Future driving with Mercedes-Benz

Mercedes-Benz achieved remarkable sales in China with 38,700 vehicles sold in 2008, an increase of 45 percent year-on-year and making it the fastest growing luxury car brand in its segment. Its growth was much larger than the average growth of 17 percent in the Chinese luxury car market.

The Mercedes-Benz's flagship model, the S-Class sustained its competitive edge in the luxury sedan segment with a growth of 31 percent in its biggest market, contributing to 13,860 vehicles in overall Mercedes-Benz sales. This factor has reinforced China's strategic position for Mercedes-Benz worldwide.

Regarding the China market's importance, Dieter Zetsche, chairman of the board of management of Daimler AG and head of Mercedes-Benz Cars talked to China Business Weekly reporter Li Fangfang about his views on global and China auto market during Detroit auto show.

Q: As the global auto market has been hit by the financial turmoil, what's your opinion and suggestion for dealing with the crisis?

A: Yes, we recognize the worldwide difficulties currently, especially in financing and resource segments, and a significant decline in the automobile market. However, to overcome the challenges coming from the financial crunch and industry downturn, we will develop new products, like the new E-Class, and new technologies, which can boost our competitive edge.

Regarding the whole industry, we know that some of the auto companies are trying to rescue themselves from bankruptcy with restructuring strategies. So, to survive, we all have to strengthen our own capabilities and advance our efficiency.

Therefore, I believe, after experiencing the current shakeout, the industry can be stronger.

Q: We know that Mercedes-Benz was the fastest growing brand in China's luxury car segment amid the industry stagnation last year. What measures will you take to maintain your leading position in China, the market you regard as the most important?

A: We have made a lot of progress with our Chinese partner Beijing Benz-DaimlerChrysler Automotive Co Ltd (BBDC) and will continue and strengthen the cooperation with them. Our strategy has the recognition of shareholders. We plan to launch and produce E-Class cars in China 15 to 18 months after its debut. For the E-Class manufacturing in BBDC, we will introduce quite a lot of new technologies with our partner.

Meanwhile, we are going to further expand our distribution network in China, and as we continue to expand our network, we are also committed to providing extensive training to our dealers' and staff to keep them at the forefront of delivering exceptional service to customers.

We are also increasing the investment in China market.

Q: What's your view on China's luxury sedan market for the next few years? And what's your strategy to develop Mercedes-Benz in the next three to five years?

A: We always look forward to the competition with our global rivals such as BMW and Audi in China market. As you all know that Audi has a longer history there and has taken first position in sales. For Mercedes-Benz, we are aiming to sell more vehicles than BMW in short-term and then close the sales figures with Audi.

Certainly we also want to contribute to the development of new energy technologies and abide by local regulations on emissions and energy saving. Mercedes-Benz is also dedicated to being constantly innovative in new environmental technologies and bringing the most suitable products to our Chinese customers.

Q: We see that nearly all the automakers are using the electric car as the current weapon to fulfill their commitment to green energy vehicles by 2011. What's your opinion on it and what's Mercedes-Benz's action on electric car technology development?

A: I have a very clear standpoint for this issue: the traditional combustion engine will be the mainstream for driving vehicles in the next 20 years and even longer. The replacement solutions, such as fuel cell, hybrid, should be our target to invest in for a long-term consideration. However, regarding the electric car, its lifetime, charge efficiency and cost still remain problems in the current situation.

(China Daily 02/09/2009 page3)