18 percent diesel market share for the ML, GL and R

[Wolfgang]

Ward's Herb Shuldiner mentions an 18 percent diesel market share for the ML, GL and R

Mercedes Finds Silver Lining in Weak U.S. Market

By Herb Shuldiner
WardsAuto.com, Dec 30, 2009 8:00 AM


NEW YORK – Mercedes-Benz USA has outperformed its chief competitors in a tough market this year, and that has Steve Cannon, vice president-marketing, beginning to see a glimpse of light at the end of the tunnel.

Though he admits 2009 has been a “tough year,” Cannon is encouraged by Mercedes’ gain in market share in the premium segment. While Mercedes-brand light-vehicle deliveries were down 17.4% through November, sales have fallen 23.7% for the BMW brand and 24.1% for Lexus.

“Only 5,000 units separates us from BMW (this year),” Cannon says. Last year at this time, the gap was 25,000.

“There are more signs for optimism” as 2009 winds down, he says.

Encouraging is the investment Mercedes dealers are making in their showrooms, which range from slight cosmetic tweaks to completely new $15 million facilities, under an upgrade program the auto maker is promoting.

“We're two-thirds of the way through our ‘Auto Haus’ initiative,” he says.

Cannon also is excited by progress made in selling U.S. buyers on modern diesel-engine technology. Overall, only 5% of Mercedes vehicles are sold with diesels. But in the cross/utility vehicle segment, which includes the M-Class, GL and R-Class, 18% of Mercedes customers are opting for oil burners.

New models, such as GLK, helping lessen downturn at Mercedes in U.S.

The 50-state Bluetec diesel for the midsize E350 car will be added to the lineup next year, Cannon says. “We will also offer a diesel in the GLK in two years.”

Mercedes is planning a diesel option in the C-Class model, as well, though a launch date has not been set.

The marketing executive believes 10% is a reasonable target for diesel penetration for the brand overall. “We have to reeducate the American customer (on the benefits of diesels).”

Mercedes does not lose money on diesels, even though it charges only a $1,500 premium for the high-tech engines in the U.S., Cannon says. The auto maker plans to stick with the current option price for new diesel introductions, as well, he adds.

Cannon is especially pleased with the success of new-vehicle launches this year. The GLK, an all-new luxury CUV introduced in January, has sold 19,572 units so far, well within the 15,000-20,000 band Mercedes hinted at ahead of its launch.

The E-Class, which bowed at the end of June, has picked up market share against the BMW 5-Series.

“We're back squarely in front of the pack in that segment,” Cannon says.

Mercedes also is encouraged by a recent J.D. Power and Associates study rating the brand tops in owner retention. The survey says 67% of Mercedes customers are repeat buyers. Another Power survey this year rated Mercedes third in sales satisfaction, trailing only Jaguar and Cadillac.

“We're taking back leadership one step at a time,” Cannon says.

Mercedes’ total U.S. light-vehicle market share, which now stands at 1.8%, is the brand’s highest ever.

The flagship S-Class sedan is posing the most challenging problem for Mercedes.

Sales have plummeted 50% in 2009, but Cannon believes the recently launched S400 hybrid model will help turn that around. “Finally, we're able to communicate what we have in green vehicles,” he says.

Next year should offer more stability, Cannon predicts. “There will be no rollercoaster rides,” he says, adding Mercedes will launch several new products in 2010 that will help add positive momentum.

Worldwide, Mercedes sales were down 11.6% through November. Western Europe was off 13.9%, while demand in the home market of Germany slumped a less severe 10.9%.

Mercedes is doing better in a number of smaller markets. It has racked up a 20% gain in Canada so far on 22,500 units, and demand in Brazil has soared 45% to 4,600 vehicles.

Sales in the Asia/Pacific region are up 8.8%, with China deliveries jumping 59.8% to 62,200. However, demand in Japan is down 26.2% to 25,200.

Mercedes Finds Silver Lining in Weak U.S. Market

 

[Merc1]

Interesting. I'm looking for the E Cabriolet to post some good numbers in the spring. By summer/fall 2010 Mercedes should be able to post record sales again with all the new engines and facelifts coming in 2010. When does the C-Class Coupe arrive? It should be for the 2011 model year. More C-Class variants and engines + the facelift should put a fire under it. Time for the SL to get its last tweaks also, new engines and leds. Now give us something to see at Detroit please!

