Streamliner

The site Motor Authority reports:

“Daimler's sales in the second quarter of 2020 fell 34% from levels a year ago, resulting in a loss for the quarter of 1.91 billion euros (approximately $2.21 billion). The automaker is now in negotiations to reduce plant capacity and jobs.“

Of course, Daimler produces things other than MB passenger vehicles, but you get the idea.

Last week, I was at a larger MB dealer in Orange County, CA and they had over 40, brand new S Class sedans. Another close by dealer shows over 80 in stock. Are they just stocking up, looking towards a gap in the S Class supply chain, before the W223 models get here, or is there a glut of inventory? It’s going to be interesting to watch this unfold over the next few months.

MBS63AMG

That being said, it would be a great time to ****** up a 2020 W222 as all glitches are probably gone and the add-ons are pretty much standard.

teksurv

My guess is that they are stocking up. Orange County is a rather wealthy neighborhood, I can't imagine much difficulty in moving S Class inventory. I'd have to check San Diego dealer inventory, but I would imagine it is less.

superpop

I read somewhere that auto loan payment defaults were 18 times higher this year as compared to last year. Lots of people are not paying car payments, I predict great values on used cars in the next 6 months along with heavy discounts on new cars, particularly luxury cars.

bkdc

Probably a combination of both. FJ sells more Benzes than any dealership in the nation. I can imagine the lot is stocked. Probably a combination of decreased sales and anticipation of a new model. The wealthy Newport Beachers and OC residents are probably more insulated from economic suffering and yet, the working wealthy and most businesses have taken a hit. Sales are clearly down. I think we are going to see more economic suffering as we head into influenza season in November. It will be emergency room mayhem with flu-like illnesses. I bet many people will test positive for both Covid and flu.

Streamliner

I just checked a few other SoCA dealers. Penske in West Covina has 146 and House of Imports in Buena Park has 118. Neither of these areas are what anyone might call upscale. Something else is going on here. I can’t imagine it being anything other than a buyer’s market through the end of the year.

Lanzz

Was interesting to speak to my dealer here in Charlotte - when the bottom fell out of things in March/April, they said they were able to take extra inventory in order to cushion against expected factory shut downs and shipping interruptions due to COVID-19. They took nearly 100 additional cars - which is serving them well, because they still have a decent selection (many S class to the point of the OP) and things are moving briskly. I agree that the overall economy isn't healthy, there are enough pockets of strength that their move looks wise in hindsight. A megadealer like FJ may have done something similar.

valley_isle

I am finding the same situation with various dealers in the Midwest--inventories are much higher than normal and MB is pushing heavily subsidized leases on the cars. My local dealer has three times his normal inventory on hand and told me sales have slowed dramatically for the model. Whether it can be chalked up to the economic slowdown or anticipation of the W223 remains to be seen.

syswei

Both imo. How many restaurant, bar, gym, or movie theater owners are going to want as nice a car as they might have purchased pre-Covid? If they can afford a car at all at this point.

But there could be a third factor at work...W223 might not be available in the U.S. until Q1 or even Q2. So unlike a normal year when they'd be getting cars in in the Fall, the dealers may need inventory to last awhile.

valley_isle

My local dealer told me that Mercedes will adjust dealer allocations and roll out of the W223 based on how the Covid and the economic situation plays out between now and Q2 2021. They don't want dealers to have a glut of unsold W223s, because that can damage their brand image with a new model like this. Hence, the W223 roll out to US dealers will be more measured than it would have been pre-Covid.

Mitch Alsup

It is funny, that when people are all cooped up and can't go anywhere or do anything, that the automobile become an expendable device.

syswei

If MB is going to be "flexible" and "play by ear" the timing of W223 shipments, so as not to hurt dealers/image, then more W222 inventory that is out there, the later we might actually be getting the W223 in this country. Interesting thought, if true; timing then depends in part on the economy.

drose224

9 S series

valley_isle

True, but I can't see how they can manage their supply chains effectively with the 223 roll out, given that they may have suddenly had to change plans mid March 2020. They may even sell the 223 side by side with the leftover 222s (there may be many, depending on economic fallout), with the 222s having heavily subsidized lease and finance deals to entice shoppers.

DABRONX

Anybody buying and seeing how this translate discount wise? What does everyone feel discounts from MSRP should be.

Funny the used car market dipped and now inventory is almost zero. Look on Autotrader there is nothing for sale. Was looking to pick up another G wagon and I should have not gotten greedy and waited for further discounts but with another wave will see what happens its not exactly a necessity.

Tom in Austin

Sounds like 'stuffing the channel' if you ask me ... when a mfg is in trouble financially, they try to put as many cars as possible on the dealer's lots because they count those as sales and recognize revenue.

rakaye47

I'll buy a W222 at 50% below MSRP

2012 merc amg

I think there will still be demand for the 222's as some people don't want the 223. I'll eventually be getting a used 2020 222 in a few years probably.