Joeb427

iTrader: (1)

Why Mercedes' S-Class Got a $1 Billion Makeover

8:00 AM PDT 8/16/2013 by Jon Alain Guzik



With a Tesla model outselling the luxury sedan in early 2013, the longtime favorite of A-listers like Demi Moore and Tiger Woods is fighting for market share with upgrades like a hot-stone-massage seat option.



All you need to know about the brutally competitive luxury automobile category is this: The new 2014 Mercedes-Benz S-Class rear seats not only have a hot-stone-massage option but their own app to control seat movement. That should give an idea of just how much luxury is compulsory these days to sell a plausible luxury sedan.

The new S-Class, which launches in September and will most likely be priced at $95,000, is the latest edition of the car that has been Mercedes-Benz's flagship for 41 years and has a deep penetration among Hollywood and pro sports -- Tiger Woods and Demi Moore have been spotted in them. But lately, the S has been challenged for the hearts, minds and driveways of Hollywood by the $78,800 Audi A8 L, the $91,000 BMW 750Li and especially the $83,570 electric Tesla Model S P85. The latter, considered a midsize car despite its price, outsold the larger German model in America in the first quarter of 2013, with 4,900 units delivered compared with the S-Class at 3,077.

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"For 20 years, I was a very happy Mercedes-Benz owner," says Paul Kiesel, a Beverly Hills entertainment attorney. "I had an S-600 but found it much too big and not particularly fun. It was a tank." Four months ago, Kiesel forsook his latest Mercedes and bought a Tesla.

It's drivers like Kiesel that Mercedes must win over if the S is to remain relevant. The car is far from unpopular -- even in its current and somewhat dated form, the S-Class remains the No. 1 full-size luxury sedan in America, with year-to-date sales of 6,788 units. Says Steve Cannon, CEO of Mercedes-Benz USA, "It's the flagship of the entire industry."

Nonetheless, according to Roderick Bridge, an auto analyst at S&P Capital IQ, Mercedes spent more than $1 billion revamping production to give the S-Class its first serious redesign since 2006, and the differences are startling. "I think the new S-Class is going to bring in a lot of the Rolls-Royce and Bentley buyers," says Mark Barsoomian, general sales manager at Mercedes-Benz of Beverly Hills. "That's what Mercedes-Benz is shooting for in a lot of ways."

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Where the previous S was all Teutonic efficiency, the 2014 is all about technology and safety, with a major emphasis on luxury. "Luxury was the strongest driver for innovation," says Hermann-Joseph Storp, the car's design engineer.

The new S-Class is larger than ever at 17.2 feet long (the Tesla is almost a foot shorter) and has a more imposing presence, with its longer hood, domed roofline and gently slanting rear reminiscent of the Bentley Mulsanne. (Mileage should be close to the current model's 19 mpg city/21 highway.) Mercedes deepened the sedan's hallmark design cue, the "dropping line" that descends from front to rear and creates a convex-concave effect over the entire flank of the vehicle. Inside, the S is stuffed with some of the most over-the-top technology available, including a system that scans the road surface with a stereo camera and instantaneously adjusts the suspension. The front cabin evokes a Gulfstream's cockpit, with an immense interactive screen nested amid the usual burled wood accents; the rear compartment evokes the snug luxury of a Lufthansa first-class cabin with foldout tray tables, exotic wood inlays and more Nappa leather than a Milan menswear workshop.
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All of which delivers the car into the future without jettisoning its luxury-liner backstory. "You can immediately recognize that it's a Mercedes," says Hans-Dieter Futschik, one of the designers. "That way, our customers don't have to get used to the new car and have an idea about the quality from the start." (Mercedes claims it has more than 20,000 preorders.)
While the previous S came in hybrid and diesel options, a plug-in hybrid version of the new S is available only in Europe. When that model -- though not a pure electric like the Tesla -- makes it to the U.S. as expected, it will be a major salvo in the green luxury-car wars.

TangoRed

Dumb article.

