Can Mercedes Benz Survive in UK market ?

raspy

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@Boyband It's quite an extreme question to pose, in terms of whether MB can survive the UK market. You also mentioned Audi and BMW (I'll come back to those later)

Thanks for sharing your insights from your network. Making forecasts about the future is cool, but apart from anecdotal evidence, I'm curious what objective data you have found? For example, if it were the case that the market share for MB has been dropping rapidly every year for the past 10 years and if that trend were to continue, then the forecast that they won't survive in the UK market is a plausible one.

However, from the data I've looked at online, I can't see anything suggesting that MB will not survive the UK market.

Let's take a look at some statistics;

In the year to date, according to SMMT data on UK car registrations;
MB 7.12% market share
Audi 7.15% market share
BMW 7.18% market share

Only two manufacturers registered more cars than these 3 premium brands (Ford and VW) and if you added up MB, Audi and BMW, their registrations combined would eclipse Ford and VW combined.

Even if these 3 premium brands didn't survive the UK market, I'm curious what you think would happen. Would the new cars buyers of these 3 premium brands simply be buying cars from another brand, or would they stop buying new cars altogether?

Let's go back a few years and using SMMT car registration data again at April 2017, in the year to date, the 7th most registered car was the MB C class, above the Mini, VW Polo and Nissan Juke!

Fast forward to April 2021, using SMMT car registration data for year to date, the 3rd most registered car was the MB A class, above cars like VW Golf and in April 2021, more A classes were registered than Ford Fiestas!

I'm personally not a fan of the A class (yes, I've driven them), but I can see why it appeals to so many new car buyers, especially if the "monthlies" are competitive.

I would also be interested to see the customer surveys you cited, regarding problems with electrics. You cited poor residual values for Mercedes. Where is that data from? Do you have a link to it? I am really interested in seeing how it has been derived.

With respect to MB UK selling their dealerships (they only own one remaining retail group in the UK, that's London), and moving to an agency sales model, that's just part of a larger industry trend, it's a trend that is happening around the globe with multiple manufacturers, not just in the UK.

Finally, regarding new models being launched by MB over the next few years, not all of the EVs will be based upon new platforms. The EQA/EQB both use a modified MFA platform. The EQS/EQE will be using the new EV MEA platform though.

Also to clarify, neither do I work for Mercedes, nor do I hold Daimler stock.
 

Chugg

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Hi , the car was new when purchased from Mercedes Benz and used by me as a company car for 18 months.
I then purchased the car from the company and have owned the car since then.

As explained before I have been in the motor trade and know many key contacts to help with any issues.

A mates mate called me up who used to work for a now long gone MB dealer and suggested that I have he car inspected to check for rust and break pipe corrosion.

He says these underbody trays cause and hide problems that if not caught early can write a car off.
Hi @Boyband

Well at least you know the history of the car which helps.

How did the inspection go on your car? Hopefully not a write off and will put your mind at rest if all OK.
Post your findings up to help others members who might be worried about the same
 
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Boyband

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Hi @Boyband

Well at least you know the history of the car which helps.

How did the inspection go on your car? Hopefully not a write off and will put your mind at rest if all OK.
Post your findings up to help others members who might be worried about the same
Hi ,

I have not taken the car for an inspection as yet.I am waiting for a space when the car can be inspected.

The car is a 2016 model but registered last quarter 2015.

The car has only spent two winter years in UK and the other years has been in sunny Portugal in the winter months.

If this car has any corrosion issues it does not look for other members .

As soon as I have results will post.
 
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Boyband

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@Boyband It's quite an extreme question to pose, in terms of whether MB can survive the UK market. You also mentioned Audi and BMW (I'll come back to those later)

Thanks for sharing your insights from your network. Making forecasts about the future is cool, but apart from anecdotal evidence, I'm curious what objective data you have found? For example, if it were the case that the market share for MB has been dropping rapidly every year for the past 10 years and if that trend were to continue, then the forecast that they won't survive in the UK market is a plausible one.

