To survive, Mercedes is thinking small

Rebecca Cook / Reuters

Dieter Zetsche of Mercedes-Benz introduces the SL convertible, left, at the Detroit auto show Monday.

By Dan Carney

To survive in an automotive market of rising fuel standards, Mercedes-Benz President and CEO Dieter Zetsche says he?s thinking small.

With luxury automakers facinga future in which they?ll be held to the same fuel economy standards as more affordable brands like Honda and small-car brands like Mini, Zetsche told msnbc.com Monday that Mercedes aims to move into the compact car segment with the goal of selling enough fuel-sippers to offset sales of its traditional luxury limousines.

But as Mercedes moves into smaller cars, small car makers are adding the kinds of features and technology that once differentiated Mercedes from lesser cars.

So how does the brand that innovated technologies like anti-lock brakes and electronic stability control compete with cheaper cars when the new Dodge Dart compact model has blind spot warning radar as standard equipment?

Speaking at the annual Detroit auto show, Zetsche said the carmaker will be preserving the gestalt of Mercedes? traditional attributes in its compact models.

Geoff Robins / AFP - Getty Images

Upscale sedans, fuel-efficient electric cars ? and old-school muscle cars ? make their debuts at the 2012 North American International Auto show.

?The overall character of a Mercedes is what defines it,? he asserted. ?It is not the product of any specific amenity. It is top-notch quality, comfort, a dynamic approach to styling and safety -- all of this together is what defines a Mercedes,? he said. ?It is like a decathlon; there is no one event.?

So as the company readies fuel-saving compact models, Zetsche insists the automaker won?t erode Mercedes? hard-won brand image.

?I have no doubt the new compact car will fulfill the requirements of what defines a Mercedes,? he said.

At the same time, Mercedes is improving the efficiency of its traditional models, with the goal of making the task of boosting overall brand efficiency a bit easier for the new compacts. ?

At the Detroit auto show Zetsche unveiled a new SL sports car that is lighter but slightly bigger than the current model. ?

?We are not downsizing or reducing the performance,? he said. ?With the new SL we have the performance of the (current) V12 with better fuel economy than the former V6, in a V8. So we are very bullish.?

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Source: http://bottomline.msnbc.msn.com/_news/2012/01/09/10076699-to-survive-ceo-zetsche-says-mercedes-is-thinking-small

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