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Baby Benz Goes Upscale
Mercedes-Benz USA launches a bigger Baby Benz imbibing the Mercedes standards. And it comes at an aggressive price.
“The C-Class is a gateway to the Mercedes-Benz brand,” said Bernie Glaser, general manager, product management. “Priced at around $30,000, it brings new and younger buyers to our brand. It is also a stairway up into our brands, because some customers step up to the (midsize) E-Class, the CLS, potentially into the (flagship) S-Class,” he said.
The new Mercedes C-Class gets minor facelift for 2008 while the least-expensive 2007 model is discontinued. The new C-Class sedan has $31,975 as manufacturer’s suggested retail price for the C300 Sport model, with a standard six-speed manual transmission. The 2008 C300 Luxury model is $33,675, with a seven-speed automatic transmission. Both versions have a 228-hp 3.0-liter V6 engine.
A third model in the American Mercedes lineup is the 2008 C350 Sport, with a 268-hp 3.5-liter V6 engine, at $37,275. Sales of those three models start on August 7. All-wheel-drive 4Matic models will be available starting in September. A high-performance AMG model is expected to be added next year.
The 2008 C-Class is the third generation of the Mercedes entry-level car. In 1982, the automaker first launched the 190 Class, which was promptly called the “Baby Benz.” In 1993, the C-Class replaced the 190 Class, and the next generation C-Class generation debuted in 2000.
The latest C-Class is bigger than the model it replaces in nearly every dimension, including overall wheelbase, length, front and rear shoulder room, and trunk space. “This is a direct response to criticisms customers had about the old model; this is what customers told us they want,” Glaser said.
The 2008 C-Class is designed to rival the BMW 3 Series and the Lexus ES and IS models. With the 2008 model, Mercedes is also trying to make its “Sport” and “Luxury” C-Class models more distinct from each other. The company has offered two versions of the C-Class since the 2005 model year, but the divergence was less apparent.
The new C-Class Sport is equipped with enhanced Mercedes Benz muffler, slightly racier exterior styling, a metallic instrument panel and rubber-studded aluminum pedals, three-pointed Mercedes-Benz star in the grille, in place of the traditional, stand-up hood ornament. The seven-speed automatic transmission is optional, for $1,440. Mercedes-Benz aficionados know the “star in the grille” is usually exclusive to the company’s sporty coupes.
The Luxury models have the distinctive black instrument panel, a traditional hood ornament, burl walnut wood trim and an exclusive exterior color dubbed as “sand beige metallic.”
The 2008 C300 Luxury is actually $500 less than the 2007 C280 Luxury model, which has the same engine. The bad news is that Mercedes is dropping what could be called its “entry-level” model, the 2007 C230, once it is sold out. That means the least-expensive C-Class for 2008, the C300 Sport, costs $1,550 or 5.1 percent more than the least-expensive C-Class for 2007, the C230 Sport.
But according to Mercedes-Benz, if you added options to the 2007 model to match the standard equipment in the 2008 model, like a power sunroof, upgraded front seats, Bluetooth connectivity and dual-zone climate control, the bigger and more powerful 2008 model would actually cost less than the comparably equipped 2007 model.
A $2,700 option package includes navigation, plus a 450-watt Harman/Kardon system with 12 speakers. The upgraded system can save music from a CD onto a hard drive. It also can play tracks stored on a data CD, DVD or memory card.
“We have raised the bar for the fourth time for ourselves, and for the competition,” Glaser concluded.
About the Author
Anthony Fontanelle is a 35-year-old automotive buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.
Price of goods USA made versus China made?
How much does a store have to pay for an item from china versus an item made in the USA.. I am getting wary of products from China as are many others I speak with. If a toothbrush sells for $3.00 retail here how much did it cost from a supplier from China versus a USA supplier? What about the baby formula that has made the babies ill? How does the price to the wholesale supplier compare for comparable products? Does the US not have the factories to produce our own items or is the cost difference really that great?
Many industries operate on margins of a few percent. Big retailers, such as Wal-Mart, typically have operating margins well under 10%:
http://walmartspace.blogspot.com/2005/09/wal-mart-operating-margins.html
(Operating margins do not include expenses such as interest on loans, cost of maintaining the corporate administration group, etc. They are significantly higher than profit margins)
Only a portion of these costs are actually the cost of the product to the retailer, but even a 10% difference in those costs makes a big difference in the retailers margin and profit.
Wal-Mart is famous for squeezing its vendors’ margins:
http://www.bloggingstocks.com/2007/05/25/dell-looks-to-wal-mart-to-crush-margins-and-destroy-brand/
Wal-Mart is the classic example, but the above is true in general. For example, here is some data on Target:
http://seekingalpha.com/article/93383-wal-mart-vs-target-a-better-starting-point
So the net answer is that if the retailers see that their customers don’t see a difference, even a slight difference in the cost from the factory is a very big deal for them.
