Posts Tagged ‘mercedes china’
Share slips as Audi, BMW come on strong.
by Joseph Szczesny on Apr.10, 2013
The Mercedes CLA Concept debuting in Beijing last year. The production version could be critical for the maker's revival in the Chinese market.
Mercedes-Benz continues to lose ground in China’s booming premium car market to arch-rivals BMW and Audi — but Daimler AG’s top executive, Dieter Zetsche, told the company’s shareholders meeting the automaker is confident it can make up the ground it has lost in recent months.
Mercedes’ slide has been both acute and unexpected and the maker has struggled even after slashing prices on key models such as the flagship S-Class sedan. That’s particularly worrisome since many analysts expect China will soon become the world’s largest market for luxury vehicles, surging past the U.S.
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Zetsche admitted to shareholders that Daimler management is keenly aware it has failed to keep pace with the growth in China. “Our sales had increased rapidly for five years in a row. During that period we posted the strongest average growth of all the premium brands there. Last year, our business expanded only slightly and we lost market share. We have to change this situation and we will.”
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Tags: audi china, auto news, bmw china, car news, china car, china luxury cars, daimler china, dieter zetsche, joe szczesny, mercedes china, mercedes china sales, mercedes news, mercedes-benz china, thedetroitbureau
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But there could be unexpected obstacles.
by Paul A. Eisenstein on Mar.06, 2013
Mercedes opened the world's first standalone AMG Performance Center in Beijing.
Demand for luxury vehicles in China will make it the world’s second-largest market for expensive vehicles by 2016, and number one by decade’s end when it will likely surpass the U.S., according to a new study by the consulting firm of McKinsey & Co.
But industry analysts and planners caution that several obstacles could delay or completely short-circuit the boom in automotive demand in China, both on the mainstream and luxury level.
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Sales of premium vehicles will probably equal that of all of Western Europe by 2020, as incomes continue to rise in what is now the world’s second-largest economy, according to McKinsey & Co. China is already the largest automotive market in the world overall.
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Tags: audi china, auto news, cadillac china, car news, china autos, china car sales, china cars, china largest luxury car market, china luxury car sales, china luxury cars, infiniti china, joe szczesny, lincoln china, mercedes china, thedetroitbureau
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Maker takes major stake in Chinese partner.
by Paul A. Eisenstein on Feb.04, 2013
The Mercedes-Benz CSC concept at last year's Beijing Motor Show.
After suffering a series of setbacks in the world’s largest automotive market last year, Daimler AG isn’t planning to let that happen again. It has already shaken up its management team and now the parent of Mercedes-Benz is taking a major stake in its Chinese partner.
Daimler will invest $875 million for a 12% share of BAIC Motor, a subsidiary of Beijing Automotive Industries Corp. BAIC produces Mercedes vehicles for the Chinese market. The investment appears to be a first step towards a planned initial public offering by BAIC Motor, according to Chinese auto industry observers.
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“Our investment is a strong sign of the increased level of trust and cooperation between our two companies and clearly emphasizes the long-term commitment to a joint successful future,” said Dieter Zetsche, who serves as both CEO of Daimler AG and its Mercedes-Benz brand.
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Tags: auto news, baic motors, car news, daimler BAIC, daimler china, daimler news, dieter zetsche, mercedes china, mercedes news, mercedes-benz china, paul a. eisenstein, paul eisenstein, thedetroitbureau
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Mercedes slipping behind rivals in booming Asian market.
by Joseph Szczesny on Dec.14, 2012
Daimler's new China chief, Hubertus Troska.
Daimler AG, in a move underscoring the growing importance of China to the company’ future, has named a new chief executive in charge of its operations in China and appointed him to the company’s Board of Management.
Hubertus Troska, 52, will become chief executive officer and Chairman of Daimler Northeast Asia responsible for all of Daimler’s strategic and operating activities in China.
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The timing is particularly significant considering the company has slipped in sales behind arch rivals Audi and BMW. Mercedes has had to resort to sometimes massive incentives to prop up its products this year.
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Tags: Chinese Cars, auto news, car news, china cars, china luxury cars, chinese luxury market, daimler news, damler china, hubertus troska, joe szczesny, mercedes china, mercedes news, thedetroitbureau
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Ford takes first step towards going global.
by Paul A. Eisenstein on Aug.28, 2012
CEO Alan Mulally is targeting big growth in China for both the Ford and Lincoln brands.
Hoping to give its long-troubled luxury brand some new momentum – and much-needed economy of scale – Ford Motor Co. will launch Lincoln into the Chinese market in 2014.
The announcement – which confirms a report on TheDetroitBureau.com earlier this month – will come as a critical step for Lincoln, once one of the most powerful luxury nameplates. Even though the century-old Lincoln has never been sold in China, Ford research suggests it has significant potential in what is rapidly coming to rival the U.S. as the world’s largest high-line automotive market.
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“Lincoln’s introduction to China represents a significant step forward in Ford’s aggressive growth strategy for the country,” Dave Schoch, Chairman and CEO of Ford Motor China, said during an event at a converted temple in Beijing.
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Tags: 2013 Lincoln MKZ, Jim Farley, alan mulally china, auto news, beijing motor show, bmw china, cadillac china, car news, china luxury cars, farley china, ford news, lincoln china, lincoln news, luxury cars china, mercedes china, paul a. eisenstein, paul eisenstein, thedetroitbureau
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Maker goes local to boost demand in big luxury market.
by Joseph Szczesny on Apr.13, 2012
Cadillac will begin building the new XTS in China.
General Motors is preparing to build three new Cadillac models in China – including its all-new XTS flagship — with the help of its principal Chinese partner, Shanghai Automotive Industry Corp. or SAIC.
