Photo: Daimler
Last year, Mercedes-Benz capitalized on what was one of the most active periods in the brand’s history that began with the launch of the new A-Class. Tens of new models later, Mercedes-Benz ended 2015 ahead of Audi regarding sales, and trailing BMW by just 40,000 units.
This all-German battle is set to continue over the course of 2016 as well, but Daimler AG CEO Dieter Zetsche insists that selling more cars than its rivals isn’t the most important aspect. Besides, he set the target for Mercedes-Benz to become the world’s number one premium brand by 2020, so there’s plenty of time for a sustainable growth. There’s no need for a desperate push.
Volkswagen’s example is still fresh in everybody’s minds: the Wolfsburg carmaker had the same purpose, to be the world’s top-selling marque, and it managed to do it for the briefest of moments, only to be faced with the industry’s largest scandal of the decade that could have very serious repercussions on short and medium terms.
Speaking at a conference in Stuttgart, Zetsche has made it very clear that Mercedes-Benz won’t sacrifice profit margins for larger volumes. Building a very favorable brand image is a lot more important than having the title of best-selling premium marque, especially if despite the increase in volumes, the actual profit isn’t any greater than before. Mercedes-Benz has experienced first-hand over the past years that the best strategy is to offer your customers the best product possible, and then the price won’t be an issue.
Of course, it’s too early to tell, but Audi seems to be mounting a comeback - or, at least, it won’t go down without a fight. Despite the brand’s connections with the Dieselgate scandal, it began the new year on a high. The Ingolstadt premium branch of Volkswagen Group sold 143,150 cars last month, an increase of four percent over the same period of last year and an all-time record for Audi.
The main reason for this spike is the arrival of the new Audi Q7 SUV in the United States, but the model is doing great in other markets as well such as China and even Europe. The fight isn’t over then, and none of the three brands occupying the top spots can sleep soundly, knowing its position is safe. It looks like we’re going to have a very interesting year ahead.
Volkswagen’s example is still fresh in everybody’s minds: the Wolfsburg carmaker had the same purpose, to be the world’s top-selling marque, and it managed to do it for the briefest of moments, only to be faced with the industry’s largest scandal of the decade that could have very serious repercussions on short and medium terms.
Speaking at a conference in Stuttgart, Zetsche has made it very clear that Mercedes-Benz won’t sacrifice profit margins for larger volumes. Building a very favorable brand image is a lot more important than having the title of best-selling premium marque, especially if despite the increase in volumes, the actual profit isn’t any greater than before. Mercedes-Benz has experienced first-hand over the past years that the best strategy is to offer your customers the best product possible, and then the price won’t be an issue.
Of course, it’s too early to tell, but Audi seems to be mounting a comeback - or, at least, it won’t go down without a fight. Despite the brand’s connections with the Dieselgate scandal, it began the new year on a high. The Ingolstadt premium branch of Volkswagen Group sold 143,150 cars last month, an increase of four percent over the same period of last year and an all-time record for Audi.
The main reason for this spike is the arrival of the new Audi Q7 SUV in the United States, but the model is doing great in other markets as well such as China and even Europe. The fight isn’t over then, and none of the three brands occupying the top spots can sleep soundly, knowing its position is safe. It looks like we’re going to have a very interesting year ahead.
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