Mercedes-Benz SA defends C43 against social media claims

Mercedes-Benz South Africa (MBSA) refuted claims made on social media that excess C43 stock at the East London plant has led to significant price cuts for the model.

A widely-shared post circulated by an individual claiming to be an employee at the facility, described a situation where excess units of the derivative were taking space in the stock yard — alleging that the company had sold fewer than 20 units in South Africa.

Referencing a pre-owned 2023 model with more than 18,000km on the odometer listed for R1,299,000 at a Mercedes-Benz Certified pre-owned dealership, the post said price decreases had taken effect to encourage sales.

Initially, we approached MBSA media representative Justin Jacobs with a query about W206 C43 sales figures since introduction. Jacobs said that while the company did not comment on the volumes of its derivatives, he could confirm that a large discount during July enabled a competitive advantage.

Probing further, we were invited to direct questions for the attention of the sales department for comment.

We asked:

• Would it be fair to say the C43 discounts were prompted by a lack of interest in the model?
• Does MBSA feel its higher pricing strategy is still sustainable in the current environment?
• Is there truth to the assertion that there is an over-supply of C43 units occupying space at the plant?
• Has MBSA also identified the need to offer discounts on the C63?

The company's specialist for corporate communications, Refilwe Ndhlovu, responded to our enquiry.

She said the firm was aware of the social media utterances, stating it did not have an employee by the name of the individual who shared the post, categorically refuting its claims.

“As the leader in luxury mobility, we have a sustainable, future-orientated and customer-centric strategy,” Ndhlovu noted.

“A central element is the positioning of our vehicles and pricing is just one of the factors. We believe in delivering exceptional products, filled with tangible content as well as class-leading features and the pricing strategy is aligned to this.”

The company spokesperson said that vehicles' pricing reflects superior quality and advanced features.

“By focusing on these elements, the good residual values and continued demand paired with exceptional service and customer experience, allow us to affirm that our luxury vehicles are a sound investment for our target customers.”

Asked about the large discount purportedly responsible for an uptick in July C43 uptake, we were told: “From time to time, like any consumer-centric brand, Mercedes-Benz runs targeted campaigns to create awareness of our product offerings.”

On August 6 we called two prominent Johannesburg Mercedes-Benz dealerships for quotations on new C43 models, enquiring about discounts from the manufacturer.

Both informed us that they were not able to assist immediately as their systems were in the process of being updated to reflect price increases for the month of August.

A June 2024 price list shows the base of a C43 as R1,708,626.

One dealership told us that the price of a unit without the five-year/100,000km maintenance contract would have cost around the R1,568,000 mark. We were informed that a price increase of 2.5% can be expected to take effect this month.

Trying again on August 7 , one of the dealerships we reached out to managed to provide a quotation.

The new C43 quoted on carried a total price of R1,741,447.28 — factoring in a discount (shown in the accompanying image).

The pricing included the maintenance plan, in addition to optional extras such as metallic paint, adaptive cruise control, a panoramic roof, head-up display, keyless-go convenience package, AMG exterior night design package, as well as 20-inch, 10-spoke alloys.

Typical of the Mercedes-Benz brand, the four-cylinder C43 carries a premium over its direct six-cylinder competitors, the BMW M340i (from R1,364,607) and Audi S4 (from R1,128,400).

Logging onto a popular classifieds listing website, there were eight C43 units listed at various Mercedes-Benz Certified used retailers countrywide. Prices ranged from R1,499,900 for a 2023 car with 17,500km; to R1,749,900 for a 2024 example showing 12,500km on the odometer.

The Mercedes-Benz plant in East London is responsible for manufacturing the C-Class for domestic and export markets.

According to figures from Naamsa, the national automotive business council, MBSA reported an estimated total of 555 local units for the month of July. This ranked it at the bottom of the top 15. Its chief rival BMW Group SA reported 994 local units for the same month, in 13th place.

In June this year MBSA was in the spotlight over the prospect of restructuring of its manufacturing operations, with a transition from three-shift model to a two-shift model. It was estimated that 700 employees would be affected.

The company cited deteriorating macroeconomic conditions, prolonged port challenges, dampened consumer sentiment, exchange rate fluctuations, rising fuel prices as well as increased energy and logistics costs among wider industry pressures that put strain on its business in the country.