SleeperX

IMO, Mercedes Benz made a huge mistake when they launched the CLS because it is cannabalizing the E55. Choose one or the other, but not both as your mid 4 door sedan. They tried to pass it off as a coupe and it is not. No one is deciding between a CLS and a CLK. The CLS is a beautiful car, but it is destroying the value of the E55. If MB had any sense, they would have discontinued one or added some serious features to the E55 that the CLS doesn't have.

Mercedes-Benz USA Records 12,469 New Vehicle Sales
2006-02-01 13:35 (New York)



MONTVALE, N.J., Feb. 1 /PRNewswire/ -- Coming off its twelfth year of
consecutive sales increases, Mercedes-Benz USA (MBUSA) today reported sales of
12,469 new vehicles for January 2006, up three percent from last January.

Volume for the month was lead by the C-Class with 3,098 units, closely
followed by the E-Class with 2,465 new vehicle sales. The new generation M-
Class made the highest gains with 1,962 new vehicle sales, a 100 percent
increase over January 2005.

In 2005, Mercedes-Benz significantly enhanced its competitive presence in
the luxury light truck market with the launch of an all-new design of its
popular M-Class model line and took advantage of the opportunity to create a
new segment with the introduction of its R-Class, Grand Sports Tourer. Sales
for Mercedes vehicles in the luxury light truck segment continue to gain
momentum with a 156.6 % increase over January 2005. In 2006, the company
plans to continue to expand its presence in the luxury light truck segment
with the introduction of the GL-Class.

In February, the flagship 2007 S-Class, which has shaped the upper echelon
of the luxury market for five decades, arrives in Mercedes dealerships across
the company.

Separately, the Mercedes-Benz Certified Pre-Owned vehicle program reported
sales of 3,066 units, a 12.9 percent decrease versus the previous January.


MBUSA, headquartered in Montvale, New Jersey, is responsible for the
sales, marketing and service of all Mercedes-Benz and Maybach products in the
United States. In 2005, MBUSA achieved an all-time sales record of 224,421
new vehicles, setting the highest sales volume ever in its history and
achieving twelve consecutive years of sales growth. More information on MBUSA
and its products can be found on the Internet at http://www.mbusa.com and
http://www.maybachusa.com.


......................... ..January...January...Monthly...YTD......Yearly... ....

.....Model.................'06..........'05....... ..%......2006.........2005.......%

......E-CLASS............2,465.......2,725.....-9.5%....2,465......2,725...-9.5%

......CLS-CLASS..........901..........778.......15.8%.....90 1........778....15.8%

SOURCE Mercedes-Benz USA


CONTACT:
Donna Boland, +1-201-573-6893, or Nicole Patzer, +1-201-573-2799, both of
Mercedes-Benz USA; or Toll-Free, 1-888-MBNEWS-1
-0- Feb/01/2006 18:35 GMT

DRCrowder

1. the CLS uses like 90% of the E's parts. This means that it doesn't add much, if any additional cost to make a CLS.

2. the CLS is an upsale, so moving someone from an E to a CLS is a victory in the eyes of MB

3. the numbers you show support the CLS as an awesome move for MB, if you add the two numbers together, it shows they grew the segment and every CLS sale is an upsold E.

tommaey

By just looking at 1 year of sales, does not prove that the CLS is taking away sales of the E-class. I'm sure it does affect the E-class sales somewhat, but keep in mind the W211 is nearing the end of its life cycle. I doubt sales would increase in the year before a facelift/2 years before replacement.

SleeperX

1. Might be true. Can't comment because I don't know what parts are shared other than the drivetrain. Does seem like MB does a good job of creating a bunch of different models with the same parts.

2. Upscale my *ss! The only reason why the CLS is perceived to be upscale is because there is not CLS350 to dilute the model. It is not a CL. It is a CLS. Why do you think it is upscale because they can charge you more money for it and get away with it. Sorry I don't think it is upscale. I think it is a new model that they can rip you off for in the first few years of launch.

3. I don't agree at all. First add the numbers up and you will see that YoY the combined sales fell 3.9% to a total of 3,366 from 3,503. It is cannabalizing because customers like myself who won't buy a CLS will just go to BMW. I had a BMW and switched to MB and now they pull this sh*t. I bet you BMW won't put a coupe/sedan between the M5 and the M6. It is stupid. They should have 1 mid level sedan. Think about it. We shouldn't even be having this conversation.

DRCrowder

Upsale... Upsale, my man, not upscale. all i am saying is the MB gets more money for it.

heh and you go to BMW because the cls is offered? makes no sense. the E is still available it's not like they took anything from you.

