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at a cost of more than $150 million while the car went
through the redesign. First, the chassis was altered. The
springs, dampers, and anti-roll bar became stiffer in
order to reduce body roll, and wider but lower-profile
tires were used, lowering the center of gravity. The rear
back is now wider as well, so that a greater force is
needed before the car can flip over. Even though experts
claimed that these changes already would have enabled
the A-Class to pass the Moose-Test, Daimler–Benz has
taken things even a step further by adding the Electronic
Stability Program (ESP).
The ESP reduces the risks of skidding by applying
maximum braking as soon as it detects that the driver
has hit the pedal in panic, and thus helps the driver
retain control over the car. It also includes the func-
12“Pressestimmen - La Libération’’, Berliner Morgenpost,
November 16, 1997.
13“Pressestimmen – Financial Times,’’ Berliner Morgenpost,
November 16, 1997.
14“Mercedes halts production of unstable A-Class,’’ Automotive
Industries, 177, no. 12 (December 1997), p.32.
17-8 • Case 17: Daimler–Benz AG: The A-Class and the “Moose-Test”
15“Werbeprofis: Daimler sollte Kampagne fuer A-Klasse
kippen,’’ Berliner Morgenpost (November 1, 1997), p.12.
tions of the ABS and ASR. The ESP has been standard
or optional in the Mercedes S-Class, E-Class and in
most of the sports models, but not in the C-Class, the
next higher model after the A-Class.Where it is offered
as an option, its price is about $900. On the A-Class it
was made a standard without an increase in the starting
price, which remained stable. Despite the high costs of
$100 million per year, the described modifications were
made, since these additional expenses were relatively
small compared to the $1.5 billion Mercedes had
already invested in the A-Class. Furthermore, these investments
were essential in order to move the company
into another sector of the automobile market, namely
the small, mass-producing cars that are bought by
women and young drivers.
All the modifications Mercedes made in addition
to what was inevitable to pass the Moose-Test lead to
what experts all over the world praised to be the safest
car in its class. Bild am Sonntag, a major German newspaper,
awarded the Baby-Benz the “Golden Steering
Wheel’’ for subcompact cars, an award that is an honor
for the automobile industry and at the same time functions
as an important decision-making tool for consumers.
THE NEW MARKETING STRATEGY—THE WAY
OUT OF THE CRISIS
Daimler – Benz realized that ignorance, arrogance, and
refusal of the Moose-Test’s validity would terribly
harm its reputation instead of saving it. After several
more tests—partly conducted by the manufacturer
itself—revealed the instability of the car, the company
completely revised its marketing strategy. Instead of
behaving as the strong and powerful giant in the car
industry which does not need to comply with apparently
unrealistic tests, it officially admitted and apologized
for its failure. The recall campaign and modification
of the A-Class was only the first step in a chain
of alterations the company made in its marketing
strategies.
Marketing experts advised Mercedes to stop the
current advertising campaign, conducted by the agency
Springer Jacoby: “We believe in the next generation
A Class’’15 and think of a new marketing campaign.
Even though Mercedes followed neither this advise
nor the suggestion of the German show master Harald
Schmidt to change the company’s motto: “Mercedes—
a star on all streets’’ to “Mercedes—a star on all
streets as long as they are straight,’’ other revises were
made.
In a surreal development and to the surprise of the
worldwide media, Mercedes joined the mockery and
started to make fun of itself. Advertisements with the
topic “The A-Class and the elk’’ were published in newspapers
and magazines. Mercedes dealers in Germany
were provided with stuffed elk toys and bumper stickers
that read “Moose-Test tested,’’ which they gave away to
customers and potential buyers. The Moose-Test was
made available on the Internet, where a double-click of
the mouse turned everything on the computer screen
upside down. This unsuspected desire for self-caricature
seemed to be a mark of confidence that the company
had solved the problem and found its way out of the
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