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?
I would have preferred the 500 but couldn't justify the extra £8500 here in the UK.
Cheapest here is the R280CDI at £36517. The R320CDI LWB is £40117 - near enough US$80000 at todays exchange rate! The R320CDI & R350 LWB Sport are both £43067. R500 is £51637. And those prices don't include the extras!
Just noticed the only SWB model in the UK is the R280CDI.
I was delighted that they had an R500 when I wanted to get mine, and I love the 6 pax seating. I really liked the vehicle because it did not look like all the other SUV's out there, but gives me utility as well as a good performance vehicle. (I am an empty nester - there initial startegy worked on me!)
If they take away the V8 performance and make it a SUV clone, then I will look for something else next time - I love it the way it is!
MB has screwed up the R-class marketing since launch. While i hope it sells in better numbers so that they will continue development and improvements, I don't think the new strategy will work any better. Too bad because it is a great vehicle.
I agree with the other respondents: adding cladding to make it look more like an SUV is a poor decision IMHO. This is a beautiful vehicle (as many neighbors and co-workers have told me ) -- don't ruin it! It seems a shame that they could only reduce price by taking away the V-8 option. I blame sales being less than desired on lack of promotion and marketing more than anything else -- they are getting very little coverage in the big car mags -- Car and Driver, Road & Track, Motor Trend, which many people use to help make decisions.
Vehicle: 1985 280GE, 1995 E320 Wagon, 2000 e320 and 2006R350
Location: Waban, MA
Posts: 18
I couldn't agree more that it is ineffective marketing on behalf of MB. This car is so much more desireable than Audi Q7 and all of the other large cross overs out there. I absolutely love everything about this car from looks, to utility, to just incredible ride etc. The car has been very reliable and trouble free. I think it is a bargain. The residuals are going to be horrible. My neighbor (a used car dealer) just bought a 2006 R350 with 6,000 miles for $32,500, albeit not a consumer transaction. This car never even gets mentioned in the big car press.
"Mercedes Re-Prices, Refocuses R Class" 
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