S2K-MONTREAL

DaimlerChrysler to Postpone U.S. Launch of Mercedes-Benz Sport Wagon

FRANKFURT, Germany February 7, 2005; Melissa Eddy writing for the AP reported that DaimlerChrysler AG is delaying the U.S. launch of its Mercedes-Benz B-Class sport wagon over concerns that the weak dollar would eat too deeply into profits, the automaker said Monday.

The compact four-door hatchback was to have been brought out in North America this year, DaimlerChrysler spokesman Toni Melfi said. But the company has decided to bring the vehicle out in Canada and Mexico as planned but wait to introduce it to the United States.

"Given the current dollar-to-euro relationship, the launch is being delayed for now," Melfi said.

The move comes just weeks after DaimlerChrysler presented the car at the North American International Auto Show.

The weak dollar has been good for U.S. exports by making them less expensive for overseas customers, but has the opposite effect on euro-zone goods, making them more expensive in the United States or eating into manufacturers' profit margins as they try and keep prices steady.

The B-Class Mercedes is to be built at DaimlerChrysler's factory in Rastatt, Germany.

Melfi declined to say when the launch would take place, but stressed that the exchange rate had to be "substantially better."

The delay in the B-Class's U.S. launch reflects the sensitivity of the Mercedes division to foreign exchange rates. It also suggests that the Stuttgart-based car maker is uncertain about the small wagon's prospects in the U.S. market.

protokultur

It looks like someone bought a Mazda 3 and then painted it silver and put a bunch of badges on it to look like a Merc.

aklucsarits

That vehicle would not sell well in the US anyway. I can't believe that MB is considering launching it here at all...

Andrew

freq

Andrew,

I thought the same thing about the Scion Xb or whatever it is, that little box on wheels. They are everywhere. UGLY.

Slamnasty

That looks like a more consumer freindly version of the Vision CLR or whatever it's called.

CG

I think it would sell here.

aklucsarits

Yeah but the Xb is a $14,000 Toyota.

This is a Mercedes Benz. Would a typical Mercedes Benz buyer want this? And more importantly would a non-Mercedes Benz buyer want a bottom-shelf, poser Mercedes?

I don't know. It will be interesting to see the sales reaction if they ever bring it out here.

Andrew

Slamnasty

Well if this new B-class takes over the spot the C230 Sport Coupe had, then the B shouldn't cost much over $35 fully loaded. Still more than double $14k, but not outrageously expensive.

The B will have to be built better than the C230 to get buyers though.