Mercedes-Benz Positions Maybach Prices Against Bentley

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May 29, 2002 BLOOMBERG reported that DaimlerChrysler AG priced its first two Maybach luxury sedans to compete with new Rolls Royce and Bentley models.

The Maybach 57 went on sale this weekend in Germany for 310,000 euros ($287,000), while the Maybach 62 starts at 360,000 euros ($333,0000), the company said in a statement. The cars, available for delivery late this year, include DVD systems and a refrigerated compartment in the backseat area.

Mercedes-Benz needs the Maybach to counter Bentley sedans planned by Volkswagen AG and a new Rolls Royce that Bayerische Motoren Werke AG expects to begin selling next year. Worldwide demand for so-called super luxury models is about 9,000 to 12,000 sedans, analysts said.

"It's a high price but not an out of this world comparison to prices from Rolls Royce and Bentley," said Bank Sal. Oppenheim Jr. & Cie analyst Patrick Juchemich, whose company rates the stock "outperform." He estimates profit margins on the cars of more than 10 percent, probably "solid double-digit margins."

DaimlerChrysler expects to sell 1,000 annually, including about 400 in the U.S. It didn't say when the model will go on sale in the U.S. Rolls Royce models start at about $230,790 and Bentleys begin at $215,985, according to Edmunds.com, which tracks U.S. vehicle prices.

The company's shares in Frankfurt fell 1.11 euros to 53.85. The Stuttgart, Germany-based company's U.S. shares rose 61 cents to $49.96, and have climbed 20 percent this year.