RE: Daimler Boss: We're Not Doing Well Enough
RE: Daimler Boss: We're Not Doing Well Enough
Tuesday 2nd August 2011

Daimler Boss: We're Not Doing Well Enough

Dieter Zetsche tells staff that Daimler should be beating German premium rivals



Daimler CEO Dieter Zetsche is worried that Mercedes is being outpaced by its arch rivals at BMW and Audi has called on staff to rise to the challenge.

"Our competitors' success should provide us with additional motivation," said Zetsche in a letter to all Daimler employees, pointing out that Daimler will refuse to settle for anything other than number one status.

"In the long run we can't be content to be in a 'solid second' or even 'third' place: We are Daimler - we should be far ahead of the pack! And if that requires something that we don't currently have, then we'll identify and develop it."

But although Zetsche admits that "some of our competitors are now growing faster and more profitably than we are" he does at least sound confident that Daimler has the breadth of product to compete with its resurgent rivals, saying that current sales figures are "just snapshots in time and should not be overestimated. After all, many of our best new products are yet to come."

But there is no doubt that Mercedes is struggling, comparatively speaking - in the first half of 2011, Merc increased its global sales by 9.7 per cent (to 610,531), while BMW's brand sales jumped by 17.8 per cent (to 689,861), and Audi grew by 17.7 per cent (selling 652,970 units).

Image: Kandschwar

Author
Discussion

AV12

Original Poster:

5,346 posts

229 months

Tuesday 2nd August 2011
quotequote all
Top-drawer 'tache

minicab

8,182 posts

217 months

Tuesday 2nd August 2011
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Shouldn't have stopped building the V12 SL tongue out

Mercedes is seriously lacking some low end models currently... BMW are storming away with the MINI and 1-Series, while Audi isn't far behind with the A1 and A3...

The A-Class just doesn't cut it in that market - the next Gen A-Class should hopefully redress the balance slightly...

Alfa numeric

3,156 posts

200 months

Tuesday 2nd August 2011
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I totally agree with Minicab- whilst BMW captured the company car market with the 320d ED, Mercedes were developing the SLS. Whilst it's a wonderful thing it's not going to get you growth like a 119g/km saloon.

B10

1,359 posts

288 months

Tuesday 2nd August 2011
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They need to sort out their woeful reliability issues. The SL comes bottom of the What Car reliability survey.

Jerry Can

5,003 posts

244 months

Tuesday 2nd August 2011
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I'm almost too exasperated to comment.

MB want to sell more cars than BMW or Audi?

China.

Then new tax efficient products.

Then see those dealer margins plummet.

and then MB's.

In summary, MB you are doing fine now. Be happy with what you've got. don't go chasing growth, coz volume and premium do not go hand in hand.

tridave

249 posts

224 months

Tuesday 2nd August 2011
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minicab said:
Shouldn't have stopped building the V12 SL tongue out

Mercedes is seriously lacking some low end models currently... BMW are storming away with the MINI and 1-Series, while Audi isn't far behind with the A1 and A3...

The A-Class just doesn't cut it in that market - the next Gen A-Class should hopefully redress the balance slightly...
Mini & RR figures not included, total group sales 833k vehicles sold, X3 double its sales figures !

toppstuff

13,698 posts

268 months

Tuesday 2nd August 2011
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MB have made some crazy decisions..

They lost a massive opportunity with the up-scale Maybach business , as the cars are pretty horrible and simply do not compete with Bentley and Rolls Royce, both of which have become excellent flagship brands for VAG and BMW.

At the mass market end, BMW have absolutely spanked them by spinning off Mini as a separate brand with its own identity and very profitable products. And VAG is the master of multi-brand marketing, covering everything from a south american made VW Fox to a Bentley Mulsanne.

In contrast, MB looks flat flooted, slow to react and a bit bland. But when they do give some people some freedom, they can create very nice products such as the SLS.

The small car strategy looks all at sea. Smart could be the answer, but the Smart business badly needs new models.

jamesson

3,594 posts

242 months

Tuesday 2nd August 2011
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I've always found Merc products uninspiring and it seems like there is always clear air between them and BMW with the latter constantly a sizeable step ahead. Just my opinion, but to my mind it's been that way for a long long time now so for the moustache to say they should not settle for anything less than number one, well, he's going to have a long wait to get there.

minicab

8,182 posts

217 months

Tuesday 2nd August 2011
quotequote all
jamesson said:
I've always found Merc products uninspiring and it seems like there is always clear air between them and BMW with the latter constantly a sizeable step ahead. Just my opinion, but to my mind it's been that way for a long long time now so for the moustache to say they should not settle for anything less than number one, well, he's going to have a long wait to get there.
I disagree actually... In my opinion...

1-Series vs A-Class - BMW Win, A-Class I really don't like
3-Series vs C-Class - Merc win, much prefer the C-Class (with the sport grille)
5-Series vs E-Class - Merc win, the new 5-Series looks a bit too sensible.
7-Series vs S-Class - Merc win

Onto the more niche cars...

Z4 vs SLK - Beemer win, unless your 6ft5 which I am, in which case Merc win
X5 vs ML - prefer the looks of the Merc, and the drive of the X5, but I'd have a range rover - draw
Mercedes SL - no BMW rival - default Merc Win
6-Series vs CLS - undecided, both brand new models, need to have a look at them


Crow555

1,037 posts

215 months

Tuesday 2nd August 2011
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Trouble is, whenever I see a Merc, I think "taxi". If I had the money for a big german saloon, Mercedes is the last door I'll be stopping at.

pikey

7,704 posts

305 months

Tuesday 2nd August 2011
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The sales staff could act like they actually want to sell cars when you go into the showroom as well..

kbf1981

2,334 posts

221 months

Tuesday 2nd August 2011
quotequote all
said:
The sales staff could act like they actually want to sell cars when you go into the showroom as well..
This.

