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Duds or Darlings in Geneva?
Amidst the glitzy concepts like Mazda’s Hakaze and sexy sports cars like the Maserati GranTursimo, the 2008 Mercedes-Benz C-Class stands to be among the most important announcements at the upcoming Geneva Auto Show, at least in terms of the U.S. market.
The compact C-Class sedan is Mercedes-Benz’s least expensive model with the potential to sell the highest volume. It's a gateway for the company to gain new customers. “The C-Class is a first look at Mercedes-Benz for a lot of buyers, and if a buyer is unhappy with the car, Mercedes might lose out on E- or S-Class sales down the road,” said Steven Szakaly, an economist with the Center for Automotive Research in Michigan.
The current C-Class sedan is at the end of a long lifecycle that began in 2000. As is typical of a model that’s about to be overhauled, sales of the C-Class have been slumping — 12 percent last year, according to CNW Marketing Research. Aaron Bragman, analyst of the Americas for market research firm Global Insight says Mercedes-Benz is playing catch-up to newer entry-level luxury models, like BMW’s 3 Series and the Lexus ES and IS, all of which have been recently redesigned and have posted sales gains of more than 12 percent for 2006, according to CNW data. “The current C-Class has been considered 'lower rent' than a lot of their other offerings,” Bragman said.
It appears as if Mercedes-Benz aims to combat the waning appeal of its smallest sedan by adding advanced technology to the longer, wider 2008 model as standard equipment. One new high-tech feature is called Agility Control, a braking system that varies damping rates based on driving style.
After several false starts, another brand owned by Mercedes-Benz, Smart, will start selling its tiny Fortwo in the U.S. in 2008. Two high-performance Brabus versions of the Fortwo will debut at the Geneva show. The two-seat, two-door Fortwo is miniscule by American standards, more than a foot shorter than the four-seat Mini Cooper, with less cargo space. “The Fortwo doesn’t suit most North American buyers; I think it’s much more of a fashion statement than anything else,” said Szakaly.
Another German two-door to debut in Geneva could heat up a slice of the U.S. luxury market. The sleek Audi A5 coupe will finally give Audi a direct competitor to BMW’s popular 3 Series and Mercedes-Benz’s refined but aging CLK-Class. “With the A5, Audi is trying to up the excitement, but I’m not sure it breaks new ground visually,” Global Insight's Bragman said. (Click here to read more about the Audi A5.)
Bragman sees potential in the Demon roadster, a concept car that Dodge will unveil in Geneva. Dodge has said the Demon would compete with General Motors' Pontiac Solstice/Saturn Sky twin roadsters as well as the Mazda MX-5 Miata. “This car seems to be a possibility for production,” said Bragman. “It wouldn’t be a volume leader for them, but it doesn’t have to be. They have the Dodge Viper and Chrysler Crossfire, so this would be the same idea, but at a lower price point.”
At the opposite end of the price spectrum, the Maserati GranTurismo coupe does well to play on the history of the brand at the Geneva show as well as with the design of the car, Szakaly said. The original GranTurismo debuted 60 years ago at the Geneva show. “Every time you do a redesign for a niche vehicle, you really need a car that captures the spirit and essence of the vehicle that came before it,” Szakaly said. “Maybach and Rolls-Royce both haven’t done that very well, and sales have suffered.”
But apart from the debuts already announced, there will likely be surprises in Geneva, as has been the case with other auto shows this year. “I thought it was absolutely ironic in Detroit that moments after Toyota’s unveiling of its massive Tundra pickup with its biggest V8 engine ever, GM came out with the Volt (a plug-in electric vehicle concept),” Bragman said. “How often do you get a chance to out-green Toyota?”
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