Daimler CEO vows to surpass BMW sales with new Mercedes-Benz lineup

Article by Christian A., on April 5, 2012

CEO Dieter Zetsche of Daimler is determined to surpass BMW in terms of luxury vehicle sales, armed with a range of new Mercedes-Benz models intended to reverse the automaker's decline in market share. At the company's annual meeting in Berlin, he told shareholders that the company is "is on the way to its best form, but is not there yet."

Zetsche further stated that they are "confident" that they can "do more, and that also applies to the share price." The annual meeting is the last chance for Zetsche, who also heads the Mercedes car division, to sell his strategy to shareholders before his contract is up for renewal. He is launching models like the entry-level Mercedes-Benz A-Class hatchback and new versions of the S-class flagship in an effort to get back the lead position in the luxury vehicle race that Daimler lost in 2005. 

The new models are intended to increase sales growth, which averaged 1.4% during the past decade, compared with 7.4% percent at Audi and 6% percent at BMW, according to IHS Automotive's data.

The slow development caused Mercedes' share of the luxury vehicle segment to fall from 25% in 2001 to 21.4% last year. According to Stefan Bratzel, the director of the Center of Automotive Management at the University of Applied Sciences in Bergisch Gladbach, Germany, the Daimler CEO has determined the weaknesses and is "heading in the right direction, but the competitors are ambitious too."

He further stated that Mercedes will find it hard to catch up. He also shared that a successful introduction of the A class will be a "litmus test" for the strategy. Mercedes intends to launch the youth-oriented A class in September to rival the A3 of Audi and the 1 series of BMW.

This vehicle model is also aimed at attracting new clients to the brand. The sporty A class will be founded on the Mercedes new front-wheel-drive architecture to reduce costs, similar to at least four other small vehicles including a compact sport-utility vehicle and the four-door CLA coupe.

If you liked the article, share on:

Comments

Recommended

A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries