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in any direction. This style is most appealing to young
people. The advantages and disadvantages of the
A Class design are as follows. (See Exhibit 3 for a comparison
with the competitors.)
Advantages.
Safety: The A-Class provides exceptional crash protection.
Under crash, the engine will be pushed under the
cabin instead of pushed toward the driver’s legs, as conventional
cars. Therefore A-Class will pass any foreseeable
crash test in the future.
49%
A-Class
38%
9%
3% 1%
C-Class
E-Class
S-Class/SL
M-Class/G-Class
Percentage in sales in 1997
EXHIBIT 1
MERCEDES PRODUCT RANGE
• The S-Class: A line of full size luxury sedans and
coupes. The S-Class stands for Mercedes-Benz’s reputation
as a manufacturer of well-built, long-lasting,
luxury automobiles. It is offered with six-, eight-, or
twelve-cylinder engines.
• The SL: Five different models, all with removable
hardtop as well as an electronically operating hydraulic
softtop. Since 1996 Mercedes offers the very
successful sports car, the SLK roadster.
• The E-Class: A line of luxury sedans and station wagons
with a wide variety of engines. In Europe, the EClass
is offered with a choice of three different equipment
styles.
• The C-Class: Compact luxury sedan ranging from the
C 180 to the C 43 AMG. The CLK, a new coupe and a
convertible based version of the CLK is also offered
by Mercedes.
• The A-Class:A subcompact model, introduced in the fall
of 1997. It is a four-door hatchback with a front-wheel
drive, which is produced in Rastatt, Germany. Production
for certain Latin American markets is planned from
the beginning of 1999 in Juiz de Fora, Brazil.
• The M-Class: A four-by-four All Activity Vehicle;
manufactured in Tuscaloosa, Alabama.
• The G-Model:A four-wheel cross-country vehicle (not
offered in the United States).
• The Smart: Daimler–Benz’s subsidiary Micro Compact
Car AG is developing a two-seat, approximately 8-feetlong
car that shall define a new market segment.
• The Mercedes-Benz Maybach: A prototype of a highend
luxury limousine.
Case 17: Daimler–Benz AG: The A-Class and the “Moose-Test” • 17-3
Disadvantages.
Height: Although inside the cabin is nearly as spacious
as the C-Class, the roof is not as high as the appearance
suggests because the floor is raised, too. When it comes
to road, the sandwich structure finally finds its disadvantage—
excessive height leads to excessive body roll.4
Inside Decoration: Equipment is OK, but the trim level
is disappointing. No wood, no leather in this baby Mercedes.
The plastic dashboard and central console looks
exactly plastic. The thick C pillar kills the airy scenery
and rear 3 quarters vision. This cabin is very unfamiliar,
with nothing suggesting it is a Mercedes.
Space: In view of the disappearance of the front engine
compartment, it made the car more compact than any
other cars but simultaneously offers class-leading cabin
space (actually runs close to C-Class).
Weight: Due to the inherent advantage in crash-protection,
no additional crash structure is needed; thus, a lot of
weight is saved. Weight saving may benefit performance
if the A-Class has a proper engine,1 but instead,
Mercedes selected two tiny engines2 in order to enjoy
lower cost and better fuel consumption.
Engine: Mercedes selected two tiny engines and luckily,
the engines run smoothly and have a great performance
of accelerating from 0 to 60 miles per hour in 9.6 sec.3
1For instance, a 1.8 liters 16 valves unit.
21.4 liters 82 hp and 1.6 liters 102 hp.
3Combined with the slick-changing 5 speed manual box or an
optional 5 speed clutchless manual.
1)1502
1603
1719
1)1440
1941
1)153
267
824
628
520
490
978
1050
3575
1)575 1)2423 1)577
727
490
321
932
675
EXHIBIT 2
DIMENSIONS OF THE A-CLASS (IN MM)
4Particularly in “Elegance’’ setup, the soft springs deals badly
with fast corner, and the steering lack of feedback.
17-4 • Case 17: Daimler–Benz AG: The A-Class and the “Moose-Test”
Selling Points
To distinguish itself from other cheap hatchbacks, Mercedes’
A-Class emphasizes its superior build quality and
safety for which it is famous. And currently, it charges
consumer a higher price than the cars in the same car
segment. On the other hand, it should not be much more
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