Ouch! More quality troubles at Mercedes Benz..

[SilverLexus]

DaimlerChrysler Recalls 1.3 Million Mercedes Vehicles

By REUTERS Published: March 31, 2005



FRANKFURT, March 31 (Reuters) - U.S.-German carmaker DaimlerChrysler is recalling 1.3 million Mercedes cars as it tries to fix quality issues that are riddling its German luxury car division, it said on Thursday.



In its biggest ever recall, DaimlerChrysler will recall the Mercedes cars in several model ranges worldwide to fix problems with alternators and batteries. They do not affect the cars` safety, according to the supplier, car-parts maker Robert Bosch.



Mercedes chief Eckhard Cordes, who said earlier this year that his drive to resolve the quality problems would hit this year`s earnings, said the cars Mercedes now makes are of high quality and that the recall addressed legacy problems.



"We are now producing the best product quality ever and our aim is to ensure that those vehicles in the hands of customers which are the cause of complaints achieve a standard of quality that reflects our highest expectations," he said in a statement.



DaimlerChrysler declined to say how much the recall would cost but Georg Stuerzer, an analyst at HVB Group in Munich, estimated it could be in the hundreds of millions of euros.



"On this kind of scale I expect the cost to run into the three-digit million-euro range. The quality campaign will weigh further on the company`s first quarter," said Stuerzer, who rates the stock "outperform" with a price target of 39 euros.



Shares in DaimlerChrysler dipped after news of the recall, paring earlier gains to trade up 0.1 percent at 34.51 euros by 1417 GMT, in line with the blue-chip DAX index, which was 0.2 percent higher.



Mercedes said it would check and if necessary replace the voltage regulator in the alternator on vehicles with six- and eight-cylinder petrol engines built between June 2001 and November 2004 in the recall.



The carmaker will install new battery-control software on E-class and CLS-class models made from January 2002 to January 2005. In addition, it will update the braking system on current E-class, SL-class and CLS-class models, made since June 2001.



Mercedes has traditionally been Daimler`s most lucrative business, but a collapse in profits at the division caused DamilerChrysler to miss analysts` expectations for fourth-quarter profit.



Mercedes` profits have been hit by a strong euro, the cost of launching new models, and increased spending to fix quality problems, as well as losses at its Smart minicar brand, for which it is working on a strategic review.

[medic]

I used the think Mercedes were the car to have growing up, but now, for the money and the associated quality, I`ll buy a Lexus if/when I switch to a luxury car. The merger with Chrysler seems to have ruined mercedes more than improved chrysler. Plus, some models are now just a bit too cheap which doesn`t make them very appealing to say you have a luxury brand.



Case in point: In Sacramento, they used to advartise how you could get a new mercedes for the same as a nissan sentra. Is that really how you want to compare a luxury car?!

[togwt]

Quote: ...The merger with Chrysler seems to have ruined mercedes more than improved chrysler. Medic



Quality meets bottom line management

JonM

[imported_guapsnaman]

It seems as if when one does poor the other does well.



Only a couple of years ago, Chrysler was performing poorly in sales and quality. However, until recently they`ve been concentrating on improving Chrysler and forgetting about MB, hence the lack in quality and sales on that side.

[Sveta]

Its a shame that German auto makers haven`t fully come to terms with why so many Americans are driving Japanese vehicles more and more. Its a reliability thing first then a "drivers car" next for me.

[termigator]

Originally posted by MartyGrant

Its a shame that German auto makers haven`t fully come to terms with why so many Americans are driving Japanese vehicles more and more. Its a reliability thing first then a "drivers car" next for me.

I couldn`t have said it any better.:xyxthumbs



I think the German automakers got too complacent , thinking that the Japanese could never catch them in the luxury segment. When they did and also became more reliable, the Germans started relying on technology to keep them ahead, but, unfortunately, I think they`re rushing the technology so they can be first and all the bugs haven`t been worked out yet. That`s when reliability took a hit. I love German cars because they`re made for drivers, but I`m not too keen on using that drivability to get to the dealership for warranty work.

