Why is Mercedes-Benz Still Going Aggressive on Car Production?
In recent times, the demand for SUVs has sky-rocketed like never before. Despite being termed expensive, heavy, and useless metal boxes a few years ago, they are now beloved all over the world. This shift of the market has changed the direction of some of the biggest car companies in the world.
Mercedes-Benz has witnessed this rising demand of SUVs first hand. Every three of five cars sold under their badge is an SUV. Despite this surging demand of SUVs, Mercedes-Benz is still working hard on improving their cars. While many competitors are discontinuing car models, Mercedes-Benz is busy introducing newer models.
Mercedes-Benz has confidently displayed their future plans by introducing three new sedan models for the year 2019, and more are on their way. Forecasting has estimated that SUV sales will globally surpass the sedans in the next five years. Mercedes-Benz is aware of this prediction, which is why they are also developing new SUV models as well.
So why is Mercedes-Benz still bullish in their sedan production? Well, according to the President and CEO of Mercedes-Benz USA, Dietmar Exler, sedan sales are expected to play a huge role for the brand despite the decline in demand.
Mercedes-Benz introduced the CLA-Class to the North American market almost five years ago. This was the entry-level sedan of the German brand and was put on sale for a reasonable price of $30,000. The CLA-Class became an instant hit on the North American shores and sold like hot cakes. According to Exler, 70% of customers who bought the CLA-Class were new to the brand.
The incredible success of the CLA-Class altered the production strategy of the German automakers and now, for the first time in history, Mercedes-Benz A-Class is also coming to the North American shores. Mercedes-Benz has also introduced a special A-Class ‘sedan’ model for the North American market, which means the hatchback won’t be coming here. The introduction of the A-Class means that the CLA-Class is no longer the entry-level car of the brand in North America because the A-Class will claim that spot now.
Another promising car for 2019, announced by Mercedes-Benz, is the new CLS-Class. Mercedes-Benz likes to categorize this model as the “four-door coupe”. For the first time in history, the CLS-Class will features a straight 6-cylinder engine that will produce around 362HP. Mercedes-Benz CLS-Class will also be available as a Plug-in Hybrid for the first time ever.
Exler explains why Mercedes-Benz still has hope in the CLS-Class. Ever since its launch in 2005, the sales have continued to grow and they are still on the rise. The CLS-Class started a revolution of the “four-door coupes”. Many other automobile brands have also successfully made models in this category.
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