Bloomberg reports investors have valued Mercedes-Benz at approximately half of what BMW is worth. While BMW has seen its market capitalization jump to 45 billion euros, Daimler currently sits at around 42.2 billion euros. But that number falls to just 25 billion once Daimler's truck business is subtracted from the total. This comes after Daimler CEO Dieter Zetsche vowed to retake the luxury sales crown from BMW by doubling sales to nearly 2.6 million vehicles by 2020. Mercedes-Benz lost that title back in 2005, and two years ago, the company had a market capitalization of nearly 15.5 billion euros more than BMW.

But that was then. Analysts say the market has lost confidence in the leadership at Daimler and believe the company won't be able to gain significant ground on BMW. While Mercedes-Benz has had to postpone profit goals in the face of slack earnings, BMW continues to push forward with a new facility in Brazil, a range of electric vehicles and stout sales. Since 2006, Mercedes-Benz share prices have fallen off by around 10 percent while BMW stock has jumped in value by 89 percent.



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      • 2 Years Ago
      [blocked]
      Autoblogist
      • 2 Years Ago
      To simplify BMW struck gold with Mini and Mercedes found out that Smart was actually fool's gold. "There's the *********!"
      funguy6713
      • 2 Years Ago
      For one thing, MB has to stop making such fugly cars...my family has owned Benzes since the 1950's and 90% of what's coming out of Stuttgart these days are abominations...
        PatrickH
        • 2 Years Ago
        @funguy6713
        You're kidding right? Of all the German marques BMW holds the title for ugliest automobiles. And it's not even close.
        Bernard
        • 2 Years Ago
        @funguy6713
        You're too old to matter gramps. 1950's? Seriously?
          funguy6713
          • 2 Years Ago
          @Bernard
          & BMWs...
          funguy6713
          • 2 Years Ago
          @Bernard
          You are reading comprehension challenged, but no I'm not a grandpa, Shiftright has it correct below...but anyway just so you know, in Germany, even though I don't agree, MB is considered an "old" person's car...most young Germans aspire to own top-line VWs, Audis and Porsches...
          Shiftright
          • 2 Years Ago
          @Bernard
          He said his family, which means fathers, mothers, grand fathers etc.
      basiq
      • 2 Years Ago
      Admittedly, while BMW have MINI, MB has Smart; where BMW have Rolls Royce, they had Maybach. None of these worked out for them. I still think it's sad to see Maybach go. Why can't there be a "Maybach" line like they have AMG? Just use the S600 and customize it in unique ways for customers? At any rate, MB have a chance at taking back the crown by exploiting BMW's current shortcomings: BMW's current product lineup is becoming more and more confusing; their "M" cars have turned into poseur mobiles betraying their lineage; and their electric car efforts seem to be in big trouble. So there is room to attack them. Go for it.
        Georg
        • 2 Years Ago
        @basiq
        only because it failed in the USA does not mean it is a failure overall they sold over 1.5million smart so far.. looks like it worked
      Travis C. Vasconcelo
      • 2 Years Ago
      Just get it over with and change the name of this site to "We love BMW and HATE all other automakers.com" I am so sick of all this crap about how great BMW is over every other automaker. Obviously you people never owned one. Because if you did, you wouldn't be talking about how great BMW's are. I HAVE owned one and can assure you they are NOT the Ultimate Driving Machine at all. They are the Ultimate Road To Bankruptcy to keep moving on the road under their own power and when they do run they are no more inspiring to drive than a mid 1970's Ford Maverick. At least the Maverick would be reliable and affordable to operate.
        icemilkcoffee
        • 2 Years Ago
        @Travis C. Vasconcelo
        That's why most BMW fanatics don't buy their cars. They rent their cars. Because they know to get rid of their throwaway cars before the warranties expire. You can say BMW has perfected the formula of renting cars to customers. Their customers get a new BMW every 2-3 years. Toyota customers don't come back to the showroom for 10 years at a spell. BMW is playing the same game with planned obsolesence just like Detroit of old.
        Street King
        • 2 Years Ago
        @Travis C. Vasconcelo
        Dont hate on BMW for doing what they have to do to survive the CAFE storm. Building cars that can eat up good fuel mileage so they can continue to build turbo 6's and V8's for the bigger cars. They also have the Triumph name...Can't wait to see what they do with that.
      icemilkcoffee
      • 2 Years Ago
      Actually I can see BMW is in trouble. Their Mini has just about run out of steam. You can only do so much with a retro car until people get tired of the novelty. The 3 series is coasting on its laurels even as the driving dynamics got mushier with the F30. The slope-backed X6 and the GT series look horrible. And their interior is simply not up to the standards of the Audis and the MB's. In fact, I predict Audi will have a strong future in the luxo market.
        piggybox
        • 2 Years Ago
        @icemilkcoffee
        and Audi suddenly becomes the most reliable brand from German according to CR
          icemilkcoffee
          • 2 Years Ago
          @piggybox
          Who said anything about reliability? Let's face it- all the german cars have their gremlins when it comes to reliability. But people shopping in the luxo market don't care about that. If they cared about reliability, they'd all be driving Toyotas.
