Mercedes on Pace to Set U.S. Market-Share Record

NEW YORK – Running 8% ahead of last year's sales pace, Mercedes-Benz is on track to establish its highest-ever U.S. market share in the premium segment, says Steve Cannon, vice president-marketing.

Cannon tells Ward's at a press conference here that Mercedes sales might finish the year with double-digit gains.

First coupe helps boost Mercedes’ market share.

The German auto maker set its overall volume record of 253,000 units here in pre-recessionary 2007, when industry sales topped 17 million vehicles.

That record won't be broken this year, Cannon says, but Mercedes will post its highest-ever share in a market decidedly well below the industry's high-water sales mark.

“We're optimistic of achieving that because of new products (debuting) in the fourth quarter,” he says.

The principal new model is a C-Class coupe, the first-ever coupe for Mercedes in the C-Class’ segment. Bowing later in the year is an all-new M-Class cross/utility vehicle with a more efficient engine and priced at $48,990.

“Buyers will get extra miles at no increase in price,” Cannon says of the SUV. “We've also facelifted the C-Class, which has more than 2,000 new parts from the A-pillar forward. You could practically call it an all-new model.”

A diesel-powered S-Class sedan is just being launched. Despite its size, the new model will deliver 30 mpg (13 L /100 km) on the highway.

Mercedes diesel sales are running as high as 30% in the GL model and 20% in the M-Class. But the auto maker’s overall diesel sales are running at about 5% of sales.

“We've got some nice diesel developments in the pipeline, though,” Cannon says, noting a new GLK being launched in 2013 can deliver almost 40 mpg (17 L /100 km) on the highway. “We continue to expand our diesel portfolio.”

Lower prices are helping make the diesel option more attractive. Mercedes charges only a $1,500 premium for diesel engines, making for a “quicker payback,” he says.

Mercedes’ inventory for the month of August is its lowest in years, Cannon reveals. Even though its factories in Germany have not shut down this summer, deliveries have been running 5%-10% below demand on some models. He forecasts that production will increase as summer winds down.