I've never been treated well in a Mercedes garage. The staff always seem to look down on you - which ironically, is not how you're treated when you go shopping for Porsche's and Ferrari's. The Mercedes dealer staff need to crawl out of their own arse...

Nick3point2

3,920 posts

201 months

Tuesday 2nd August 2011
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how much of the sales for these companies is from A4/3 series/C-class vehicles? Big sellers to company car drivers and the family saloon market. Compared to the Audi and BMW, I almost never see C-classes!

Twincam16

27,647 posts

279 months

Tuesday 2nd August 2011
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Smart would seem to be the answer. Outside of Stuttgart Airport, Mercedes are viewed by and large as luxury cars, a cut above BMW and Audi in terms of prestige, on a par with Jaguar. To sacrifice this position (as happened with the quality of post-W124 cars) wouldn't do them any good as it's something they've traditionally sold on. I think the Maybach revival has been a disaster. The S-Class is generally considered to be the 'best luxury saloon in the real world' as its less ostentatious and cumbersome than a Rolls-Royce and has broader ownership appeal. To stick something like the 57/62 on top of the range, and then to have it lose every test badly to Rolls-Royce, is just embarassing, especially when a long-wheelbase S-class is closer to the Mercedes holy grail - the 600 - than the Maybach could ever hope to be.

Expanding the Smart range would be a way of getting volume-selling Mercedes into the market without compromising the 'real' Mercedes values or spoiling the image. I reckon a four-seater would be the way to do it, but base it on the two-seater rather than just rebodying a Mitsubishi Colt. Stretch the Tridion exoskeleton shell, stick an extra set of seats and doors in it, and the packaging of the engine and transmission would remain compact enough for the boot to be acceptably sized for a supermini, and obviously being a Smart, the exoskeleton concept means strength can be maintained even with next to nothing in front of the driver.

Building on that concept, rather than flagging up the fact that you can swap the coloured body panels, makes a lot more sense. They need to stand out in a very crowded market, and the looks and engineering of the Smart is a far better way of doing this than building A.N.Other hatchback.

rockymount

145 posts

184 months

Tuesday 2nd August 2011
quotequote all

AV12 said :

|
Top-drawer 'tache


Yes, and I could have sworn I’d seen him somewhere before ………………….



but obviously not (WRONG side !!!), although the sentiments there, "Your COMPANY needs YOU".

On a more serious note, agree with Nick3point2 on the fleet sales front and it’s just not just the A4’s and 3-Series that are trouncing the C-Class. I was stunned to find out that one of BMW’s biggest UK customers for the Mini is in fact the NHS !!! (can’t see they’d make very good ambulances though – although being transported from an accident scene, bolt-upright poking through a Union Jack decaled sunroof would look blcensoreddy impressive) wink

Gatsods

395 posts

189 months

Tuesday 2nd August 2011
quotequote all
Crow555 said:
Trouble is, whenever I see a Merc, I think "taxi". If I had the money for a big german saloon, Mercedes is the last door I'll be stopping at.
I would take the taxi thing as a complement. A taxi driver can't make money if his car is in a workshop, so why would they want to have something un-reliable?

You'd be a fool to take a 7 series over an S Class as well, as the S class is, simply, better. Ask any motoring magazine which they'd choose and the S Class wins. It has pioneered technologies for many years.

The class below and the E Class wins out against the 5 Series according to Autocar. Below that and BMW gets it's first strike, with the 3 series defeating the C Class.

lotuselan7

396 posts

235 months

Tuesday 2nd August 2011
quotequote all
kbf1981 said:
said:
The sales staff could act like they actually want to sell cars when you go into the showroom as well..
This.

I've never been treated well in a Mercedes garage. The staff always seem to look down on you - which ironically, is not how you're treated when you go shopping for Porsche's and Ferrari's. The Mercedes dealer staff need to crawl out of their own arse...
+1

andybg40

53 posts

215 months

Tuesday 2nd August 2011
quotequote all
Mercedes needn't worry too much. According to the stats, the avergage age for the UK population is getting older, as people live longer, so there will be plenty of customers knocking at the door in about 30years time!

Crow555

1,037 posts

215 months

Tuesday 2nd August 2011
quotequote all
Gatsods said:
Crow555 said:
Trouble is, whenever I see a Merc, I think "taxi". If I had the money for a big german saloon, Mercedes is the last door I'll be stopping at.
I would take the taxi thing as a complement. A taxi driver can't make money if his car is in a workshop, so why would they want to have something un-reliable?

You'd be a fool to take a 7 series over an S Class as well, as the S class is, simply, better. Ask any motoring magazine which they'd choose and the S Class wins. It has pioneered technologies for many years.

The class below and the E Class wins out against the 5 Series according to Autocar. Below that and BMW gets it's first strike, with the 3 series defeating the C Class.
That may be so, but most taxis around where I live either tend to be that old stable horse, the Octavia or beat-up old C/E-classes. Their styling is dull and I've heard of plenty of reliability horror stories as well.

It's just as well I'm not in the market for a saloon. (At least not yet)

flat6buster

45 posts

235 months

Tuesday 2nd August 2011
quotequote all
said:
The sales staff could act like they actually want to sell cars when you go into the showroom as well..
-1. They were very pleasant to me. No complaints at all. Sytner owned franchise.