Mercedes-Benz is losing ground in the luxury car race. Burdened by an uneven strategy in China, a slowdown in the market entry of new models and the aging S-Class sedan, the once dominant brand in the luxury car sector has slipped to third place.
“Mercedes has problems at home” comments Christian Ludwig, analyst at Bankhaus Lampe (Dusseldorf). "It will be very difficult for the car manufacturer to regain pole position, because the competition is very fierce".
Mercedes sold 964.900 small cars and sports cars in the first nine months of the year. However, the 5% increase was not enough to keep pace with its rivals: for example, Mercedes sold 132.600 fewer vehicles than Audi. The gap with BMW then widened by 41% to 145 vehicles, according to official data.
In September 2011 alone, Mercedes hoped to celebrate its 125th anniversary by becoming the best-selling and most profitable brand in the luxury car segment by 2020. A goal that now seems much more difficult to achieve. The company will now try to reverse this negative trend by adding lower-priced compact models, including a four-door coupe, to appeal to a younger clientele and expanding the S-Class, which is now in the last year of the current generation.
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