However, from the data I've looked at online, I can't see anything suggesting that MB will not survive the UK market.

Let's take a look at some statistics;

In the year to date, according to SMMT data on UK car registrations;
MB 7.12% market share
Audi 7.15% market share
BMW 7.18% market share

Only two manufacturers registered more cars than these 3 premium brands (Ford and VW) and if you added up MB, Audi and BMW, their registrations combined would eclipse Ford and VW combined.

Even if these 3 premium brands didn't survive the UK market, I'm curious what you think would happen. Would the new cars buyers of these 3 premium brands simply be buying cars from another brand, or would they stop buying new cars altogether?

Let's go back a few years and using SMMT car registration data again at April 2017, in the year to date, the 7th most registered car was the MB C class, above the Mini, VW Polo and Nissan Juke!

Fast forward to April 2021, using SMMT car registration data for year to date, the 3rd most registered car was the MB A class, above cars like VW Golf and in April 2021, more A classes were registered than Ford Fiestas!

I'm personally not a fan of the A class (yes, I've driven them), but I can see why it appeals to so many new car buyers, especially if the "monthlies" are competitive.

I would also be interested to see the customer surveys you cited, regarding problems with electrics. You cited poor residual values for Mercedes. Where is that data from? Do you have a link to it? I am really interested in seeing how it has been derived.

With respect to MB UK selling their dealerships (they only own one remaining retail group in the UK, that's London), and moving to an agency sales model, that's just part of a larger industry trend, it's a trend that is happening around the globe with multiple manufacturers, not just in the UK.

Finally, regarding new models being launched by MB over the next few years, not all of the EVs will be based upon new platforms. The EQA/EQB both use a modified MFA platform. The EQS/EQE will be using the new EV MEA platform though.

Also to clarify, neither do I work for Mercedes, nor do I hold Daimler stock.
Hi raspy , I would like to thank you for your courteous reply and well thought out response to my post.

If you really want me to provide me with my reasons as to why I am certain MB won't survive in the UK market please respond and I will provide my reasoning.
 
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Boyband

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Hi raspy , I would like to thank you for your courteous reply and well thought out response to my post.

If you really want me to provide me with my reasons as to why I am certain MB won't survive in the UK market please respond and I will provide my reasoning.
Hi me should read you / sorry
 

raspy

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Hi raspy , I would like to thank you for your courteous reply and well thought out response to my post.

If you really want me to provide me with my reasons as to why I am certain MB won't survive in the UK market please respond and I will provide my reasoning.
@Boyband You've already provided your reasoning earlier in this thread. However, you have chosen to ignore the 3 questions I posed to you in my post. Like I said, everyone is entitled to make forecasts and have opinions about the future, but if you are unable to provide objective data that supports your reasoning, then I'm going to take your forecast about the future with a pinch of salt.
 
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Boyband

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@Boyband You've already provided your reasoning earlier in this thread. However, you have chosen to ignore the 3 questions I posed to you in my post. Like I said, everyone is entitled to make forecasts and have opinions about the future, but if you are unable to provide objective data that supports your reasoning, then I'm going to take your forecast about the future with a pinch of salt.
Hi , well I clearly misjudged you as I was going to provide you with my detailed reasoning.

I don't really don't care what you think but time will prove me correct.
 

AMGeed

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Hi , well I clearly misjudged you as I was going to provide you with my detailed reasoning.

I don't really don't care what you think but time will prove me correct.
Don't keep us in suspense:D
There are a few members including me who would like to see your detailed reasoning, so lets hear it.
I've read nothing from you so far, to convince me MB won't survive the UK market.
 
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Boyband

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Hi

If raspy had not tried to be clever in his response I would have spelt out my reasonings as offered.

