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Friday, September 29, 2006

Mercedes won't sell small car in U.S.

This is not what we expected to hear from MB, after seen the spy shots, but it looks like Mercedes-Benz will not sell the B or the A-class in the US after all. Reuters spoke with the Group sales and marketing Chief Klaus Maier, where he told them that "...his group did not want to dilute the brand by moving too far down market." This of course was always the risk, even with the introduction of the Smart car. Even though, the Smart was a different company, Mercedes was afraid that since they own the company people would associate them with the Smart Company. This is a bit different, and we can all understand their fear, but the A and B-class didn't dilute the brand in Europe, why should they here.

More from the article:
"Exchange rates also play a role in the company's calculations. Mercedes originally dropped plans to market its German-made B-Class car in North America because the strong euro made sales there unattractive."

"You have to consider very carefully whether the investment to introduce the B-Class (in North America) would pay off," he said, pointing out that the car, launched in Europe last year, would be two years old by the time it reached America.

Mercedes is launching more fuel-efficient models in a bid to capture consumer demand and compete with Asian rivals whose more economical cars are in favour.

Maier ruled out selling a Mercedes-Benz model under the Chrysler brand in North America.
posted by Muamer Hodzic @ 9/29/2006 10:14:00 AM    
  • At 9/30/2006 05:10:38 PM, Anonymous said…

    Hmm, for a car they don't plan on bringing to North America, they sure have sold a few in Canada. Last I checked it was part of North America!

  • At 10/01/2006 02:55:24 PM, Muamer Hodzic said…

    That is actually a good point. It is maybe that he meant the U.S. when he said North America.

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