Daimler’s losing value to Bmw: market valuation dwindled from €39 billion to €700 million

Article by Christian Andrei, on December 8, 2011

When Daimler AG commemorated its 125-year anniversary last January, it was proud to announce that its market valuation was 17 billion euros ($23 billion) higher than that of BMW AG. However, this lead has significantly narrowed. Mercedes-Benz’s lead over BMW reached 39 billion euros in 2007 but it has now fallen to just 700 million euros.

The challenges that Daimler faces in widening the gap is the drop in demand for several older models as well as the price of launching new and more compact cars. Arndt Ellinghorst, a Credit Suisse analyst in London, said that due to Daimler’s size, it will take a considerable amount of time “to change course.”

He added that Daimler’s management may think that the “ship is impregnable, but it's clearly taking on water." Daimler and BMW have similar market valuations but BMW’s workforce is less than half Daimler's 270,000 staff and it reported 38% less revenue in 2010. This narrowing gap is indicative of Daimler’s decreasing dominance in Germany’s luxury car market.

It proves that investors assign little value to Daimler's trucks business, which has posted 24 billion euros in sales, or to the stake it owns in European Aeronautic, Defence & Space Co. Juergen Meyer, a fund manager at SEB Asset Management in Frankfurt, said that the premium auto business is Daimler's most profitable division and that people can invest in this segment in its pure form in BMW.

Mercedes-Benz bets on new C63 AMG Coupe

Inside the new C63 AMG coupé from Mercedes-Benz is the new 6.3-liter AMG V8 engine with top output at 336 kW (457 hp) and maximum torque coming in at 600 Nm. The result is excellent performance with an electronically limited top speed of 250 km/h and 0 to 100 km/h acceleration is achieved in merely 4.5 seconds. With these figures, it would be no surprise why this two-door model will become a segment leader.

This new version of the coupe gets all the new technologies that have been fitted inside the estate and saloon variants of the C63 AMG. Paired to the engine is the sports 7-speed AMG SPEEDSHIFT MCT transmission with the standard Controlled Efficiency mode. With the inclusion of a new power steering pump, fuel consumption is lowered as combined NEDC is merely 12.0 liters for every 1/100 km.

Mercedes-Benz will be offering an AMG performance package where output will be at 358 kW (487 hp). This output increase of 22 kW (30 hp) is owed mainly to the technology of the SLS AMG that was transferred and with this, acceleration is improved from standstill to 100 km/h in 4.4 seconds. Fuel consumption is still the same even if performance has been increased.

This additional improvement in performance is also due to the reduction in weight by as much as 3 kilograms made possible by making use of the high-tech drive systems for the lightweight crankshaft, connecting rods, and forged pistons. With this, inertia of the engine is reduced while the responsive and agility are enhanced further.

Mercedes-Benz is also fitting a variable intake manifold under its bonnet that is in titanium grey. It therefore becomes easy to visually differentiate the AMG performance package from the base model. Other design cues are the braking system that has the composite front discs with the brake calipers in red. Then there is the spoiler lip that have been placed on the boot lid and made of carbon fiber. Finally the AMG performance steering wheel has been encased in nappa leather with the grip area in Alcantara.

Even without the AMG performance package, the new C63 AMG coupé remains to have a form of a high-performance and autonomous vehicle that can truly appeal to the senses. This is because it has that unique design that is mixed in with dynamic handling and a strong drive package. With this release, the C63 AMG coupé now becomes part of the brand’s C-Class AMG family where the practical estate model and the classic saloon are also part of.

The C63 AMG coupé also improves the AMG range of coupes as it had only included the CL63 AMG and the CLS63 AMG. Through this new coupe, Mercedes-AMG GmbH made it possible to own a dream car that comes equipped with an 8-cylinder high-performance engine. Release of this new coupe is expected in July 2011. The "Edition 1" will also be available by then and will come with exclusive equipment.

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