The dynamics of the business car market have been instrumental in Mercedes-Benz’s decision to rationalise its new C-class range in the UK and abandon flexible service intervals across Europe.
As Mercedes prepares to claw back fleet sales lost to BMW’s 3-series and Audi’s A4 when the larger, more sophisticated C-class comes to market in June, Wilfried Steffen, DaimlerChrysler UK’s ceo, said: “Rationalising the range for the C-class, our entry luxury model, has been done with business sales in mind.”
Central to that strategy is the entry and highest volume variant, the SE, which replaces both the Classic and Classic SE, and applies Citroen’s VTX model rationale of higher specification levels for a more tax-friendly P11D price.
Although Steffen said that the final “content and pricing equation” was still being discussed, he indicated that C-class prices are likely to be frozen on a “spec for spec basis, because there is very little room for manoeuvre in the most competitive corporate market segment”.
He added: “Major factors in this process include higher levels of active and passive safety, which have growing relevance to corporate customers.”
In Germany the entry price will be £19,663 (?30,000) but the outgoing UK price range of between £21,550 (C180 Kompressor Classic) and £32,783 (C350 Sport) is unlikely to change.
Welcoming the return of fixed service intervals of 25,000km or 15,500 miles Steffen admitted: “Flexible gaps did not meet the demands of the corporate market and the difficulty [that leasing firms have] of predicting service budgets within whole life costs and broader SMR parameters. The UK business car community drove this change.”
His view was endorsed by Martin Ward, CAP’s manufacturing relationship manager, who said: “Leasing companies generally erred on the side of caution and factored in drivers who thrash the cars and increase the service frequency rather than those who take it gently. It can mean a £20 to £30 monthly difference in rates.
“It restores consistency and removes the element of doubt for Mercedes who are wrongly renowned for expensive servicing.”
Steffen expected SE variants, powered predominantly by upgraded diesel engines, to generate most fleet volume, but predicted the Sport, with its “agility control” suspension package, should lure defectors back from BMW and Audi. It carries the more aggressive three-band grille incorporating the three-pointed star while other models retain the traditional bonnet-mounted badge.
Last year the diesel share of all C-class sales was a surprisingly low 48%, due partially to the popularity of the 180K variant.
Steffen claimed that automatics would continue to dominate C-class sales but conceded that the current parking brake had been a deterrent to owning a manual car, although the new hill-hold system should “help the cause”.
