Report: Desperate Mercedes Cutting Most Coupe/Sedan Models
If there is one thing that Mercedes has always been known for it is its big S-Series sedans and big coupes and convertibles. But now that is slowly going away. As Mercedes piles on with more and more variations on what it makes and also reaches into the SUV market it is finding success. But not by building more and more sedan variations but by doing more SUVs. The collapse of vehicle sales due to the coronavirus has hastened Mercedes’ need to drop the slow-selling sedans and embrace those big SUVs. With Mercedes being desperate it is cutting most of its coupe and sedan models.
At least seven Mercedes models will be dropped from the US
According to reports from a meeting of Mercedes dealers in June, US chief Nicholas Speeks says the time is now to start cutting. He says that at least seven Mercedes models will be dropped from the US. According to Automotive News, the coupe and convertible versions of the C-, E-, and S-Class will not be hitting our shores in the near future.
Look, SUVs and big four-door sedans are just more practical. And for those wanting to display their wealth there are better ways to do it than to be driving a big S-Class convertible. In fact, we might be entering a time when displays of wealth might make you a target. Two-door cars are thinning by the week as customers opt for a realistic alternative, the four-door.
Mercedes killed the SLC with rumors mounting that the S-Class coupe and convertible variants will go soon
Mercedes already killed the SLC with rumors mounting that the S-Class coupe and convertible variants will be gone soon. But Mercedes considers the SL-Class as filling the role of the big grand touring cars Mercedes is known for. When it comes to the C- and E-Class two-door models Mercedes is wrapping them into a new CLE umbrella that will have a coupe, convertible, and wagon. Mercedes sees this as satisfying what the C- and E-Class two-doors filled.
After their current cycles run out the CLS and AMG GT 4-Door Coupe will not see replacements. Instead, they will be replaced by the EQS battery-electric sedan that should be revealed before the end of this year. So, besides all of this shuffle and cancellation there is another reason for killing off models.
Mercedes wants to reduce costs shifting development money to EVs and autonomous driving technology
Mercedes is all-in on electrification. It wants to reduce costs to shift that development money into EVs and autonomous driving technology. It also needs to spread some of the development funds to cover losses for the duration of the coronavirus.
Mercedes lost $2.21 billion last quarter; a staggering amount of money. Besides reducing lower volume models it is reducing plant capacity and cutting its workforce. It’s a bad time for many manufacturers and we’ll probably see similar moves by other companies in the coming months-if not already. It’s just that Mercedes always seemed to be riding on a wave that other manufacturers wanted to catch as well. Now, it just seems burdened with models and technology that have seen better days.