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Mercedes making aggressive plans for Chinese market

Mercedes-Benz is preparing a major product offensive to counteract lagging sales in the Chinese market, aiming 20 new or updated models at the People's Republic in the next two years, according to a report by Reuters. The plan is part of MB's so-called 2020 Initiative, which will see the Stuttgart-based manufacturer dump 2 billion Euros ($2.67 billion) into its Chinese market vehicles in a bid to boost sales to 300,000 units by 2015.
Were it to succeed, China would become the largest market for the Silver Arrow, outpacing Germany and the United States. Leading the charge will be the redesigned E-Class, which is set to launch in China this week. That will quickly be followed by the S-Class, and eventually by the GLA-Class in 2014.
Mercedes has struggled in China, especially relative to its German competition, BMW and Audi. Where Mercedes saw a mere four-percent increase in 2012 sales to 206,150 units, Audi was up a staggering 32 percent, while BMW's numbers jumped 41 percent. While some voices, according to Reuters, accuse Munich and Ingolstadt of boosting their numbers through hefty incentives, the fact remains that Mercedes was just walloped by its competitors last year.

Apple lends prestige to a new Mercedes-Benz music system

Not often does Apple offer its name to products or technologies that emerge from beyond the walls of Fortress Cupertino. Could a partnership with Mercedes-Benz signal the start of something new? Mercedes’ new audio system unveiled this past weekend centers on the integration of Apple MusicÂ’s Spatial Audio with Dolby Atmos surround — a music enhancement generally heard in headphone-listening environments — in selected (and optional) Burmester audio systems. Plans are to offer the components initially in the Mercedes-Maybach S-Class, the S-Class as well as the EQE, EQE SUV, EQS and EQS SUV. No prices for the options were announced. Also partnering in the project is the Universal Music Group, one of the worldÂ’s leading music publishers. According to Mercedes, the Dolby tech “empowers musicians and audio engineers to place discrete audio elements or objects in a three-dimensional sound field, which goes beyond the capabilities of standard stereo productions. The system adapts to any playback environment, meaning fans can listen to music with unparalleled clarity that matches the artist's original vision in the studio.” We would expect no less from 31 speakers in a Maybach, powered by a pair of amps churning out 1,750 watts. Imagine Keith Richards cranking guitar through 31 speakers in an enclosed car cockpit. Almost three out of four music consumers say that they listen mostly in a car, says Mercedes Chairman Ola Kallenius. ”Through this exceptional partnership, we are giving our customers the extraordinary in-car audio experience they expect from Mercedes-Benz,” he said. “Both Apple and UMG share our vision and values and, together with Dolby, we will create a seamless and unique experience for our customers." Partnerships between automakers and audio companies have become common in recent years, and there have been mixed results from systems attempting to create a "surround sound" experience that goes beyond stereo. Bose put its systems into General Motors cars decades ago, and others followed, including Bowers & Wilkins, JBL and even the legendary McIntosh. Most recently, famed Italian speaker designer Sonon faber found a home in Maserati's new Grecale, and British speaker maker KEF is working with Lotus.  

Mercedes-Benz may create electric-only brand

Daimler's Mercedes-Benz division may follow in fellow German automaker BMW's footsteps by launching its own separate brand for electric vehicles, Hybrid Cars says, citing German publication Handelsblatt, which quoted people familiar with the process. Daimler's board may make the decision to go ahead with the plan as early next month. And the brand may officially be unveiled at the Paris Motor Show in September. Unlike BMW and the i brand, Mercedes would use its existing factories to produce the newly-branded vehicles instead of operating out of a separate one as the i brand does. The first vehicle under the brand is likely to be an SUV model based on the Mercedes-Benz GLC crossover vehicle and would start sales next year. The product line would be broadened further in 2020. Daimler declined to comment, according to Handelsblatt. Mercedes-Benz and BMW wouldn't be the only two German automakers with plans for more electric vehicle sales. Volkswagen has a plan to unleash as many as 20 electric vehicles and plug-in hybrids to the public by 2020, including the Phaeton and the Audi A8. On that note, reports surfaced last month that VW may build its own "Gigafacory" as it prepares to widen its plug-in vehicle push and bring down their costs. As for US sales, Smart sold 313 ForTwo Electric vehicles, down 43 percent from a year earlier. Meanwhile, BMW's i sales in the US fell 40 percent from a year earlier to 2,723. Currently, Mercedes-Benz's only two electric vehicles are the Mercedes B-Class Electric Drive and the Smart ForTwo Electric two-seat vehicle. In the meantime, take a look at Autoblog's First Drive of the B-Class Electric. Related Video: News Source: Handelsblatt, Hybrid Cars Green Mercedes-Benz smart Electric