A-Class (W176) Mercedes-Benz A-Class pricing needlessly aggressive, says BMW Australia

[Human]

You guys do realize how over priced cars are in Australia right?

Same goes for South-Africa. The Rand is wort sh!t currently (R11.00 buys $1.00 USD) nevertheless even if this is the scenario or if the Rand achieves it's recent best levels of R6.00 OR even if we do factually manufacure the W204 C-class in East London, F30 3er Gauteng, Golf 7 Uitenhage - locally we pay over our heads for them.

Oh btw, I would like to see the facts of development and manufacturing costs of the A/B-class FWD (and Renault is involved here) vs the BMW F20 (build on the F30 RWD platform). I wish I could have that exact first hand shareholder info, for I do believe the A-class is build really cheap. Also how much parts sharing and development is/was done by the Daimler/Renault Allaince? And if BMW decided to cheapen the next gen. 1er with a tie-up of shared development etc. they might as well stuff it up, you know where, I'd rather pay a Premium for a BMW than buy a rebadged POS.

 

[mini_cooper4]

They'll never be able to beat the margins of VAG.

Its main rivals are Audi and BMW not VAG in general. Why BMW is able to sell more cars and have better margins than both Audi and MB? There's no excuse for MB.

 

[LaArtist]

^why? cause all of them use the same interior?

 

[mini_cooper4]

^why? cause all of them use the same interior?

If someone aims a gun at your head telling you to put all your money on either Daimler or BMW AG stocks, what would you do?
I'm sure you won't take the risk and then get back in the E39 or do you love Daimler and E39s that much?

 

[Human]

IMHO per IRL, the way the A-class is build, the platform (how much Renault?) and the iffy cabin it compares head-on with the VAG Golf 7. Just that the Golf is better becuase VAG has been doing it so much longer, MQB is the blueprint of this know-how.

And the NEW Golf is just getting better:

Just some bits of information:

1. Dynaudio has been added as an option for standard Golfs
2. LED rear lights are now available across the model range as an option

 

[EnI]

Perhaps MB is lowering the prices of A-class because they CAN. since they have no (and plan no) sub-compact entry level MB. Something Audi already has got in the portfolio (A1), and something BMW plans to do (they realized BMW & MINI customers do not migrate much between in-house brands, so they plan more larger MINIs & more smaller BMWs).

Therefore MB is free to offer compact cars @ lower prices & generate more sales to compensate the lack of sub-compact class vehicles. While BMW - although still not having sub-compact car in portfolio - have no space to lower the 1er prices as much since RWD platform the 1er is based is still more costly & has to be priced properly to maintain the profit margins. Something that will be corrected with UKL-based next gen. 1er, but then the sub-compact sub-1er BMW will be probably in the way.

I really don't know how profitable the MB FWD modular platform is. Perhaps it is although it's hard to believe they achieved better profitability than VAG with its compact modular platform.

Regarding the waiting lists for A-class ... What's the production capacity of A-class compared to 1er & A3? Is the demand for A-class really so excellent, or is it a production rather a bit limited (compared to 1er & A3)?
But as said earlier somewhere (based on 1st Half 2013 sales performance figures): A-class sales are only marginally lower than 1er & A3, despite A-class is only offered in 5dr variant ... and there is more practical B-class available (missing in Audi & BMW portfolio) which probably steals a friction of A-class sales after all.
So, there's no doubt A-class is a sales success. And @ such demand it's hard to understan MB is lowering the prices. Usually when the demand is so high prices go up, not down.

I'm not really understand Daimler's business case here. Perhaps it's only a specific Australian issue & matter?
Or are there similar cases of A-class dropping prices in other markets as well?

 

[LaArtist]

If someone aims a gun at your head telling you to put all your money on either Daimler or BMW AG stocks, what would you do?
I'm sure you won't take the risk and then get back in the E39 or do you love Daimler and E39s that much?

I would put the gun in my mouth and look him straight in the eyes.

I know that's the answer you wanted! Pervert!

 

[mini_cooper4]

I would put the gun in my mouth and look him straight in the eyes.

I know that's the answer you wanted! Pervert!

LOL OK, that's the best answer I could have wished for!

 

[Mr. Mercedes]

Same goes for South-Africa. The Rand is wort sh!t currently (R11.00 buys $1.00 USD) nevertheless even if this is the scenario or if the Rand achieves it's recent best levels of R6.00 OR even if we do factually manufacure the W204 C-class in East London, F30 3er Gauteng, Golf 7 Uitenhage - locally we pay over our heads for them.

