Mercedes Gets Back Up To Speed

Chief Executive Dieter Zetsche may be losing sleep over the woes of Daimler's U.S. unit, Chrysler Corp., but he's sure to be breathing easier about once-troubled Mercedes-Benz (DCX ). On Oct. 25, when Chrysler reported a $1.5 billion loss for the third quarter, Mercedes posted a 127% jump in operating profit, to $1.2 billion. Sales are up 9.3% this year, and analysts expect the turnaround to stick. "The downward spiral," Zetsche says, "has changed direction."

Mercedes' improved fortunes couldn't have come soon enough. The prestigious automaker is finally emerging from the most painful stretch in its 127-year history: a three-year slump in which its once-hallowed reputation for quality and engineering took a beating even as rival BMW surpassed it in global sales. Mercedes' fall in recent years was so precipitous it helped spur the early departure of former CEO Jürgen Schrempp.



Full 2006 SEMA Auto Show Gallery link

2006 SEMA Auto Show Photo Gallery

We've also added more photos to our Paris to Bejing rally photo gallery so be sure to check them out!

Mercedes-Benz Paris to Bejing Photo Gallery

More photos in our show photo galleries...

AutoSpies.com Photo Galleries


Read Article

Sauceboy01 - 11/3/2006 3:40:15 PM

+4 Boost

Great Great Great Article. Thank You!

MercBasher - 11/3/2006 3:59:19 PM

-2 Boost

It was a good article. My impressions from the article are:
(i.) Mercedes makes less reliable vehicles at a higher cost than BMW or Lexus
(ii.) Mercedes is trying to catch the competition, but Mercedes appears to be ignoring the likelihood that by the time it catches up to where the competition are now - the competitors will be further ahead in terms of quality, efficiency and flexibility in production.

S4cabriofox - 11/4/2006 12:45:52 AM

0 Boost

And yet, your oh-so-hated Mercedes brand sells on image alone.

They're not falling behind any time soon, sorry to break it to you. S, CL, SL and E are just too good.

mstangpny07 - 11/3/2006 4:39:12 PM

+2 Boost

Just don't get T-Boned in an E-Class!

Rupert - 11/3/2006 5:50:17 PM

0 Boost

will likes the s class's looks??? what has happened???

EL34 - 11/3/2006 7:37:55 PM

0 Boost

The Merc S-Class was designed for successful people.

Everyone else can buy a Buick Lucerne and be happy.

XYZZ - 11/5/2006 9:35:29 PM

-1 Boost

The Merc S-Class was designed for people who feel a need to impress others.

everyone else can buy a toyota Avalon and be more than happy.

razzy23 - 11/3/2006 8:45:36 PM

-2 Boost

wil-- you'll never have the $$ to own one or a BMW so stop talking about both. Wannabe.

S4cabriofox - 11/4/2006 12:47:59 AM

+2 Boost

"They are too busy fixing up Chrysler."

Umm, no... they're busy trying to SELL Chrysler.

And the S550 vs. LS460 isn't even a fair fight... unless you can't afford it, whoever buys the LS over the S is out of their mind. In this class, prestige matters most. It's the curb-appeal that sells.

EL34 - 11/4/2006 11:42:35 AM

0 Boost

Goldsmith, you think Lexus makes a more advanced car than Mercedes?

Well, I hope MB never have self-parking as an option because MB's are for drivers and Lexus is for sissy's.

theman - 11/4/2006 3:13:20 PM

+2 Boost

What is this world comming to??? I cant handle BMW being compared to Mercedes...BUT LEXUS???that is an insult..

Agent63 - 11/5/2006 4:34:48 AM

+2 Boost

LExus 5 years behind? They don't have to worry about a domestic company that went bad. Lexus only has Toyota to worry about which is their parent company and they share parts bins to begin with. Also Lexus isn't so much innovative like the Germans are. They do make nice cars though. Did you guys see that video about the Lexus parking system? it is rubbish to see someone have to go through all that time to learn to work a program that will take them longer to park than by doing it manually. I guess old geezers who own a Lexus won't mind. Waste their life away figiting with the park system.

S4cabriofox - 11/5/2006 11:22:39 PM

+3 Boost

"That's exactly what the Germans rely on nowadays."

Will, I wasn't even joking. I'm not "relying" on that- I do truly think the S550 is a better car. But in this ultra-luxe sedan class, style, prestige and image matter most. This is why the S550 comes out the winner, in sales, and in comparos, against all others that dare face it.

