Seize
07-27-07, 08:41 AM
Daimler May Offer U.S. B-Class as Fuel Prices Rise
Last Updated: July 25, 2007 (Bloomberg) -- DaimlerChrysler AG, the world's second-biggest luxury automaker, is designing a version of its Mercedes-Benz B-Class car for sale in North America for the first time, the company's top U.S. executive said.
The B-class, available in Europe since 2005, is due for redesign in 2011 or 2012 and prototypes include a model that would meet North American regulatory requirements, said Ernst Lieb, chief executive officer of Mercedes-Benz USA. The mini crossover is bigger than General Motors Corp.'s Chevrolet Aveo and smaller than Toyota Motor Corp.'s Corolla.
The B-Class would join Stuttgart, Germany-based Daimler's Smart car among smaller, higher-mileage autos being offered as rising gasoline prices prompt U.S. buyers to consider more fuel- efficient models. Daimler scrapped plans to redesign the current B-Class model for the U.S. about a year ago because the euro- dollar exchange rate made it too costly.
``Logically, it would be pretty good idea to carefully consider the vehicle for the U.S.,'' said Michael Schmall, managing partner for Planning Edge, a Birmingham, Michigan-based market-research firm. ``I question whether it would be successful because of the difficulty luxury manufacturers have in that segment.''
Average U.S. gasoline prices have risen about 30 percent in the past two years. The euro gained 1.5 percent against the dollar in the second quarter and has risen 9.5 percent over the past 12 months. A stronger euro reduces earnings on revenue earned in dollars when it is converted into euros. The U.S. is Mercedes' second-largest market after Germany.
New Model
``At least we have the door open, so the decision will probably be done in two or three years,'' Lieb said yesterday in an interview. Designing a new model for the U.S. is cheaper than redesigning the current B-Class, he said.
``They will need to get the costs right, from a production standpoint, to overcome the currency exchange issue,'' said Michael Robinet, an analyst at CSM Worldwide Inc. in Northville, Michigan. The B-Class is built in Rastatt, in the state of Baden-Wuerttemberg, which has the highest labor costs in Germany.
Daimler may have an advantage with the B-Class because it's a unique product, not a smaller or cheaper version of an existing Mercedes-Benz model, Robinet said. Such a difference is the reason Bayerische Motoren Werke AG's Mini Cooper has been a success and Ford Motor Co.'s Jaguar X-Type has not, he said.
Smart Sales
Smart USA, the U.S. distributor for Daimler's two-seat minicars, said July 10 it will have 45 to 60 dealers when the Smart car goes on sale in January. More than 20,000 people have paid $99 each to reserve one of the vehicles, Smart USA President David Schembri said at the time. The distributor is part of Penske Automotive Group Inc., based in Bloomfield Hills, Michigan.
DaimlerChrysler's Chrysler group is developing small cars for eventual U.S. sale with China's Chery Automobile Co. Daimler plans to sell an 80.1 percent stake in the unit to Cerberus Capital Management LP this quarter.
U.S. shares of DaimlerChrysler rose $3.57, or 4 percent, to $93.02 at 4:19 p.m. in New York Stock Exchange composite trading. The stock has gained 51 percent this year.
*source
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aaLSh0HCqM.U
Last Updated: July 25, 2007 (Bloomberg) -- DaimlerChrysler AG, the world's second-biggest luxury automaker, is designing a version of its Mercedes-Benz B-Class car for sale in North America for the first time, the company's top U.S. executive said.
The B-class, available in Europe since 2005, is due for redesign in 2011 or 2012 and prototypes include a model that would meet North American regulatory requirements, said Ernst Lieb, chief executive officer of Mercedes-Benz USA. The mini crossover is bigger than General Motors Corp.'s Chevrolet Aveo and smaller than Toyota Motor Corp.'s Corolla.
The B-Class would join Stuttgart, Germany-based Daimler's Smart car among smaller, higher-mileage autos being offered as rising gasoline prices prompt U.S. buyers to consider more fuel- efficient models. Daimler scrapped plans to redesign the current B-Class model for the U.S. about a year ago because the euro- dollar exchange rate made it too costly.
``Logically, it would be pretty good idea to carefully consider the vehicle for the U.S.,'' said Michael Schmall, managing partner for Planning Edge, a Birmingham, Michigan-based market-research firm. ``I question whether it would be successful because of the difficulty luxury manufacturers have in that segment.''
Average U.S. gasoline prices have risen about 30 percent in the past two years. The euro gained 1.5 percent against the dollar in the second quarter and has risen 9.5 percent over the past 12 months. A stronger euro reduces earnings on revenue earned in dollars when it is converted into euros. The U.S. is Mercedes' second-largest market after Germany.
New Model
``At least we have the door open, so the decision will probably be done in two or three years,'' Lieb said yesterday in an interview. Designing a new model for the U.S. is cheaper than redesigning the current B-Class, he said.
``They will need to get the costs right, from a production standpoint, to overcome the currency exchange issue,'' said Michael Robinet, an analyst at CSM Worldwide Inc. in Northville, Michigan. The B-Class is built in Rastatt, in the state of Baden-Wuerttemberg, which has the highest labor costs in Germany.
Daimler may have an advantage with the B-Class because it's a unique product, not a smaller or cheaper version of an existing Mercedes-Benz model, Robinet said. Such a difference is the reason Bayerische Motoren Werke AG's Mini Cooper has been a success and Ford Motor Co.'s Jaguar X-Type has not, he said.
Smart Sales
Smart USA, the U.S. distributor for Daimler's two-seat minicars, said July 10 it will have 45 to 60 dealers when the Smart car goes on sale in January. More than 20,000 people have paid $99 each to reserve one of the vehicles, Smart USA President David Schembri said at the time. The distributor is part of Penske Automotive Group Inc., based in Bloomfield Hills, Michigan.
DaimlerChrysler's Chrysler group is developing small cars for eventual U.S. sale with China's Chery Automobile Co. Daimler plans to sell an 80.1 percent stake in the unit to Cerberus Capital Management LP this quarter.
U.S. shares of DaimlerChrysler rose $3.57, or 4 percent, to $93.02 at 4:19 p.m. in New York Stock Exchange composite trading. The stock has gained 51 percent this year.
*source
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aaLSh0HCqM.U