Oh btw, I would like to see the facts of development and manufacturing costs of the A/B-class FWD (and Renault is involved here) vs the BMW F20 (build on the F30 RWD platform). I wish I could have that exact first hand shareholder info, for I do believe the A-class is build really cheap. Also how much parts sharing and development is/was done by the Daimler/Renault Allaince? And if BMW decided to cheapen the next gen. 1er with a tie-up of shared development etc. they might as well stuff it up, you know where, I'd rather pay a Premium for a BMW than buy a rebadged POS.

Renault was not involved with the MFA architecture. The deal with Renault/Nissan came way after Mercedes went ahead with the MFA and if you look at the launch dates Mercedes would have been well advanced with the engineering of these vehicles when the co-operation was announced. Apart from the use of a one or two deisle units, there is no evidence of Renault involvment in these car.


@EnI Mercedes is not dropping the price of the A, they launched the vehicle with a very competitive price. Audi followed suit with the launch of the A3. BMW Australia tried to be stubborn and hang on until sales of the 1-er became so dismal they had no choice but to.

 

[Wolfgang]

the latest update

In the first half of 2013, Mercedes-Benz posted yet another new record with sales of 694,433 vehicles (+6.4%). The brand with the star plans to sell over 1.4 million vehicles by the end of the year.

Production has been running non-stop at most locations during the summer months. Around 4500 vacation workers were hired as additional manpower for the vacation months, and the preparations for further launches are running at full speed, for example at the Rastatt plant, where the first GLA will be rolling off the production line later this year.

http://www.daimler.com/dccom/0-5-7171-1-1623940-1-0-0-0-0-0-12037-0-0-0-0-0-0-0-0.html

 

[Mr. Mercedes]

I think the concerns here rest with MB's profitability per vehicle. But with all the new vehicle launches and the associated costs, it will be very difficult to get an accurate representation about the financial health of the company and exactly how much they are making on each unit. I think a better picture will be had by mid 2014.

MB Australia could have easily charged a few thousand more on most A-class variants, but they chose not to. On the CLA however, they are making quite a premium over the A, in excess of AUD$10,000 per unit.

 

[Iain]

Mercedes are being very clever by bringing in customers new to the brand like myself. I grew up admiring Mercedes and BMW like most young kids and owned two 3 series Beemers when I was younger. After I completed my uni degrees and started working as a professional I couldn't go past the value for money that VW offered. Why would I pay $15 grand more for an Audi A3 when the Golf was so well engineered and essentially the same car. I've had 2 GTI's now and loved them but after visiting a Mercedes dealer on the weekend I think I might move across. I never thought I could afford a Mercedes but the A Class value for money can't be ignored. Let alone the quality of the car and the level of service I received by the dealer. I will then most likely move up the range over the next few years as they hope.

 

[Mr. Mercedes]

Excellent point Lain. There's a lot of guys like you who are seeing value in the A as a step up from GTI's. Good luck with the decision. What other vehicles are you considering? The new GTI?

 

[Merc1]

Mercedes are being very clever by bringing in customers new to the brand like myself. I grew up admiring Mercedes and BMW like most young kids and owned two 3 series Beemers when I was younger. After I completed my uni degrees and started working as a professional I couldn't go past the value for money that VW offered. Why would I pay $15 grand more for an Audi A3 when the Golf was so well engineered and essentially the same car. I've had 2 GTI's now and loved them but after visiting a Mercedes dealer on the weekend I think I might move across. I never thought I could afford a Mercedes but the A Class value for money can't be ignored. Let alone the quality of the car and the level of service I received by the dealer. I will then most likely move up the range over the next few years as they hope.

This is exactly what Mercedes is trying to achieve here. Hopefully Mercedes will realize this and continue to do right be you in both the product and the dealership.

M

 

[Jayz]

You guys do realize how over priced cars are in Australia right?

Exactly. Luxury brands in Australia have massively gouged buyers fo years. E.g Porsche 911 in USA = $84300, in Australia $228150 and this was even while the AU dollar was at parity or even stronger than the US. yes there is taxes and fees but they account for less than $30k the rest is pure amd insanely high profiteering.

I've been a BMW fan and owner for nearly 2 decades. When mercedes released the A class even I stood up and took notice. I even visited my BMW showroom and compared as I was keen to stay with BMW but all I saw was ludicrous prices and interiors that looked stuck in the past.

I've now ordered an A45 Amg. BMW is clearly unhappy that someone broke ranks from their price collusion cartel in Australia and now they've been forced to follow in order to compete.