- Source: BRABUS

    BRABUS is better than Mercedes and that's a problem

    The lads in the Aussie editorial team know too well that my day consists of getting up, hopping on our chat, and complaining about Mercedes.

    1w ago

    44.9K

    I know, I know. I'm here today on my tribe, Engine Economics, complaining again about another manufacturer. It's not a new one either, because I've complained about Mercedes before today more than once. The reason that brand draws my ire so often though is that so often they over promise and under deliver. The bar in the luxury car sector and the performance car sector is high and Mercedes has done nothing since the SLR McLaren to stir my interest. In fact the polar opposite. They've been sticking to popularity and the status quo.

    Granted, for a period of three years in the late 2010s that also made Mercedes the highest selling luxury automotive manufacturer on earth. But the chickens are rapidly coming back to roost. And that's reflected in where Mercedes' volume lies on their range.

    IT WASN'T THE MERCEDES LONG TERM PLAN. THE PLAN WAS TO SELL CUSTOMERS ON A CHEAP VEHICLE AND UPSELL THEM ON VEHICLE NUMBER 2, THAT ISN'T HAPPENING.

    Let's take the large SUV example. If you look at the Mercedes competitors, Audi and BMW, their cars, the Q7 and X5, have the bulk of their volume in models priced between $120,000AUD and $140,000AUD. Those cars sold in that price point are a sweet spot for profitability. Mercedes on the other hand with their competitor, the GLE, pools the bulk of their volume annually in the GLE300d and the 450 which are priced between $105,000AUD and $120,000AUD.

    This doesn't change as you go through most models on the Mercedes range. For example, the best selling C class is the C200 or the C250 whereas with BMW's 3 Series it's the 330i. It's not a 1-year thing either, Mercedes have been like this for years and it's what's allowed the brand to take the number 1 best selling luxury automotive manufacturer spot. The truth is though, this isn't sustainable and it wasn't the Mercedes long term plan. The plan was to sell customers on a cheap vehicle and upsell them on vehicle number 2, that isn't happening.

    Worse still it's made Mercedes become dreary and confusing. I've already touched on naming conventions previously so I won't go there today. But Mercedes vehicles as a whole are all looking pretty much identical today and they don't change or do anything really all that innovative. Land Rover had their dual touch screen and next-gen AWD off-roading computer, BMW have the fastest luxury performance vehicles in sector and Audi are packing their vehicles with special next generation science fiction tech including a slather of environmentally friendly vehicles ready for release.

    Mercedes are known for being, well conservative. Mercedes owners only ever drive and own Mercedes and alike to a genetic disease they pass that on generation to generation. But whatever the Mercedes Passenger range's shortcomings may be, their parent company, Daimler AG, prop those profits up with the Mercedes Commercial division and a whole slather of other automotive investments. Daimler is doing so well in fact that most recently they bought Aston Martin. So it's highly likely they're going to continue doing exactly the same thing.

    And that brings me to my problem. I saw a Mercedes the other day that I adored, but it wasn't really a Mercedes. It was a BRABUS. And not just any BRABUS but a BRABUS that they've aptly named "the Rocket". The BRABUS ROCKET 900 is essentially a highly tuned Mercedes AMG GT63S 4MATIC+ (golly gosh that was a mouthful. If you own one of those cars can you tell me in the comments section how you tell people that you own that car in a pub drunk?). But here's the thing, it looks nothing like the original car. Because it looks satanic, and it has the numbers to back up its looks.

    What it basically means is that the engine BRABUS has put in this car has an increased capacity of 4.5 litres and puts out 900bhp. That's better than anything you can find at a bar on a Friday night. It means that the car goes from 0-100km/h in 2.8 seconds. Yes, this heavy, whopping great sedan goes 0-100km/h in the same amount of time as a Tesla Model X. Crazier still it reaches 300km/h in 23.9 seconds. Most automakers don't even talk about 300km/h let alone quote a time it'll make the sprint in.

    The catch is the BRABUS 900 ROCKET is a part of BRABUS' highly exclusive MASTERPIECE label and only ten of them will ever exist. The tagline for the car is spine-tingling as a result "ONE OF TEN". And I gotta say, I know the price tag is going to be stupid but just looking at the car it's all worth it.

    BRABUS IS MAKING A BETTER CAR THAN A MERCEDES WITH LESS PERSONNEL AND LESS EXPERTISE. SO WHY DOESN'T THE AMG DIVISION OF MERCEDES DO THIS?

    And that then brings me to my point. BRABUS is making a better car than a Mercedes with less personnel and less expertise. So why doesn't the AMG division of Mercedes do this? Why doesn't AMG make Mercedes that stupid brand that does amazingly stupid things for world records no-one cars about and no-one has ever attempted.

    There was a fantastic line in the Ford V Ferrari movie which was released last year and starred Matt Damon and Christian Bale and it's stuck with me as a marketer. It was a line said by a senior VP, marketing of the Ford Motor Company known as Lee Iacocca (played by Jon Bernthal) while claiming that Ford had grown stale during it's 1950/60s run of boring family vehicles. He said, "James Bond does not drive a Ford". What follows is Henry Ford II mocking Iacocca by calling Bond a degenerate.

