CaptAlex:
Although the financial picture for auto makers is not pretty for next year, I wouldn't worry about MB. True, MB is loosing money relative to last year, especially through their new Chrysler division. But Japan is having economic stagnation problems, and a slowing US economy and weakening dollar won't exactly help their car manufacturers. And American manufacturers are not immune: GM is loosing cash advantage, and planning on "disappearing" the Oldsmobile division over the next several years, while Chrysler has lost money for the last 2 quarters! Hence all the interest by car manufacturers in mergers, world markets, and outsourcing parts providers to South America and Indonesia.
However, MB produced the first practical automobile, and I wouldn't worry about their long term future. The population in Europe and the US is aging, and comfortable prestigious cars are likely to survive. Cadillac may plan on regaining their former glory of the 20s and 30s, but MB just has to worry about KEEPING their present glory. I would argue that the former is a more difficult task. Cadillac will have to stop sharing parts between divisions and develop a better reputation for quality and durability.
Lexus has the reputation for quality, but the Japanese cars, including Lexus, are very expensive to service and keep after 80-100,000 miles, and are loosing some of their reputation for durability, even when religiously serviced. (Toyota recently "de-contented" several models as cost savings measures, for example).
In a world of finite resources and growing population, either price for goods goes up, or quality goes down, or both occur. The company that balances the best stays on their feet the longest.
Regards,
[Edited by JCE on 12-18-2000 at 11:00 AM]