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Mercedes-Benz Hopes X-Class Can Be As Successful As Their SUVs
William Maley posted an article in Mercedes Benz
SUVs at one time were seen as utility vehicles that could get you through the worst mother nature had on offer. Now SUVs have moved upmarket, becoming a status symbol at the school's parking lot and not tacking some off-road trail. Mercedes-Benz believes something similar could happen with pickup trucks. "SUVs are elegant lifestyle products with a high-quality finish to them. Not every customer takes them into the wilderness anymore. We believe pickups could go in a similar direction," said Volker Mornhinweg, Mercedes-Benz vans boss to Automotive News. Mercedes-Benz will soon be launching their first truck, the X-Class in a number of markets. Certain markets such as Europe and South Africa, Mercedes hopes to capture "trend-conscious individuals". There is a big pitfall to Mercedes' prediction. JATO Dynamics wrote in a research note that the X-Class will face "several challenges" in Europe where many customers see pickup trucks as work vehicles, not something like a daily driver. But that might be changing. As we reported last week, sales of pickup trucks in Europe have been climbing steadily. Source: Automotive News (Subscription Required) -
SUVs at one time were seen as utility vehicles that could get you through the worst mother nature had on offer. Now SUVs have moved upmarket, becoming a status symbol at the school's parking lot and not tacking some off-road trail. Mercedes-Benz believes something similar could happen with pickup trucks. "SUVs are elegant lifestyle products with a high-quality finish to them. Not every customer takes them into the wilderness anymore. We believe pickups could go in a similar direction," said Volker Mornhinweg, Mercedes-Benz vans boss to Automotive News. Mercedes-Benz will soon be launching their first truck, the X-Class in a number of markets. Certain markets such as Europe and South Africa, Mercedes hopes to capture "trend-conscious individuals". There is a big pitfall to Mercedes' prediction. JATO Dynamics wrote in a research note that the X-Class will face "several challenges" in Europe where many customers see pickup trucks as work vehicles, not something like a daily driver. But that might be changing. As we reported last week, sales of pickup trucks in Europe have been climbing steadily. Source: Automotive News (Subscription Required) View full article
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Japan is a notorious market for American automakers to make a dent in. Ford called it quits last year, while GM sells a meager number of models; Cadillac sold 327 and Chevrolet moved 373 models last year. Critics say "nontariff barriers" are the key reason as to why Detroit hasn't been able to make any headway. Talk with people in Japan and it is a different story, there is still a perception of American models having poor quality and having to fork out a fair amount of cash to keep them maintained. But there is an exception. Jeep has been able to carve out a nice niche in Japan's marketplace. The brand is consistently in the top 10 of foreign automakers and sales have been climbing. 2017 is on track to be the eighth consecutive year of sales growth in the country. Through August, Jeep moved 6,344 models. But getting to this point took a lot of work and money. "We have to spend money and engineering hours to do it, but we think it's worth it," said FCA Japan CEO Pontus Haggstrom to Automotive News. "They are things that make our jobs harder and make it more expensive and time consuming to bring cars to Japan. But are they trade barriers? My honest opinion is, no. Are they excuses for why I can't sell or succeed in Japan? No." Jeep has been making efforts to make their models more appealing to Japanese customers. Tweaking drivetrains to qualify for Japan's eco-car incentives Offering right-hand drive models Equipping models with folding side mirrors and factory-installed Japanese navigation systems. Doubling their marketing budget since 2010 Refurbishing or redesigning more than 50 showrooms by 2018 The last one is important as previous Jeep dealers in the country were basically what you find in dealers in the U.S. "It's more about the brand and less about the origin," says Haggstrom. Jeep also has an ace up its sleeve that many automakers wished they had, brand equity. "The image of American cars as low-quality still persists here, even though a bit underserved. But Jeep has the most brand equity of any American brand. Japan shows it has a global following," said Christopher Richter, an auto analyst with CLSA Asia-Pacific Markets in Tokyo. Source: Automotive News (Subscription Required) View full article
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Japan is a notorious market for American automakers to make a dent in. Ford called it quits last year, while GM sells a meager number of models; Cadillac sold 327 and Chevrolet moved 373 models last year. Critics say "nontariff barriers" are the key reason as to why Detroit hasn't been able to make any headway. Talk with people in Japan and it is a different story, there is still a perception of American models having poor quality and having to fork out a fair amount of cash to keep them maintained. But there is an exception. Jeep has been able to carve out a nice niche in Japan's marketplace. The brand is consistently in the top 10 of foreign automakers and sales have been climbing. 2017 is on track to be the eighth consecutive year of sales growth in the country. Through August, Jeep moved 6,344 models. But getting to this point took a lot of work and money. "We have to spend money and engineering hours to do it, but we think it's worth it," said FCA Japan CEO Pontus Haggstrom to Automotive News. "They are things that make our jobs harder and make it more expensive and time consuming to bring cars to Japan. But are they trade barriers? My honest opinion is, no. Are they excuses for why I can't sell or succeed in Japan? No." Jeep has been making efforts to make their models more appealing to Japanese customers. Tweaking drivetrains to qualify for Japan's eco-car incentives Offering right-hand drive models Equipping models with folding side mirrors and factory-installed Japanese navigation systems. Doubling their marketing budget since 2010 Refurbishing or redesigning more than 50 showrooms by 2018 The last one is important as previous Jeep dealers in the country were basically what you find in dealers in the U.S. "It's more about the brand and less about the origin," says Haggstrom. Jeep also has an ace up its sleeve that many automakers wished they had, brand equity. "The image of American cars as low-quality still persists here, even though a bit underserved. But Jeep has the most brand equity of any American brand. Japan shows it has a global following," said Christopher Richter, an auto analyst with CLSA Asia-Pacific Markets in Tokyo. Source: Automotive News (Subscription Required)
