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Mercedes may not be done with R-Class after all

The idea of blending a three-row SUV and a minivan into a luxury model like the Mercedes-Benz R-Class still seems wonderfully absurd, particularly when you consider that there was an AMG version of that German people-mover. Apparently, though, one of the brand's execs doesn't believe the concept behind the R-Class is all that bizarre. In fact, he thinks it could be time to try again. Wolf-Dieter Kurz, Mercedes' vice president in charge of SUVs and sports cars, believes that crossovers could be a major driver of product variants in the future due to their popularity. There are a lot of design possibilities to explore in the segment, in his opinion. "There was already one that we had in the portfolio – maybe we were too early – which was the R-Class, which we are still selling in China. It's doing good, with 12,000 to 14,000 units per year," Kurz said during the launch of the GLE and GLE Coupe, according to CarAdvice. Under a recent deal, the quirky model is made by AM General and exported out of the US. Kurz even suggested the exact niche that the new model might fill. "So let's say these more, let's say, on-road based but still very roomy, but not station wagon, is definitely an interesting segment also in the future," he said, according to CarAdvice. That almost sounds like a blend of wagon and SUV in a move not too dissimilar from the current Subaru Outback or the old R-Class. One hurdle for any future model reviving the concept of the R-Class is that the company is already bursting with CUVs. Every size is practically already filled with the GLA, GLC, GLE, and forthcoming GLS, plus Coupe variants for some of them.

Daimler CEO says nobody is making money on EVs right now

What do you charge for a vehicle you're going to lose money on? If you're Mercedes-Benz and the vehicle in question is the B-Class Electric Drive, you offer it for lease for just 399 euros ($498) a month with a down payment of 8,473 euros ($10,582). If Daimler was going to price it honestly, it seems, the number would have to be a lot higher. "Nobody today is making a battery-powered vehicle that's economically viable." – Daimler CEO Dieter Zetsche That's according to Daimler CEO Dieter Zetsche, who spoke to reporters in Spain recently and said that, "You can reasonably say that nobody today is making a battery-powered vehicle that's economically viable in its own right. Manufacturers will not see a return within a reasonable time on the billions they're investing now." There are ways to make money in EVs, of course. Just ask Daimler, which recently sold its stake in Tesla for a cool $780 million. Zetsche has some EV-critical company in executives like Fiat Chrysler CEO Sergio Marchionne, who has said his company loses over $10,000 on each Fiat 500E it sells. Other automakers – e.g., Tesla, Nissan – are much more positive about their financial bet on EVs, but no one is opening all their books to the public to prove this. Tesla, which worked with Mercedes on the B-Class ED, will have an earnings call with investors later today, so perhaps we'll learn something new in a few hours. The B-Class ED lease deal is for 36 months, based on an MSRP of 39,151 euros ($48,895) in Europe, including the 19 percent VAT. You can read more in the press release below. Commercial release of Mercedes-Benz B-Class Electric Drive: Local emission-free driving from ˆ399/month Stuttgart, Nov 03, 2014 With its high-torque electric motor, the B-Class Electric Drive delivers lively and superior driving pleasure – with zero local emissions. The B-Class Electric Drive is now available to order, with deliveries set to start before the end of 2014. Prices start at ˆ39,151[1]. The B-Class Electric Drive can be leased through the Mercedes-Benz Bank from ˆ399 a month[2]. Further information on the full range of tailor-made leasing and financing offers as well as specific pricing examples are available at http://www.mercedes-benz-bank.de. Quiet and local emission-free driving is ensured by a 132 kW electric motor, which, as is typical of an electric drive, delivers its maximum torque of 340 Nm right from the start. The result is noticeably powerful acceleration from rest.

Mercedes widens luxury sales gap on strong early CLA demand

Mercedes-Benz CLA sales have been booming, with the Stuttgart-based manufacturer moving 2,300 of the sleek four-doors in its first week on sale. That is astonishing. Mercedes moved nearly twice as many CLAs (which start at $29,900) in one week than Jaguar, a brand that is on a very solid roll, sold in all of September. Ignoring the price differences between the Jag line and the CLA, that is still wildly impressive.
Mercedes has been pushing the CLA in television ads, using a shortened version of its Super Bowl spot, which starred William Dafoe, Usher and Kate Upton. "As the bargain entrance into the Mercedes portfolio, we weren't sure how luxury buyers would react," Kelly Blue Book auto analyst Alec Gutierrez told Bloomberg.
The CLA push was just part of MB's 6.7-percent increase in September sales, which were also helped along by a 17-percent jump in E-Class sales. That surge has allowed Mercedes to widen its 2013 sales lead over its rival, BMW, to 2,491 cars, according to Bloomberg. If CLA sales continue at this rate, we can only expect that margin to grow.