Making their Merc

A chicken in every pot and a Mercedes in every garage? Maybe not, but the German carmaker is hoping to see more of its vehicles on Kiwi roads in coming year, writes ALASTAIR SLOANE

Mercedes-Benz, the inventor of the car in the 19th century and a byword for safe but expensive motoring in the 20th, is going into the 21st century with the aim of making its cars more affordable.

"To do that we are not going to compete with anyone in the marketplace - we will compete only with ourselves," said Ernie Ward, the managing director of DaimlerChrysler New Zealand, Mercedes-Benz' parent company.

"We have a clear strategy. Our aim is to increase sales of Mercedes-Benz cars by 40 per cent this year. So far we are up 41 per cent on last year.

"Next year we intend to boost sales by 24 per cent to about 750 cars and by 2002 we are aiming for sales of 1000 cars.

"This will mean that sales of Mercedes-Benz cars in New Zealand in 1998, 1999 and 2000 will have grown 72 per cent."

Mercedes-Benz cut the price of some of its models by up to 11 per cent last week as the facelifted E-Class went on sale.

The price of some A-Class models, the small car Ward believes has a big future, dropped by $2000, but C-Class models stayed the same. An all-new C-Class is due late next year.

The new-look E-Class benefited most. For example, the E240 Classic is down from $103,700 to $96,000, the E280 Classic from $111,000 to $105,000 and the E430 from $161,520 to $145,000.

The SL 280 two-seater drops by about $15,000, from $180,900 to $165,000, and the SL320 by $17,000, from $192,900 to $175,000.

The new prices are just one ingredient in a move by the carmaker to concentrate on strengthening its dealer network, improve customer relations and tailor finance packages to suit different vehicles.

It will demolish its present headquarters in Mt Wellington to make way for a purpose-built operation, including showroom, on the same site. A new dealership will also open on Auckland's North Shore.

"Twenty-five years ago in New Zealand a Mercedes-Benz cost the same as a house," said Ward. "The average price of a house in Auckland now is about $330,000. We have no cars in that range. Twenty-one of our cars are under $100,000."

Mercedes-Benz is part of DaimlerChrysler Australia South Pacific, the first regional operation to be set up after the merger last year with Chrysler Corp.

Mercedes-Benz Australia is on target to sell 9000 cars this year, up from 7000 in 1998. Mercedes-Benz in New Zealand is aiming for sales of 600 cars in 1999.

"The tie-up with Australia gives us power and price stability," said Ward. "We both take different models but we can place an order for a particular model on top of Australia's. This gives us better bargaining power with the factory."

Ward says the collective transtasman strength of Mercedes-Benz going into the 21st century will help lift its profile and strengthen sales of all its vehicles.

For example, sales across the range in the Asia/Pacific in 1997 (before the merger with Chrysler) represented 5 per cent of worldwide production. By 2010, the Asia/Pacific arm of Mercedes-Benz wants to sell 20 to 25 per cent of worldwide production.

"But we don't want a situation in New Zealand where the A-Class and C-Class models, for example, make up 75 per cent of overall sales," he said. "We want to continue the strong growth of all the models."

At the moment the A-Class totals 20 per cent of sales, the M-Class 23 per cent, E-Class 14 per cent, S-Class 14 per cent, C-Class 14 per cent and the balance of 15 per cent is taken up by SL, SLK, and CLK models.

Sales of the four-wheel-drive M-Class in the past year perhaps point to the marque's overall growth. When the M-Class first went on sale it was snapped up by loyal Mercedes-Benz owners. "Now we are getting first-time buyers coming in, trading in all sorts of cars," said Ward.

The all-new C-Class is likely to attract first-time buyers, too. The new model was expected to be unveiled at last month's Frankfurt motor show but Mercedes-Benz continues to keep it under wraps.

The new C-Class, baby of the executive fleet until the A-Class came along, will look very much like a smaller version of the S-Class, the flagship model.

Three C-Class models are expected, a sedan, wagon and coupe, all front-engine/rear drive and powered by four- and six-cylinder engines carried over from the present range. The wagon will have "sports" styling.

The range will come with the usual safety equipment, including eight airbags, traction control and an electronic stability programme, standard kit from most top-drawer carmakers these days.

The first all-new Mercedes-Benz of the 21st century will continue the company's innovative safety tradition, one that constantly broke new ground in the 20th century.

As Ingo Kalina, the carmaker's safety expert, once said: "Under 50 km/h a Mercedes-Benz is the safest car in the world. Over 50 km/h, everyone needs luck."