The cars are expected to compete for high-end Chinese buyers, particularly in major Chinese cities such as Beijing and Shanghai, who have already shown a willingness to spend lavishly on European luxury cars despite some of the world’s most expensive licensing fees.
The new Cadillac XTS, which replaces the old STS, will be the first of the three Cadillac models to go into production in China. It will target such competitors as the BMW 7-Series and Mercedes-Benz S-Class. Demand for premium luxury models has been especially strong among wealthy Chinese buyers and communist party functionaries – particularly products that offer roomy and well-equipped back seats, like the XTS.
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Tags: Cadillac XTS, auto news, bmw china, caddy ats, caddy xts, cadillac china, cadillac xts china, car news, china caddy, china luxury cars, chinese luxury cars, jos szczesny, mercedes china, thedetroitbureau
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by Paul A. Eisenstein on Mar.22, 2012
Jaguar and British sibling Land Rover have inked an alliance with Chery Automobile to produce cars in China.
British maker Jaguar Land Rover is the latest to ink a deal with a Chinese partner – but with signs the Chinese market may be slowing, the question is whether the move is too little too late.
The new partnership with China’s ambitious Chery Automobile Company will lead to the production of both Jaguar and Land Rover vehicles, as well as powertrains, at a facility in the booming Asian market – which has outsold the U.S. for the last several years.
But the specifics have yet to be announced and will be subject to approval by Chinese regulators – a process that can drag on for some time. Fuji Heavy Industries has been waiting since last year for the go-ahead on a deal that would lead to production of its Subaru line in China. Nonetheless, officials at India’s Tata Motors, which owns JLR, expressed optimism.
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“Demand for Jaguar and Land Rover vehicles continues to increase significantly in China and we believe that JLR and Chery can jointly realize the potential of these iconic brands,” Jaguar Land Rover CEO Ralf Speth, said in a statement.
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Tags: audi china, auto news, car news, chery automobile, china car sales, china car sales slowdown, china luxury cars, jaguar china, jaguar land rover chery, jaguar land rover china, jaguar news, jlr news, land rover china, land rover news, mercedes china, paul a. eisenstein, paul eisenstein, tata china, thedetroitbureau
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Sales to miss government’s already modest expectations; margins also softening.
by Paul A. Eisenstein on Mar.22, 2012
Mercedes is reportedly slashing prices by as much as 25% in China.
At a time when the world auto industry was ready to collapse, the Chinese market offered a rare and desperately sought beacon of hope. Even as demand in the U.S. market plunged to its lowest levels in decades, China continued to deliver double-digit growth, propelling the emerging market to global sales leadership.
Ironically, as the U.S. market recovery begins to heat up, China is showing signs of an unexpected slowdown – one that is proving particularly worrisome in the luxury segment, and which could slam manufacturers like Mercedes-Benz, BMW and Audi who have counted on China for a disproportionate share of their profits in recent years.
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For the year-to-date, Chinese light vehicle sales are down a notable 4.4%. The China Association of Automobile Manufacturers now predicts overall sales will only grow by about 5% for the full year – missing the government’s goal of 7%. By global standards, that’s nonetheless significant – but put into perspective it’s clearly worrisome when one recalls recent annual growth rates that, at times, approached 100%.
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Tags: auto news, car news, china car sales, china car sales slowdown, china car slowdown, china luxury cars, china news, jaguar china, jlr china, mercedes china, paul a. eisenstein, paul eisenstein, subaru china, thedetroitbureau
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Maker looking at options in U.S. and Mexico.
by Paul A. Eisenstein on Jan.25, 2012
The new Mercedes plant would likely produce a version of the next-gen A-Class - and possibly the Infiniti Etherea, as well.
Hoping to gain a leg up on its luxury market rivals, Daimler AG is looking at adding at least two more plants to its global production network – one in China and the other some place in North America.
The new plants could be a critical step in regaining the global sales lead as Daimler’s Mercedes-Benz brand battles key rivals BMW and Volkswagen’s Audi brand. Mercedes narrowly lost the U.S. sales crown to the Bavarians in 2011.
Mercedes officials told Germany’s Manager Magazin the plan is to double the brand’s worldwide output to 2.7 million by 2020. It sold 1.26 million Mercedes-badged vehicles in 2011, about 120,000 less than BMW. Significantly, the publication said Daimler is aiming for a 10% operating margin by the end of this decade.
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One of the questions TheDetroitBureau.com is hoping to resolve is what role Nissan will play in the selection and operation of a new Mercedes plant in North America. Could Daimler be looking at adding production capacity of its own alongside a new Nissan facility newly announced for Mexico?
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Tags: Infiniti ETHEREA, auto news, car news, daimler news, daimler nissan renault, daimler north america, daimler plant, mercedes a-class, mercedes alabama, mercedes china, mercedes infiniti, mercedes mexico, mercedes nissan, mercedes plant, mercedes-benz news, nissan news, paul a. eisenstein, paul eisenstein, thedetroitbureau
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Canada to get Honda Fit, but nothing planned for U.S. – yet.
by Paul A. Eisenstein on Dec.22, 2011
The Honda Fit delivers the best value of any model on the market, declares Consumer Reports.
With the domestic market starting to show signs of a slowdown perhaps it should come as no surprise that China’s automakers are ramping up plans to export product to other parts of Asia, Europe and now, even North America.
Honda will soon begin shipping the subcompact Fit from its plant in southern China to Canada – though there are currently no plans to bring any of those products into the U.S. That’s not necessarily surprising as that could generate a harsh response considering China this month said it plans to enact stiff no tariffs on American-made automobiles.
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Honda isn’t alone. Mercedes-Benz and BMW have also announced plans to export product from China. And some of that country’s local makers are openly laying out plans for a global assault – including the battery car maker BYD, which recently opened up an office in Los Angeles.
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