Yannis

GERMANY: Mercedes core model sales plunge following quality problems

The Mercedes E class once ruled the medium-premium segment in Europe. Not any more, said Automotive News Europe.

Plagued by well-publicised quality problems, E class sales dropped 28.4% this year compared with 2004, dropping it to third place behind the BMW 5 series and Audi A6 after 10 months.

The decline in E class sales highlights Mercedes’ loosening grip on the heart of the European luxury market. The C class lower-premium car, Mercedes’ other core vehicle, also has fallen to No. 3 in its segment behind the Audi A4 and BMW 3 series.

Contrary to Mercedes’ troubles, Audi has been the biggest gainer in the lower-premium segment. The A4 has passed the BMW 3 series to take the segment lead after 10 months. The A6 is in a close race with the BMW 5 series to be the No.1 seller this year in the medium-premium segment.

Critics blamed the E class’s lacklustre sales mainly on electronics glitches, which led to several recalls. Said CSM Worldwide Frankfurt analyst Arne Behlmer: “The E class is clearly suffering from quality problems, which permanently tarred its image. Recalls have received massive attention in the media."

Mercedes sources said the E class will get a face-lift next year in which conventional hydraulic brakes will replace the car’s twice-recalled by-wire braking system. The car also will get more powerful engines. A new C class will be launched in two years.

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Hypersonic

.....but still, in the US, Mercedes image has remained largely untarnished - the MBUSA marketing team really are very good at their jobs - they still manage to convince Americans that the E class is the best in it's class.

bum-man

It isn't?

Hypersonic

Well I, for one, don't think so - I would have an A6 anyday before the current E class (and clearly, I'm not the only one) - I also prefer the BMW 5er.

notic

not to start a flame war or anything, but the A6 won "worlds best car" not the e-class.

warot

Used to be... I don't think so anymore.

Mirage77

Until the facelift comes, the E-Class stands behind the A6 and the 5er for me.

Deutsch

Alright, I'm glad you take joy in MB's plight, but seriously, these toipcs are getting olllllllllllllllllllllllld.

Merc1

This is why I don't always like these types of articles. I don't know about Europe but here in the U.S the E-Class has had to face a new 5-Series (2004), A6 (2005), Lexus GS (2005), Infiniti M (2005) and Cadillac STS (2005) while trying to still maintain its dignity against a much pretty in-house rival - the CLS. Still the E-Class is going to run right down to the wire with the 5-Series for bestselling status. It will be a very close race.

In Europe I would guess there isn't a much competition and that the E's quality problems combined with 2 new cars from its direct rivals contributed to the downward slide. To be expected somewhat. We'll see what the facelift brings.

M

Yannis

Who would had thought ten years ago that the once mighty E class would struggle behind 5 series and even more behind A6. The question is if Mercedes will regain it's status as the top luxury car maker in Europe one day , in my opinion that will never happen. The downfall seems irreversible. It takes decades to built a reputation but only a few years to demolish it.

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