San Diego Union-Tribune (Sunday)
MERCEDES WILL TRIM BACK MODEL PACKAGES
German luxury automakers offer a smorgasbord of model variants, trims and options in their pursuit to cover multiple market niches. But Mercedes-benz now believes that’s a problem.
In recent years, Mercedes’ U.S. portfolio — which one dealer compared to the menu at a Cheesecake Factory restaurant — has ballooned to more than 100 versions, including engine variants and body styles.
Mercedes will begin to slim that down.
When the 2021 Mercedes S-class goes on sale in the U.S. this summer, it will be offered in just three trims — Luxury Line, AMG Line and Executive Line — vs. nine major packages available with the current-generation model.
Overall, the new S-class will have 86 percent fewer configurations, Mercedes said. Several options previously available a la carte will be bundled into the three new trim lines.
That will help the customer, dealer and factory, Mercedes-benz USA sales chief Adam Chamberlain told Automotive News. Too much choice can have its downsides — overwhelming consumers and making inventory management expensive and complicated for retailers.
“It simplifies the ordering of vehicles for the dealer and customer, and should help our supply chain,” Chamberlain said.
Mercedes will go even deeper in slimming down the lineup. The brand plans to jettison seven car models from the U.S. market, former Mercedes-benz USA CEO Nicholas Speeks told dealers last summer.
According to people familiar with the plans, those under consideration include the coupe and convertible versions of the S-, C- and Eclass nameplates, as well as the CLS coupe and one of the brand’s GT models.
Some Mercedes dealers welcome the plan, noting an expansive list of model variants and trim levels can ding sales and residual values.
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The simplification of the model lineup is a “win-win” for Mercedes and its retailers, said Greg Barnes, president of Ussery Automotive Group, which operates two Mercedes dealerships in the Miami area.