BMW and Mercedes are Leaving the Premium Segment Behind With Branding

"Wobbles the Mind" (wobblesthemind)
12/14/2016 at 10:35 • Filed to: None

Im pretty upset with Mercedes and BMW right now. They have been oversaturating the market from bottom to top and warping performance, prestige, and premium perspectives. I’ve been watching them be absolutely vicious in the market with their product releases and branding. The branding is what’s causing the massacre of their peers in particular.

Starting next year, I propose that Mercedes and BMW are officially moved into their own tier. I seriously believe that in two more years holding Cadillac or Lexus (maybe Audi as well honestly) to the same benchmarks as BMW and Mercedes is going to be like comparing Nissan to Porsche in terms of brand tiering. I just don’t know how Mercedes and BMW are going to create the spin offs needed and I’m sure thats where all their struggles have stemmed from.

I’m working on explaining this so give me some time to work out the posts. There are a lot of components I need to talk about, number one being the fact that every automaker is lying about what cars their products are to be compared with. Sorry for the quasi-hot takes out of nowhere, I need to gather my thoughts and organize all this information.

Those of you in branding probably know exactly what I’m talking about and are seeing the final goal too. I’ll be back!

DISCUSSION (40)

LongbowMkII > Wobbles the Mind
12/14/2016 at 10:45

Counterpoint: CLA.

Wheelerguy > Wobbles the Mind
12/14/2016 at 10:46

The only solution is to kill the customers that these two marques are pandering to.

It’s The End, Machiavellian rule is king, and nothing is sacred. Not even lives.

OPPOsaurus WRX > Wobbles the Mind
12/14/2016 at 10:47

the light-up tri-star makes me want to burn every mercedes to the ground

Kinja'd!!!

Party-vi > Wobbles the Mind
12/14/2016 at 10:49

The CLA and A3 are garbage. Thus far BMW has not released their own garbage entry-level sedan yet. Ergo, I like BMW best right now.

Mattbob > Wobbles the Mind
12/14/2016 at 10:50

are you talking about comparing them to other companies quality-wise, or just pure marketing?

LongbowMkII > Party-vi
12/14/2016 at 10:52

Counterpoint: x1

My citroen won't start > Party-vi
12/14/2016 at 10:53

The A3 is garbage? What?

duurtlang > Party-vi
12/14/2016 at 10:53

Are they carbage compared to cars like the Focus and Corolla?

Amoore100 > Mattbob
12/14/2016 at 10:58

Branding wise. A S90 has no chance no matter how good to beat the blue and white flag or the three pointed star in the eyes of many.

Party-vi > LongbowMkII
12/14/2016 at 10:59

The X1 is a Q3 and GLA competitor. It is not an entry-level sedan.

WilliamsSW > Wobbles the Mind
12/14/2016 at 11:00

Seems to me that they’re expanding to cover (most of) the range that’s covered by VAG, GM, and Toyota (the company, not the brand), to gain economies of scale, while simultaneously working to reach above those companies at the high end. All of that makes sense to me.

However, the branding work that they’re doing is confusing to me — particularly with Mercedes Benz. The other companies already have tiered branding, whereas MB and BMW don’t - I presume that’s the struggle you’re referring to?

Party-vi > duurtlang
12/14/2016 at 11:01

I would say so. The Focus and Corolla have better interior space and cost half as much. The only reason to get an A3 or CLA is to have a fancy badge in front of your dick as you drive around.

Mattbob > Amoore100
12/14/2016 at 11:03

FWD in the eyes of many isn’t really comparable to BMW/Merc spec wise just due to that difference in layout alone (ignoring the cla). aside from that, I do start to see your point though with that specific comparison.

fintail > Party-vi
12/14/2016 at 11:05

2er active tourer/B-class clone?

Party-vi > My citroen won't start
12/14/2016 at 11:05

It is a $31,500 Audi that replaced a $32,500 Audi, but it got smaller and decontented. The A3 allowed Audi justify the price bump of their A4, and in doing so the same amount of money that would have purchased a D segment large car now only purchases a C segment medium car.

Party-vi > fintail
12/14/2016 at 11:07

I’m American. If it’s not sold here it does not matter.

/Freedom

fintail > Wobbles the Mind
12/14/2016 at 11:07

I think they are more into out-nicheing the competion. There used to be a butt for every seat, now there’s a seat for every butt. They might not need spin-offs for it, they don’t need to pretend to be anything else, as the parent brands have seemingly unkillable cachet no matter the lack of lustre on entry models.

Tekamul > Wobbles the Mind
12/14/2016 at 11:12

If leasing disappeared today, the 320i, X1, CLA, GLA, A3 sedan and Q3 would be discontinued tomorrow.

duurtlang > Party-vi
12/14/2016 at 11:15

Well yes, but a Fusion or Camry typically offers more space for less money than a Merc C or Audi A4 as well. That alone cannot be the criticism, can it?

LongbowMkII > Party-vi
12/14/2016 at 11:21

Give me a weekend with a sawzall and welder I’ll give you a sedan

Jake - Has Bad Luck So You Don't Have To > Party-vi
12/14/2016 at 11:22

Isn’t the A3 just a really lux Jetta? What about people who really want a German luxury Jetta?

