor motor and less than $26,000 sticker"
I wonder if the Coupe had come with MB-TEX instead of cloth if the comments the interior materials being cheap would come up as often? Or if the cloth had a simple solid color instead of the weird pattern (which is a love it or hate it style)? I also don't remember the magazines complaining about the 230K motor when it was introduced in the SLK either. Seems like all of the magazines are jumping on a "bash-MB" bandwagon by directing animosity towards the Coupe, as if it were the cause for the decreasing quality in newer Benzes. Hoewever, if you compare the Coupe to other cars in its price range I think the quality is equivalent or better.

BT
Old 03-20-2002, 04:25 PM
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Keep in mind, IMO, the ONLY reason the Coupe is bearing the brunt of the "chiding" from the media regarding quality is the fact that the Coupe represents the (latest) bottom of the totem pole (sold in America). Prior to the Coupe, the ML-Class got the bad rap on quality, yes? If they sold the A-Class in the states, you wouldn't hear squat (good or bad) about the Coupe...

I agree that MB-USA is willing to accept some criticism of their strategy, as long as it works and puts money in their pockets. To that extent, I can't see where MB-USA will focus on any one of the "entry level" models, as long as the C and ML work together to form the cash flow base needed.

Don't get hung up in the E-Class is old but now new thing. Because all the models cycle through their model runs from beginning to end, and in any given year, the hot new ticket will experience a jump in sales. It's the long term strategy that counts.

Last edited by MB-BOB; 03-20-2002 at 04:34 PM.
Old 03-20-2002, 04:26 PM
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It seems to me that, if MB only made leather standard on the ccoupe, most of these complaints would go away, or at least these articles wouldn't have such a strong lead-in, since they almost always seem to mention the cloth within the first 3 sentences.
What is funny to me is that the ccoupe is bringing down the marque's lofty reputation, yet the c240 avoids this same criticism. After all, they're basically the same car.
Oh well, perception's everything. I do think that the ccoupe has brought a fun, "we don't take ourselves as seriously as we used to" kind of attitude to the marque, and I think that's as helpful to them as the equipment level/price are bad.
Old 03-20-2002, 04:58 PM
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Originally posted by tommy
What is funny to me is that the ccoupe is bringing down the marque's lofty reputation, yet the c240 avoids this same criticism. After all, they're basically the same car.
Oh well, perception's everything. I do think that the ccoupe has brought a fun, "we don't take ourselves as seriously as we used to" kind of attitude to the marque, and I think that's as helpful to them as the equipment level/price are bad.
The C240 doesn't have any of the things that the Hatch is picked on for: 4 cylinder engine, cloth interior, and hatchback design. The C240 also is not criticized because it is a vast improvement over the car it replaced.

The US simply views hatchbacks as lower level cars. Not saying that is right or even makes sense, but that's just the way it is.

I agree it brings a "we don't take ourselves as seriously" attitude, but why did MB need a change of attitude? They seemed to be a highly successful company with the old attitude, which was in place of 100+ years.

Whether the Hatch was a good idea, I think, is honestly debatable. I see good arguments on both sides.
Old 03-20-2002, 05:28 PM
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Originally posted by SoCal240/6
The C240 doesn't have any of the things that the Hatch is picked on for: 4 cylinder engine, cloth interior, and hatchback design. The C240 also is not criticized because it is a vast improvement over the car it replaced.
I have to agree w/ SoCal here. To me, the C sedan is a "mini" E class, whereas the coupe is made for a whole differnt crowd. I don't mean this in a bad way. Even though it may be based on the sedan, it presents a completely different attitude, and I think that's where the distinction is made.

Originally posted by trench
I wonder if the Coupe had come with MB-TEX instead of cloth if the comments the interior materials being cheap would come up as often? Or if the cloth had a simple solid color instead of the weird pattern (which is a love it or hate it style)?
I think that's a resounding "YES"! (IMO). I think the biggest faux-pas with the cloth is the pattern. To me, it's as far from upscale as it could possibly be. I couldn't believe it when I first saw it . Maybe they should have offered cloth or MB-Tex/leather inserts as a standard choice, with the premium leather upgrade. I had posted to the earlier thread which was deleted, but I think the decision to offer the cloth was two-fold. Price for one, and also the target audience is probably coming from less expensive cars (sans leather) and leather may put them off.

