Is the New Mercedes Sports Car a Sales Dud?
10-21-2015, 11:58 AM
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Is the New Mercedes Sports Car a Sales Dud?
http://finance.yahoo.com/news/merced...123004287.html
Is the New Mercedes Sports Car a Sales Dud?
Bloomberg By Kyle Stock
The Mercedes AMG GT is a furious sea creature of a car, arguably sleeker and sportier than any road-mobile Stuttgart-based Mercedes-Benz has produced in its long history. It is billed as "the next great sports car," but good luck spotting one of these garish beasts in the wild.
In its first six months on the market, the vehicle has garnered slightly less than 900 customers in the U.S. Meanwhile, Porsche’s 911, the model that the AMG GT was supposed to compete most closely with, found more than 5,000 buyers in that period. The sports car bragging rights in Stuttgart haven’t swayed a bit.
"Generally, we don’t comment about competitors," said Porsche spokesman David Burkhalter. "The AMG is a fine vehicle, but the 911 sales have been pretty consistent." Mercedes declined to answer questions.
To be sure, volume isn't all that important when it comes to six-figure sports cars. Still, the result is incongruous with the amount of noise the Mercedes marketing machine made over this vehicle. There was a lavish Super Bowl commercial and then a TV spot with a not-so subtle tagline jab at Porsche: "The car you dreamed of as a child has just been overtaken."
The machine itself is fantastic. It’s a sexy slip of aluminum with a fighter-jet cockpit bubbled behind a long, low hood. In its guts, the AMG GT has a hand-built V8 that makes 503 horsepower. Motor Trend magazine recently named it “Best Driver’s Car” in a field that included the coveted Porsche.
The car has its critics. Some contend that it's too big to feel like a great, nimble sports car. But petrol-heads shouldn’t read too deeply into the dearth of AMG GT’s on the road. For one thing, a bare-bones Porsche 911 can be had for $89,400, about $40,500 less than the slinky Merc. And sales numbers don’t always translate to profit.
It’s possible that for all of its Porsche-targeted publicity, Mercedes wants to keep its sportiest car far more exclusive, leveraging a sense of scarcity to make the vehicle seem that much more special. Still, Super Bowl spots don't come cheap.
The vehicle has, however, created an interesting wrinkle in the market. Despite all the breathless head-to-head comparisons in car magazines, the AMG GT doesn't appear to be covering the same ground as the 911.
Of U.S. drivers kicking the tires on the sporty, new Mercedes, most aren't even visiting a Porsche dealership. Only about 13 percent of U.S. drivers looking at the new Mercedes are cross-shopping it against the 911, according to Edmunds.com. Rather, they view Mercedes sedans as alternatives to the AMG GT.
The executives steering the company are probably thrilled about this. The research, engineering, and labor that goes into a six-figure sports car doesn't make for a great economic equation, unless the vehicle can lure buyers for cheaper models in the line. That's exactly what the racy Merc is doing.
"It's a really solid showing for a halo car," said Aaron Lewis, a senior spokesman at Edmunds.com.
So is the AMG GT as good as the 911? Is it better? To Mercedes at this moment, it doesn't really matter.
Is the New Mercedes Sports Car a Sales Dud?
Bloomberg By Kyle Stock
The Mercedes AMG GT is a furious sea creature of a car, arguably sleeker and sportier than any road-mobile Stuttgart-based Mercedes-Benz has produced in its long history. It is billed as "the next great sports car," but good luck spotting one of these garish beasts in the wild.
In its first six months on the market, the vehicle has garnered slightly less than 900 customers in the U.S. Meanwhile, Porsche’s 911, the model that the AMG GT was supposed to compete most closely with, found more than 5,000 buyers in that period. The sports car bragging rights in Stuttgart haven’t swayed a bit.
"Generally, we don’t comment about competitors," said Porsche spokesman David Burkhalter. "The AMG is a fine vehicle, but the 911 sales have been pretty consistent." Mercedes declined to answer questions.
