Mercedes-Benz has said it will cut back its entry-level offers to better prioritize premium vehicles with loftier margins. While this strategy has become relatively uncommon throughout the industry, even among some mainstream brands, Mercedes has historically been synonymous with high-end luxury cars. One wonders why it bothered chasing volume to begin with, especially since it doesn’t seem to have panned out for the company.

While executives had previously hinted at its revised strategy in interviews, Mercedes officially unveiled its plan to investors on Thursday. The German brand will focus investments on top-of-the-heap models like the S-Class at the expense of entry-level products that have failed to garner juicy profits.  (Read More…)

Smaller grille than CTS, but clearly a Cadillac.

Size and weight are a big part of GM’s DNA. They beat Ford not with a frontal assault on the Model T but by offering a larger, heavier, flashier car. They thought they could do the same to BMW. But, even as the Bavarians packed on the inches and pounds, car buyers “in the know” saw the additional size and weight of Cadillacs as a sign that the General either lacked technical competence or just didn’t “get it.” Well, maybe the “new GM” really is different. With the 2013 Cadillac ATS, the company has pulled out all the stops to directly challenge the BMW 3-Series with a rear-wheel-drive car that is—surprise—a few tenths of an inch smaller and a few pounds lighter. Could the people who tried to sell us the Cimmaron have gotten this one right?

(Read More…)