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expensive than its competitors because a survey found
customers are not willing to pay any more than 10 percent
for Mercedes’ quality over other cars. If Mercedes-
Benz were another manufacturer, it would have chosen a
compromise solution and made a car with slightly better
quality and slightly higher price. Obviously that will not
do good to the company’s image, because it has the reputation
of making the best cars in the world, not the best
compromise.
International Markets
The small-on-the-outside, big-on-the-inside A-Class represents
Mercedes’ first effort in penetrating the small car
market in Britain, continental Europe, Japan and the rest
of East Asia, where roads are narrow, gasoline is expensive,
and parking spaces are at a premium. The A-Class
has been sufficiently innovative to create an entirely new
market of its own.
The A-Class went on sale in Belgium in September
1997, and began selling to Britain in early 1998, to Hong
Kong and Singapore in March 1998, to Japan in May,
1998, to Australia in October, 1998, and to Taiwan in
December 1998. A limited edition of the A-Class, with
incorporating luxury extras such as leather upholstery
and a full-length electrically-operated louvre roof, are
produced for the Asian market.
In addition to current production of 200,000 A Class
cars a year at its Rastatt plant near Stuttgart, Germany,
A-Class is also built in Brazil where it has around 60 percent
local content. No prices have been quoted for the
South American model because it may be too expensive
to take a significant portion of the market.
THE “MOOSE-TEST’’
What Happened in Sweden
What happened at the October 22, 1997, in Sweden? The
car tester and deputy editor in chief of the Swedish magazine
Teknikens Vaerld (World of Technique) Robert
Collin, was the key figure in the whole scenario. “The
Moose-Test simulates a not unusual situation,’’5 explains
Collin. A person or an elk suddenly runs onto the road,
the driver has to get out of the way on the left lane, and
quickly has to change to the right lane again after driving
around the obstacle.
5Harald Kaiser, “A-Klasse auf der Kippe,’’ Stern (October 30,
1997), pp. 32–38.
EXHIBIT 3
BEST COMPETITORS:MERCEDES A160 VS.VW GOLF VS. RENAULT SCENIC
The A-Class represents radical idea, Golf represents old tradition while Scenic is something between them—new
idea implemented by traditional method.
The Volkswagen Golf is the best selling car in Europe since its introduction in the 70’s.The latest, fourth generation
still follows the old rules strictly, but build quality has been improved so much that even the Baby-Mercedes
seems inferior. To offer the same performance as an A-Class (A160), the Golf needs at least a 1.8 litters multi-valve.
Of course, it is much thirstier than an A160. Mercedes engine is marginally sweeter and quieter, mates perfectly with
the transmission. The Golf wins back convincingly in handling, not because it is remarkable, but mainly because the
A-Class is too tall. In the cabin, the A-Class has more room and offers a MPV-like versatile layout, but the material
used and the assemble quality are inferior. For styling, the A160 must attract the first sight while the Golf IV is hardly
distinguish from the Golf III.
For comparison, Volkswagen’s Golf has a longer wheelbase (2475mm), less width (1690 mm) but a lot longer
length (4020mm). Although the A-Class has shorter wheelbase, its rear seats are actually placed several inches back
because the raised cabin is less obstructed by the wheel arcs. By some mathematical calculation, both cars have similar
cabin space, but the weight saving sandwich structure of the Baby-Mercedes enables an unbelievable weight of
only 1020 kg (A160), while Golf IV will probably weigh at 1150kg.
The Renault Scenic is based on the ordinary Megane platform. Taller body provides roomier interior than both
rivals while removable seats enable the most versatile layout. It drives like an ordinary car, that means handling is
close to the Golf. However, being a cheaper car, it does not provides the build quality of the German cars. Old engines
lack top-end punch while refinement is so-so.
As a result, the Scenic wins in practicality and price, the Golf is the quality choice while the A-Class is the funniest.
Case 17: Daimler–Benz AG: The A-Class and the “Moose-Test” • 17-5
With five persons in the car and an additional
weight of 75 kilograms in the hollow of the spare
wheel, only a few kilogram were missing up to the
allowable overall weight of 1480 kilograms. The
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