New U.S. Mercedes boss pushed C-class change

Since becoming CEO of Mercedes-Benz USA last September, Ernst Lieb has met with auto dealers to show "we are a trustworthy partner."

Model will be sportier than version for Europe

Diana T. Kurylko | | Automotive News / February 5, 2007 - 1:00 am

Styling for the next-generation Mercedes-Benz C class coming to North America this summer will be distinct from European models, says Ernst Lieb, CEO of Mercedes' U.S. subsidiary.

Lieb said styling for the entry-luxury compact for this market will be more "aggressive" than in Europe. But getting Germany to approve the change took a bit of arm-wrestling.

"I am very excited about this," he told Automotive News. "I spent many years in Canada, and I know how difficult it can be."

"For us, it's a great step," said Lieb, 51, who took over the top Mercedes-Benz USA post in September. He replaced Paul Halata, who retired.

Lieb declined to give specific details about the C-class change, other than the car will be sportier than its European brother.

Lieb's first test

The marketing budget for the C class will be the highest Mercedes-Benz USA has spent to introduce a vehicle, said Lieb. Equipment levels for the U.S. car also will be different from those in Europe. The United States will get more of the four-wheel-drive 4Matic models, Lieb said.

The C class goes on sale in Europe on March 1 and will debut in September in the United States. Although Mercedes was running out the previous generation of the car last year, sales were still "OK," with 50,187 units sold in the United States, said Lieb.

C-class sales hit a peak of about 70,000 in the middle of the previous life cycle; Mercedes will likely again reach that high with the new model, Lieb said.

Unlike Europe, where a four-cylinder and diesel powerplant are available, U.S. models will have only V-6 gasoline engines, said Lieb. That is part of Mercedes' move to simplify its U.S. product range. The brand offers about 20 percent fewer derivatives today than it did 18 months ago.

Customer focus

Lieb's initial focus has been on dealers and Mercedes' relationship with the 342 stores it has in the United States.

He is no stranger to dealers and their problems. Between 1978 and 1985, Lieb worked at the former Daimler-Benz in Germany as a replacement-parts specialist. When he ran Mercedes' Canadian unit, he oversaw 13 company-owned stores, said Lieb.

Since his arrival, Lieb has met with U.S. dealers during regional meetings to stress that "we are a trustworthy partner."

"I have been in the retail business long enough," said Lieb. "They put their money on the line, and they have the right to know what we are planning to do with them. I will not ask any dealer to do anything that is not reasonable."

Lieb said that in regional dealer meetings, he was surprised when discussions focused on issues other than customer service. "It blew me away a little bit," he said. "I said in one, 'Guys, where is the word 'customer?'

"What about taking care of our customers and then we take care of profitability? It was a bit quiet in the room after that."

Lieb said he has credibility with dealers because "I came up through the ranks."

He added: "I think I know this business, and that is what dealers appreciate. I believe in class dealerships where you, as a customer, can see everything and everything is transparent."