S4cabriofox - 11/5/2006 11:24:00 PM

+3 Boost

"The only one I wouldn't consider is the A8, it has a horrible grill."

Well, the interior is nicer than all the others combined. It's unbelievably beautiful.

I think the grille makes the A8 look great. I think it looks a bit out-of-place on the A4 (they'll refine it for the new A4), but the A8 goes with it well. The A8 is just a really classy car.

neutral - 11/4/2006 1:45:27 AM

+3 Boost

Maybe MB should look more into lean/flex manufacturing of Chrysler. Additionally, "Shocking reliability" makes it sound like a new S class is as reliable as a 1980s TransAm or Chevette. Mercedes addressed their electrical problems (the source of these problems). A friend had a brand new S550 and currently has an S600 and says theyre the best cars hes ever owned (coming for a guy who has a carrera GT a few Bentleys and Maseatis amongst other vehicles)

Bill - 11/4/2006 6:18:29 AM

+2 Boost

I've owned my S550 for 3 months now and I am more than satisfied with this car. Reliable? Check. Quality and solidity? You bet. Fun to drive? Oh yeah.

My last S-Class, an S430 was a decent car, but I always thought it lacked the quality feel of the older MB's. With the current S-Class, MB is making a strong comeback. This car is everything a Mercedes' should be.

I drove the LS460 as well and it's a great car, but it lacks the fun factor and feel of the S-Class in my opinion. Hence my choice was the Benz.

BMW530i - 11/4/2006 7:52:43 AM

+2 Boost

The article was insightful. Mercedes still has a lot of problems but they've improved big time. I think we need to give credit to Zetsche and his team. I've said this many times before, Zetsche is a man who strikes me as "doing something". When DCX was run by that clown Schremp, they were heading into trouble. Zetsche is bringing MB back again.

Good to see, because my next car will definitely be the new Benz CL500!

S4cabriofox - 11/5/2006 11:25:06 PM

+4 Boost

CL550?

I don't know what my next car will be anymore... CL, 911, XKR... they're all just too damn tempting...

BMW530i - 11/6/2006 8:48:07 AM

0 Boost

Whoops, you're right, S4. It's the CL550. Have to get used to that. ;)

Rupert - 11/6/2006 6:10:04 PM

+2 Boost

for some reason merc is still badging all the new 5.5s as 500s here, so the s500, cl500, cls500 etc live on.
oh i did see a cls 63 amg yesterday, the letters (like the 6.3 on the side) were ion black through, not chrome. thought it was odd.

neutral - 11/4/2006 1:06:16 PM

+4 Boost

I had a 1979 300SD that I just got rid of not even a year ago. I regret it, it looked like it had just gotten out of the factory in 1979. Absolutely gorgeous. If anyone wants I can post pictures (if I can find them). We had this car so clean and nice you could have eaten off of the engine surfaces. Damn I wish I still had it.

mitchatlexusofmarin - 11/4/2006 1:14:10 PM

+4 Boost

I think the S class is absolutely beautiful.

theman - 11/4/2006 3:15:24 PM

+5 Boost

You have great taste..Only people who can afford a Benz, understand a Benz..

neutral - 11/4/2006 1:30:14 PM

+4 Boost

Does anyone know where Mercedes is with respect to DSG's? I know Chrysler is going to manufacture them (with their supplier Getrag) and I was wondering what Merc is doing.

BMW530i - 11/4/2006 2:34:22 PM

+3 Boost

I heard something about AMG working on a DSG. Either way, I find Mercedes' automatics to be pretty damn good. It is their stickshifts which are horrible.

IamEvilHomer - 11/4/2006 3:14:01 PM

+5 Boost

Merc is doing good this year

their great month could be the 1000+ G class that where reported sold but are still sitting on the dealers lots

XYZZ - 11/9/2006 4:53:47 AM

+1 Boost

well, considering chrysler has 50,000 "missing" cars, not surprising. (see detroit news, auto insider)

XYZZ - 11/9/2006 4:56:45 AM

+1 Boost

Agent63 - 11/5/2006 4:34:48 AM+2 Boost


"LExus 5 years behind?"


no, MB is 5 years behind lexus. learn to read, dolt. then maybe your other inane comments mite be worth the space they take up.