The real time/reason for Mercedes to pat itself on the back will be when JDP's 3-year dependability study shows Mercedes is back in the top 5. Not before.

M

 

[Wolfgang]

When does the C-Class Coupe arrive? It should be for the 2011 model year.

Preproduction for testing starts in the spring of 2010. Volume production starts in the spring of 2011 in Bremen. Not sure when it makes it to these shores.

The real time/reason for Mercedes to pat itself on the back will be when JDP's 3-year dependability study shows Mercedes is back in the top 5. Not before.

That will take time. While Mercedes has many talented engineers, Mercedes, the organisation, is a VERY slow learner.

 

[Wolfgang]

One Million V6 Diesel Engines from the Mercedes-Benz Plant in Berlin

By Philipp Deppe | Mercedes-Benz Passion Blog

Today marks a special production anniversary for the Mercedes-Benz plant in Berlin: plant manager Thomas Uhr took delivery of the one millionth V6 diesel engine together with Harald Wolf, economic affairs senator, and Volker Stauch, Head of Powertrain Production Mercedes-Benz Cars.



“The Berlin engine plant has been a vital part of Berlin’s industrial landscape and a key player in the business community for many decades,” observed senator and mayor Harald Wolf. “We look forward to a continuing positive impact on the region.”



“Although this is the oldest plant in the Daimler Group in historical terms, the magnificent enthusiasm and commitment of our workforce has kept it young and dynamic,” added plant manager Thomas Uhr.

Thomas Uhr presented the anniversary engine to Michael Humper, manager of the nearby Mercedes-Benz van plant in Ludwigsfelde, where the engine will be installed in the one millionth commercial vehicle to be produced at the plant. The children from the Berlin plant’s “sternchen” crèche were also involved in the ceremony to mark the auspicious occasion, making and painting a papier-mâché wall which the anniversary symbolically broke through as it rolled off the production line. Before the official part of the ceremony, the guests had an opportunity to experience the production of V6 diesel engines at first hand, as employees from the plant took them on a guided tour of various stages of the engine production process.

Mercedes-Benz Sprinter for Landesverkehrswacht Berlin e.V.

At the ceremony, plant manager Thomas Uhr handed over a symbolic key to Hans Zucker, president of the Landesverkehrswacht Berlin e.V. This key stands for the millionth commercial vehicle from the Ludwigsfelde van plant – a Mercedes-Benz Sprinter fitted with the anniversary engine from the Berlin plant.

Landesverkehrswacht Berlin e.V. is a voluntary road traffic safety organisation which has been working to promote safety-conscious behaviour among all road users for 60 years now. A key area of its work focuses on road safety training and education for future generations. The Berlin plant has long been involved in promoting the development of children and young people and the new vehicle will support the Verkehrswacht’s work in this area.

Top-flight engines from Berlin

The V6 diesel engine has been produced at the Berlin plant since 2005. Since 2007 the plant has also been producing the BlueTEC variant of the V6 – one of the cleanest engines in its class. In the E 350 BlueTEC it has a power output of 155 kW/211 hp at a fuel consumption rate of 6.8 litres per 100 km and already meets the EU6 emission regulations which are planned for 2014. Production of the upgraded variant of the V6 diesel engine is currently starting up at the Berlin plant. It is being premiered in the new Mercedes-Benz R-Class 350 CDI 4MATIC, in which the six-cylinder engine combines the high performance of a V8 model with the low fuel consumption of an economical V6 variant. It offers a maximum power output of 195 kW (265 hp), while undercutting its predecessor’s NEDC fuel consumption level by 0.8 litres per 100 km.

Cutting-edge products from the plant

In addition to the diesel engines and the high-tech V12 engines, a new generation of transmission-integrated electric motors for Mercedes-Benz hybrid models will also go into production in Berlin in 2012. A shop offering 4000 m² of production space is currently being converted for this new field of production. In all, the company is investing around 40 million Euros in the development and production of the new engine, with half of this sum earmarked for facilities and equipment at the plant. A team of 50 will be concerned with the development and production of the new electric motors in the future.

 

[Mr. Mercedes]

Preproduction for testing starts in the spring of 2010. Volume production starts in the spring of 2011 in Bremen. Not sure when it makes it to these shores.