To be sure, volume isn't all that important when it comes to six-figure sports cars. Still, the result is incongruous with the amount of noise the Mercedes marketing machine made over this vehicle. There was a lavish Super Bowl commercial and then a TV spot with a not-so subtle tagline jab at Porsche: "The car you dreamed of as a child has just been overtaken."
The machine itself is fantastic. It’s a sexy slip of aluminum with a fighter-jet cockpit bubbled behind a long, low hood. In its guts, the AMG GT has a hand-built V8 that makes 503 horsepower. Motor Trend magazine recently named it “Best Driver’s Car” in a field that included the coveted Porsche.
The car has its critics. Some contend that it's too big to feel like a great, nimble sports car. But petrol-heads shouldn’t read too deeply into the dearth of AMG GT’s on the road. For one thing, a bare-bones Porsche 911 can be had for $89,400, about $40,500 less than the slinky Merc. And sales numbers don’t always translate to profit.
It’s possible that for all of its Porsche-targeted publicity, Mercedes wants to keep its sportiest car far more exclusive, leveraging a sense of scarcity to make the vehicle seem that much more special. Still, Super Bowl spots don't come cheap.
The vehicle has, however, created an interesting wrinkle in the market. Despite all the breathless head-to-head comparisons in car magazines, the AMG GT doesn't appear to be covering the same ground as the 911.
Of U.S. drivers kicking the tires on the sporty, new Mercedes, most aren't even visiting a Porsche dealership. Only about 13 percent of U.S. drivers looking at the new Mercedes are cross-shopping it against the 911, according to Edmunds.com. Rather, they view Mercedes sedans as alternatives to the AMG GT.
The executives steering the company are probably thrilled about this. The research, engineering, and labor that goes into a six-figure sports car doesn't make for a great economic equation, unless the vehicle can lure buyers for cheaper models in the line. That's exactly what the racy Merc is doing.
"It's a really solid showing for a halo car," said Aaron Lewis, a senior spokesman at Edmunds.com.
So is the AMG GT as good as the 911? Is it better? To Mercedes at this moment, it doesn't really matter.
10-21-2015, 12:25 PM
#2
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I saw this article about an hour ago on yahoo and I was headed over here to post but you beat me to it. I posted a link on the the AMG PL where I made the following comments
"I am not sure if 6 months of sales history on a brand new model compared to Porsche's iconic 911 that is available in numerous trim levels is a fair gauge....but less than 900 units in 6 months is pretty sad."
"I am not sure if 6 months of sales history on a brand new model compared to Porsche's iconic 911 that is available in numerous trim levels is a fair gauge....but less than 900 units in 6 months is pretty sad."
10-21-2015, 12:39 PM
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Agree, and I see just now that Auto Trader list 110 available (wheels on the ground) in the states. New and used ones w/very low miles W/most asking sticker even on used.. (dozen yellow)
10-21-2015, 05:38 PM
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Part of the issue is the supply and the unwillingness of dealers to give test drives. I have been talking to my local Mercedes dealer and he tells me that all their incoming cars are sold or sell pretty quickly at a premium and so they can't offer test drives.
The other issue is pricing in my opinion. Pricing isn't bad, but it is very close to a 911GT or TT. If you look at Porsche sales of GT3, TT and TTS, I'm sure the volumes aren't that high either.
The other issue is pricing in my opinion. Pricing isn't bad, but it is very close to a 911GT or TT. If you look at Porsche sales of GT3, TT and TTS, I'm sure the volumes aren't that high either.
10-21-2015, 06:25 PM
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2020 Audi R8 V10, 2016 AMG GTS, 2018 E63S Edition 1, 2018 Porsche GTS Cab, 2012 C63 BS
Autotrader (Cars.com, etc) is not indicative of what the dealer has on the ground and available all the time. At times they have to list what's inbound, sold, or pre ordered/pre sold and inbound. Its not accurate data but it often allows those who think cars are priced to high based on supply and demand to make points about pricing.
