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-   -   FYI - Fortune Magazine Article (http://www.peachparts.com/shopforum/diesel-discussion/78163-fyi-fortune-magazine-article.html)

rodsob 10-27-2003 02:15 PM

FYI - Fortune Magazine Article
 
Check out the latest issue of FORTUNE. There is an interesting article about the quality issues at Mercedes.
Basically, it asserts that the bean counters have taken over the company. It used to be run by engineers with a "cost plus profit" approach to carmaking. Now they have budget and time constraints. It also mentions the major problems with the new electronics. In other words, MB is not the same company that it was 20 years ago. Sad but true. I welcome comments and rebuttals on this thread.

rodsob

diesel don 10-27-2003 03:36 PM

Makes me want to stick with the well-loved 123's.

Thanks for the info.

Don

asharp 10-27-2003 03:58 PM

It's not only MB but also BMW. It seems that the cars have become faster and sleeker over the past 10 years, but they do not hold up like they did pre-90's. It's such a shame since the new cars look great, but after 5 years and 100k miles they look beat !

Jim B+ 10-27-2003 04:50 PM

ALL cars seem designed to dissatisfy quickly...
 
the nefarious clear coat-color coat paint that fades and can't be buffed out, the "bumpers" that flake and chip, the upholstery that seems to court grime, are just some of the "quality of life" concerns that make ANY new car seem tired after just three or four years.

...and at about that point will come the expensive "timing belt" replacement, and the extinction of a succession of electronic devices that can only be replaced by the dealer...at great expense.

It's not unusual to find daily-driver W123's and other '80s vintage MBs that seem only a year or so old, so well do they wear. These were also the last MB products to have all metal bumpers, and the paint almost always seems to stand up to time or "mellow" rather well.

Joe Blowe 10-27-2003 05:41 PM

First few paragraphs are available online:

http://www.fortune.com/fortune/investing/articles/0,15114,517706,00.html

Heading off to the mag stand to read the rest...

DslBnz 10-27-2003 07:19 PM

The Japanese started it. When they came out with the Lexus, Infiniti, Acura, etc. Mercedes took them on.

Mercedes philosophy has really changed in the last ten years. Build more, and sell more. Also have the best technology known to date.

Some really stupid features are things like("the legendary" as they claim) Pre-Safe. Who the heck needs it? It is not going to avoid an accident for you, only prepare the car for one by moving the seats and closing the sunroof! How utterly useless.

Airmatic is another. They tried it before in the 300SEL 6.3 and the 600 and it failed. Its failing again, too.

Take a look at this "Gorgeous" Mercedes. I am dying to upgrade my W126's to this shining beauty!(satirical comment):rolleyes:

New W221 S-Class
http://c-klasse.mercedes-galerie.de/...21/w221_03.jpg

This is what happened when Bruno Sacco retired from the company.

speedy300Dturbo 10-27-2003 07:32 PM

That picture is a fake. It's been out for a while, and is just a Photoshopped W211 E Class.

DslBnz 10-27-2003 10:14 PM

Quote:

Originally posted by speedy300Dturbo
That picture is a fake. It's been out for a while, and is just a Photoshopped W211 E Class.
This is the next S-Class, right?

http://mbspy.bacosys.be/w221/w221amsfrontb3760mbs.jpg

http://mbspy.bacosys.be/w221/w221ams...nt2760bmbs.jpg

Gurkha 10-28-2003 10:32 AM

The W123 along with the OM 616/617 were the best MB ever made. The original 2.8 V6 and 5.0liter V8 were good piece of machinery too. The newer MB is just an implementation of the so-called Global junk. MB sources its parts from vendors across the world and anyone with the lowest bid wins. Reliability became an isse in the late 80s when Consumer Reports started rating MB and BMW way lower than say a Honda Accord or a Lexus.

Really sad how a great tradational company can get so greedy and corrupt.

BlackE55 10-28-2003 11:32 AM

Business Week has done a great job of documenting the Daimler-Chrysler debacle. Not sure what you can find online, but I've been reading about the quality issues and "merger" mess from day one.

Jim B+ 10-28-2003 12:02 PM

You should read "Decline and Fall of Packard Motor Car Company"...
 
...published about two years ago.

Packard had the US market niche now occupied by Mercedes for almost 50 years, and, like pre-'85 Mercedes, was known for finely engineered, durable, stylish but restrained vehicles with exceptional build quality.

In the early '50s Packard was still very solvent, particularly from all their WWII defense work. But as an independent, they sought a broader market base. Packard bought Studebaker, which had a lot of management, product, and liquidity problems Packard didn't know about. Plans to have a Studebaker-Packard corporation which could supply cars to all levels of the market (a la GM) didn't come to pass. The "old order" management who had insisted on high engineering quality and a conservative approach to a refined and bulletproof product retired, to be replaced by hot-shot "bean counters" who didn't understand Packard or its traditions. A rush to annual model changes, "modern" V-8 engines (Packard's straight-8 and 6 were the Mercedes diesels of their day) and other unwise moves for a company without super deep pockets dug a hole for Studebaker-Packard...and an alliance with Curtis-Wright which sought to further run the company down in search of tax write offs helped to seal Packard's fate. The last "real" Packard appeared in 1956.
The paralels between the Studebaker-Packard alliance and that of Daimler-Benz AG and Chrysler seem uncomfortably congruous. For the first time, Packard was eclipsed by Cadillac and Lincoln as "the" American luxury car, the same way Mercedes is in danger of being overtaken by Lexus, Infiniti, and other competitors once a century's reputation for solid engineering, customer good will, and public reputationl is drawn down.

They should teach George Santayana in business school: those who don't pay attention to the past are condemned to repeat it.

BlackE55 10-28-2003 12:18 PM

Re: You should read "Decline and Fall of Packard Motor Car Company"...
 
[QUOTE]Originally posted by Jim B+
[B]...published about two years ago.

Interesting, I'm going to order it from Amazon asap. Thanks for the heads up.

Fimum Fit 10-28-2003 03:35 PM

I've got an uncle who's beginning to think
 
about selling his '50 Packard, because he can't take care of it on his own anymore. Anyone want his phone number in Minneapolis? He'll be heading south for the winter soon.

Jim B+ 10-28-2003 03:45 PM

I also have a '50 Packard I might like to
 
sell, after having owned it since 1980 (for similar reasons).

These are excellent old cars for those who like old cars but aren't much at mechanical work...VERY simple, very overbuilt, parts plentiful and CHEAP, and very good club support. The "Clipper" and "bathtub" styles of the late '40s are also capable of cruising all day at turnpike speeds, and make really excellent "tour cars."

Anyone who's seen a straight-8 Packard and a MB diesel will be struck by deja vu going in both directions....for their times, they are very similar products. It only remains to be seen how many W123s will still be running without complaint at age 50+.

BlackE55 10-28-2003 04:56 PM

I had a '50 Packard for a few years (93-96). Paid $2000 for it -- a nice daily driver. Great on the interstate with O/D, 65 MPH+. :)


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