Why Mercedes-Benz Will Build a Million-Dollar Sedan

Rolls-Royce too cheap for you? Mercedes may have your car.

Jul 23, 2014 at 6:31PM

Images

Top versions of the Mercedes-Benz S-Class can already run well over $200,000. But the price of a rumored new super-high-end version could hit seven figures. Source: Mercedes-Benz.

A million-dollar sedan?

It's the kind of thing you'd expect from a hallowed name like Bugatti, or maybe Rolls-Royce. But if reports are true, the seven-figure level is one that Daimler's (NASDAQOTH:DDAIF) Mercedes-Benz brand could be aiming at soon. And believe it or not, the new million-dollar Mercedes could have some competition from other familiar names.

As Motley Fool senior auto specialist John Rosevear explains in this video, Mercedes is said to be planning a new top-of-the-line variant of its already-expensive S-Class sedan line -- and as crazy as it sounds, it's a product that actually makes a lot of sense for the old luxury brand.

A transcript of the video is below.

Leaked: Apple's next smart device (warning: it may shock you!)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

John Rosevear: Hey Fools, it's John Rosevear, senior auto specialist for Fool.com. Daimler's Mercedes-Benz brand is headed upscale. Way upscale. You may wonder what I'm talking about, because of course Mercedes-Benz is one of the world's most famous brands of luxury cars, with models that are priced well into six figures. Well, how about seven figures?

Word is emerging that an all new version of the Mercedes S-Class sedan will be priced at around $1 million dollars, making it the world's most expensive sedan when it goes on sale sometime next year.

This is the S-Class Pullman, reviving an old name from Mercedes history, the old 600 Pullman that was a top-of-the-line limousine, and like that old Pullman the new one is essentially a ready-to-go limo for the very wealthy and very powerful.

There's a rear compartment with four plush seats that face each other, separated from the chauffeur's compartment by a thick pane of glass, and there's just about every amenity you can imagine, including armor plating.

For Mercedes, this will be the ultimate S-Class, which is itself the ultimate Mercedes sedan line. The S-Class was all-new last year, it has so far sold very well, and it's thought to be an extremely profitable product for Mercedes.

This new S-Class Pullman will make six variants of the new S-Class, up from three in the last generation. The others include a couple of coupes, including the new S65 AMG Coupe that was just announced. This is a great big heavy two door, super luxurious and super fast, with a twin turbo 6 liter V12 making 621 horsepower that is hand-built by a single expert technician, start to finish. They haven't announced pricing for that one yet, but it's expected to come in at somewhere over $200,000. But as expensive and exclusive as that is, the big Pullman will be a big step up from there.

I can't blame Mercedes for beefing up the high end of its product portfolio right now. As we're seeing more and more rich folks with money to spend all over the world, a brand like Mercedes-Benz that has the clout to get rich folks' attention pretty much everywhere is making a move to offer the very richest of them some very exclusive models.

It seems like a sensible strategy for Mercedes. We've heard hints of this from one of Mercedes' rivals, too. BMW (NASDAQOTH:BAMXF) is said to have its own big and opulent sedan in the works, a 9 Series, it showed a concept version earlier this year. Even General Motors' (NYSE:GM) Cadillac brand was said to have a super-high-end sedan in development at one point, though the rumor mill suggested that that was put on hold last year. 

And brands like Rolls-Royce and Bentley have expanded their own lineups, reaching down and up from their traditional market niches. It's certainly a great time to be shopping for a super-premium luxury sedan, there are more choices than ever, and if nothing else that should mean great profits for the companies that make them, including Mercedes. Thanks for watching.

John Rosevear owns shares of General Motors. The Motley Fool recommends BMW and General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers