Showing posts with label rolls-royce. Show all posts
Showing posts with label rolls-royce. Show all posts

5 October 2007

Maybach Hasn't Played Out As Expected

The recently renamed Daimler AG's ultra-expensive, ultra-luxurious division, Maybach, was launched with great fanfare in 2002 as a competitor to Rolls-Royce and Bentley. In the late 1990s, DaimlerChrysler decided to resurrect the prewar Maybach name for its new corporate flagships, the 57 and 62 (which refers to the length of the automobiles in decimeters).

Well, fast forward a few years, and the brand's cars have NOT been selling well in the US. The company sold 146 cars in 2006, 152 cars in 2005, 244 cars in 2004, 166 cars in 2003. So far in 2007, it has sold 80 cars through August 31, so that means that in the car's entire existence in the US, it has sold only 788 cars. It makes me feel even more "fortunate" to occasionally spot the one near where I work (I work near a wealthy area, but don't live in one), since I've been seeing it since 2003 or 2004. Contrasting these actual sales results were DaimlerChrysler's sales projections of 600 units per year. The dealer body was established based on the projection of 600 units annually, but Ernst Lieb, CEO of Mercedes-Benz USA said that 29 of the original 70 US dealers have given up their franchises. Daimler has negotiated compensation packages with the dealers, which - in at least one case - are about 25 cents on the dollar. That means that each dealer will get back about $125,000 of the approximate $500,000 upfront cost to set up a franchise.

So, what went wrong with the Maybach? They're certainly comfortable, with every imaginable luxury, including some unimaginable ones like an intercom system to allow vehicle occupants to speak with people outside of the car and rear seats in the 62 that can recline completely flat. The cars are powerful, with engines producing at least 550 horsepower. Well, my guess is that although people in the know can tell what a Maybach is, the cars have the misfortune of looking like unattractive Chinese knockoffs of Mercedes S-class sedans. When the Maybach made its debut, it looked more unique relative to the S-class, but with the introduction of the current W221 S-class sedan, it adopted some of the Maybach 57's more attractive styling features and is overall a much nicer looking automobile, and can be purchased for less than half the price of a Maybach.

Meanwhile, the guy who bought a Rolls-Royce Phantom (and there were 336 sold in 2006 and 382 sold in 2005 in the US - more than double the Maybach's sales), for better or worse, never sees himself, or a facsimile of himself, anywhere else in the automotive world.

Frankly, I'm surprised that Mercedes-Benz has bothered to keep pushing the Maybach line. Extremely low sales volumes probably don't make the car a profitable venture, and the fact that they continue to soldier on with the Maybach brand probably is some combination of German arrogance (the Volkswagen Phaeton is an excellent case study of that trait) and a lack of understanding of sunk costs ("we can't abandon Maybach after all of the money we've spent on it.")

Regardless of the reason, if I had more money than I knew what to do with, I would not be spending it on a Maybach. I'd probably go for a $186,000 S65 AMG (with basically the same engine that the Maybach has, wrapped in a more attractive body shell and what is still a really nice interior, and perhaps a Ferrari F430 - or even a $75,000 Corvette Z06 - as a sporty second car with the savings.

If I were Dieter Zetsche, I'd drop Maybach as a standalone brand, reach financial settlements with my remaining dealers, and introduce an ultra-luxurious derivative of the S-class and CL-class Mercedes-Benz cars called "Maybach" that captured the essence of the brand (high performance, ultimate luxury, and owner customization) without the need to support an extra brand.

9 April 2007

The $104,000 Question- Is Lexus There Yet?


Lexus has unveiled the LS600h L — a performance hybrid version of its new flagship sedan — at the 2006 New York International Auto Show. Scheduled to arrive in Spring 2007, it will be the world's first vehicle of any class or category to feature a full hybrid V8 powertrain. The LS 600h will combine an all-new five-litre V8 gas engine with combined massive, high-output electric motors and a newly designed large-capacity battery pack. It will deliver a peak, combined output of more than 430 horsepower. As a SULEV-rated (Super Low Emissions) vehicle, LS600h is estimated to produce just 20 per cent of the smog-forming emissions of a conventional five-litre V8. Power is delivered to the wheels via a 2-stange ECVT transmission. It also has the first LED front headlights of any production vehicle.
http://www.leftlanenews.com/lexus-debuts-20072007-lexus-ls-600h-l.html

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And just like that, poof, the last bunker of the Euro marques is penetrated.

What's been amusing is all of the chatter following the announcement of the pricing of the LS600.

  • The domestic fans, clutching their hearts in unison because Cadillac/Lincoln don't have a vehicle to compete with the GS, nevermind the LS, have been throwing out the 'I'd take a Corvette Z06 and an Aura for that kind of money OMG LOL!!!'
  • The European fans (MB, BMW and Audi fans I'm looking straight at you) have begrudgingly given kudos to the vehicle while still being snarky and saying 'well it doesn't have the cachet of a Euro brand, and plus it's just a Toyota OMG LOL!!!'
Do either of these generic comebacks make any sense? Seriously?

Lexus is officially in the big boy club now. Alongside Mercedes, BMW and Audi- they've finally made the leap.

A breakdown if you will-

Exotic Luxury
Bentley
Rolls-Royce
Maybach

Pretty much well the 'we have so much money that we can spend it on $10,000 paint upgrades to match our favorite polo shirt' club.

A-List Luxury
Mercedes-Benz
BMW
Audi
Lexus

I'm still not entirely convinced that Audi belongs in this group, but the interior design and craftsmanship puts them in here in the end. This group is basically the 'you've arrived' segment of the luxury market. The Alpha Dogs of the industry if you will. They've got sales, full lineups, and a brand cachet rivaled only by the exotics. They also have a very forgiving audience- BMW, and moreso MB, have been coasting on their quality reputations in recent years, but the strength of their brand perception has been strong enough to let them overcome any possible bad stigma overall.

B-List Luxury
Infiniti
Cadillac
Jaguar (and sliding)

Infiniti made the jump very recently by coming out with some world class sedans- prior years saw them down there with Acura...and even more prior years, in the D-League. Cadillac is on a downward slide (they'll need more than the CTS), and Jaguar is one failed product cycle away from oblivion and fond reminiscence at the next Barrett-Jackson auction show. They're all very competent luxury cars, but they're missing the cachet- pretend to own one of these for a day, just tell people you drive an Infiniti, Caddy or Jag... and most won't even bat an eye.

C-List Luxury
Acura

Acura gets their very own luxury segment to themselves. Not quite at the level of the B's, but not an also-ran. At the end of the day, the perception of Acura vehicles as very very well engineered Honda vehicles has been a hard perception for Acura to shake. The vehicles in the segments which they compete in are all competitive, and sometimes class leading- it's the brand that needs work now. The worst move they ever made was dropping model names- the Acura Legend, Vigor, Integra et al were great brand builders, and they were all dismissed without any long term planning.

D-List Luxury
Volvo
Saab
Lincoln

The end. Lincoln is almost done at this point. Saab and Volvo have never really been 'prestige' luxury makers- just solid performing vehicles with a good safety record. Not a true luxury car in my opinion, but more of a 'premium' set of brands.

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