Party-vi > duurtlang
12/14/2016 at 11:35

I think it can, because the CLA/A3 are stealing Camry and Accord buyers.

Party-vi > Jake - Has Bad Luck So You Don't Have To
12/14/2016 at 11:42

It’s a luxury Golf with a trunk. The Jetta is almost 10" longer.

Jake - Has Bad Luck So You Don't Have To > Party-vi
12/14/2016 at 11:47

I would dig the hell out of an affordable luxury compact with additional badge snobbery.

404 - User No Longer Available > Party-vi
12/14/2016 at 12:02

You forgot about this. In China. Eventually it will make its way here.

Kinja'd!!!

http://www.bmwblog.com/2016/07/17/new-bmw-1-series-sedan-world-premiere/

Amoore100 > Mattbob
12/14/2016 at 12:18

True. I’m still salty that SPA isn’t RWD, they really should have developed a longitudinal platform and a transverse platform given the amount of money that Geely’s giving them.

Chan - Mid-engine with cabin fever > Wobbles the Mind
12/14/2016 at 12:57

AMG has been mainstreamed and does not in itself signify anything hot-rodded or special. You have to go in and identify the specific model that has the actual AMG-built engine.

Vicente Esteve > Party-vi
12/14/2016 at 15:03

I think the base 320i is their entry level sedan to compete. Either way, if they do come out with something like a 2 series Grand Coupe 4 door I’d be all over it.

Party-vi > Vicente Esteve
12/14/2016 at 15:23

They will - I was under the impression we were getting some sort of 1-series sedan or FWD 2-series sedan. It’ll be just north of $30,000 and the 3-Series will see a price bump.

Vicente Esteve > Party-vi
12/14/2016 at 16:37

I really hope they don’t go FWD but I read somewhere that the 1 series was in the last gen of being RWD so whatever.

Carbon Fiber Sasquatch > Party-vi
12/14/2016 at 20:35

Counterpoint, Mercedes naming structure is the only one that makes sense. That being said, the CLA is genuinely awful, I wish it was more of a 2 series competitor.

Carbon Fiber Sasquatch > Wobbles the Mind
12/14/2016 at 21:00

I think I get what you’re giving out. I will add that I believe the only true premium brand at the moment is Porsche. There’s no entry level, compact Porsche. The closest is the Macan and even then it’s a crossover (considered premium over a sedan in the compact class) and best in class and performance.

They don’t have any products where you could argue its comparative purchase with an economy brand (ie. 320i vs loaded Accord). I believe this is the biggest stipulation in being a premium brand, no entry level products. The next closest is Mercedes but they have to get rid of a lot of their lower products. The notion that a beautiful E400 wagon is remotely related in brand to a CLA 250 is absurd and diminishes the premium of the E400

Party-vi > Carbon Fiber Sasquatch
12/15/2016 at 07:57

Oh but it is because it’s a coupe just like the 2 series

*eye roll*

Carbon Fiber Sasquatch > Party-vi
12/15/2016 at 08:53

Kinja'd!!!

A man can dream....plus the fact that the “45" is a boosted 4 but a “43" is a boosted 6. Such crap

RT > Carbon Fiber Sasquatch
12/15/2016 at 19:04

I’d also say Maserati and Jaguar are taking the premium route now, since they’re still not really making a compact either.

Carbon Fiber Sasquatch > RT
12/15/2016 at 21:11

The XE is technically a compact, so is the 3 series, A4 and C-class. I thought about putting on Maserati because their smallest car competes with the 5 series and E-class, however their reliability and quality is abysmal. Can’t really call something premium that breaks all the time.

RT > Carbon Fiber Sasquatch
12/15/2016 at 21:42

Over here those compacts are ‘mid-size’ cars so I guess it’s a regional thing as far as size goes. The XE looks a lot like the XF anyway. :/ Besides both BMW and Audi had the 3/80 from the near start and MB introduced the 190 in the 80s.

As for Maserati, I agree, though most of their modern cars don’t break as often as they used to - but their equipment is lacking at this price range.

RT > Wobbles the Mind
12/15/2016 at 21:46

They’re not leaving the segment, they’re leading it.

Which is exactly why the segment itself is changing to suit them. Modern luxury SUVs and compacts didn’t come out of nowhere.

Carbon Fiber Sasquatch > RT
12/15/2016 at 22:56

Here in the states, you can conceivably pick up a 3 series/A4/C-class for nearly Honda Accord money and definitely Chevy Impala/Ford Taurus money.

I agree, they’re definitely mid-sized and someone in the market could definitely cross shop them, I know I have. For me, that doesn’t make them premium, just not an economy brand.

Chuckwagon > Wobbles the Mind
12/26/2016 at 23:02

BMW and Mercedes are letting business take the driver’s seat instead of performance or luxury. They both want to provide the effect of luxury, but convey it in a cheaper than usual way. Both of these monster organizations have used their image of performance and luxury in the past to sell cars, if you couldn’t afford it too bad. Nowadays in an effort to increase sheer market share they’re sharing platforms/components, downsizing, and using cheaper materials/processes to appeal to a different consumer demographic. Unfortunately for us car folk it’s working wonderfully for the companies and their stockholders. Expect sheer performance, feel, and panache to be more rare in the coming years.