FT: Mercedes new models hit by Quality Problems
11-02-2004, 04:04 AM
#1
Almost a Member!
Thread Starter
Join Date: Feb 2004
Location: Madrid, Spain
Posts: 60
Likes: 0
Received 0 Likes
on
0 Posts
FT: Mercedes new models hit by Quality Problems
This Friday I read in the Financial Times (Europe version) that Mercedes is not doing so good in quality.
The article is called: “Mercedes new models hit by Quality Problems”, and below I copied some of the main phrases on the article.
In this article there is as well a graph which shows that Mercedes vehicles have gone from 1st position in 1990 to 28th position in 2004 in terms of Vehicle Reliability Ranking (based on problems reported)
(number 1 is most reliable).
_____________________
“Third quarter profits plunged at the earnings powerhouse of Germany’s Daimler Chrysler because persistent poor quality had force it to delay the launch of new models”
“Sales have already fallen behind BMW its Munich rival, for the first time in seven years”
“Mercedes this year admitted its luxury cars, known for their reliability and steady earnings, were prone to breakdown”
“Cash from Mercedes has sustained the company through several years of looses at its Chrysler and heavy truck divisions, which are now profitable.”
“Max Warburton, a motor analyst at Goldman Sachs, said Mercedes was having to take expensive – stop gap measures – to try to fix quality rapidly.”
“Maria Bissinger, Mottor Analyst at Standards & Poor’s, the rating agency , said the problems at Mercedes were a – Causo for Concern. Mercedes has been beset by product quality problems necessitating costly actions to prevent further harm to its brand image – ”
_____________________
WHAT IS HAPPENING WITH MERCEDES ?????????
The article is called: “Mercedes new models hit by Quality Problems”, and below I copied some of the main phrases on the article.
In this article there is as well a graph which shows that Mercedes vehicles have gone from 1st position in 1990 to 28th position in 2004 in terms of Vehicle Reliability Ranking (based on problems reported)
(number 1 is most reliable).
_____________________
“Third quarter profits plunged at the earnings powerhouse of Germany’s Daimler Chrysler because persistent poor quality had force it to delay the launch of new models”
“Sales have already fallen behind BMW its Munich rival, for the first time in seven years”
“Mercedes this year admitted its luxury cars, known for their reliability and steady earnings, were prone to breakdown”
“Cash from Mercedes has sustained the company through several years of looses at its Chrysler and heavy truck divisions, which are now profitable.”
“Max Warburton, a motor analyst at Goldman Sachs, said Mercedes was having to take expensive – stop gap measures – to try to fix quality rapidly.”
“Maria Bissinger, Mottor Analyst at Standards & Poor’s, the rating agency , said the problems at Mercedes were a – Causo for Concern. Mercedes has been beset by product quality problems necessitating costly actions to prevent further harm to its brand image – ”
_____________________
WHAT IS HAPPENING WITH MERCEDES ?????????
11-02-2004, 02:17 PM
#2
MBWorld Fanatic!
Join Date: Dec 2002
Location: Scottsdale, Arizonai
Posts: 2,719
Likes: 0
Received 1 Like
on
1 Post
'85 190E 2.3-16 '99 C280 '11 GLK350
Jav, you're just learning this now? Quality problems at Daimler have been known long before 2004, particularly the electronic systems that control the drivetrain in the passenger cars. The early versions of the M-Class, built in Alabama, was a disaster as well.
11-02-2004, 03:07 PM
#3
MBWorld Fanatic!
Join Date: Apr 2003
Location: San Antonio, Texas
Posts: 1,252
Likes: 0
Received 2 Likes
on
2 Posts
2016 BMW Z4 sDrive35i M Sport
...And to think...a lot of people here said not to blame the merger. Not pointing any fingers or trying to start a fight, but that merger was the worst thing that could've ever happened to Mercedes-Benz. You can say what you want about the quality already starting to fall before the merger, but I believe that if it didn't happen, the quality wouldn't be THIS bad. They better get their priorities straight and get on the ball with their cars. Hell, the quality issues are the reason I'm not getting another Mercedes.
11-03-2004, 04:55 AM
#4
Almost a Member!
Thread Starter
Join Date: Feb 2004
Location: Madrid, Spain
Posts: 60
Likes: 0
Received 0 Likes
on
0 Posts
MTI,
Actually it is the first time I see this bad assessment in the news paper (so openly).
Before I red about the situation and discussed with other people or in the forum about the merger and so on, but I did not see such bad reports as in the article.
Even before I bought the W211 this year I heard it, but I thought Mercedes was such an important brand that they would be over this issue and managing the brand in such a way to make it shine again.
