Mercedes Didn't Get The "Blame The Weather" Memo

Tyler Durden's picture




 

While the bulk of retailers are blaming plunging kitchen sink sales on unprecedented and completely unexpected cold winter weather, and shocking snow - that defunct relic in a global cooling warming world - one company apparently did not get the "scapegoat the weather" memo: Mercedes.

Mercedes-Benz USA (MBUSA) today reported the highest January retail volumes in its history with sales of 24,413 units across the Mercedes-Benz, Sprinter and smart model lines, a 1.5% increase from the 24,059 vehicles sold the same month last year. The Mercedes-Benz brand alone achieved its best-ever January with sales of 22,604. Gains were made across the MBUSA brand portfolio as Sprinter Vans advanced 19.6% to 1,288 units and smart increased 8.3% to 521.

 

"We knocked it out of the park last year and are moving into 2014 at a record sales pace," said Steve Cannon, president and CEO of MBUSA. "The product milestones will continue this year with an all-new entry point on the SUV side in the form of the GLA, the next generation C-Class and standout additions to our high-end and high-performance lineups."

But... but... the snow?

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Mon, 02/03/2014 - 15:49 | 4396813 element115
element115's picture

Dude. Bad weather only affects poor people, duh.

Mon, 02/03/2014 - 15:52 | 4396827 Occident Mortal
Occident Mortal's picture

So when it snows everyone stops buying all their usual crap and goes to buy a high power open top sports car?

Makes sense.

Mon, 02/03/2014 - 15:52 | 4396832 john39
john39's picture

when the angry mobs riot, these expensive cars will be like vampire zombie magnets.  

Mon, 02/03/2014 - 15:55 | 4396851 Sudden Debt
Sudden Debt's picture

a zombie magnet that drive 200 Mph :)

Mon, 02/03/2014 - 16:07 | 4396910 James_Cole
James_Cole's picture

They did knock it out of the park - their new line up is fantastic across the board. 

Mon, 02/03/2014 - 16:07 | 4396917 economics9698
economics9698's picture

Government workers are doing great.

Mon, 02/03/2014 - 16:19 | 4396930 TruthInSunshine
TruthInSunshine's picture

For everyone who ever wanted a front wheel drive, Camry sized Mercedes Benz that would fill them with pride of ownership as the sun gleaned off the tristar hood emblem, Mercedes has your car, and it's a real piece of shit.

Introducing the Mercedes Benz CLA, because posers gotta' keep on posin',
yo.

From $29,999.99*

Lease for $299 per month for not-so-well-qualified buyers.

See Mercedes Benz of Orange County, next to DARCAR Kia.

Mon, 02/03/2014 - 16:34 | 4397046 TruthInSunshine
TruthInSunshine's picture

The car sucks balls. One of my clients has a chain of dealerships (only 2 of which sell MB), and even the mechanics joke about the shitbox that is the CLA.

Go drive one. A Honda Accord or Ford Fusion is more solid, quiet & better built by far.

It's an idiotic long-term decision by Daimler, no matter how many of these CamCord fighters they sell, as it leads to a tarnishing of the badge/brand.

Mon, 02/03/2014 - 17:03 | 4397179 Freddie
Freddie's picture

+1  LOL!  Too true. CLA is supposed to be a BMW 3 series killer but it is a pile of shit.

The main reason they started selling that POS CLA is that BMW was selling more units versus MB.  Audi, BMW and MB are locked in a battle to sell the most cars each month.   This is a stupid way to manage but this is the battle they all want to fight.

I think BMW is killing the 1 series for the new 2 series.

Mon, 02/03/2014 - 19:13 | 4397775 Doomer
Doomer's picture

Well, the CLA certainly looks like crap.  And the E and S class look silly with their ricer, boy-racer front ends.  I guess the ricer boys grew up and have cash to spend.

Mon, 02/03/2014 - 23:47 | 4398840 Whoa Dammit
Whoa Dammit's picture

Gasoline is seeping from the tank into the back seat in E class and CLA models, due to manufacturing defect. Over 250,000 cars are affected, MBUSA is currently refusing to pay for repairs.

http://www.wsbtv.com/news/news/local/mercedes-owners-find-gasoline-pooli...

