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The Mercedes E class once ruled the medium-premium segment in Europe. Not any more, said Automotive News Europe.

Plagued by well-publicised quality problems, E class sales dropped 28.4% this year compared with 2004, dropping it to third place behind the BMW 5 series and Audi A6 after 10 months.

The decline in E class sales highlights Mercedes’ loosening grip on the heart of the European luxury market. The C class lower-premium car, Mercedes’ other core vehicle, also has fallen to No. 3 in its segment behind the Audi A4 and BMW 3 series.

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