MG0427

I heard this by many dealer in my area. The say ever since the CLS hit the street the E55 sells have dropped. Their feeling was that the E55/CLS55 buyer moves up to CLS due that is more refined (stitching on interior like the CL), and sportier look. The all believed that CLS55 or 63 will be MB's lead sport car in sales and will continue to hurt E55 sales.

MG

Ted Baldwin

......As another member has said, profit is profit for mercedes regardless of if it comes from CLs or from the E-class. If the E-class completely stops selling but those sales are made up for by the CLS, then it won't matter. I think it is interesting how mercedes has succeeded in greating a lot of buz with CLS by simply re-packaging the E-class. Brilliant I think.

Ted

siswati

E vs CLS

With regard to the AMG sales of these two models, AMG produces 1250 units (or is it 1850?) of every vehicle, except the E55 which it produces 2500 per annum.

The E55 is the most popular AMG vehicle, partly because it is so multifunctional - great for carrying 4 people in absolute comfort, and even 5 in a pinch. This is not the case with the CLS - transporting 4 people for any length of time is tough on the rear passengers for sure.

In my opinion I do not see the CLS as becoming the new E. As has been said, its a new up-sell model (4 door coupe), and it has a uniqueness in the market (like it or not), but the E will continue to be the best seller.

Yes, sales of the E55 have been hurt by the M5, and by the CLS55, but even if these vehicle had not been launched you would see a similar drop in sales in the 3rd or 4th year of a vehicle's life cycle, as the exclusivity factor wears off, and especially as rumours of the new model (E63) start to circulate.

Also note that the exclusivity aspect of the E55 drops off faster as there are twice as many of them produced compared to the other AMG models.

I still believe the E55 is a kickass car, and exceptional value in my opinion. The reason I bought a CLS55 was that I ws definitely drawn to the styling (and not everyone likes it), plus I realized that there would be very few of them EVER produced pror to the CLS63 launch, and I wanted to have a fairly exclusive car with the awesome 55k motor for the next couple of years at least.

I for one at this point am not sure that the NA 63 will be for me - I do not want to wring my car into "GO STRAIGHT TO JAIL, LOSE YOUR LICENSE" territory to have fun with it - 99.9% of my driving is under 90mph and thats where I want to have my fun - and the 55k motor is very tough to beat in this area

just my $0.02

SleeperX

Well said. Makes a lot of sense!!!!

vixapphire

and that's before one even gets into the whole Chrysler 300, Dodge Magnum, Chrysler Crossfire thing. Brilliant indeed.

vixapphire

everything you've said is spot-on. while i'm one of those who's not all that partial to the cls' styling (i don't understand the shape of those headlight bezels), i'll say that the photo of your car on your sig is pretty darn mouthwatering nonetheless!

siswati

thanks vixapphire appreciate the comments

The interesting difference about the two cars is in the attention they receive. I had my E55 for 18 months and seldom did anyone ever give it a 2nd glance - only those that knew the AMG badge or the E55 badge turned around and looked at it as they walked past in the parking lot. the only attention it ever got was at the Moroso drag strip when all the kids would come and ask me what I had done to my Benz after blowing awasy the Stangs and Vettes (it was stock - 12.169 best ET)

That is definitely not the case with the CLS55 - it stops people in their tracks, they turn around, call their freinds, wives girfreinds and stop and look, peer inside. Yesterday outside teh Westin Diplomat a guy literally fell over teh parking curb as he continued to walk looking at the car overhis shoulder. His wife just shook her head. And I doubt that its the AMG or CLS55 badges drawing them in, its just the overall styling. Like I said some love it others hate it.

Not saying all the attention is a good thing - I really enjoyed the ultimate sleeper approach of the E55, and I never once worried about getting keyed. But I am also enjoying the attention the CLS55 brings - its not in the same league as exotic car attention, but its still gratifying nevertheless.

Rafal

What are you talking about, has your calculator run out of batteries? Combined sales of E and CLS in Jan 2005 were 3503, but in Jan 2006 only 3366. A loss of 137units or -4%. It's a slide in my eyes, not a genius strategic move you described

benzmodz

Maybe if you owned an E55 and every taxi on the road was an E-Class then you would consider the C too small and the S too large.

DRCrowder

Try not to be a smart-*** when you attempt to prove your point.

Do some research and see what the expected slide was in light of the E's age, and new comp.. you can't expect to be up every year over the last when you have a cyclical sales cycle for your product.

the CLS has worked out well for MB, it took very little to design and make (RD $ far less than starting from scratch) and they are recouping that RD $ in an increased price.

If you disagree, whatever, but you sound less like an a$$hole when you don't try to be insulting about it.

FASN8N

The CLS may be more refined on the inside, but it is still butt ugly on the outside.

MG0427

it obvious by the number and by people overall reaction to the car that your opinion is the minority side of the fence.