          SloopJohnB
          • 2 Years Ago
          @piggybox
          That only applies to relatively new cars. The older audis are money pits the longer you own one. And what's up with the repeated upper control arm failures on Audis? Interesting that NHTSA never saw fit to force Audi to replace them under warranty (not unusual to have UCA failure in less than 30K miles!!). And same with the HP19 5-speed automatic transmissions (ZF-sourced) used on both some Audis and some BMWs. And don't even get me started on factory maintenance 'free maintenance for 4yrs/50K miles" or whatever. It's utterly amazing and fraudulent in the clearest sense of the word that, for example, Audi and BMW don't have scheduled ATF and AT filter changes for ZF-sourced transmissions when ZF itself recommends that service within the 4 year 50K mile free maintenance interval. Could it be that BMW and Audi are simply shaving the $300+ cost off their warranty obligations? And what's up with NHTSA on this, much less the Federal Trade Commission regarding the fraud?
        Teleny411
        • 2 Years Ago
        @icemilkcoffee
        Bmw is in the process of self destruction by watering down their brand, changing core identity and a lack of reliability compared to their classic 80s cars. Mercedes may be back on top soon. "BMW is joy" or some crap like that... Maybe Caddy Orr Audi will make the next "Ultimate driving machine."
        Bernard
        • 2 Years Ago
        @icemilkcoffee
        That's sad given that Audi is mostly FWD based. They make nice cars, but they none of them have the dynamics a luxury performance car should have.
          piggybox
          • 2 Years Ago
          @Bernard
          How funny 80% of BMW 1 drivers think it's FWD while it's actually a RWD. http://www.bmwblog.com/2010/03/24/bmw-survery-reveals-1-series-owners-think-its-fwd/
      Tina Dang
      • 2 Years Ago
      Not surprising.... not surprising at all. BMW is doing things right these days.
        • 2 Years Ago
        @Tina Dang
        [blocked]
          Bernard
          • 2 Years Ago
          BMW's were gorgeous in the 90's. It's a shame really.
        • 2 Years Ago
        @Tina Dang
        [blocked]
        Bernard
        • 2 Years Ago
        @Tina Dang
        More like Mercedes is doing everything wrong. Their depreciation sinks faster than the Titanic. Then again, most newer German cars have a resale value problem. Mercedes are just too boring and BMW is going down the boring trend too. Everything is so electronically boosted and sound proofed these days, no emotion is left. Now they want to go electric too? My hopes for the first BMW Prius are not high.
        Bernard
        • 2 Years Ago
        @Tina Dang
        Oh, don't even get me started on the whole smaller engine issue. A $50k 4 banger? No more V-12's? Oh how the mighty have fallen.
      johnb
      • 2 Years Ago
      I lost confidence in Daimler when they ran chrysler into the ground.
      Dump
      • 2 Years Ago
      I guess share price is larger issue, but Daimler has shown that I can't handle the challenge of developing an ultra-luxury brand - see Maybach. That debacle showed the industry that M-B didn't have the talent to "hit a homerun" on such an easy task - using your existing high-end platforms, make 2-3 Maybach vehicles (2 sedan, 1 coupe), & gouge the life out of all customers for whatever options they want. Easy, right? Wrong. Both Maybachs looked almost indistinguishable with S-class models & didn't have any polarizing features that would stand-out at least, from the M-B cars. M-B is running out of ideas for exterior designs. Daimler probably could have let their old Chrysler counterparts go to work on a Maybach design & come out with something that was competitive to the RR & Bentley lines. Daimler "missed the boat" on Maybach where they were supposed to show their luxury "know-how". It seems as though their arrogance is failing them again as it did DCX.
        Street King
        • 2 Years Ago
        @Dump
        The fact that they ran Chrysler into the ground and didn't use all those platforms, engines, parts and volume to their benefit shows their major lack of business sense. Chrysler should have been where all the engineering went and Mercedes should have been the lower volume "fleece the customers" brand. All RWD cars from the C to the S class, 300/Charger/Challenger should have been on the same expandable platform. By the time the Charger and 300 sold the volume to MB's would have been pure gravy. Share blocks and heads from engines, A-class could have been shared across a Dart-like-car, small FWD Jeep CUV, CLA etc. CAFE numbers would have been a cake walk, economies of scale would have been maximized - they would have been a conglomerate. But no, they ran it exactly the opposite of how it should have been done. One small taste of this is seen in the form of the Grand Cherokee and Durango vs ML and GL. Also how the Mercedes V6 shares the block and heads with the 3.6L Chrysler Pentastar V6. They could have gotten a ton of volume out of their 7-speed transmission by using it in Chryslers, Dodges and Jeeps as well...so much it would have costed them next to nothing.
      Rr778
      • 2 Years Ago
      Dangerously close to plagiarizing the 2 week old Bloomberg article. It would be amazing if I spelled that word correctly, if not I blame autocorrect.
      Street King
      • 2 Years Ago
      The article fails to mention that their plan is to pull 2 BILLION out of the cars in the form of content. They last did this trick on such successful vehicles as the Daimler Sebring and everything else from that "era" with a tupperware box interior. 2 billion in cost cuts is their answer for all of this, I know their mentality..they think their product is currently ranking high so they can whack costs on new product rolling out and pull profits before they slip again and have to increase spending. Or better known as short term gains for long term failure. Should they not be investing instead? Do they HAVE anything to invest? Sprinter is under full bore attack by Ford and Ram Promaster, their smart brand is the laughing stalk of the industry, Maybach was neglected to death, literally. These guys needed new management last decade..yet they stick with the same guys, unbelievable.
      Rr778
      • 2 Years Ago
      Is this just a rip off the Bloomberg article 2 weeks ago?
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