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Mercedes Takes Cues From Apple in Reboot of C-Class Sedan

By Dorothee Tschampa
January 12, 2014 6:01 PM EST 11 Comments
Mercedes-Benz is offering its best-seller with trendy smartphone-like features and technology from the flagship S-Class sedan, including a 360-degree camera and six radar sensors to enhance safety systems.
Source: Daimler AG via Bloomberg
Mercedes-Benz is offering its best-seller with trendy smartphone-like features and technology from the flagship S-Class sedan, including a 360-degree camera and six radar sensors to enhance safety systems.

Mercedes-Benz is adding touchpad technology pioneered by the iPhone and an iPad-like display to the C-Class sedan to boost its bid to surpass BMW in sales.

Mercedes is offering its best-seller with trendy smartphone-like features and technology from the flagship S-Class sedan, including a 360-degree camera and six radar sensors to enhance safety systems. The German carmaker unveiled the model’s first overhaul in seven years at the North American International Auto Show in Detroit.

By bolstering the 33,560-euro ($45,690) C-Class with top-of-the-line gadgetry, Mercedes is looking to further its effort of leaping to No. 1 from third in global luxury-car sales by the end of the decade. The new C-Class goes on sale in Europe in March and the U.S. and China in September and will help Daimler AG (DAI)’s Mercedes overtake Audi for second place next year, according to forecasts from IHS Automotive.

“Luxury customers are becoming much younger, especially in Asian markets,” said Sarwant Singh, an automotive partner with consultancy Frost & Sullivan. “They are looking for more gimmicks. The new C-Class is much more exciting than its predecessor.”

Mercedes has been fighting back after losing its ranking as the world’s top-selling luxury brand to BMW in 2005 and dropping to No. 3 in 2011. Last year, the manufacturer narrowed the gap to Audi as the upgraded S-Class and new compacts fueled its biggest sales gain in three years.

New Entry

The 28,980-euro CLA compact sedan, which was introduced last year, replaced the C-Class as the main entry-level Mercedes by focusing on aggressive styling to lure buyers from other brands. To set the C-Class apart from its cheaper stable mate, Mercedes made the car essentially a downsized version of the iconic S-Class.

“The C-Class is and will continue to be the brand’s mainstream offering, appealing to the widest possible potential buyer base -- from junior execs to retirees,” said Tim Urquhart, an analyst with IHS Automotive in London. “The CLA is positioned more for a younger, image-conscious buyer” and won’t likely steal many customers from the C-Class.

Including a wagon, coupe and an extended-wheelbase version for China, the line’s sales are forecast to surge 30 percent in 2015 from last year, IHS estimates. That would help lift Mercedes deliveries 17 percent to more than 1.7 million vehicles next year, nipping ahead of Audi as the C-Class outsells the Volkswagen AG unit’s A4.

3-Series Lead

Still, the C-Class is expected to continue trailing Bayerische Motoren Werke AG (BMW)’s 3-Series, the world’s top-selling luxury car, after the Munich-based carmaker expanded the range with a GT version. That means Daimler Chief Executive Officer Dieter Zetsche won’t likely achieve his target of toppling BMW, according to IHS forecasts.

While the exterior remains sedate, Mercedes added more contemporary flair to the interior, including options for open-pore wood trim for a more textured surface, a larger 8.4-inch display and a Burmester surround-sound system.

“I could live in the car,” Ola Kaellenius, head of Mercedes sales and marketing, said in an interview in Stuttgart. “The new C-Class is better in every respect. There’s still a lot of room for us to grow” in the segment.

The small sedan, which accounts for about 25 percent of Mercedes sales, is the cheapest model available that has the right to place the trademark three-pointed star in its traditional position upright on the hood rather than embedded in the grille like in the brand’s compacts.

Hood Ornament

A chrome grille with the star on the hood is available on the C-Class as part of 1,250-euro Exclusive package, while the embedded logo is standard.

High-tech options include a head-up display, which projects speed and navigation instructions on the windscreen to avoid distraction, and an air suspension that lets the driver to switch between four settings from sporty to comfort.

The touchpad allows the customer to flip through functions or zoom in and out of maps or other images on the central display, which juts out of the dashboard and resembles a small tablet computer. The touchpad, which can also be used to enter letters or numbers, vibrates to give the driver feedback that the command was received to help keep focus on the road.

“It’s great that the whole range of S-Class technology is available for the C-Class,” said Stefan Pusch, a salesman at Georg Pappas Automobil, a Mercedes and Jeep dealership in Salzburg, Austria. “The C-Class is up-to-date now.”

To contact the reporter on this story: Dorothee Tschampa in Frankfurt at dtschampa@bloomberg.net

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net

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