This is less true for the factories that make the cosmetics, toothpaste, etc. from Chinese ingredients, but only a little for those who want to sell at the bottom end stores such as Wal-Marts.
As for actual factory costs, that is very hard to establish. People went to foreign suppliers not because American factories couldn’t produce as cheaply, but because they didn’t.
Many American factories were old and less efficient (i.e. more expensive) than a brand new factory would be, but the company is going to build a brand new factory to replace an old one, why build it in the U.S. when it could be build cheaper in China?
(Right after WWII, both Germany and Japan had to rebuild all the factories that the Allied bombs had destroyed. That is one reason that by around 1955, they German and Japanese factories were much more efficient than the American factories which had never been destroyed and hence were much older.)
So there is every reason to believe that new factories in the U.S. could produce goods for only slightly more than the cost in China (using more automation and less manual labor than the Chinese factories), but if all the customers are going to go for the cheaper brand, even that “slightly” becomes significant, so there haven’t been many building those factories in the U.S.
On the other hand, with all the media attention to the quality of food and drug products from China, perhaps the American buying public will be willing to spend a bit more for lower risk. But even then, while I can see it for toothpaste and baby formula, I don’t see it for toothbrushes and other goods.
Another great place to shop for Baby Usa Store products is Amazon. They have more than just books!
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Thermos Foogo Leak-Proof Stainless Steel 10-Ounce Food Jar, Pink $9.75 Foogo vacuum insulated food jar thermax double wall vacuum insulation for maximum temperature retention unbreakable stainless steel interior and exterior wide mouth is easy to fill, eat from, and clean ergonomically designed lid with rubber grip dishwasher safe non-slip, scratch resistant base, cool to the touch with hot foods light, compact and portable…… |
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Magic Bullet MBR-1701 17-Piece Express Mixing Set $43.99 Taking up no more space on the counter than a coffee mug, this convenient mixing system replaces a food processor, blender, and coffee grinder. Keep it handy on the countertop for instant meals and snacks. The 17-piece set includes a high-torque power base with a stainless-steel cross blade and flat blade, a tall and a short bullet cup, four party mugs with colored lip rings, a shaker top and a st… |
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KitchenAid FGA Food Grinder Attachment for Stand Mixers $64.99 Need bread crumbs? Or perhaps you like making your own lamb, chicken or pork burgers, or sausages? Then again maybe you make baby food at home to avoid artificial ingredients? For all of these tasks you can enlist the help of your powerful KitchenAid stand mixer thanks to this fabulous attachment…. |
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WOW Gospel 2012 (2 CD) $9.78 2012 two CD set. Filled with songs that lived at the top of the charts at Gospel radio, this double CD set is chock full of hits, including songs from Kirk Franklin , Mary Mary, and Marvin Sapp plus newcomers Wess Morgan and BET Sunday Best winner Le’Andria Johnson. Each WOW Gospel installment to date has achieved great success, garnering Gold and platinum certifications along with a faithful fanb… |
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My World 2.0 $5.87 Teen Island star Justin Bieber’s newest single, “Baby” featuring Ludacris is the newest single from his forthcoming album, MY WORLD 2.0. Justin just appeared at the 52nd annual Grammy Awards telecast on CBS-TV and joined fellow Def Jam artist Rihanna and an all-star cast of NFL players at the Pepsi Super Bowl Fan Jam LIVE concert in South Beach televised on VH1. MY WORLD (released November 17t… |
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Retrospective $4.55 Leon Russell is an American music legend. In his distinguished and unique 50 year career, he has played on, arranged, written and/or produced some of the best records in popular music, working across all genres of music and collaborating with numerous artists including Glen Campbell, Willie Nelson, George Harrison, Bob Dylan, B.B. King, Gram Parsons, Ike & Tina Turner, Frank Sinatra, Aretha Frankl… |
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RoomMates RMK1470SCS Disney Princess Peel & Stick Wall Decals with Gems $10.99 … |
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RoomMates RMK1439SLM Scroll Tree Peel & Stick Wall Decal MegaPack $29.99 … |
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Pampers Baby Dry Diapers (Packaging May Vary) Pampers Baby Dry disposable diapers let you fit it and forget it! Features soft Koala Fit Grips that allow you to adjust and re-adjust until you get a secure fit that makes you and baby happy. Pampers Baby Dry have double-thick leg cuffs to help prevent leaks, while the Breathable cloth-like cover helps keep baby’s skin dry. Features Sesame Street characters on top front of diapers…. |
