The brand with the three-pointed star has fallen prey to the product onslaught from Bavaria and Ingolstadt.
The biggest name in the luxury business, Mercedes-Benz, is now playing catchup with BMW and Audi.
However, Daimler CEO Dieter Zetsche is planning to bring Mercedes-Benz once again on top in global luxury segments by 2020.
In an interview with the German newspaper Boersen-Zeitung, Zetsche spoke about his revival plans for Mercedes. Daimler is working on a 2.6 billion dollar cost cutting plan for the Mercedes-Benz division with the savings accruing as early as 2014.
Zetsche believes that Mercedes lost to the competition because it did not invest in new products and did not pay attention to China. Other luxury automakers such as Audi and BMW brought new products, created new segments and pushed aggressively in emerging economies such as China and India.
Mercedes, on the other hand, bet heavily on Europe and US which proved expensive in the long run as both markets slowed down tremendously. But all of that is about to change!
Mercedes is working on new and inexpensive products such as the CLA sedan, GLA SUV, mini G Wagen and many more. Mercedes has started to get its focus back on emerging economies such as China and India. According to an independent research organization IHS Automotive, Mercedes will take the number two spot from Audi in 2013.
IHS Automotive estimates that BMW will sell 1.54 million vehicles, Mercedes will sell 1.46 million vehicles and Audi will sell 1.44 million vehicles in 2013.