I don't feel raspy understands that he has actuality answered his own question with his speel. rasby / fellow members need to read his first writings and understand what was written !

rasby unfortunately closed the door so I will keep my thoughts to myself.

Pl
 

190

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rasby unfortunately closed the door so I will keep my thoughts to myself.

Another thread that always looked like it was going no where and sure enough it's been a complete waste of space.

I can't believe I've continued to click on it.
 

DSM10000

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Another thread that always looked like it was going no where and sure enough it's been a complete waste of space.

I can't believe I've continued to click on it.
I see the OP as another keyboard attention seeker with little of benefit or insight to bring to any debate.
 

Larkone

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I am sure if boyband put his concerns in writing to MB Head Office they would gladly adjust their global marketing strategy to suit his needs :rolleyes:
 

Londonscottish

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Is there any car manufacturer who doesn't evolvie their business model ?

Even The Morgan Motor Company evolves its business model.

morgan-motors-factory-5.jpg
Bristol. See what happened to them. I can see MB going the same way. Soon they'll be down to one showroom in Kensington. And then gone.
 

samoht

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Mercedes have produced rust buckets between when Chrysler ran the business.

Yes, absolutely agree.

However, that was 20 years ago and doesn't seem to have affected their sales success. In fact their European sales & market share have more or less doubled in the 30 years 1990-2000 https://carsalesbase.com/europe-mercedes-benz/ . And that's been a steady rise too - out of the past 30 years, their best three for sales have been 2018, 2017 & 2019.

So this makes me think that selling poor quality, rust-ridden cars does not in fact threaten Mercedes' business success. Quality down, sales and profits up.


While I can see factors that one might reasonably think would threaten Mercedes business, none of them are new threats. Poor build quality, rust, an increasing proliferation of niche models, selling more low-end models - these issues all go back decades, and the company has thrived nevertheless.

You might think it is morally wrong that a company can succeed while selling poor quality products, and I might agree, but that's the reality.


The main new trends that threaten Mercedes (and all legacy car companies) are electrification and cars-as-computers (leading eventually to autonomy). These, and the rise of 'new auto' companies such as Tesla and their many imitators (Rivian, Canoo, etc etc) are a genuine challenge to the continued existence of all the old car makers. However even here, the three German companies VW Group, BMW and Mercedes are the most pro-active and advanced in development of new tech. So they seem the least likely to be made extinct of all the established companies, having big R&D budgets and a strong technical base.
 

SW18

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Bristol. See what happened to them. I can see MB going the same way. Soon they'll be down to one showroom in Kensington. And then gone.
Well, if MB turn out something as delightfully mad as the Fighter on their way out, all will be well...


BFC4C736-2828-484D-8159-62B7CBA4C2D9.jpeg
 
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Boyband

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Hi all who passed negative comment ( as per your right ) well you still have not grasped the problem !

It's staring you in the face. 😆
 

AMGeed

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Hi all who passed negative comment ( as per your right ) well you still have not grasped the problem !

It's staring you in the face. 😆
So spell it out for us then.

You started a thread about members not returning to share info on how their problem was solved.
I see no difference in that to you starting this thread, then backing off giving your thoughts because you didn't like the tone of one reply.
 

Tuercas viejas

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Well in any case watch this, & Carry On Cars with your crystal balls or "bolas de cristal" !
Or do you have the "cajones" to forecast the end result of this video prognostication?
Tuercas Viejas

.
 

grober

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Quite a good summary of the history of the brand and its place in todays rapidly changing car market. I wasn't aware that MB does not sell the EQC in the " land of the automobile" the USA? I think the Mercedes experience varies widely from country to country depending on their local concessionaire. The Mercedes ownership experience in the UK changed for me when it went corporate and lots of individually owned dealerships were pressurised into larger dealer groups and customers became numbers on spreadsheets and no longer individuals :( -----a former ownership experience now only maintained in a few dealerships and the better independant specialists where you are still the "customer":)
 

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