Perhaps even the wealthy are affected by gas prices.
Sales of the Mercedes-Benz S-Class, the $100,000-plus flagship of Germany's oldest luxury brand, have fallen off dramatically in 2008. Motor Trend reports, "Worldwide, S-Class sales are down 11.8 percent over the first half of 2008, and the U.S. market is even worse, posting a drop-off of 23 percent."
The S-Class is considered by some to be the most luxurious mass-produced car in the world. It features such high-end amenities as power doors that close at the touch of a button and seats built around 11 separate air chambers that inflate and deflate separately to cradle passengers in response to the car's movements. However, it also weighs more than some of the largest SUVs, and is powered by a range of V12 engines with fuel-efficiency as low as 14 mpg combined.
Mercedes parent Daimler Corp is quite concerned by the drop. According to MT, The S-Class is "by far the company's most lucrative model and contributes between 20 and 25 percent of all pretax profits." The drop is "part of an overall slowdown for Mercedes (and luxury cars in general), which is seeing reduced demand for virtually every model in its lineup," with the single exception of the recently re-designed C-Class.
The company is re-routing vehicles away from the U.S. market in response to the drop, according to Jalopnik. "Daimler has diverted shipments of vehicles to China and Russia as those emerging markets have yet to see a slowdown."
Mercedes has several more fuel-efficient models in its pipeline, including "a new, all-electric A and B-Class due to go on sale in 2010," Motor Trend notes. "But the fact that a legend like the S-Class is suffering is a clear sign no automaker is immune to the tough times hitting the industry -- not even the venerable three-pointed star."
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