Last edited by Vic55; 10-21-2015 at 07:35 PM.
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10-21-2015, 11:21 PM
#8
Pricing is playing big part in the lower sales numbers.
911 starts out $40K cheaper, which is enough to buy a nice used Mercedes E-Class to go with your brand new Porsche.
911 starts out $40K cheaper, which is enough to buy a nice used Mercedes E-Class to go with your brand new Porsche.
10-21-2015, 11:32 PM
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This has nothing to do with the price.
There is no availability at the dealers. Out of hundreds of cars on the lot there maybe 1 GTS. If any...
Dealers can't get any cars here. Plenty of customers though.
Unlike other AMG's actually build on a Mercedes production line (like the C63 or E63, etc.), the GTS is pure AMG product. Wonder what their actual annual production capacity is.
There is no availability at the dealers. Out of hundreds of cars on the lot there maybe 1 GTS. If any...
Dealers can't get any cars here. Plenty of customers though.
Unlike other AMG's actually build on a Mercedes production line (like the C63 or E63, etc.), the GTS is pure AMG product. Wonder what their actual annual production capacity is.
10-22-2015, 10:31 AM
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2020 Audi R8 V10, 2016 AMG GTS, 2018 E63S Edition 1, 2018 Porsche GTS Cab, 2012 C63 BS
Have you seen whats on a 100k 911? Nothing- the Porsche addendum is the most intricate and buildable list Ive seen and a real world normally optioned 911 similar to the amenities in a GTS is closer to 125k if not 130k. You first need to bump to the S model to advance hp, then interior bumps, exhaust, carbon fiber, stitching, etc. The GTS at 140k is a loaded car IMHO. Of course once can build a GTS into the 150 and 160's with every option but the same can be done with the 911 and the 430hp power kit and heavily optioned car.
Last edited by Vic55; 10-22-2015 at 10:33 AM.
10-22-2015, 01:25 PM
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Try finding SL65's on the lot. There are a few. You can find them. But you have to work at it.
The difference is that the SL has a base Mercedes version that you can find at most dealers, whereas, there is no basic GT that is widely available in inventory. In that regard, SL is more like the 911. There are cars to look at, and you and option and order what you want if you're a specific kinda guy.
I don't see where the GT is any different than the SLS really. It's rare to see them in dealers, rare to see them on the road. And to me, that's definitely part of the appeal. I imagine MB would've had no problem selling thousands more SLS and now the GT if they made a basic base model in commodity production numbers.
But they don't. Because who wants to be driving around in "yet another" of something? The flagship cars are kept limited for a reason... and the reason is not that they just couldn't sell more if they made them.
10-22-2015, 02:13 PM
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You are contradicting yourself. 1 > 0.
Try finding SL65's on the lot. There are a few. You can find them. But you have to work at it.
The difference is that the SL has a base Mercedes version that you can find at most dealers, whereas, there is no basic GT that is widely available in inventory. In that regard, SL is more like the 911. There are cars to look at, and you and option and order what you want if you're a specific kinda guy.
I don't see where the GT is any different than the SLS really. It's rare to see them in dealers, rare to see them on the road. And to me, that's definitely part of the appeal. I imagine MB would've had no problem selling thousands more SLS and now the GT if they made a basic base model in commodity production numbers.
But they don't. Because who wants to be driving around in "yet another" of something? The flagship cars are kept limited for a reason... and the reason is not that they just couldn't sell more if they made them.
Try finding SL65's on the lot. There are a few. You can find them. But you have to work at it.
The difference is that the SL has a base Mercedes version that you can find at most dealers, whereas, there is no basic GT that is widely available in inventory. In that regard, SL is more like the 911. There are cars to look at, and you and option and order what you want if you're a specific kinda guy.