Mon, 02/03/2014 - 18:06 | 4397438 James_Cole
James_Cole's picture

The car sucks balls. One of my clients has a chain of dealerships (only 2 of which sell MB), and even the mechanics joke about the shitbox that is the CLA.

Local MB centre here (yeah bit biased obviously) has apparently had good feedback from people, reviews have been almost unanimously solid yet the car "sucks balls."

It's an idiotic long-term decision by Daimler, no matter how many of these CamCord fighters they sell, as it leads to a tarnishing of the badge/brand.

Right, MB USA "best January sales ever" = tarnished brand. 

Mon, 02/03/2014 - 19:03 | 4397738 TheFourthStooge-ing
TheFourthStooge-ing's picture

The new optional heavy-duty front end with snow plow mount accounted for almost all of the boost in January sales.

Mon, 02/03/2014 - 17:10 | 4397213 Freddie
Freddie's picture

Compared to a BMW 3 series.   I am not saying 3 series is perfect as it is a pretty small car.  Smaller inside than a Accord or Fusion. The 3 series does look nice and has apparent quality while the Mercedes CLA looks like some piece of shit Hyundai sold 7 years ago when their quality was shit.

The Audi A4 is another competitor but the CLA is suppoosed to be a BMW 3 series killer but it ain't.   The A4 is slightly better but Audi's depreciate much faster than BMWs.

The dude is right.  A Fusion, Camry or Accord are a much better choice than the CLA.

Mon, 02/03/2014 - 18:10 | 4397456 James_Cole
James_Cole's picture

3 series is nice, also decently more expensive. And I do remember having a test drive years ago where a piece of the dash fell off lol

Mercedes CLA looks like some piece of shit Hyundai sold 7 years ago when their quality was shit

Mmhmm..

Mon, 02/03/2014 - 22:54 | 4398681 TruthInSunshine
TruthInSunshine's picture

No offense, James, but the CLA is the only front wheel drive architecture vehicle that Mercedes sells in the U.S., it is of a fit and finish that really is no better than an Accord or Camry, and it being purchased because a) it's advertised as $29k, and b) the economy sucks balls and so the posers who are too stupid to buy a better vehicle in the Accord or similar vehicle (see Consumer Reports if you don't want to accept my opinion; they ripped the CLA mercilessly as an overpriced POS that can't hang with an Accord or Fusion) can say drive around with an MB badge in the hood of their CamCord Mercedeeeeez.

"Oh Lord, wonch'ya buy needs a Mercedeeeez-Benz...even a really shitty one...because I'm a douche..."

A BMW 3 Series is 10x the car the CLA is, as it's still a proper rwd vehicle, even of the current BMW 3'Series is worse by far than the last generation.

Mon, 02/03/2014 - 18:06 | 4397437 Freddie
Freddie's picture

MB?  You are joking right?  They flogged that Mercedes McLaren which was a piece of crap compared to the old Gordon Murray designed McLaren F1 with a BMW V-12.  The F1 was one of the best if not the best supercar ever made.

Mon, 02/03/2014 - 16:19 | 4396963 seek
seek's picture

"when the angry mobs riot, these expensive cars will be like vampire zombie magnets."

That's partly why I sold my Porsche not long after the collapse in 2008. The hostility directed at the car by early 2009 was astounding. That, combined with the fact that local governments stopped maintaining roads on top of that made trading it for a 4WD a no-brainer.

Mon, 02/03/2014 - 17:14 | 4397240 kchrisc
kchrisc's picture

I would be that it was quite a gun and badge thug revenue target as well.

Mon, 02/03/2014 - 16:52 | 4397130 Nue
Nue's picture

By the time everything gets done any home suspected of having so much as a can of frank and beans hidden somewhere in the basement is going to a vampire zombie magnet.

Mon, 02/03/2014 - 15:55 | 4396839 nope-1004
nope-1004's picture

No, this is a trend away from big USA.

 

 

Mon, 02/03/2014 - 16:05 | 4396900 Sudden Debt
Sudden Debt's picture

when you drive on the highway over here in Belgium, you rarely see cars that cost less than 30k euro's. The 75k euro's cars a super frequent and 1 in 20 is a +125k car
But it's all because of our tax system, you can chose to pay taxes or buy a expensive car and write it off and don't pay taxes.
So that's why, not a lot of people pay taxes.