That will take time. While Mercedes has many talented engineers, Mercedes, the organisation, is a VERY slow learner.

It just takes it's time to make sure it's got it all down pat 100%

I think Zetsche has done an incredible job of turning the company around and steering it through these troubled times.

 

[Mr Robert]

That figure should be, at least, 100 %.

 

[Merc1]

I agree, wonderful job but not still not back to where they dominated the industry.

Mercedes should care about trying to lead the class in sporty handling (their paying customer don't care), a Mercedes is supposed to be safe, solid, durable, comfortable with reliable advanced technology and superior build quality. Let BMW and Audi figure out who handles better. Long as a Mercedes handles better than a Lexus and gives you that connected to the road feel with superior high-speed stability and a magic carpet ride (except the AMGs of course), then the rest is just gravy.


Amazing turn around in the last 3+ years, but they've still got a ways to go.


M

 

[Wolfgang]

Mercedes Diesel Sales Lagging

Bengt Halvorson | The Car Connection

The Mercedes-Benz ML350 Bluetec diesel touts excellent drivability and much-improved fuel mileage, yet it sells far fewer than the gasoline versions.

Mercedes-Benz offers a clean-diesel Bluetec version of each of its large utility vehicles, the R-Class, GL-Class and M-Class, along with a Hybrid version of the ML. But even combined, the standard gasoline versions of these vehicles are far outselling their gasoline counterparts that don't cost much more.

In the case of Mercedes' R-Class luxury people-mover, only about five percent in the U.S. are purchased in Bluetec form, even though the 2010 Mercedes-Benz R350 Bluetec costs just $1,500 more than the V-6 gasoline R350 (2011 prices are pending but won't change significantly).

We find that a little puzzling, as after a recent First Drive of the spruced-up 2011 Mercedes-Benz R-Class, the R350 Bluetec in particular remains one of our favorite long-distance road-trip vehicles.

With its cavernous interior and adult-size seating for six (or up to seven), the R-Class is a step above minivans for anyone who places the priority on passenger comfort. And with the diesel, it has plentiful load-stomping torque yet can return fuel economy in the mid-20s, which is quite the feat considering its more-than 5,000-pound curb weight.

No way around it, the R-Class has been a slow seller. M-B has sold around 3,000 R-Class models per year in the U.S. It sells many times more boxy GL-Class SUVs, and some months its M-Class sales have exceeded annual R-Class sales. But even for the slightly truckier (in image) GL and ML models, only about 12 percent are Bluetec diesels.

Among older M-B models, diesels have had much better resale value, so combined with the better fuel economy and drivability, we find the economics a no-brainer.

As a surprising number of shoppers still turn their noses up at diesel, Mercedes-Benz is covering all the bases; in addition to its Bluetec, the ML450 Hybridfirst went on sale – or rather, on lease – late last year. The automaker is offering it only under a special lease, either at $659 per month for a 36-month lease or $549 per month for a 60-month lease.

With a 275-hp, 3.5-liter V-6 and an electric-motor system that brings output to a combined 340 horsepower, the ML450 Hybrid has roughly the same power as the gasoline V-8-powered ML550, while its EPA ratings are 21 mpg city, 24 highway. The packaging isn't any different than the standard ML; the liquid-cooled nickel-metal-hydride battery pack is stored under the rear cargo floor.

But so far, the ML450 Hybrid hasn't exactly been screaming off dealers’ lots either. The automaker has been moving ML450 Hybrids at only about 80 per month.

Back in the 1980s, more than 75 percent of Mercedes vehicles sold in the U.S. were diesels, and that was when they were dirty and had dubious drivability. In recent years, all the pro-diesel popular buzz has not materialized into sales, even when the diesels are genuinely night-and-day better than the old versions: quieter, cleaner, more powerful and more refined.

Mercedes-Benz officials explicitly told us that it's a question of demand, not supply, especially in the case of the Bluetec models, and that it would return to a higher level of diesels only if the market supported it.

AUTOMOTIVE - AUTOS: Mercedes Diesel Sales Lagging - SPEED.com

 

[Merc1]

Interesting spin, just a little while ago MB diesels were selling well at 10 percent, now that its only 12 percent its lagging now.

M