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post #1 of 9 (permalink) Old 02-16-2007, 08:43 PM Thread Starter
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Mercedes Brand Value & Reputation

Comment on this quote.

"It took a 180 years to gain the reputation for solid , reliable cars and it took just a few short years and a few unwise decisions by its former CEO to tarnish its brand value and damage its quality reputation".

WOuld you agree with it or not ?
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post #2 of 9 (permalink) Old 02-16-2007, 09:07 PM
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Everyone goes into the stage of rough times, it's the question of how Mercedes will respond to those challenges. To start the current CEO (Dieter Z) is an engineer not a bean counter, the next step dump Chrysler.

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post #3 of 9 (permalink) Old 02-17-2007, 09:03 AM
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Mercedes is certainly not the same company it was a few short years ago. Not long ago, Mercedes seemed unconcerned about the price of its vehicles. The company produced unique vehicles and competed with no one in a market niche that soared above other car-makers. That was how they wanted it, and that was how their customer base wanted it. You could recognize a Mercedes coming down the road from half a mile away. No longer.

From forbes.com:
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Carmakers are never satisfied with their current positions in the marketplace.

For example, next year BMW will likely bring its smallest car, the 1 Series, to the U.S. And DaimlerChrysler's Mercedes-Benz likewise will bring its smallest models here, too--although the carmaker seems in a perpetual state of indecision about which models to bring and when.

But we're not at all indecisive about small, inexpensive BMWs and Benzes. We think it's a silly idea.

Why, for heaven's sake, should the hallmarks of aspirational brands--right up there with Rolex--stoop to Timex status and compete to see who has the cheapest toys? In this country, Mercedes and BMW are icons. Their badges alone mean you've "made it," so there's little point in making these badges more widely available.

In simplest terms, people "graduate" to Mercedes and BMW status. Aspirational brands have status because they aren't easily obtained. They lose this allure when they go on sale at the outlet mall. How exclusive is a Ralph Lauren suit when you can buy it at Marshalls?

Preserving status should be the No. 1 mission for luxury brands."

"If spending money you don't have is the height of stupidity, borrowing money to give it away is the height of insanity." -- anon
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post #4 of 9 (permalink) Old 02-17-2007, 09:45 AM
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Remember when MB marketed the C230 hatchback as the entry level Benz? $26,000 can put you in a Mercedes. How well did that do?

On the other hand, Mercedes in Europe is a full range manufacture. They market entry level and fleet vehicles used by the police and taxi services. They make trucks and buses. I would love to have greater choice here in the states. Perhaps a utility version G320 CDI, or a Mercedes Vito. I think the key is even if they bring over smaller vehicles, they should still have legendary quality and engineering that serve to protect the marque.
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post #5 of 9 (permalink) Old 02-17-2007, 10:34 AM
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Quote:
Originally Posted by mbeclass
Comment on this quote.

"It took a 180 years to gain the reputation for solid , reliable cars and it took just a few short years and a few unwise decisions by its former CEO to tarnish its brand value and damage its quality reputation".

WOuld you agree with it or not ?
Can it be just an American thing? Meaning we look at MB cars as a great expensive cars, but in Europe they sale entry level models that people can buy, for example the SLK models were on sale in Eorope with small engines and cloth seats. I had visitors from Germany when I had the SLK230 and they where not that impress, but they had all kind of questions about my 2001 Subaru Forester after I took them on a trip that used dirt roads?
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post #6 of 9 (permalink) Old 02-17-2007, 01:27 PM
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There is no doubt that Mercedes has traditionally nurtured a very different reputation in the States than it has across the pond.

"If spending money you don't have is the height of stupidity, borrowing money to give it away is the height of insanity." -- anon
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post #7 of 9 (permalink) Old 02-17-2007, 04:15 PM
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But over in Europe taxes and other fees can make the cost of a car skyrocket.

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post #8 of 9 (permalink) Old 02-17-2007, 07:52 PM
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Did you mean 100 years? Mercedes was formed in 1986 and the rep started with the cost custs early 90's around 100 years.
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post #9 of 9 (permalink) Old 02-17-2007, 09:51 PM
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Quote:
Originally Posted by jodyt
Did you mean 100 years? Mercedes was formed in 1986 and the rep started with the cost custs early 90's around 100 years.
Honestly can Mercedes itself still continue to build cars like they did with the W124 and the cars from the past ?? I can bet that if they still did an E-Class would've cost as much as 80 to 90k US Dollars, not something Benz can do in midst of Lexus, Acura, Caddy and Infiniti.

I wonder if Germany reunification itself and shifting of production to Eastern Europe (means lower labor costs also contributed to the cost cutting). Also contributed to this quality decline.

97 W210 E420, stock !!

Last edited by Rhansantiago; 02-17-2007 at 10:03 PM.
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