I don't see where the GT is any different than the SLS really. It's rare to see them in dealers, rare to see them on the road. And to me, that's definitely part of the appeal. I imagine MB would've had no problem selling thousands more SLS and now the GT if they made a basic base model in commodity production numbers.
But they don't. Because who wants to be driving around in "yet another" of something? The flagship cars are kept limited for a reason... and the reason is not that they just couldn't sell more if they made them.
My point was that i saw a total of one GTS in the flesh since August and that car was also pre-sold and picked up later that day. All other GTS's arrived pre-sold and dealers here have been pulling cars from other dealers in the region/country. Simply zero availability here in a 500 mile range.
I don't buy the exclusivity part. The GTS is the CHEAPEST car in MB's higher-end line-up and we have plenty of S65, S65 coupes, Maybachs here in the showrooms.
Even the S550 Edition 1 coupe costs more than the GTS Edition 1, as does any flavor of S63 sedan/coupe.
10-22-2015, 09:30 PM
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Interesting article as I too have my doubts about how well the GTS is selling. My dealer has a black one due in December that is unsold and he is worried about it sitting for the winter. Frankly, I don't care. I've never viewed MB as the maker of sports cars - until now. I absolutely love this car - the power, sound, feel, tranny, nimbleness, etc, etc. I took delivery of my Edition 1 in early May and it has been my daily driver ever since. I've logged over 6,500 miles and have loved every second, save for the software issues that plagued the car early on. I also own an R8 Spyder and have had all sorts of Porsches and Ferraris. This car elicits more looks, stares, drools, thumbs up than anything I've ever owned or driven. Everyone absolutely goes nuts over the car. And I can't tell you how many people - non car people - tell me how much they'd rather have the GTS than a 911. Even to the uninformed the 911 has become too pedestrian and most don't know the difference between an $85K base Carrera versus a $200K TTS.
10-22-2015, 11:53 PM
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If a DAI shareholder prob only care abt share price perf and ROI on GTS for AMG/DAI; suspect any China and/or US mkt profit meltdown is far bigger risk than any one AMG/MB model line is for DAI share price
If a customer, only care abt what is driving enjoyment/$ on a 2yr lease for GTS vs any other AMG/P/F: these are all disposable, cheap, obsoleting, fast depreciating devices, just one step removed from any iPhone...but have far grtr safety tail risks than any phone
Ultimately mkt (whether stocks or customers) decides....not poor journos nor valets nor clowns on street nor other poor folks who aren't potential investors/customers....
If a customer, only care abt what is driving enjoyment/$ on a 2yr lease for GTS vs any other AMG/P/F: these are all disposable, cheap, obsoleting, fast depreciating devices, just one step removed from any iPhone...but have far grtr safety tail risks than any phone
Ultimately mkt (whether stocks or customers) decides....not poor journos nor valets nor clowns on street nor other poor folks who aren't potential investors/customers....
10-23-2015, 09:19 AM
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I sat in a 911 turbo s at dealer and that interior was really pathetic. Center stack and its plastic buttons looked like it should be in a vw gulf.
10-30-2015, 02:36 AM
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17 SL550 (Designo Edition), 08 C300, 13 Mini Cooper, 17 Macan GTS, 18 720s
For what it's worth, I live in the largest M-B market in the world with the largest dealer - Fletcher Jones and I have yet to see one GT/GTS at the dealer or in the wild around So. Cal. I asked my dealer and he said they are all pre-sold and all going at MSRP or above.
I see 000's of P-Cars each week and 10's of Ferraris, Lambo's and Macca's, yet not one AMG GTS, either it is a spectacular dud or truly in high demand, either way I want to see one and take it for a drive, perhaps a spider is in my future,
MB
I see 000's of P-Cars each week and 10's of Ferraris, Lambo's and Macca's, yet not one AMG GTS, either it is a spectacular dud or truly in high demand, either way I want to see one and take it for a drive, perhaps a spider is in my future,
MB
Last edited by F456 V12; 11-01-2015 at 01:24 AM.
