Mercedes seeks global increase in awd sales

Harald Hamprecht | | Automotive News Europe / February 5, 2007 - 1:00 am -- Mercedes-Benz wants to boost global sales of models with its all-wheel-drive technology.

"In 2002, 4Matic vehicles accounted for 11 percent of our sales. For 2007, I am assuming we will crack 20 percent," Gunter Fischer, Mercedes' development chief for 4Matic cars, said in an interview.

That would be up 2 percentage points from 2006.

Mercedes offers its 4Matic system on seven model lines. On some cars, such as the R class, the system is standard. In Germany, optional awd costs Mercedes buyers an extra €1,800 to €3,200, depending on model and engine variation.

Most automakers now offer awd systems, although the degree of capability varies widely and acceptance varies by geographic region.

Mercedes lags far behind its luxury competitors in awd sales. Last year, Audi sold 306,318 awd vehicles worldwide; BMW sold about 270,000 and Mercedes sold 187,000.

Awd is attracting "people who are coming out of SUVs and looking to get back into sedans but don't want to lose the security" that awd offers, Donna Boland, a Mercedes-Benz spokeswoman, said in an e-mail.

Boland said more buyers are choosing models with 4Matic (and four-wheel drive generally) as the new systems become lighter, more fuel efficient and offer better dynamics and comfort.

Developed and produced in-house for the first time, the newest generation of the 4Matic system is offered only on the S class upper-premium sedan. But starting in March, it

will be an option on the new C class lower-premium car. The system will be standard on the GLK premium SUV based on the C class that is due in late 2008.

Said Fischer: "We are building up our all-wheel-drive offerings considerably and are setting a new course in this growth market."