oh yea. I don't think it was ever a question of it working for the bottom line, its always been a question of how long is this strategy sustainable. How long does Mercedes still mean Mercedes as they push lower and lower boundaries?
The badge head to head with Toyota and Nissan right now wins hands down, but what happens when Mercedes become just as common? Do they still have a branded competitive advantage?
So what's wrong with being common? MB is pretty common in Europe. Does offering lower priced vehicles negatively affect the likes of the S-Class, 7-Series, or A8? I don't think so. To the contrary, I think that will improve the flagship models as well as other models in their lineup quicker. Being more profitable allows a company to spend more on R&D and in return have earlier incremental improvements to their vehicles. I’m not comparing MB to Toyota, Honda, or any other car company. All I’m saying is the CLA is having a huge positive effect on Daimler and the only real measure of success for a company is its profitability. How long will this last? With the release of the GLA next month let's reserve our judgement for now and see after a few years.