GLA A35 AMC 4matic

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Wing Commander
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Post by Wing Commander »

pmg wrote: Sun Jun 26, 2022 12:19 am
Skyway wrote: Sat Jun 25, 2022 11:23 pm The A class is Mercs best selling car. Can’t see that disappearing anytime soon ;)
Did not they announce two weeks ago they were withdrawing from the bottom ranks of the car market and returning to specialise in the top more profitable end and no longer chasing volume

Interesting. I wonder what ‘the top end’ is? 🤔

Ditching A Class, B Class, C Class, E Class...?! No more Merc taxis? ;)

Whereas the top end marques have been diversifying into SUVs, saloons & estates...

It’s Porsche ‘chasing volume’ with the Cayenne and Macan that’s enabled them to survive as a sports car manufacturer, isn’t it? :geek:
Simon

Sold: 2016 Rhodium Silver Macan 2.0
Sold: 2013 Platinum Silver 911 (991.1) C2
Sold: 2017 Carmine Red Panamera 4
Mine: 991.2 Carrera T Racing Yellow 06/04/2018

Jon A
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Post by Jon A »

Wing Commander wrote: Sun Jun 26, 2022 10:58 am
pmg wrote: Sun Jun 26, 2022 12:19 am
Skyway wrote: Sat Jun 25, 2022 11:23 pm The A class is Mercs best selling car. Can’t see that disappearing anytime soon ;)
Did not they announce two weeks ago they were withdrawing from the bottom ranks of the car market and returning to specialise in the top more profitable end and no longer chasing volume

Interesting. I wonder what ‘the top end’ is? 🤔

Ditching A Class, B Class, C Class, E Class...?! No more Merc taxis? ;)

Whereas the top end marques have been diversifying into SUVs, saloons & estates...

It’s Porsche ‘chasing volume’ with the Cayenne and Macan that’s enabled them to survive as a sports car manufacturer, isn’t it? :geek:
Agree Simon, it is the volume market that creates the volume of the profit! There’s no point in just building high end £100k plus cars if you are only selling a handful each year, regardless of how profitable they are. Higher volume albeit with less margin per unit, will always yield a better profit, but will protect the business to an extent, from vagaries of market fluctuation.
Imagine ONLY building a high end product and then a global cost of living crisis hits creating a recession! 😳
Just my take on it, I’m sure the brains trust of Mercedes Benz won’t be ringing me any time soon for my opinion! 😂😂
718 Boxster - lava orange (2019)
992 C2 racing yellow (2020)
https://configurator.porsche.com/porsche-code/PRIMAJB4
Ex - Macan S - Carmine (2022)
http://www.porsche-code.com/PNZVYTE0
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pmg
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Post by pmg »

Jon A wrote: Sun Jun 26, 2022 11:12 am
Wing Commander wrote: Sun Jun 26, 2022 10:58 am
pmg wrote: Sun Jun 26, 2022 12:19 am

Did not they announce two weeks ago they were withdrawing from the bottom ranks of the car market and returning to specialise in the top more profitable end and no longer chasing volume

Interesting. I wonder what ‘the top end’ is? 🤔

Ditching A Class, B Class, C Class, E Class...?! No more Merc taxis? ;)

Whereas the top end marques have been diversifying into SUVs, saloons & estates...

It’s Porsche ‘chasing volume’ with the Cayenne and Macan that’s enabled them to survive as a sports car manufacturer, isn’t it? :geek:
Agree Simon, it is the volume market that creates the volume of the profit! There’s no point in just building high end £100k plus cars if you are only selling a handful each year, regardless of how profitable they are. Higher volume albeit with less margin per unit, will always yield a better profit, but will protect the business to an extent, from vagaries of market fluctuation.
Imagine ONLY building a high end product and then a global cost of living crisis hits creating a recession! 😳
Just my take on it, I’m sure the brains trust of Mercedes Benz won’t be ringing me any time soon for my opinion! 😂😂
I have now found again a link to the autocar article at the time of announcement. from memory I first saw something behind the FT paywall

https://www.autocar.co.uk/car-news/busi ... xury-brand
2019 Macan S Porsche code PKW8WKI8
Jon A
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Post by Jon A »

pmg wrote: Sun Jun 26, 2022 11:16 am
Jon A wrote: Sun Jun 26, 2022 11:12 am
Wing Commander wrote: Sun Jun 26, 2022 10:58 am


Interesting. I wonder what ‘the top end’ is? 🤔

Ditching A Class, B Class, C Class, E Class...?! No more Merc taxis? ;)

Whereas the top end marques have been diversifying into SUVs, saloons & estates...

