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Mercedes calls CLA 'best launch in 20 years' as it warns dealers of tight supplies

It's still in the early going, but it's looking more and more like the 2014 Mercedes-Benz CLA is a verifiable home run for the German brand. According to a new report from Bloomberg, the new small car isn't just widening the sales gap between Mercedes and BMW, it's attracting a new, younger breed of customers into the brand's showrooms. But that early success is straining supplies of the turbocharged four-door.
Dealers have been warned that the first half of 2014 will see limited supplies for CLA, with a letter to dealers indicating that "tight inventories and low days supply" will exist from February through June, despite the car's Kecskemét, Hungary plant running at full tilt.
"This is our best launch in 20 years," said Steve Cannon, the US boss for Mercedes. "The CLA has been a phenomenal success right out of the gate." The numbers certainly support that. We reported in early October that Mercedes moved 2,300 CLAs in its first week on sale, and now Bloomberg is saying CLA sales were almost singlehandedly responsible for Benz's November sales gains. Mercedes' annual sales are up 14 percent through the November, and it's enjoying a healthy 7,600-car lead over BMW.

Trump reportedly says he wants to wipe German cars off the U.S. map

BERLIN/FRANKFURT — A report that U.S. President Donald Trump has threatened to pursue German carmakers until there are no Mercedes-Benz rolling down New York's Fifth Avenue dented shares in the luxury car manufacturers on Thursday. An excerpt from German magazine Wirtschaftswoche's article, which cited several unnamed European and U.S. diplomats but did not include any direct quotes, could not be independently verified, while a U.S. Embassy spokesman in Berlin referred questions to Washington. The news and current affairs magazine said Trump had told French President Emmanuel Macron in April that he aimed to push German carmakers out of the United States altogether. Macron's administration in Paris declined to comment on the report. The Trump administration last week opened a so-called Section 232 trade investigation into vehicle imports, which could result in a 25 percent tariff on cars on the same "national security" grounds Washington used to impose metals duties in March. This could destroy exports by German carmakers, which control 90 percent of the U.S. premium market and are the biggest European Union exporters of cars to the United States. BMW owns Rolls-Royce, while Daimler has Mercedes-Benz, and Volkswagen controls Bentley, Bugatti, Porsche and Audi. Daimler, BMW and Audi declined comment. Porsche was not immediately available for comment. BMW shares were trading 0.5 percent lower at 0939 GMT, while Daimler and VW's shares were down 1 percent and 1.6 percent respectively, underperforming Germany's blue-chip DAX. Trump has railed against German carmakers before. And in early 2017, in an interview with German newspaper Bild, he said he would impose 35 percent tariffs on imported cars. At the time, the president called Germany a great car producer but said that the business relationship with the United States was an unfair one-way street. Germany's auto industry association VDA says its members exported 657,000 vehicles to North America last year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totaling 31.2 billion euros in 2016. Imports from the United States to Germany amounted to 7.4 billion euros, meaning a trade deficit of 23.8 billion euros the VDA's latest available figures show. However, German brands also have huge factories in the United States, where they built 804,000 cars last year, VDA said, providing jobs for U.S. workers. Berlin has reacted angrily to the U.S.

The most or nothing: Mercedes-Maybach S650 Cabriolet pushes the luxury limits

After the introduction of the Mercedes-AMG GT Roadster at the Paris Motor Show this fall, we informed you that Mercedes-Benz has a convertible conundrum, a surplus of drop-tops that seemingly threatens to self-cannibalize within the brand's ever-proliferating lineup. Benz's head of design, Gorden Wagener, who spends much of his time in Southern California, argues it's not a problem: Each convertible, in its ideal construction, would intrinsically vanquish any issues. "The bad is the enemy of the good," he said, not exactly quoting Nietzsche. Now, the three-pointed star brand has upped the top-down ante, with the unveiling this week at the Los Angeles auto show of the Mercedes-Maybach S650 Cabriolet, a vehicle so opulent, it sits in price and position atop the uber-luxury brand's current top-of-the-line offering, the $247,900 Mercedes-AMG S65 Cabriolet. View 24 Photos "Mercedes-AMG is our performance brand so it's all about performance stuff," says Wagener in a one-on-one interview on the roof of a Beverly Hills mansion just before the new car is unveiled. "Of course, Maybach has power, too, but it's the ultimate in luxury. So it's more on that side. And for me in the interior, it's the haute couture of the automobile, so we tried to up that a little more with details. And on the exterior, it's a more superb appearance up front, more chrome, more rich, and of course we tried to up that branding even more. The S-Class is the best car in the world, we consider, I always thought we could raise the Mercedes brand. And it's the same with the S convertible." Why does Mercedes-Benz need a flagship atop its flagship? Because, when climbing the mountain of automotive luxury there is always the customer who, when he or she reaches the pinnacle, wants more. A car brand, especially one with deep pockets and luxurious heritage like Mercedes, can always further gild the automotive lilies, creating a step up for those for whom the brand's motto, The Best or Nothing, is a literal life credo. "It's always our job to make it better," Wagener says. "Each little detail, the wood, the wood under cover of the cabriolet, the leathers. All the super luxury details that make a luxury car into a super luxury car. The key is to make a modern luxury design and not a traditional luxury design. There is definitely a market for traditional luxury, but we always wanted to have Mercedes, Maybach in particular, as a modern luxury car.