Mercedes setting up there own failure? - PeachParts Mercedes-Benz Forum

mbinterest · #1 11-12-2006, 01:32 PM

Lately you have been hearing about chrysler really advertising their relation to Mercedes-Benz. Well, this may be excellent publicity for Chrysler as people can relate their chrysler product to being similar to a Mercedes; but, what is it doing to the Mercedes name. Mercedes has worked from the earliest times, from the early 1900's, to develop a name of having the highest quality product. Now, they are doing things cheaper, and sharing their ingenuity with Chrysler. Sure their sales have been increasing every year, but I think that is because their prices have been lowered by putting cheaper, entry level, Mercedes into their line-up. Pretty soon people are going to realize that they can by a Chrysler for almost half the price of a Mercedes and basically get the same thing.

Just my opinion on the matter...

Curious to know what others think...

Hatterasguy · #2 11-12-2006, 01:45 PM

Chrysler and MB are far from the same thing, they are but two different divisions in a company.

Chrysler group is controlled and run by Germans who I can assure you place MB's welfare first and well above that of Chrysler. So any such marketing campaign is approved by the father land.

http://en.wikipedia.org/wiki/Daimler_Chrysler

Notice MB and Chrysler are but two divisions within two groups of DC. Original the holders of MB were looking for a cash cow. So was Kirk Kerkorian, Chrysler had a lot of potential. MB always did well with there heavy truck and off road equipment divisions but the cars never made any money. MB took over Chrysler and afaik and from what I see they seem to be using said group as a dumping ground for there old platforms in order to increase profitability.
http://finance.google.com/finance?q=FRA%3ADCX
Expect changes soon, looking to return profitability to Chrysler.
http://finance.google.com/finance?q=DCX

Wodnek · #3 11-12-2006, 01:45 PM

They are essentally using the previous generation chassis for the chrystler offerings. Like their 300, charger, magnum, and soon challenger. A smart strategy. Why spend all the engineering $ on Chrystler's offerings when you can recyle the past Benz offerings. Even more win win is that Mercedes can get 10 years out of their Chassis now.

mbinterest · #4 11-12-2006, 02:09 PM

Hello, I completely agree they are different. They really are not using previous models, for instance, take the Mercedes R-Class and compare it to the Chrysler Pacifica. Side by side, sure they look different, but look closely at all the same components they share. Another example is the Chrysler Cross Fire, basically using the SLK motor and drive train. Don't get me wrong, I love Mercedes, but they may be heading in the wrong direction...

Hatterasguy · #5 11-12-2006, 02:51 PM

The Crossfire uses the old SLK drive train and under pinnings, not the currant one. This is a very profitable move on MB's part, since this platform is no longer competitive on the level the SLK plays on its either get rid of it or make more money on it at another level.

mbinterest · #6 11-12-2006, 03:08 PM

Actually, at the time the Cross Fire was launched it was using the SLK components of that year!

Another thing, this didn't bring profit to Mercedes, they were actually a little ticked off about the whole dicision. At that time they told Chyrsler that was all they were willing to share...

Wodnek · #7 11-12-2006, 03:30 PM

The 300, Magnum, and Charger use the obsolete (for Mercedes) 210 chassis. With all the engineering costs that went into it, that makes alot of sense to recycle. To keep it from being a complete rebadged Mercedes they wrap Chrystler sheet metal around it and stick in a Hemi. This is probably better than any Chrystler ever made. Mercedes is still ahead with the modern adaptive cruise, 7 speed automatic trans, etc.

mbinterest · #8 11-12-2006, 05:13 PM

Like I said, this publicity is helping Chryslers, no doubt about it. My concern is people are going to notice how similar the two brands are becoming and ultimately destroy the name of Mercedes.

Brian Carlton · #9 11-12-2006, 05:25 PM

Picture the typical M/B couple walking into a new Mercedes showroom.

Does anyone think the discussion is going to follow along these lines:

"Well, dear, look at the price of that E-350. It's well over $55K. It's a very nice vehicle and all, but, we can go over across town and get the same vehicle from Chrysler for $30K."

Any of you who think this is going to happen have seriously forgotten the value of that three pointed start at the forefront of the hood.

People who buy these cars are into their image..........big time.

4ws f 7 · #10 11-12-2006, 05:58 PM

M.B. has been going the wrong way for awhile now. As I see it, the W 126 ran about 2-3 years to long, the W 140 was not the answer to the Lexus
LS 400, the W 210 rust issues for M.B. is just inexcusable, as I believe that is where people say the quaility is gone, and there just another car company. I believe you can argue all cars have check engine lights, and
sometimes new technology takes time to sort out. But M.B.'s rusting?

Hatterasguy · #11 11-12-2006, 06:14 PM

Who cares, they make cool cares, this MB bashing is getting so old.

If you don't like them buy a Lexus and go away already. Every car has problems, even Lexus. Try going to a Lexus forum sometimes and listen to them whine about several thousand dollar repair bills.

mbinterest · #12 11-13-2006, 04:24 PM

No doubt they make cool cars, I am not here to bash them either. Yes, I do agree image and status is one reason people buy a Mercedes, I do think the majority buy for the quality and technology Mercedes has offered. My point is if they want to keep their prestigious name then Chrysler may have to stop profiting off of it. I have access to demographical studies saying the average mercedes consumer is over 55 years old and has an income of over $250,000. These people are buying Mercedes because they have seen that Mercedes has proven quality and luxury over time. Now, younger people may not see that with Mercedes...

mgburg · #13 11-13-2006, 06:51 PM

As with any major purchase...

MB is using Chrysler as a test bed/dumping platform for what works/doesn't work in the MB theater...

Keep an eye on the Chrysler line and see where they are heading w/the quality of their products and lines. Up? Then MB will continue to use and incorporate the same strategies. Down? Then MB will only be hurting Chrysler, not themselves. (At least, that's the way I would be doing it!

)

Most businesses use similar strategies when acquiring similar business like their own...use the best, scrap the rest. How many unemployed are just that? Unemployed. They don't scrap good personel if the people are valuable. Same thing with ideas and material. If the product is good, slap your label on it, mark it up 100% (

) and head for the bank.

That's why we aren't drinking "New Coke" right now, eh?