Quality and profitability are the key words for Dieter Zetsche as he prepares to take the reins of the beleaguered Mercedes-Benz Group. Zetsche is playing down the importance of sales volume, which could be counter to their targeted quality improvements. Mercedes-Benz is in a crunch. They are not selling in the volume that they desire, and their products are plagued with quality problems. Obviously their solution seems to be to reduce volume and focus on providing quality product. Hopefully, lowering production and sales volumes while improving the product will allow them to sell at a higher price while reducing the warranty costs associated with quality defects. This is a tough game for MB. Lexus has effectively put more luxury into their products, while BMW continues to be king of the performance hill. MB could play the field between the two, but Audi is right there and is more and more competitive with each new model. Building some brand image and backing out of the volume race might be the trick, but it's going to take some time to get there.
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