Name: How Mercedes-Benz Is Losing Its Prestige Image
Uploaded: 2021-04-09T12:53:57.000Z
Duration: 13 min 42 s
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Mercedes Benz, it is perhaps the biggest name in luxury cars in the world.

Sure, there are Italian exotics like Lamborghini, stately British brands such as Bentley,

Rolls-Royce and Aston Martin, and plenty of competition in Benz's home country of Germany.

But the German make with the three pointed star logo is for countless buyers around the world.

It has a reputation for superb build quality and excellent engineering.

It also has an extremely strong pedigree, including bragging rights that its founder, Karl

Benz, invented the world's first production automobile.

Mercedes Benz has been a dominant force in racing, a relentless innovator, a symbol of the

pursuit of excellence no matter the cost, and for its buyers, a sign they have finally made it.

But today, it faces a new class of challenges.

Electric vehicles are coming into the world, pushed by eco conscious policy makers and at least

Tesla has become an aspirational brand for younger consumers, and there is a slew of other EV

hopefuls vying for the mantle of the next generation's aspirational vehicle.

Meanwhile, Mercedes said in February that it will not be offering its electric Oecussi sport utility

for now, even though the vehicle has been in production since 2019.

Mercedes Benz has had a magnificent run, but those who study the global auto industry say it is

undergoing one of the most dynamic and uncertain periods in its history just a few years ago.

U.S. auto sales hit historic highs, but automakers have had to sink billions into new technologies

and contend with a new crop of competitors in the key Chinese market and around the world.

Mercedes Benz has been a leader since the birth of the automobile.

What it does now may determine whether it remains a leader.

Mercedes Benz traces its history back to the 30s and to three pivotal figures, Gotlieb, Dimler

Vilhelm, Maibach and Karl Benz, Dimler for whom Mercedes long time parent company is named, was an

engineer who developed the engines that powered the earliest Mercedes cars.

Maibach, whose name now graces a line of ultra luxury cars, was the company's first technical

director. And Karl Benz was the inventor of what is widely considered the first true gasoline

In addition to that, Benz Dimler and Maibach participated in the world's first known motor

sport event, a 126 kilometer race from Paris to ruin in 1894, organized by a

French newspaper publisher, the event placed steam, gasoline and even battery driven vehicles

Nine of the 17 vehicles to cross the finish line had Dimler engines in them, including the first

In other words, there are a few brands that can match Mercedes Benz as automotive pedigree.

That first race began one of the richest histories in international motor sport.

Unfortunately, Mercedes Benz left racing four decades after a catastrophic accident in 1955 at

the 24 hours of them on race, a three way crash with a Jaguar and an Austin Heeley centa Mercedes

Mercedes Benz did not return to racing until 1989.

As of twenty one Mercedes sponsors, one of the most successful Formula One teams in history.

Its drivers have together won seven consecutive double world championship titles, the most ever.

Its innovations in racing, tech and in cars have often seeped into its production vehicles.

The racing program has also produced some iconic vehicles, including the 300 SL with its trademark

Gullwing Doors, the two seater sports car.

It was developed in 1952 and went on to win races at Lehman Burn Nürburgring and the Karara

importer who convinced the company there would be strong demand for the car.

It's track success helped the company form a reputation for superb engineering, quality

They've often been first to market with a variety of technologies from being the first arguably the

first car, you know, to things like the first diesel engines in the 1930s, the first fuel

injected engines in the 1950s with the the 300 Essl.

And more recently, a lot of the active safety systems that were the first with an electronic

anti-lock brakes, systems and traction control and stability control systems.

So they they have been a leader throughout their entire history.

Its cars didn't rise to the top by always being the most feature rich or even the most luxurious.

What buyers were paying for was a leaner, simpler car built very, very well.

What you were paying for and what you know, what the customer was happily paying for was the

prestige of having a car that was engineered like no other car in the world.

It was the it was the engineering, that and quality that really form the backbone of that

The company goes to some striking lengths to back up this reputation for attention to detail.

For example, like many other automakers, Mercedes Benz has its own in-house performance tuning

AMG began as an independent tuning shop that Mercedes later acquired, but AMG is somewhat

unusual in that engines for many AMG cars are each hand built by a single engineer at a time.

Each engine has a plate etched with the builder's signature.

Whenever we do brand image ranking exercises with consumers without almost without fail, Mercedes

It's always the top, most aspirational brand, even even among people that aren't necessarily

interested in owning a Mercedes Benz themselves.

They still see Mercedes Benz as being at the top.

Of course, not everything has been perfect, while Mercedes is known for excelling in engineering,

they haven't fared as well in assessments of other features, especially electronics and systems

Mercedes has also struggled with quality control issues.

The brand's reputation began to take hits in the 1990s, and those persisted throughout the early

They frankly took their eye off the ball and I think they got little complacent cut costs a lot

They move pretty quickly to rectify these problems and try tried to avoid doing that again

because Yeah, a scientist, cannot afford to lose their reputation for reliability and solidity

It has also taken some criticism for its repeated efforts to boost volumes, capture more market

share and lure younger buyers by making less expensive vehicles.

Some of Mercedes Benz efforts in lower priced segments have not exactly been successful.

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How Mercedes-Benz Is Losing Its Prestige Image

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