Joeb427

iTrader: (1)

From 'The Hollywood Reporter'.

http://www.hollywoodreporter.com/new...s-class-604358

I8ABMR

this is a lame article. They are talking out of their backsides. The S got a makeover because the model cycle ended and a new gen was expected. Thats it. The S class is and probably always will be, the valedictorian of all motor cars. Yes the Tesla is catching on and yes the sales are jumping ( especially since they will providing their own financial service rather than sending customer to B of A or Wells), but the S was due for a change.

The Tesla is a far better looking car and much much greener and trendier recently but it will not stand up to the S class world wide. At least not yet.

BNR34

iTrader: (1)

Go drive a Model S It's smoothness, quietness and huge instant torque is mind boggling, it is not in a different league, it is in an entirely different world compare to all gas power car, no V12 RR, Bentley or S-Class can compare.

ydooby

The Model S is a midsized car that should be compared to the E550 and the E63 AMG in terms of both size and effective costs. Comparing it to the S-Class is like comparing the 5-series to the S-Class--it just doesn't make any sense.

edgeucated

iTrader: (4)

Totally agreed, the model S is very comparable to the e63 and the CLS63, both in terms of price and size

mmarshall

The effect of Consumer Reports magazine here in America has always been very strong. They gave the Tesla Model S the highest road-test score of any passenger car they've ever tested...99 out of 100, so no wonder it's selling...specially for those well-heeled enough to afford it. But that doesn't mean that cars almost as good aren't available for far less money. Witness, for example, the new 2014 Chevrolet Impala, which, in V6 form, scored 95 out of 100.

I8ABMR

I have been eye balling the Tesla model S. I have gone intot the store and spoken to the sales team and they are very confident that the $1000/month lease will drop to closer to $750/month when they start to offer their own in house financing . I love this car for many reasons. I have been wanting a GTR for years but I keep wondering if a fast sedan would make a better daily driver. My only concern is if I dont buy a GTR I will never get it out of my system. The Tesla is basically the ultimate car for most. Very handsome, fast, high tech, and green enough to make your kids happy

gengar

Agreed. We're talking about the industry leader which has averaged 80k units/year for the last decade and a half. Benz is "fighting for market share" with the S-Class, really?


While I agree with you on size, I think it's important to keep in mind that the Model S price is only so low because of government subsidies and tax credits. Remember that Tesla is only profitable because of government-legislated ZEV credit trading scheme (among other accounting gimmicks), and that Tesla buyers also get huge federal income tax credits. Even just taking these two into account, the real cost of a Model S (including the cost to American taxpayers) tacks on nearly $20,000 to the MSRP, putting its real cost at just below the S550.

Marklouis

Now there's this:

Model S Achieves best safety rating ever by the NHTSA:

http://www.teslamotors.com/about/pre...CampaignId=329>

another stellar achievement from Tesla.

ydooby

The Model S is so strong it wrecks the wrecking machine. Now that's good marketing.

ken830

Hi guys... First off: I'm a car enthusiast, so I am a member of a lot of different car forums because I love to read about all-things cars and I enjoy receiving the monthly CL e-mail newsletter. I've never owned a Lexus and don't really have anything relevant to contribute, so that would explain my zero-post status until this thread.

I just got to say: My wife and I love our Model S. I can confidently say it's not only the best car I've ever owned, it's the best thing I've ever owned. BNR34 is right -- It's not just in a different league; it's a completely different world. I can probably name at least fifty or a hundred different reasons/features that make it so great, but I won't delve into that unless there is interest here. We're just really happy with the car, the service, the company, and the stock (TSLA). Basically, the ownership experience is something I never thought would be possible with an automobile.

Hoovey689

iTrader: (16)

Glad you're enjoying your Tesla S. I live in CA, East Bay which is home to Tesla, so I see them consistently. So far so good, but just to play devils advocate, the same thing was said of Lexus in 1989 with the 1990 LS400. It changed the game and no other company came close to offering the service they did which included going to your house and getting your car. Fast forward to today and Lexus has grown far to large to cater to that. Personally I want Tesla to stay relatively small like 4-5 models. Anymore and Tesla will over promise and under deliver.

ps. I love my TSLA stock

ydooby

Exactly. Imagine having to wait for an hour in line for the "free" Super Charger when too many Teslas are sold. Yeah they'll still probably be free as promised, but how much is your time worth?