Mon, 02/03/2014 - 16:11 | 4396925 economics9698
economics9698's picture

That's fucked up.

Mon, 02/03/2014 - 16:13 | 4396942 Sudden Debt
Sudden Debt's picture

which part?

Mon, 02/03/2014 - 16:17 | 4396962 economics9698
economics9698's picture

"But it's all because of our tax system, you can chose to pay taxes or buy a expensive car and write it off and don't pay taxes."

Sounds like the law was written by a bunch of tribesmen.

Mon, 02/03/2014 - 16:32 | 4397021 Colonel Klink
Colonel Klink's picture

I'm sure the vast majority of those Mercedes were sold in New York, DC, and Miaaaaaami.

Mon, 02/03/2014 - 17:18 | 4397261 pursueliberty
pursueliberty's picture

Same way in this country also.  I bought a new F250 in November not because my three year old truck was wore out, but due to fact it was depreciated out.  It is a game really.  I could have a paid for truck and pay myself more, but guess what?  I'd pay more taxes.  The way it is set up you've got to be buying and leasing new equipment if you are making money as a small business owner or you'll pay it in taxes.  It is a good system to a certain degree in that it spurs spending.

Mon, 02/03/2014 - 17:34 | 4397332 Freddie
Freddie's picture

The auto industry is a big deal in Germany and Europe.  It provides a lot of jobs so I can see why they do that.  I am not syaing it is a good or bad idea.

Mon, 02/03/2014 - 16:50 | 4397129 highly debtful
highly debtful's picture

Most of the expensive cars you see on Belgian roads are company cars. Me personally, I am a car nut (a petrol head in your lingo?) but the three cars we own are:

our daily driver, : a 2001 Citroën Evasion with 231.000 km on the odometer, which we bought second hand, and 2 hobby cars, i.e.:

A 1991 Citroën BX 1900 GTI (that's 1,9 liter) with only 68.000 km (cost me 2.500 euro when I bought it, because although this was considered to be a fast saloon car in its days, it is regarded by most collectors of vintage cars / oldtimers / youngtimers as a veritable piece of shit these days. But its hydropneumatic suspension (controlling the suspension, steering and brakes) give it unparallelled road handling. Drives through curbs like a freight train and evens out all bumps on the road (as long as the system does not start to leak).  

My other hobby car is a ... drumroll ... 1994 Lada/Bohse Samara 1100 (that's 1,1 liter, or the kind of engine you Americans would fit under a bike) half pick up / half convertible, with only 600 km on the odometer (was displayed in show room for 18 years before I bought it). Yes, it's a Russian car and yes, it is horrible to drive, and yes all the plastic parts fall off just by looking at them. But the engine and the gear box are indestructible, virtually everything can be fixed with a sipmle screwdriver and the heating/ventilation system is designed to keep you comfortably warm in Siberian temperatures. And Bohse is the name of the German company who did the conversion of these Lada Samara "fun", as they called it. 

All this is probably seriously off topic, but I felt like sharing when looking at that hot Merc. 


Mon, 02/03/2014 - 17:47 | 4397375 Freddie
Freddie's picture

Doesn't Lada make a nice little jeep?    Some of those diesel Citroens go like a bomb and get great fuel mileage.   They can cross Europe on the highways like high speed rail.

Mon, 02/03/2014 - 18:21 | 4397519 highly debtful
highly debtful's picture

Yes, they still build the Niva (came out in 1975 and the bodywork is still pretty much the same now). And as far as Citroën is concerned, I know the PSA company (Peugeot + Citroën) is heaving a very rough time at the moment, but as far as I can tell, there's nothing wrong with their cars, seems to be more of a marketing problem, you know, launching the wrong models at the wrong moment. But their diesel engines are known to be very robust and capable of covering a lot of miles. Even those 1,9 petrol engines, like the one in my 23 year old BX, was known to easily cover 300.000 km and more before any major overhauling was needed.

And yet, the French automobile industry is a mess at present. Bit odd, in my view, given the quality of their current products.