[imported_memnuts]

Originally posted by termigator

I couldn`t have said it any better.:xyxthumbs



I love German cars because they`re made for drivers, but I`m not too keen on using that drivability to get to the dealership for warranty work.

Same here.

That`s why we purchased a Lexus LS400. Too many friends were having problems with there Merc`s and everyone I knew drove their Lexus without any hitches.

11 years later as a daily driver and outside 24/7 (4 Chevy musclecars get the garage space), she still runs like a Swiss watch, paint and interior is in excellent condition (detailing nut ) and only had to replace tires x 2 (~$1200), battery ($90) and power steering pump ($300). Zero down time so far and no warranty work needed. It is time for timing belts to be replaced though.



This is a new problem with German vehicles. My 320i (`82) ran with excellent durability for nearly 17 years. New England winters and rust finally did her in.

[termigator]

This is a new problem with German vehicles. My 320i (`82) ran with excellent durability for nearly 17 years. New England winters and rust finally did her in. [/B][/QUOTE]



I agree. I take care of my mom`s E320 (95`) and it`s an excellent automobile with only a few negligible problems surfacing. Of course, it still only has 55,000 miles on it. By contrast, my wife`s Accord EX V6 (00`) has 135,000 miles on it and so far the light bulbs went out on AC control unit and the shifter and that`s it!

[gkerr4]

Hmm - I agree with the deterioration of MB reliability - but not necessarily the `quality` as such.



Thats doesn`t make much sense does it??



let my try and explain what I`m thinking. I own a BMW, MB main competition in my opinion. I really like it and the only car I would consider changing for is the MB `c` class. To me the fact that they are recalling for defective (3rd party produced - Bosch) alternators and batteries shows they have acknowledged a problem and are trying to put right.



For me though, there is no comparison between an MB and something like a honda or even a lexus as build wise and interior wise they aren`t (imo) in the same league. I have just bought a new Honda FRV for the wife, don`t get me wrong it is a great car - well thought out, well put together and nice interior design and materials - but it just lacks the `feel` of a quality interior. Some friends of ours have just bought a Lexus Rx300 (the 4x4 thing - not sure what it is called in the US) they have paid top money for it too (US equiv of $76,000) - but to me the interior is just the usual shiny tat plastic that you would fnd on a £5000 toyota yaris.



Please don`t flame me for this - I just think that MB still make a great car, although I do acknowledge that they have `issues` at the moment - and the sales figures even here in the UK reflect this thought in that they are dropping!!

[l33]

Well put. I`ve owned 2 BMWs and not a problem with either. I prefer the "feel" of a German car. BMW, Mercedes, Audis "feel" like tanks or "heavy machines", while to me Japanese are feel "light". Not sure about realibily issues, i see tons of german cars still on the road. These guys must know something everyone else doesn`t? It seems they knock german engineering every chance they get, more of an anamosity towards German cars. I haven`t been in a car yet that feels like a bmw, mb or audi (exotics aside).

Originally posted by gkerr4

Hmm - I agree with the deterioration of MB reliability - but not necessarily the `quality` as such.



Thats doesn`t make much sense does it??



let my try and explain what I`m thinking. I own a BMW, MB main competition in my opinion. I really like it and the only car I would consider changing for is the MB `c` class. To me the fact that they are recalling for defective (3rd party produced - Bosch) alternators and batteries shows they have acknowledged a problem and are trying to put right.



For me though, there is no comparison between an MB and something like a honda or even a lexus as build wise and interior wise they aren`t (imo) in the same league. I have just bought a new Honda FRV for the wife, don`t get me wrong it is a great car - well thought out, well put together and nice interior design and materials - but it just lacks the `feel` of a quality interior. Some friends of ours have just bought a Lexus Rx300 (the 4x4 thing - not sure what it is called in the US) they have paid top money for it too (US equiv of $76,000) - but to me the interior is just the usual shiny tat plastic that you would fnd on a £5000 toyota yaris.



Please don`t flame me for this - I just think that MB still make a great car, although I do acknowledge that they have `issues` at the moment - and the sales figures even here in the UK reflect this thought in that they are dropping!!

:nixweiss

[SilverLexus]

"Its a reliability thing first then a "drivers car" next for me."



