[manwagon]

Today's "Automotive News" includes an article that announces that Mercedes has dropped their two V-8 R Class Models, the R500 and R63 for the 2008 model year and only six-cylinder versions will be sold. The article goes on to say that MB has pushed the R Class further down market by also cutting the price by $5000 over last year. MB admitted that their initial strategy with the R Class was to focus on empty nesters but they learned that "most buyers are parents who want to haul families and those buyers don't want the performance of a V-8 or a sticker price over $50,000."

The arcticle goes on to say that MB is also rolling out a cheaper , two-wheel drive model, the R350. The 2WD version lowers the base price of the R350 by $2,500 to $42,675. For comparison, the cheapest R350 was about $48,000 when the vehicle was launched in 2005. An optional third row of seats is also offered on the 2008 R Class for about $700 to provide room for seven.

Automotive News said that the most expensive R Class now is the R320CDI at $46,175 up from $44,775 in the 2007 model year.

The 2008 R Class will also get standard AMG body cladding because "buyers said they wanted the vehicle to more closely resemble an SUV" according to MB product management.

MB USA said these changes were made to the R Class because, "we wanted to concentrate on the successful models." They also said, "we are pretty well positioned for the future of the R Class."

When the vehicle was launched, MB forecast sales of 25,000 units per year. Last year, MB sold 18,168 R Class models in the US.

So, R Class fans, is this the correct strategy? Did buyers really not want the performance of a V-8 or was it the "price" of a V-8 that they didn't want? Is seven passenger seating the answer? Is the R320CDI the salvation of the R Class, combining the performance of a V-8 with the fuel economy of a six-cylinder?
Is MB now "pretty well positioned for the future of the R Class" or is there more that they should do?