My understanding of the matter was that Mercedes really did have the entire system buttoned down in the early 1980s -- they used the best materials, over-engineered everything and had the newest technology, however their technology was mechanical.

Towards the end of the 1980s, cars started becoming more electronic. ECUs started taking on more tasks, power doors and windows were more common and manufacturers found that you could make a car with the features Mercedes offered as mechanical items substitued with electronic items for less money. The Japanese cars in the 1990s were very good in terms of features and were starting to catch up with Mercedes in terms of reliability at much lower cost.

The early 1990s were the years of the class action lawsuits and Mercedes made the choice to go ahead with making cars more luxury in terms of comfort -- before luxury also meant quality and build condition. Over time with inflation and rising labor costs large numbers of parts that were once rebuildable became single units, easier to troubleshoot and charge for at the parts counter. The build quality deteriorated and the expectation that you were buying a car that you could pass down to your children went away.

At this point, who would want to keep a newer Mercedes more than 10 years? The cost of ownership would be tremendous in terms of maintenance, after a certain point. Many of the repairs are so complicated you practically need to go to a dealer. And who wants to have a technological masterpiece that doesn't run the latest bluetooth, have the latest GPS maps, can't connect to your newest iGadget, etc. Besides, they are no longer classics. And they are also dealing with the latest EPA regulations, the global warming boogeyman, and a new regulatory environment.

Meanwhile, Infiniti and Lexus continue to offer Mercedes-like features that are computer related at a fraction of the price, although in many respects they seem like cheap knockoffs with the lowered Mercedes standards notwithstanding.

Dkr.