2004 Mercedes-benz Clk320 Cabriolet Convertible Original Owner 19,593 Miles on 2040-cars

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How chasing Ferrari improved Aston Martin, with help from Mercedes-Benz

GAYDON, England — After decades of ups and downs, British carmaker Aston Martin Lagonda is charting a more efficient and profitable way forward, leaning on technology from shareholder Mercedes-Benz to make the costly leap to electric vehicles (EVs). Less than two years after billionaire Lawrence Stroll drove to the rescue of James Bond's car brand of choice, Aston Martin has undergone a manufacturing makeover to lift margins and help it become more like rival Ferrari. Stroll, Aston Martin's largest shareholder and executive chairman, who is also an avid fan of Ferrari, says after vehicle sales jumped 82% in 2021 the carmaker's transformation to long-term profitability is well under way, with new cars coming and funding secured through 2025. But analysts say Aston Martin, which has gone bust seven times since it was founded in 1913 and has flirted with death as often as Agent 007, is still burning through piles of cash. Some question its ability to generate Ferrari-like sales to fund the vast cost of electrification. "It's precarious and it is possible for this company to go bust," said Redburn equity research analyst Charles Coldicott. "I don't think it's a controversial thing to say even though Aston wouldn't like to hear it." Asked to comment on perceptions of a shaky future, an Aston Martin spokesman reiterated Stroll's view that the carmaker is well on the way to long-term profitability and that it has adequate access to cash. On a tour of the carmaker's Gaydon factory, Tobias Moers, formerly head of Mercedes' high-performance AMG brand and Aston Martin chief executive since August 2020, rattles off a list of moves including cutting one of two assembly lines and bringing more bespoke items like seats in-house. Perhaps the biggest shift has been to focus on higher-value customer-driven and customized orders — a big part of Ferrari's success — rather than over-producing and churning out sports cars wholesale, which then had to be discounted. "When I came in, the company was manufacturing-dominated instead of engineering-led, which for an auto luxury business is insane," Moers said. "In a company this size, you need maximum flexibility and agility." Moers has cut Aston Martin's inventory to 600 sports cars from 2,000 — its cars sell for an average of around 150,000 pounds ($195,750) — and customized orders now account for 50% of sales versus 6% when he joined the firm. At that point, the carmaker was in trouble after a disastrous 2018 public listing.

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.

Hybrids to slowly replace diesels at Mercedes

German automakers have had some success bringing diesel-powered vehicles in America in recent years, but that may not last much longer. A product planner from Mercedes-Benz we spoke to in Austria apparently believes hybrid setups may be more favorable in the long run, and electrified hybrids will eventually replace oil burners. That's why most every concept car we've seen in the last few years features some sort of hybrid or plug-in hybrid setup while there have been very few diesels. "Yes, diesel is technically complex, and very expensive. The additives to reduce particulate matter are very costly. You'll see more hybrids to meet the changing regulations," according to our source. We've seen this exact scenario play out with Mazda, which has struggled to bring its 2.2-liter diesel engine to America, citing the costly process to reduce emissions in order to meet California-level standards while still maintaining suitable performance for the US market. It's certainly interesting that this news comes hot on the heels of revelations that VW, the automaker that offers the most diesel-powered models in the US, was found in violation of emissions rules on its popular 2.0-liter TDI engine. New Mercedes GLE Will Have An Active Chassis Mercedes has launched an all-out product offensive in the last two years, but the product planning think tanks in Stuttgart have a few surprises in store, too. While Benz has just launched its new GLE SUV family, GLE product planners are already hard at work on the next-generation – yes, a good 5-6 years away – and tell us it will evolve to boast new chassis technology, "something that doesn't exist today." The next-GLE is codenamed 167 – the previous ML (now replaced by the GLE) was internally referred to as 166 – and the GLE planner we recently talked to calls the platform an "active chassis." He further alluded that the next version could be electrified. Currently, the only aspect of the GLE's chassis that is 'active' today are the hydraulic pumps on the roll bars, he said. Many of Mercedes' models can already be had with an adaptive air suspension, multiple selectable driving modes, and other features that were rare or nonexistent just a couple generations ago. One More Compact Crossover On The Way The planner said we can also at least one more all-new, forthcoming compact crossover to be built on the GLA platform. In addition to the GLA, that architecture is currently shared by the A-Class, B-Class, and CLA-Class models.