10-30-2015, 09:49 AM
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For what it's worth, I live in the largest M-B market in the world with the largest dealer - Fletcher Jones and I have yet to see one GT/GTS at the dealer or in the wild around So. Cal. I asked my dealer and he said the are all pre-sold and all going at MSRP or above.
I see 000's of P-Cars each week and 10's of Ferraris, Lambo's and Macca's, yet not one AMG GTS, either it is a spectacular dud or truly in high demand, either way I want to see one and take it for a drive, perhaps a spider is in my future,
MB
I see 000's of P-Cars each week and 10's of Ferraris, Lambo's and Macca's, yet not one AMG GTS, either it is a spectacular dud or truly in high demand, either way I want to see one and take it for a drive, perhaps a spider is in my future,
MB
exclusivity.
10-31-2015, 04:20 PM
#20
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I live in Orange County and have seen several AMG GT-S. Two E1, a yellow, a Grey and a red one.
FJ in Newport Beach is ran by a liar, don't listen to them. IMO GT-S is selling the way Mercedes wants it to sell.
It's still on my list. My next car is either a GT-S or 991.2 GT3 as I've moved on from C63.
FJ in Newport Beach is ran by a liar, don't listen to them. IMO GT-S is selling the way Mercedes wants it to sell.
It's still on my list. My next car is either a GT-S or 991.2 GT3 as I've moved on from C63.
11-01-2015, 01:21 AM
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17 SL550 (Designo Edition), 08 C300, 13 Mini Cooper, 17 Macan GTS, 18 720s
Saw my first one today in the wild at Cars and Coffee Aliso Viego. Very attractive mat silver, black interior with Pano trim. The car was much larger than I expected and very attractive. You can definitely see its DNA on display, very long front end and short tail, very much appreciated and liked the aggressive posture, something I will consider when the SL550 lease is up.
MB
MB
Last edited by F456 V12; 11-02-2015 at 11:48 PM.
11-01-2015, 01:57 AM
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Ha, this article suits me just fine. With 2 911's on every corner, I'll stick with the exclusivity. To date, I've seen one GTS parked on the street and was the very reason I bought one. He's a member on this board. I thought it was that good looking. Considering I've seen 2 La Ferrari's in the wild (and 2 in the cage at the dealer), 1 Pagani Huayra, and 2 Porsche 918's in the last month, that's rare company. Heck, I hope they discontinue it and make ZERO more of these cars. I'd probably keep it longer.
11-01-2015, 08:21 PM
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For what it's worth, I live in the largest M-B market in the world with the largest dealer - Fletcher Jones and I have yet to see one GT/GTS at the dealer or in the wild around So. Cal. I asked my dealer and he said they are all pre-sold and all going at MSRP or above.
I see 000's of P-Cars each week and 10's of Ferraris, Lambo's and Macca's, yet not one AMG GTS, either it is a spectacular dud or truly in high demand, either way I want to see one and take it for a drive, perhaps a spider is in my future,
MB
I see 000's of P-Cars each week and 10's of Ferraris, Lambo's and Macca's, yet not one AMG GTS, either it is a spectacular dud or truly in high demand, either way I want to see one and take it for a drive, perhaps a spider is in my future,
MB
11-01-2015, 10:08 PM
#25
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I see 5. But someone else posted a picture of a yellow one (I think in an S550 thread) that seemed to be from there as well.
GTS for Sale in Newport Beach, CA
5 Matching Vehicles Found
Black 1
Gray 2
Red 1
White 1
GTS for Sale in Newport Beach, CA
5 Matching Vehicles Found
Black 1
Gray 2
Red 1
White 1
Last edited by nycphotography; 11-01-2015 at 10:12 PM.
