German car corporation Daimler AG has decided to stop the production of its ultra-luxury Maybach brand due to the introduction of a revamped version of the flagship Mercedes-Benz S-Class by 2013.
The decision is also due to a decade of losses and dwindling sales of the uber luxe car.
The company has also planned on the introduction of a total of six versions from the present three of the flagship model of the Mercedes Benz segment. However, until then, company officials said that the production of the Maybach would continue.
Closing down Maybach is a rational and financially wise decision. The brand has never managed to live up to its heritage. It makes good sense to enhance the S-Class; there'll be huge demand, especially in emerging markets, the San Francisco Chronicle quoted Arndt Ellinghorst, an analyst at Credit Suisse in London, as saying.
With the introduction of the flagship Mercedes Bez model, Daimler plans to join the race of top-class manufacturers like Audi and BMW who have grown consistently in the last decade. However, unlike its British competitors, the Maybach has failed to make its mark in the super-luxury markets.
Many luxury and industry experts believe that this is due to the lack of distinction from the S-class with whom it shares much of its technology.
This new initiative by Daimler was revealed by company chief executive Dieter Zetsche in an interview to a German newspaper.
The Wall Street Journal reported that although Maybach's plush ride and its $375,250 starting price turned heads at auto shows, its sales had steadily faltered, shrinking to fewer than 200 cars world-wide last year.
At the same time, the company decided that the sales chances of the S-class was much higher as compared to that of Maybach.