agent Entrepreneur logo
MenuMENU
SearchSEARCH

Mercedes-Benz Says It Won't Be 'Stupid' in Effort to Beat Lexus in U.S.

November 5, 2010
3 min to read


Daimler AG’s Mercedes-Benz won’t be “stupid” in adding sales incentives to its cars as the company pushes to become the top-selling luxury brand in the U.S., an executive told Bloomberg.


Toyota Motor Corp.’s Lexus brand, helped by customer discounts in October, has remained the No. 1 selling luxury brand in the U.S. this year, a title it has held since 2000. Mercedes and Bayerische Motoren Werke AG’s namesake marque have gained on Lexus with new products as the Japanese brand deals with record recalls.

Ad Loading...


“December is a big month,” Dietmar Exler, vice president of Mercedes-Benz Financial USA, said in an interview at his office in Farmington Hills, Mich. “There will be some programs, but there will be nothing stupid just to be No. 1.”


Lexus more than doubled average incentive spending from a year earlier to $2,152 per vehicle in October, according to Santa Monica, California-based TrueCar.com. Mercedes increased average incentive spending by 9.4 percent to $4,389 in the month, the researcher said.


Lexus led Stuttgart, Germany-based Daimler’s Mercedes in the U.S. by 5,449 sales through October.


Daimler offered “crazy” lease deals on some models last month, said Jesse Toprak, vice president of industry trends for TrueCar. Leases on the C-Class sedan cost about $300 a month, comparable to deals on Honda Motor Co.’s Accord, he said.


“They are clearly trying to get the luxury sales lead this year,” Toprak said of Mercedes. “Lexus is going to do what it takes to keep that spot, which only means better deals for consumers.”

Ad Loading...


U.S. sales for this year through October totaled 183,529 for Lexus, 178,080 for Mercedes and 176,736 for Munich-based BMW, the global leader in luxury-vehicle deliveries.


Exler took the helm of Mercedes-Benz Financial in the U.S. in February just as the automaker’s sales began to accelerate. The company has been helped by a move into less expensive luxury categories. Incentives amounts are typically decided by an automaker’s marketing department.


Sales of the C-Class sedan, the only Mercedes with a starting price under $35,000, rose 15 percent this year through October, according to Autodata Corp., a researcher based in Woodcliff Lake, New Jersey.


The average amount financed by Mercedes-Benz Financial for new vehicles is around $50,000, according to the unit. The lower-priced vehicles create greater pressure to reduce costs, Exler said.


In mid-October, the unit introduced a system that allows customers to sign some documents on the screen of an Apple Inc. iPad, allowing for quicker and more accurate service. Mercedes’s 355 U.S. dealers also can use the iPad as a mobile tool in showrooms to access the company’s point-of-sale system.

Ad Loading...


The finance arm is implementing a fully electronic contract system that will take several years to complete, Exler said. Last year, the company introduced a computer program that validates contracts to catch more errors, reducing the need for staff in that area by more than half, he said.


During the first nine months of the year, the unit found 2,000 errors, which cost about $1,000 each to fix, Exler said.


“You don’t want to call these customers once and say there’s a problem,” he said. “Not a good story.”

More Industry

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...