3/31/2005

Mercedes Benz

DaimlerChrysler announced that it will recall 1.3 million cars in an expanded effort to ensure quality and solve a current electrical problem in the luxury brand of automobile. An alternator crisis in the expensive sedans has made the company decide to replace all of the parts in the cars. This massive projected cost set the price of Daimler stock back a little but it promises to regain ground. Many professionals predict that this recall may have an adverse impact on sales of Mercedes, but common sense says otherwise. Some may veer away from the brand, but no one can deny that a Mercedes is at the top of its class.
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2 comments:

Dr. Tufte said...

I agree with the sentiment that Daimler-Chrysler is dealing with this in the appropriate way. However, this company has been faltering on a number of fronts for several years, so it isn't clear at all that this is a good sign.

Isaac said...

Dr. Tufte wrote that he “agrees with the sentiment that Daimler-Chrysler is dealing with this in the appropriate way.” I believe that statement also to be true. The fact that Daimler-Chrysler is recalling those vehicles shows that they care about the safety and quality of the buyer. I believe that the buyer will see this as a sign of quality and will be more attracted to the Mercedes-Benz.