Daimler Chief Plays Dual Role of Champ and Diplomat

DETROIT –BMW outsold Mercedes-Benz in U.S. car sales in 2016. But Mercedes outpaced its arch-competitor in light-truck deliveries by a margin wide enough to capture the coveted title of the nation’s best-selling luxury brand. 

Daimler Chairman Dieter Zetsche notes that achievement of its star brand on more than one occasion here at the North American International Auto Show, where Mercedes world-debuts the redone E-Class Coupe.

Choosing his words carefully, the head of the German automaker also discusses the impending U.S. presidency of Donald Trump and what it means for the auto industry.

Zetsche more enthusiastically talks about Daimler’s record-setting 2016 performance. “It was the best year in the history of our company,” he says, noting Mercedes sold more than 2 million units worldwide.

Speaking to the media after the E-Class debut, Zetsche says Mercedes captured the U.S. premium-brand title without excessive use of incentives. “When we set this target of volume leadership, it was clearly not by giving away cars.”

Mercedes bested its competition in both sales and profit margins, he says. “To some extent, that is due to the fact that we have very good development in net pricing. Incentives are not the way we are selling our cars.”

Daimler last year sold 380,855 vehicles in the U.S. (all Mercedes, except for 6,211 Smart Fourtwos). Of that total, 192,904 were SUVs, CUVs and vans, and 187,848 cars, according to WardsAuto data.

BMW 365,204 sales comprised 220,658 cars (including 39,239 Minis) and 144,546 utility vehicles.

Zetsche notes the U.S. is a hot market for utility vehicles and pickup trucks, although neither Mercedes nor BMW offers versions of the latter.  

“We have seen a shift to light trucks, which is certainly not against the best interest of the Big Three in Detroit.” The former head of Chrysler under Daimler ownership adds, “I very much hope for my former colleagues that it will continue this way.”

Zetsche diplomatically answers questions about how the auto industry might fare under the Republican administration of Trump.

 “We’ll see,” says the Daimler chairman. “There has been a good partnership in the U.S. with the auto industry in the past. We assume that will continue.”

Trump has slammed certain automakers for making vehicles in Mexico and selling them in the U.S. He’s so far singled out General Motors, Ford and Toyota.  

“We do not produce vehicles in Mexico today,” Zetsche notes. However, in partnerships with Renault-Nissan, Mercedes by 2018 will produce compact vehicles in a new $1 billion Mexican plant.

“We are producing vehicles in Tuscaloosa, AL, and exporting from there to the entire world,” he points out.

Trump has threatened to work to repeal or at least extensively renegotiate the North American Free Trade Agreement among the U.S., Mexico and Canada. Asked about that, Zetsche says, “There are a lot of bits and pieces but no broad official policy statement so far. We should talk about something that is defined rather than speculate about certain remarks.”

At the Detroit show, several Mercedes models share the stage, including a refreshed version of the GLA CUV and a pair of 2-seater AMG performance models, the GT C-Edition 50 and the GT S.

Zetsche gets behind the wheel of the E-Class Coupe to drive it into the spotlights. “I can tell you, it drives at least as good as it looks,” he says of the midsize car that’s longer and wider than its predecessor.

The new model will come with three engines: a 2.0L 4-cyl. diesel, an inline-4 and a V-6. Horsepower ranges from 184 to 333. A 9-speed transmission delivers the power.   

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