Gojirra99

Discount plan widened to help prop up sales of ailing luxury carmaker.

By Ed Garsten / The Detroit News

AUBURN HILLS - They design, build and sell all-American cars and trucks, but now Chrysler employees in the United States can score big discounts for family members on German-engineered Mercedes-Benz vehicles.

DaimlerChrysler AG's Chrysler Group has extended and expanded its employee discount program through 2005. Chrysler employees and up to six family members are now eligible to buy or lease a Mercedes-Benz vehicle at 12.25 percent below sticker price.

Previously, the discounts were available to two immediate family members. "It helps us try to sell a few more cars," Chrysler Group spokesman Kevin McCormick said. "Employees are always proud to help out a friend or family member."

Mercedes is a DaimlerChrysler family member that could use some help.

While Mercedes-Benz's U.S. sales edged up 1.3 percent in 2004, the brand's once-vaunted reputation has been tarnished a bit over the past few years.

And General Motors Corp.'s Cadillac division surpassed Mercedes-Benz last year to become the third best-selling luxury brand behind Lexus and BMW.

"Quality is down, perception is down, image is down," said Art Spinella, president of CNW Marketing Research Inc., a Bandon, Ore., a company that monitors consumer behavior and vehicle sales trends.

Once looked at as the weaker half of the corporate marriage that combined the German and American automakers, Chrysler now is strutting its stuff as the only U.S. automaker to improve U.S. market share in 2004. Spinella said the wider availability of discounts on Mercedes vehicles is ironic.

"This could be a case where Chrysler saves Mercedes," he said.

The enhanced discounts on Mercedes models could also become a sore point for the United Auto Workers. In the past, the union has openly boycotted foreign-made vehicles to protect U.S. factory jobs.

In 2002, UAW members lobbied Ford employees to stop buying foreign-built cars, including models sold by Volvo and Jaguar, which Ford owns.

Employees interviewed last week were split over whether it was a good idea to offer discounted Mercedes vehicles to Chrysler employees, retirees and family members.

"That just shows you what (Chrysler executives) think of our products," said Guy Neroni, an inspector at Chrysler's Warren stamping plant. "You also see a lot of Ford execs driving around in Jags."

When asked if he would take advantage of the deal, Neroni said he recently bought a Chevrolet Corvette, a product of crosstown rival General Motors Corp.

Herb Helbig, an engineer for the Chrysler Group's street and racing technology division, said he has no plans to buy a Mercedes but doesn't think it would be disloyal. "We're all on the same team," he said.

One of them might be Mike Donoughe, vice president of engineering for the body-on-frame team. He once worked on Mercedes vehicle programs and would consider taking advantage of the deal to own one.

"More choices would always be of interest to me," said Donoughe.

"I would have no great compelling reason to drive a Mercedes. I'm a Dodge guy," said Helbig, adding that he thinks there will be plenty of takers.

Jason Vines, Chrysler's vice president of communications, joked he would still drive a Chrysler vehicle because he gets one for free, but "I hope that within the next year, I have a Mercedes-Benz in my garage my wife will drive."

source : detnews.com

They better be offered a free extended warranty too !

<VENOM>

Thats cool it was only a matter of time, guess the workers are sick of all the 300's years ago I knew someone who worked for MB and they where the ****, pretty much gave everyone a car free and clear but the employees beat the ever loving crap out of them almost to the point of being totalled so MB stopped that and thats when the discounted cars came in and the employees had to pay their own insurance

I know currently my friend who worked at MB dealer could lease any Benz except AMG and SL models for half the price and MB paid half the insurance, with a low low buy out price still all the employees drive demos or their own Hondas.

Hell if you can't sell them give them away

mmarshall

Remember the discussion, Sexy, we had a few nights ago about "image" and luxury cars? This ties in with it. M-B's poor quality, control and electronics are starting to hurt them despite a lot of people who are still buying them based on "image".

So they're pushing their products now essentially with rebates....only this time D-C employee rebates instead of general customer ones.

mmarshall

You mean they got free insurance, too? That was a deal.

Gojirra99

I agree it's hurting them, but if not for their prestigeous image, their sales would've probably plummeted like VW's(by >20%?), which took the same kind of beating in their quality reputation, instead of still having a 1 % gain. Their sales remain high, just not growing as fast as Lexus & BMW. So image still does makes a big difference.

<VENOM>

Everything was free long as you where a MB employee, well someone who wore a suit I really don't know about the techs but that was prior to the full maintenance coverage, gotta ask older people who worked for MB, at least 10+ years ago, I know the last straw was when the S Class was driven at full speed over a curb and they had to foot the bit for a nearly brand new car that the employees trashed, thats why they did away with it, employees trashed the cars

mmarshall

If THIS is the kind of employees that are working in M-B plants, no wonder the cars have problems.

<VENOM>

No I doubt it was for plant workers, just Corporate but they where a bunch of Morons for how you drive a car

LexFather

A few things.
1. Auto employees are very loyal to their brand or company. Its their life and blood.
2. Its a good move by Benz.
3. Some will jump on this, as Benz is a dream car to many people.
4. Many of these people are going to be shocked by what their perception of Benz was and what they got.

<VENOM>

Same **** different badge, Chrysler is not better then MB when it comes to problems, well they suffer from different problems but you get to meet and form relationships with the service writers and techs, something I can't do with Toyota or Lexus