Can the 'Downmarket' Mercedes A-Class Compete With Ford, Opel and VW? Asks just-auto.com Editor

    LONDON, March 30 http://www.just-auto.com -- The Mercedes
A-Class, the smaller Benz, has arrived but is not making money for
DaimlerChrysler. Indeed, there are problems for premium carmakers in entering
the same segment of the market as the likes of the Ford Focus and Opel Astra.
    In his editorial at http://just-auto.com/editorial_detail.asp?id=52, David
Leggett, managing editor for just-auto.com, says that although the fears over
brand dilution have been overdone and targets have been met, by competing with
the mass and supplying thousands of A-Class cars to the 'easyRentacar' rental
firm, Mercedes premium class branding may be threatened.
    By entering the volume car market, Mercedes immediately disadvantage
themselves.  To make a profit in this sector, the A-class needs to remain at a
higher price to cover the unit costs -- premium carmakers pay higher costs for
lower volume but higher quality.
    With cars like the Ford Focus, Opel Astra and VW Golf showing considerable
technical improvement over the last ten years, the volume market is extremely
competitive, making it difficult for premium players to survive.
    How will the Mercedes A-class cope in this market and what options does it
have?

    See the full editorial at:
http://just-auto.com/editorial_detail.asp?id=52

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