Well put.



"Not sure about realibily issues, i see tons of german cars still on the road. These guys must know something everyone else doesn`t? It seems they knock german engineering every chance they get, more of an anamosity towards German cars. I haven`t been in a car yet that feels like a bmw, mb or audi (exotics aside)."



I ride in lots of cars and the LS430 is certainly the equal or superior of the German cars in terms of fit and finish and overall engineering. I will give Benz one thing - the new Ceramiclear paint is pretty special but it`s probably just a matter of time before Lexus has something similar or better.



The only objective measure of reliability in the US is the JD Power surveys and on those Lexus dominates. BMW has been doing well also (as is Porsche), but Benz has been suffering for 7-8 years, maybe longer.



I don`t have any bias against German products, often the engineering is world class. But it fair to have a backlash against the high prices that Mercedes charges for comparable quality and the "air" in the status of these cars.



Benz has a great tradition of excellence. I think they will be able to get this behind them. We may yet see them return to the top ranks.

[SilverLexus]

2004 Dependability Study link:



http://www.cars.com/go/advice/Story....referer=advice



Mercedes is well below the industry average.

[termigator]

Originally posted by gkerr4

Hmm - I agree with the deterioration of MB reliability - but not necessarily the `quality` as such.



Thats doesn`t make much sense does it??



let my try and explain what I`m thinking. I own a BMW, MB main competition in my opinion. I really like it and the only car I would consider changing for is the MB `c` class. To me the fact that they are recalling for defective (3rd party produced - Bosch) alternators and batteries shows they have acknowledged a problem and are trying to put right.



For me though, there is no comparison between an MB and something like a honda or even a lexus as build wise and interior wise they aren`t (imo) in the same league. I have just bought a new Honda FRV for the wife, don`t get me wrong it is a great car - well thought out, well put together and nice interior design and materials - but it just lacks the `feel` of a quality interior. Some friends of ours have just bought a Lexus Rx300 (the 4x4 thing - not sure what it is called in the US) they have paid top money for it too (US equiv of $76,000) - but to me the interior is just the usual shiny tat plastic that you would fnd on a £5000 toyota yaris.



Please don`t flame me for this - I just think that MB still make a great car, although I do acknowledge that they have `issues` at the moment - and the sales figures even here in the UK reflect this thought in that they are dropping!!

I`ll have to respectfully disagree with you. I used to work at a Mercedes dealership and I`ve been in the newest Mercedes. In my opinion, their Japanese counterparts(i.e. Lexus, Infiniti and Acura) are every bit as luxurious inside and out. I`ve never been in a BMW (But I`ve heard they are excellent and until very recently, reliable machines also) so I can`t comment on that. As for Honda, the ones over here in the U.S. exude quality in the interior. Maybe it`s different in Europe. I don`t know. All I know is I wouldn`t give up my 02` Acura TL-S for any Mercedes out there.

(Main reason being that I can`t afford a Mercedes of comparable class.)

[termigator]

Originally posted by L33

Well put. I`ve owned 2 BMWs and not a problem with either. I prefer the "feel" of a German car. BMW, Mercedes, Audis "feel" like tanks or "heavy machines", while to me Japanese are feel "light". Not sure about realibily issues, i see tons of german cars still on the road. These guys must know something everyone else doesn`t? It seems they knock german engineering every chance they get, more of an anamosity towards German cars. I haven`t been in a car yet that feels like a bmw, mb or audi (exotics aside).



:nixweiss

I don`t think it`s German engineering that people are knocking. They just don`t seem to be crossing the T`s and dotting their I`s and lower case j`s (From Wayne`s World 2 ) and that`s what people are upset about.

Nobody questions German design and engineering. It just seems like they`re getting a little sloppy in the details and the Japanese are being extremely meticulous with them.

[03e55]

Mercedes is the original. All the others copy Mercedes.

Lets not forget that Bosch makes parts for Lexus, Acura and Infiniti. Bring any Acura, Lexus, BMW, Audi or Infiniti and I`ll smoke you in my E55 AMG any day of the week. Maybe heavy but its faster than anything you`ve listed. I have two Mercedes and never had any problems with them.