- Posted April 30, 2014 by
New Mercedes models increase brand sales
At the end of the first quarter of the year, Mercedes-Benz parent company Daimler’s operating profits have more than doubled due to popular new models such as the CLA. Demand for smaller models in the Mercedes range in countries like the U.S. and China have raised sales to record levels for the brand.
Four newer compact models, the A, B, CLA and GLA class, have hit showrooms and more than doubled the company’s return from last year. Daimler CEO Dieter Zetsche said that he hopes to continue their growth plan, and their goal is to increase profits to 10 percent in the near future.
Considering how much it cost to develop the redone C-class sedan and the new GLA compact SUV, profits were close to what analysts had predicted. Mercedes-Benz is currently increasing sales faster than competitors Audi and BMW, and may once again have the top spot among luxury car sales.
Mercedes plans on introducing 30 models by 2020, and nearly half of those will be completely new vehicles. Buyers have taken well to the new Mercedes models such as the CLA, which offers sporty luxury car styling and quality at the price of a top end Kia Optima. Both Audi and BMW are trying to catch up in the entry level luxury market with the A3 and 2-series, though sales of either is unlikely to come close to the CLA.
The debut of the all new B-Class Electric Drive, which will be sold in the U.S., should also prove to be a hit with electric car buyers. The electric motor was developed by partner Tesla, and should give the upcoming BMW i3 a good challenge.