Mon, 02/03/2014 - 18:38 | 4397598 Freddie
Freddie's picture

I think the French auto industry problems are a few of these things:

1. Total lack of flexibility is laying off workers or adjusting for growth and slowdowns in business.

2. High taxation.

3. Poor export management.

4. Constant socialist Renault versus less socialist PSA (aga Pug & Cit).

The work rules are a nightmare in France.  Taxation is not helping along with the euro causing havoc for non-northern European countries like France, Italy, Spain, Prot, Greece.  They never should have a strong economy and the EUSSR is totally corrupt.  The French never built a good export market like the Germans did.  The only positive was Renault's investment in Nissan when Nissan was on death's door.

Finally you have endless politics between Renault and PSA.  PSA seems to get punished during socilist govts.   Also the French designs often do not appeal to a lot of people.  Some like them but most do not.

 

Mon, 02/03/2014 - 18:57 | 4397697 Analyse2
Analyse2's picture

By the way, Renault is the supplier for a lot of Mercedes motors:

1.5 DCI 90Ch : Class A, B, CLA

1.5 DCI 109Ch : Class B

1.6 DCI  : Class C

Also Renault is regularly champion of Formula 1 for the motors (at the moment with Red Bull)

http://en.wikipedia.org/wiki/World_Drivers%27_Championship

 

Mon, 02/03/2014 - 18:57 | 4397700 highly debtful
highly debtful's picture

Well, sounds about right. + 1 for your harsh but fair analysis.

Mon, 02/03/2014 - 16:24 | 4397004 Stoploss
Stoploss's picture

This is simply the response to future bail in's.

If you have 150K sitting in a bank, earning zero interest, you have a problem.

Take 80% of that cash, put it into an asset that may keep up with inflation. Cause it aint housing...

Mon, 02/03/2014 - 17:22 | 4397279 pursueliberty
pursueliberty's picture

Right on.

I spent a sizeable portion of my "savings" to buy machinery for a business start up recently.  I was going to borrow, but banks wanting 30% down, along with my money further losing buying power, pushed me over the edge and I said screw it. 

It is also nice not seeing that payment show up every month.

Mon, 02/03/2014 - 15:54 | 4396847 Bunga Bunga
Bunga Bunga's picture

SNAP cards don't work in cold weather?

Mon, 02/03/2014 - 16:13 | 4396941 Agent P
Agent P's picture

"Dude. Bad weather only affects poor people, duh."

Bad weather is also racist.  Don't believe me?  What color is snow?  I rest my case. 

Mon, 02/03/2014 - 16:18 | 4396969 Heffer
Heffer's picture

yellow?

Mon, 02/03/2014 - 16:29 | 4397022 Agent P
Mon, 02/03/2014 - 17:49 | 4397383 Took Red Pill
Mon, 02/03/2014 - 15:51 | 4396816 superflex
superflex's picture

Either did Audi although it looks like most of their increases were in SUVs and used CPOs.

http://www.wallstreet-online.de/nachricht/6544427-audi-achieves-37th-con...

 

Mon, 02/03/2014 - 15:51 | 4396831 EscapeKey
EscapeKey's picture

I'm just gonna go ahead and predict bumper years for BMW and Porsche as well.

Mon, 02/03/2014 - 15:58 | 4396867 Skateboarder
Skateboarder's picture

Especially Porsche, given the upcoming tower in FL?

Mon, 02/03/2014 - 15:59 | 4396873 Sudden Debt
Sudden Debt's picture

Bmw will be through the roof.

the reason is pretty normal. all these cars have a new generation engine that consumes low gas with down to 5 to 6 liters for 100km and those cars are 100% tax deductible.

Anpther nice to know, a Tesla that cost 120k euro's is 150% tax deductible because it's a electric car so it's cheaper than a opel corsa.

The more expensive the car, the cheaper it is taxwise.

Mon, 02/03/2014 - 17:53 | 4397393 Freddie
Freddie's picture

What does that work out in miles per gallon using US gallons not imperial?  I can do the conversion if you do not know.   Are these BMW direct injection diesels or gaoline engines?

Mon, 02/03/2014 - 18:01 | 4397426 smacker
smacker's picture

The new Porsche Macan will be a hot seller.

Mon, 02/03/2014 - 15:50 | 4396817 texas sandman
texas sandman's picture

We need a new SEC rule....you only get to blame the weather once a year......choose wisely.

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