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Same-Day Analysis

New Mercedes-Benz C-Class to showcase new design values, spearhead compact and medium car push

Published: 22 October 2013

Mercedes-Benz's next generation C-Class will be central the firm's drive to attract a younger customer base and will create a compelling alternative to the BMW 3-Series



IHS Automotive perspective

 

Significance

Mercedes-Benz is currently in the process of drip-feeding details of its highly important next-generation C-Class model which is traditionally the firm's best-selling model, publishing shots of the car's bold interior design.

Implications

The C-Class's bold interior will no doubt be matched to a radical step up in exterior design with the model being a main plank of Mercedes-Benz's design boss Gorden Wagener who is overseeing a major change in the company's design philosophy in order to attract a younger buyer demographic and conquest sales from other brands.

Outlook

Mercedes-Benz is not alone among premium OEMs in massively increasing its medium and compact car range offering. However, its efforts in this area probably have more potential to transform Mercedes-Benz's fortunes and wider brand image than for the likes of BMW and Audi which already have a dynamic, sporty and youthful image.

Mercedes-Benz is releasing further details of its important new C-Class model which will express the bold new design philosophy being rolled out by head of design Gorden Wagener. The model occupies the important role of being Mercedes-Benz's traditional best-seller and the new C-Class will be charged with the task of increasing Mercedes-Benz's sales volumes and market share in the medium and compact car segments, along with the raft of models coming on its modular front drive (MFA) architecture, including the new A-Class, B-Class, CLA-Class and GLA-Class crossover. In line with the expansion of C-segment offerings the C-Class range is also being significantly expanded in order to offer customers more choice and increase the chances of making conquest sales from other premium brands. IHS Automotive carried a story yesterday announcing that a new Sportcoupé model will be added to the range from the 2015 (see Germany: 21 October 2013: Mercedes-Benz S-Class now available in all key markets; C-Class Sportback model planned), with a sedan-coupé type body style. It is also working on a cabriolet model for the C-Class range, this first time an open-top model will be offered as part of the C-Class line-up. The model will be based on the C-Class Coupé and will rival the BMW 4-Series cabriolet and Audi A5 cabriolet, although apparently the cabriolet has yet to receive a specific launch date according to Autocar. The C-Class sedan will be officially launched at January's Detroit Auto Show. Therefore with the addition of the Sportcoupé and the cabriolet, the next-generation C-Class range will number five different body style variants, up from the current three. The range will also, of course, feature a high-performance AMG version. The next generation of the C63 AMG is likely to follow the example of BMW and Audi by using a new 4.0-litre V-8 twinturbo powertrain, downsizing considerably from the 6.3-litre V-8 used in the current C63 in order to offer hugely improved fuel economy and emissions.

The company has also shown images of the new C-Class' interior ahead of its official launch in January, which shows the radical step forward that Wagener is looking to make with the next generation of the company's best-selling model. Some of the interior themes are reminiscent of those already unveiled in the A-Class and CLA-Class, with an accent on sculpted forms and a standalone navigation and entertainment screen. But Wagener has gone further with the C-Class in an attempt to create a sophisticated, high-quality and contemporary interior design, with the end goal appearing to give the model the feel of a mini S-Class. The design is dominated by an oversized centre console without a conventional gear lever and with the company's own "I Drive"-style interface. The interior design appears to be a quantum leap forward from the outgoing car and will no doubt appeal to a younger customer base. According to an Autocar report, some technical details have also been released. The W205 will feature advanced construction techniques; the company is targeting class-leading torsional stiffness and weight figures, with a target weight of 100kg lighter than its predecessor, depending on the powertrain in use. The structure of the new car uses up to 48% aluminium in its construction, up from 9% in the current car. In addition to the advanced construction Mercedes-Benz are also targeting a significant improvement in the new C-Class's dynamic qualities, which will of course be aided by its stiffer and stronger construction. This goal will also be achieved by new four-link front and five-link rear suspension, which, when couple to a wheelbase that is 50mm longer than the old car should provide an extremely stable high-speed handling as well as "outstanding NVH [noise, vibration, harshness] qualities."

Outlook and implications

All three of the leading German premium OEMs are targeting significant range expansion in their medium and compact car ranges as they look to capture a new and younger generation of customers. This is especially important for Mercedes-Benz, which has traditionally been seen as something of a conservative brand, and a choice for older consumers. In recent years BMW and Audi have arguably been better at pitching their brands, design language and model offerings at younger and more dynamic buyers and Mercedes-Benz has decided wisely that it needs to cater for and attract this younger buyer. This was confirmed by Wagener in a recent interview in which he outlined his plans for creating a more exciting and dynamic design language for Mercedes-Benz, of which the new C-Class will be a key example (see Germany: 18 October 2013: Mercedes-Benz design chief vows to banish brand's "old man" image). The company is already rolling out products expressing this design philosophy, especially in the form of the GLA and CLA-Class models. It is possible that Wagener could have as much impact at Mercedes-Benz in terms of changing brand perception and attracting new and younger customers as Chris Bangle had at BMW in the 2000s. Although the impact of model cycles should not be underestimated, IHS Automotive forecasts that the C-Class will overtake perennial D2-segment class leader, the BMW 3-Series, in 2015 with sales of 438,000 units in comparison to the 392,000 units recorded by the BMW. This is an impressive uplift and will exceed the model's previous record volumes figure of 388,000 units which was recorded in 2001, by the W203 model, by 12.8%. In combined terms Mercedes-Benz brand medium and compact car sales will rise from 623,000 units in 2010 to 1,030,000 units in 2015 thanks to its range expansion in these vehicle segments, an uplift of nearly 40%. However, BMW and Audi are of course not resting on their laurels and these companies will also generate a 36% uplift and 35% respectively in sub E-segment sales during the same period. However, while these figures are highly positive for all three companies they are less positive for traditional mid-market brands, especially European ones like PSA, Renault and Opel, as the German Big Three continue to move into their traditional market territory.

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