Mercedes-Benz aims to attract younger customers

The company have set a target of 2020 to regain the title of what they believe is rightfully theirs. The company want to be number one in every car segment in which they are involved in.

The new A-Class

The brand new generation A-Class is expected to be one of those vehicles which lure the younger market in. It’s new design and features are quite exceptional, with the car seeing the biggest rebrand from one generation to the next ever from Mercedes-Benz. Customers could be swayed away from BMW and Audi with this new model.

Compact car market

It is hoped by the company that Mercedes-Benz will sell 1.6 million compact vehicles by 2015 which is a huge increase from 1.38 million in 2011.

Increase in production

According to some experts, Mercedes-Benz are looking for a massive production push in the upcoming months in terms of volume. This should help close the gap between themselves and their German counterparts.

Profits

Although Mercedes-Benz managed to achieve all time personal records in terms of sales last year, they still lost out to main competitors BMW. Audi were not too far behind and managed to achieved higher profits overall. The company’s earnings before interest and taxation could hit €9 billion this year. Sales and revenue will continue to increase. €10.9 billion will be invested in Research and Development from this year through to 2013. With so much being invested, profits may fall before it reaches it’s intended peak.

Last year BMW and Audi managed to achieve a sales return of 12.1 per cent and 11.8 per cent. Daimler’s car category only saw a return of 9 per cent, with that figure hoped to 10 per cent in 2012. Clearly Mercedes-Benz’s efficiency of producing vehicles needs to be heavily improved. Profit margins have not matched that of BMW and Audi for many years.

New levels of success

Sales this year have one again set new personal levels of success for Mercedes-Benz. March saw the company hit their best ever sales record for a single month. First quarter sales are also the company’s best ever in 2012. If the company continue in this pattern, they give BMW and Audi something to worry about.

 

 

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