Pulling Ahead In The Luxury Car Race With Cheaper Cars

When it comes to luxury cars, several brands come to mind, such as BMW, Audi, Cadillac, and Mercedes-Benz. There has always been fierce competition between these brands, but Mercedes continues to pull ahead, especially with the release of their new CLA model. This model addresses two significant values at once; luxury and affordability. With a buying price of approximately $33,000, the CLA is cheaper than its rivals; the BMW 3 Series starting at  $36,000, and the Audi A4 starting at around $38,000. This new value proposition targets mainly a younger, less affluent crowd than Mercedes is used to.

Never the less, the company’s sales are up, according to Business Week, 6.7% this past month. Advertising played a crucial role in this, with celebrities Usher and Kate Upton on the Super Bowl advertisement for it. Mercedes has successfully adjusted to the consistently changing wants from consumers, and controls a new part of the luxury car market.

However, this is not the end, as it is extremely likely that BMW, Audi, Cadillac, and other similar brands will be introducing new models that will be as good as, or even better than the CLA. Mercedes will have to adjust once again to continue to dominate this ongoing battle.

Article: http://www.businessweek.com/articles/2013-10-02/mercedes-cla-sedan-with-budget-price-outsells-high-end-models-in-u-dot-s-dot-debut

Image: http://i.auto-bild.de/ir_img/1/0/6/1/4/0/2/Mercedes-CLA-BMW-3er-Audi-A4-729×486-cfe8c55edf087626.jpg

Other links used:

http://www.bmw.ca/ca/en/

http://www.audi.ca/ca/brand/en.html

http://www.mercedes-benz.ca/

 

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