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Will This Car Save Mercedes-Benz?

Mercedes-Benz is still a great brand, but its profits trail rivals' by a wide margin. Now, its embattled CEO is pinning his hopes on an all-new small car -- one that comes with some very un-Mercedes compromises.

By John Rosevear – May 31, 2013 at 7:00PM EST

Mercedes-Benz is one of the great luxury car brands of all time, but parent company Daimler (DDAIF +4.30%) hasn't been happy with it lately. The problem: Profits trail those at German arch-rivals Audi and BMW (BAMXF +9.16%).

CEO Dieter Zetsche is hoping to change that with an all-new Mercedes, the compact CLA sedan. But as Fool.com contributor John Rosevear points out in this video, the CLA comes with some seriously cut corners, and that may put Dr. Z's recovery strategy in peril.

Read Next

About the Author

John Rosevear
John Rosevear is a senior contributing Motley Fool auto analyst covering automakers and trends shaping the global auto industry. John’s tenure with the company spans 15 years covering auto stocks, mutual funds, and retirement investing. He is a former CNBC reporter who covered the future of autos, including electric vehicles and self-driving cars. Prior to The Motley Fool, he worked at Fidelity Investments in communications and investor education roles. He holds a bachelor’s degree in government from Cornell University. He once spent an entire day sitting on the floor of Peter Lynch’s office – with Lynch present.
TMFMarlowe

Stocks Mentioned

Mercedes-Benz Group Ag Stock Quote
Mercedes-Benz Group Ag
OTC: MBGAF
$58.81
(+4.30%)+$2.43
Volkswagen Ag Stock Quote
Volkswagen Ag
OTC: VWAGY
$10.55
(+4.56%)+$0.46
Nissan Motor Stock Quote
Nissan Motor
OTC: NSANY
$4.62
(+4.05%)+$0.18
Bayerische Motoren Werke Aktiengesellschaft Stock Quote
Bayerische Motoren Werke Aktiengesellschaft
OTC: BAMXF
$95.00
(+9.16%)+$7.97

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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