Last edited by MarkL; 03-20-2002 at 05:31 PM.
Old 03-20-2002, 05:39 PM
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Well, since you brought it up, the main criticism of the c240, obviously, has been the lack of hp. So, if they had remained with a c230k sedan, what do you think the press would have said? I think that they would have said "Good hp, but unrefined 4-banger in a Mercedes still? Why can't they put in a six with similar hp?" Which the 2.6 isn't. So, I don't think that MB can win with the US press on the low end in any case.

If the press were really unbiased in its attacks against the ccoupe, they would point out that you can get the leather for 1400 and still have a reasonable price point. But I have yet to see a review point this out.

Yeah, you can't do anything about the hatch bias. People in the US won't get past that, no matter what you do.

I think that MB needed to take the pole out of its collective a$$ because it can't survive as an uptight purveyor of $45-125k sedans forever, especially when it has many more competitors than it used to who actually put out cars with some interesting features and design elements. I think a sense of humor is very important for everyone, including luxury car makes.
Old 03-20-2002, 06:46 PM
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As I read through the past posts, I think that people are talking about two different things, although they are closely related. Mercedes Business, and Mercedes Brand Image. I think introducing the coupe at a lower price point and targeting a new
customer for MB makes good business sense. You can see the success that BMW has had with this, and even Lexus. However, adding a lower priced hatchback if you will with cloth seats, plus the fact that you are targeting a younger customer could have an effect on the US Mercedes Image. It is true that MB has lower price cars in other countries (the A for example), however, the brand image of Mercedes Benz is different there. It is still a strong image for quality and class, however, I think that the
american image for MB has always been of a slightly higher class.

As far as the media "slamming" the coupe, well, I kind of feel it's politics also. The "hatchback" has failed for BMW (although for different reasons), and I don't think the media wants to get caught endorsing a car that may not survive.

In my opinion, I don't believe the image of MB will suffer that much from the coupe, and I think it makes good business sense to continue to market it in the USA.
Old 03-20-2002, 07:02 PM
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Originally posted by MB-BOB
I have a feeling, based on what we hear about MB abroad, that they would succeed if they never sold another car in the US. However, as long as they want to play here, (and it IS important to play in the US) they are struggling to find ways to attract new buyers. Let's face it. 150,000 total yearly sales in the US barely blips the radar screen at GM, or Ford, in their worst years.
Where can I find those sales figures of different car companies?

What are the figures of GM and Ford? Just curious.
Old 03-20-2002, 07:37 PM
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Stop beating a dead horse. Who cares about MBs quest for an image.
Old 03-20-2002, 09:29 PM
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C230 K coupe Orion blue, Evo, prem leather roof, premium sound and cd changer, auto.
The only brand dilution M-B has to worry about are the cheap knock offs coming out of Lexus Toyota
Old 03-21-2002, 12:01 AM
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Originally posted by pixmation


Where can I find those sales figures of different car companies?

What are the figures of GM and Ford? Just curious.
here you go:

autosite

personally i think it was imperative that mercedes offer something like the coupe (maybe with leather and/or cd changer).

Young professionals, fresh outta college, working at their first 50k a year job.... Where do you think the the 20somthings are gonna go to get cars??? bmw... they are hip and cool, or maybe an acura, same as the familiar hondas they were always driving with a touch more luxo. or possibly lexus, apparently that is the new benchmark for luxury for the democratic party

Mercdedes had very little to offer this demographic, and its the 20-35 target group that has the new big disposable income. and the c240 and c320 sedan really didnt cut it (ever see their median driver age???? its like 40 something).

The future of a car manufacturer like mercedes or BMW is to lock into a buying segment and take them from c class to m class to e class. through the entire product line. The average AMG benz buyer has owned 2 previous mercedes. If MB doesnt keep repeat business, and grow a customer from thier 30s to their 60s then MB will not remain a major manufacturer in the US. Its that simple.

was the coupe the perfect way of doing this?? no probably not. is it an ok attempt??? yes.
Old 03-21-2002, 06:41 AM
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C230K Coupe/Orion/C4/C5/CD/AMG Spoiler/V60/TeleAid, 2 MGB's
They've reportedly sold 18,000 + units.....that's 18,000 they've swept away from some other brand. Does that "hurt" their image? NAH!
Old 03-21-2002, 08:07 AM
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Originally posted by Goggles Piasano
The only brand dilution M-B has to worry about are the cheap knock offs coming out of Lexus Toyota
Amen to that! I don't know how many times I've thought "If you wanted a Mercedes, why didn't you just buy a Mercedes?" When I've seen some of those Lexuses, er, Lexi???
Old 03-21-2002, 08:26 AM
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2002 Mercedes-Benz C230 Kompressor Sports Coupe
Mercedes-Benz is not a brand built on exclusivity. So their brand will remain strong as long as they focus on what they are known for. Engineering excellence, Quality, and Design.
Old 03-21-2002, 09:39 AM
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Originally posted by Flashman
Mercedes-Benz is not a brand built on exclusivity. So their brand will remain strong as long as they focus on what they are known for. Engineering excellence, Quality, and Design.
Flashman, I agree with this statement, however, you have to admit that here in the US, the brand "Mercedes Benz" does have a "class" standing as well. Although I don't believe the C Coupe will hurt the MB Image, it does go (somewhat) against this standing. I only say this because of the target customer that it appears MB is going for with the Coupe.
Old 03-21-2002, 10:23 AM
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Originally posted by revstriker
As far as the media "slamming" the coupe, well, I kind of feel it's politics also. The "hatchback" has failed for BMW (although for different reasons), and I don't think the media wants to get caught endorsing a car that may not survive.
Rev, I like your previous comments, and I think you're on to something with the above, namely that the media was caught endorsing something that ultimately failed, which reflects poorly on the media's endorsement... They don't want to stick their necks out for fear of a repeat...

However, I would add several other twists on it.

IMO, the media doesn't want to get caught endorsing the Coupe, because:

a) it would (unintentionally) rub it in BMW's face if the Coupe succeeds...
b) any Coupe success would put (financial) pressure on BMW to respond (in the US)...
c) endorsing the Coupe would run counter to the media's long standing love affair with BMW...

BMW has always been perceived as the underdog in the fight with Mercedes. Everyone likes to root for the underdog. And, it's a known fact that the underdog has to "try harder" to use an Avis slogan. Trying harder also means spending more money on advertising. And I see a good deal more advertising for BMW than for MB. And, with the media, it's all about the money. You don't do any of the above if it embarrasses one of your biggest advertisers, period.

Back on topic with mistakes MB made with the Coupe... I agree the biggest mistake was to include the cloth as standard (in the US). Although I don't believe it was intentional. I'm sure cloth is perfectly acceptable in MB's (on several models) everywhere else in the world. So, MB thought it should be (or could be made) acceptable here.

Instead, the US media perceives it as "going cheap" in a market where (they assume) leather/pleather is expected. Ditto for perception of the 4-banger, and the "hatchback" moniker. Though personally, I've seen LESS focus on the "hatchback" baggage lately.

In hindsight, if the target deomgraphic for the Coupe in America was age 30+, MB should have gone with MB-Tex as a minimum, and... dare I suggest... auto tranny as standard.

But, again, to restate. If the A-Class were available here, IMO, there would be no attention whatsoever given to the "cheap" Coupe, cloth seats or otherwise. If the media is inclined to bash on the market leader, they will ALWAYS seek out the bottom feeder in the line-up, where it's safer (politically) to throw rocks. Because Mercedes advertises, too.

Last edited by MB-BOB; 03-21-2002 at 10:29 AM.
Old 03-21-2002, 01:08 PM
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Originally posted by Spyke


Amen to that! I don't know how many times I've thought "If you wanted a Mercedes, why didn't you just buy a Mercedes?" When I've seen some of those Lexuses, er, Lexi???
Maybe because in many ways, Lexus has "built a better Mercedes."

I would personally not buy a Lexus, but I have to admire what Toyota has done with Lexus in only 10 years. They have taken a made up name that did not even exist 10 years ago, and have given it an enormous amount of market value. In fact, the word "Lexus" has become synonomous with quality ("This dishwasher is the Lexus of dishwashers!")

Go shut and ES300 door, and a C320 door, and see which one sounds more "Mercedes-like."

Lexus also has an extremely good reputation for quality and quality control. And customer service (Lexus really invented modern automotive customer service standards). All things that MB unfortunately does not excel in at this time (certainly not in my personal experience).

Lexus cars are not inexpensive, yet lots of people flock to them, and they have a very, very happy and satisfied customer base. While I would not buy one (Japanese cars, no matter how good, don't do anything for me), I would not bash Lexus either, they are a high quality car that has given MB and BMW far more competition than anyone would have expected.
Old 03-21-2002, 01:59 PM
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Still beating the dead horse

nt


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