It appears I was either blinded by the brand, or that I still believe there is light at the end of the tunnel (I hope so).
Actually it is the first time I see this bad assessment in the news paper (so openly).
Before I red about the situation and discussed with other people or in the forum about the merger and so on, but I did not see such bad reports as in the article.
Even before I bought the W211 this year I heard it, but I thought Mercedes was such an important brand that they would be over this issue and managing the brand in such a way to make it shine again.
It appears I was either blinded by the brand, or that I still believe there is light at the end of the tunnel (I hope so).
11-08-2004, 10:15 PM
#5
Senior Member
Join Date: Jan 2002
Posts: 347
Likes: 0
Received 0 Likes
on
0 Posts
Not a Benzer anymore
Light at the end of the tunnel
Doesn't really help while you are driving through it...
Its nice to know for your next MB (if), but doesn't help or reassure anyone if they are a current owner with an issue that doesn't get resolved the first time or with 100% customer satisfaction...
=====================
Not saying anything, but overall, I guess this is a typical business problem...
How to increase profit, sales, and market share in a very competitive business which has an increase in fixed costs associated with it, without decreasing quality, alienating existing customers, keeping within price range of your competitors, at the same time as reaping bazillions in stock options and salaries for the executive management team.
Its nice to know for your next MB (if), but doesn't help or reassure anyone if they are a current owner with an issue that doesn't get resolved the first time or with 100% customer satisfaction...
=====================
Not saying anything, but overall, I guess this is a typical business problem...
How to increase profit, sales, and market share in a very competitive business which has an increase in fixed costs associated with it, without decreasing quality, alienating existing customers, keeping within price range of your competitors, at the same time as reaping bazillions in stock options and salaries for the executive management team.
Last edited by EddieGTP; 11-08-2004 at 10:24 PM.
11-09-2004, 06:04 AM
#6
Member
Join Date: Nov 2004
Location: Sf Bay Area
Posts: 112
Likes: 0
Received 1 Like
on
1 Post
2003 E500, 1998 Ferrari Spider
That is why we are protected as consumers (in the USA) by the Lemon Law. Three strikes and they are out. Everytime they have to give someone a new car I am sure it wrecks havoc on the P&L. I am sure that they do not want that to happen too many time$$.
11-09-2004, 12:15 PM
#7
Member
Join Date: May 2002
Posts: 229
Likes: 0
Received 0 Likes
on
0 Posts
SL500
Umm, very old news. Don't misunderstand me I'm not defending MB but it is common knowledge that 1996-2002 MB's had/have major issues. My Dad is driving a 2004 E500, other than the recall - no problems. The 'quality' of that car is far and away better than my 2002 CLK & the previous generation E.
As for MB's slip in profit, GOOD, it's a sign they are spending more money on quality control. Delaying production, ANOTHER POSITIVE, let them work out their quality bugs so we don't have to. BMW, Lexus & eventually Cadillac (in the US anyway) sell more cars, so what? Profit is the name of the game, not volume.
The first step to healing is admitting there is a problem, MB has done that. Hopefully they are serious about their quality.
As for MB's slip in profit, GOOD, it's a sign they are spending more money on quality control. Delaying production, ANOTHER POSITIVE, let them work out their quality bugs so we don't have to. BMW, Lexus & eventually Cadillac (in the US anyway) sell more cars, so what? Profit is the name of the game, not volume.
The first step to healing is admitting there is a problem, MB has done that. Hopefully they are serious about their quality.
Trending Topics
11-09-2004, 10:11 PM
#9
Originally Posted by MBZman
Umm, very old news. Don't misunderstand me I'm not defending MB but it is common knowledge that 1996-2002 MB's had/have major issues. My Dad is driving a 2004 E500, other than the recall - no problems. The 'quality' of that car is far and away better than my 2002 CLK & the previous generation E.
As for MB's slip in profit, GOOD, it's a sign they are spending more money on quality control. Delaying production, ANOTHER POSITIVE, let them work out their quality bugs so we don't have to. BMW, Lexus & eventually Cadillac (in the US anyway) sell more cars, so what? Profit is the name of the game, not volume.
The first step to healing is admitting there is a problem, MB has done that. Hopefully they are serious about their quality.
As for MB's slip in profit, GOOD, it's a sign they are spending more money on quality control. Delaying production, ANOTHER POSITIVE, let them work out their quality bugs so we don't have to. BMW, Lexus & eventually Cadillac (in the US anyway) sell more cars, so what? Profit is the name of the game, not volume.
The first step to healing is admitting there is a problem, MB has done that. Hopefully they are serious about their quality.
