Reference News, January 9 report: According to the German website "Wirtschaftswoche," the smart sub-brand was once a money-losing bottomless pit for Mercedes-Benz. However, for most car owners, the old smart cars, which were marketed for their small size, were only convenient when parking, but not comfortable to drive.
Therefore, after operating this brand for more than 20 years, Mercedes-Benz transferred half of the brand's equity, especially the responsibility for R&D and production, to its Chinese shareholder Geely. Since the Chinese took over, smart has recovered: the smart electric vehicles are of better quality and lower price compared to similar models from the Mercedes brand.
The report states that as the old smart models gradually disappear from the road, the new models have become increasingly larger in size. According to statistics from the German Federal Motor Transport Authority, within the first 10 months after the launch of the smart #5 model, at least 4,000 units were sold in Germany alone.
The report points out that in addition to size, another difference between the new and old models is the comprehensive upgrade of the interior and the installation of advanced in-car infotainment systems. In contrast, some current Mercedes sedans look somewhat outdated.
Evidently, the prospects for the Mercedes brand in competing with the smart brand are not good. However, Mercedes-Benz can take some comfort in the fact that it is not the only one in such a situation. Currently, the success or at least survival of a large number of European car brands is largely attributed to the Chinese.
The report says the most prominent case is Volvo. This Swedish brand was acquired by Geely for 1.8 billion dollars from Ford Group in 2010. Since then, the company has updated its vehicle lineup and is now operating relatively stably, especially when compared to Saab. Saab, a Swedish car brand formerly owned by General Motors, has now become a name in automotive history.
Mg also survived thanks to Chinese investment and is currently selling better than ever, at least outside the UK. Mg used to be a car brand that only car enthusiasts and British culture fans would consider buying. Now, as a brand under China's SAIC group, it has entered the mainstream market and has become one of the most successful Chinese car brands in Europe.
The report believes that the most recent and perhaps the most difficult case for Germans is that the Chinese are helping Audi in reverse. Now, former students are helping Audi build a brand specifically developed for China, using a new font and removing the four-ring logo.
The report says that the Chinese assistance does not always work. Although the Lotus brand has received substantial investments from Geely and launched new models, it still cannot turn a profit, and smart has had to repeatedly lower its global sales targets.
Perhaps because of this, the biggest challenge facing this Sino-German joint venture has yet to come. That is how to make the most compact smart model sell well. After six years of Geely taking over operations, the Chinese are now working on solving the problem that once made smart a "problem brand" for Mercedes-Benz. (Translated by Wang Qing)
Original: toutiao.com/article/7593245485550076451/
Disclaimer: This article represents the personal views of the author.