It’s Porsche ‘chasing volume’ with the Cayenne and Macan that’s enabled them to survive as a sports car manufacturer, isn’t it? :geek:
Agree Simon, it is the volume market that creates the volume of the profit! There’s no point in just building high end £100k plus cars if you are only selling a handful each year, regardless of how profitable they are. Higher volume albeit with less margin per unit, will always yield a better profit, but will protect the business to an extent, from vagaries of market fluctuation.
Imagine ONLY building a high end product and then a global cost of living crisis hits creating a recession! 😳
Just my take on it, I’m sure the brains trust of Mercedes Benz won’t be ringing me any time soon for my opinion! 😂😂
I have now found again a link to the autocar article at the time of announcement. from memory I first saw something behind the FT paywall

https://www.autocar.co.uk/car-news/busi ... xury-brand
Interesting article. I think what they are saying is that they want to shift the mix of entry level and high end cars - they still expect A class alone to settle at 500,000 units per year compared to around 300,000 of all high end models including electric by 2026?
This is a little bit different from abandoning the A class for example…
718 Boxster - lava orange (2019)
992 C2 racing yellow (2020)
https://configurator.porsche.com/porsche-code/PRIMAJB4
Ex - Macan S - Carmine (2022)
http://www.porsche-code.com/PNZVYTE0
paulmac
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Post by paulmac »

Here is a report following an interview with the FT.

https://www.autocar.co.uk/car-news/new- ... generation

Paul
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pmg
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Post by pmg »

Jon A wrote: Sun Jun 26, 2022 11:49 am
pmg wrote: Sun Jun 26, 2022 11:16 am
Jon A wrote: Sun Jun 26, 2022 11:12 am

Agree Simon, it is the volume market that creates the volume of the profit! There’s no point in just building high end £100k plus cars if you are only selling a handful each year, regardless of how profitable they are. Higher volume albeit with less margin per unit, will always yield a better profit, but will protect the business to an extent, from vagaries of market fluctuation.
Imagine ONLY building a high end product and then a global cost of living crisis hits creating a recession! 😳
Just my take on it, I’m sure the brains trust of Mercedes Benz won’t be ringing me any time soon for my opinion! 😂😂
I have now found again a link to the autocar article at the time of announcement. from memory I first saw something behind the FT paywall

https://www.autocar.co.uk/car-news/busi ... xury-brand
Interesting article. I think what they are saying is that they want to shift the mix of entry level and high end cars - they still expect A class alone to settle at 500,000 units per year compared to around 300,000 of all high end models including electric by 2026?
This is a little bit different from abandoning the A class for example…
I thought the crucial phrase was "Mercedes has found the courage to put the days of £250-per-month leased A-Class diesels behind it."

Like BMW, volume and discounting to little or margin does not produce profits. they might sell 500 a class 250 D at around 330k but they are not going to sell that number of top range A class at £50K plus.

yes Porsche makes it profits on its higher volume Macan's etc cf 911's but that is because we are prepared to pay them a high margin over cost of production in a different section of the market.
2019 Macan S Porsche code PKW8WKI8
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Wing Commander
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Post by Wing Commander »

Jon A wrote: Sun Jun 26, 2022 11:12 am
Wing Commander wrote: Sun Jun 26, 2022 10:58 am
pmg wrote: Sun Jun 26, 2022 12:19 am

Did not they announce two weeks ago they were withdrawing from the bottom ranks of the car market and returning to specialise in the top more profitable end and no longer chasing volume

Interesting. I wonder what ‘the top end’ is? 🤔

Ditching A Class, B Class, C Class, E Class...?! No more Merc taxis? ;)

Whereas the top end marques have been diversifying into SUVs, saloons & estates...

It’s Porsche ‘chasing volume’ with the Cayenne and Macan that’s enabled them to survive as a sports car manufacturer, isn’t it? :geek:
Agree Simon, it is the volume market that creates the volume of the profit! There’s no point in just building high end £100k plus cars if you are only selling a handful each year, regardless of how profitable they are. Higher volume albeit with less margin per unit, will always yield a better profit, but will protect the business to an extent, from vagaries of market fluctuation.
Imagine ONLY building a high end product and then a global cost of living crisis hits creating a recession! 😳
Just my take on it, I’m sure the brains trust of Mercedes Benz won’t be ringing me any time soon for my opinion! 😂😂

Don’t under-sell yourself, Jon! ;) :P
Simon

Sold: 2016 Rhodium Silver Macan 2.0
Sold: 2013 Platinum Silver 911 (991.1) C2
Sold: 2017 Carmine Red Panamera 4
Mine: 991.2 Carrera T Racing Yellow 06/04/2018
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Skyway
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Post by Skyway »

That article seems more about shoving all the prices up rather than dropping models. Rather feeble excuses from my perspective. Push the price of an A Class up and buyers will just switch to the BMW 1 series instead.
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Plyphon
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Post by Plyphon »

Merc also announced a new premium brand extension:

https://www.autocar.co.uk/car-news/new- ... xury-shift

Which also tracks with their desire to move 'upmarket' and drop lower echelons of their range. Which makes sense, there are many premium brands that have done this recently - Omega watches for example have risen their prices across the board to have more 'luxury parity' to Rolex etc. You can no longer buy a £3k Speedmaster, they start at £5k, for example.
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Old Chimer
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Post by Old Chimer »

Merc A and B class cars will not be replaced.

https://www.autocar.co.uk/car-news/new- ... class-2025
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