Mercedes Benz launched the GLK small SUV in the Chinese market on Sunday, and its head, Daimler Chief Executive Dieter Zetsche, said he was convinced the group would overtake German rival BMW in the fast-growing market.
He declined to give a timeframe for that or to offer any sales targets but the remark by "Dr Z", as he is nicknamed, caused ripples during the rain-drenched Beijing Motor Show and his rivals wasted little in reacting with equal determination.
Ian Robertson, BMW management board member in charge of sales and marketing, told Reuters the Munich-based group intended to stay ahead of its Stuttgart rival in China by ramping up dealerships and local production.
Zetsche told reporters that BMW had been in China for longer than Mercedes, while the other German luxury-auto maker, Audi, had a special situation as it delivered government limousines.
"Audi is more volume, we are more at the higher end," Zetsche said. Audi Chief Executive Rupert Stadler retorted that his company was very much in the high end with cars such as the R8 and said the firm was reaping the fruits of a longer commitment to the country.
On supplying limousines to the Chinese government, Stadler said, "And what is wrong about that; we saw a opportunity and seized it." Audi aimed to remain the leader in its market segment in China where it has a share of 45 percent, he added.
Stadler said, however, this market share was unusual for Audi compared to other markets where it also competes with Mercedes-Benz and BMW. Audi launched its Q5 compact sports utility vehicle in Beijing while BMW added an X9 sports active coupe to its line-up here.
FOREX NOT A WORRY:
Asked about the rise in the euro, which makes it more difficult for European-based manufacturers to export their goods, Zetsche said he would have "preferred tailwinds over headwinds" but said Mercedes' margins remained comfortable. The euro hit a record high just below $1.60 last week, having gained more than 8 percent so far this year.
Audi's Stadler, talking of the dollar to euro exchange rate, said the situation had worsened in the past months. Zetsche said talks with BMW about co-operation on possible next-generation volume cars had ended but other discussions were continuing.
Following a collaboration on hybrid engines, the two German groups are studying ways to work on components and new technologies. Zetsche said these talks were "open, fruitful, constructive and promising." Daimler and US auto maker Chrysler had a joint-venture company in Beijing and continued to work together after they ended their merger with the sale of Chrysler to investment fund Cerberus.
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