Mercedes Top-End Sales Slump in Blow to Luxury Strategy

Mercedes-Benz Group AG’s sales of ultra-luxury vehicles such as the S-Class slumped in the third quarter, a blow to the automaker’s strategy of focusing on sales of its most luxurious cars.

(Bloomberg) — Mercedes-Benz Group AG’s sales of ultra-luxury vehicles such as the S-Class slumped in the third quarter, a blow to the automaker’s strategy of focusing on sales of its most luxurious cars.

High-end Mercedes vehicle sales dropped 11% to 69,900 units in the third quarter compared to the same period a year ago, the carmaker said Tuesday. Global sales of its flagship S-Class model declined 18%, while sales in China, the company’s biggest market for the car, fell 12%.

Under Chief Executive Officer Ola Källenius, Mercedes has started to direct resources toward its most expensive vehicles including the Maybach limousines, AMG performance cars and G-Wagon off-roader, while shifting away from less profitable entry-level models like the compact A-Class.

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