    The principal of that quote though is pointing out that dreary cars do not draw attention. Dreary cars get ignored. Cars which work better as parking barriers than that as a weapon do not sell other cars. And while no-one else in market is really doing this nowadays, why can't Mercedes be the brand that does do it? Why can't they be the ones who make completely radical cars with wide bodies that makes it truly cool to drive a Mercedes again? Because right now, it is not cool to drive a Mercedes. No-one cares if you drive a Mercedes.

    So if you're a Mercedes product planner who is reading this article, for starters feel free to head down to the dog house and give me a good ripping for everything I've said today. But once you've had a good crack at me. Pick up your phone, call your friends at BRABUS and figure out all the things they're doing right so you can do them first. Get on the front foot and watch your competitors at BMW M and Audi RS turn in their sleep thinking about the new AMG range which is faster and much better looking than anything they can come up with. That is the opportunity, and trust me, it's an opportunity you should take.

    Loading...

    Join In

    Comments (45)

    • If the Rocket was a mainstream model (which it could be), then Brabus would breach legislation and targets in respect of emissions etc. That’s why they are limited to 10 as well as keeping them exclusive. I’m fine that Mercedes makes and develops the core model range, AMG make the high performance and Brabus make ultra versions.

      Brabus would be nowhere without Mercedes (core car) and AMG (development of the AMG engine) which the Brabus block is based on.

        8 days ago
      • My point wasn't that you need one or the other. I was generally asking the question - why don't AMG themselves do more cars like this and allow Mercedes to use them to upsell the rest of their range. Something that right now, Mercedes is...

        Read more
          8 days ago
      • How many people will want a 900 hp saloon that's so conspicuous that you'd never pass a traffic officer again without being pulled? Don't be daft. Think of it, if anything Mercedes has already too much emphasis on the AMG line. Mercedes' core...

        Read more
          7 days ago
    • "better than Mercedes" at doing what, though? These days car makers have to prioritize two things: sustainability and profitability. I know we, as car people, hate to hear this but they have no choice

        8 days ago
      • Mercedes passenger isn't all that profitable though, and I think that's my point. When you're competing against two other companies that are making the same profit margins but are without commercial divisions which means a lack of fleet...

        Read more
          8 days ago
      • That was a bit of a digression - but what I mean to say is Mercedes have marketed to the wrong customer for about five years now. They're suffering for it, and they wouldn't have if they'd taken a more bespoke approach by embracing a flagship...

        Read more
          8 days ago
    • I completely agree that Mercedes succeeds in upselling their line up by just slapping on the AMG badge. However, saying that Brabus > Mercedes is absolutely bonkers. BRABUS is only a coach builder who modifies the appearance of the car and tunes the motor. The base chassis of the car is still Mercedes and it’s not Brabus who builds the car. I‘d also like to mention that the fuel consumption on the Brabus Rocket 900 is off the charts haha

      That’s just my two cents ;)

        8 days ago
      • Well Brabus also completely overhauls the chassis with new suspension components, new aero bits as well as anti roll bars and stiffening the chassis.

          8 days ago
      • I know the title implies that I'm comparing the two, but I can promise you the intention is not a comparison. It's more of a case study into what AMG should be doing to upsell and less about the "one or the other" approach.

          8 days ago
    • Excellent point on volumes and price points. Have you got any data on margins for Audi, BMW & MB on their highest margin price points? Finding the volume vs margin sweet spot is a tricky trade off, and that's what price optimisation is all about. A few more thoughts: is picking Audi a false comparison? After all, they're the premium brand for VAG, Bentley aside, and not an entire group, like MB, VAG or BMW. Also, MB have long held the "mature, sensible luxury" market position. I've heard them dismissed as the 50 something car. Fine by me, as I am 50 something! So IMHO it would be a mistake for MB to chase the boy racer market that prefer BMW M cars or Audi RS, and lose their core. As for not upgrading, I've gone for CLK230 Cab to E500 Cab, so there's a counterexample, albeit in the UK. Disclosure: Golf R daily, remapped E500 Cab weekender. Never driven a BMW!

        8 days ago
      • Thanks for the comment, John. I do but ironically I'm not allowed to release the numbers. I work in the industry and most OEMs prefer to be measured on total volume rather than profitibility. Profitability to them is a secondary exercise...

        Read more
          8 days ago
    • I think I suffer the same issue as you! I complain about Mercedes way too much! I believe their design language isn't innovative and they're just playing it safe, I believe they sell cars entirely based on the badge (and that is likely why they sell a lot of the base models if you ask me) and for some reason they have a good perception, solely due to AMG. And even then, the E63 gets dropped by the M5, the GT thrashed by the R8, the C63 walloped by the Giulia. If Mercedes came out and released a really risky new model that was highly futuristic and felt special, I would love it. But the cars all look the same, all drive badly and are made cheaply, especially at the A/C end of the range!

        8 days ago
      • Well the GT black series became the fastest series production car on Nurburgring with 6:43.616 lap.

          8 days ago
      • Yeah, see there's a problem with that lap. The first of which is that Mercedes wasn't running a production setup on the day the GT Black set that time. But the second of which and as we discovered very recently at the Eiffel Grand Prix, the...

        Read more
          8 days ago

    YOU MIGHT ALSO LIKE

    Post sponsored by

    The 10 best cars driven by NFL superstars
    Petrolheads are loving Pagani's new car configurator
    Shmee150 has replaced his Ferrari GTC4Lusso with a Porsche Taycan Turbo S
    2020 Ford Mustang EcoBoost Proves You Don't Need a V8 to Enjoy a Pony Car
    45