Mercedes guns for Escalade
German automaker faces uphill battle, experts contend

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CALISTOGA, Calif. -- Look out, Cadillac. Mercedes-Benz wants your Escalade buyers.

The luxury-appointed 2007 Mercedes GL-Class hitting showrooms in May is the first full-size sport utility vehicle in America from a European brand.

The debut of the $55,000-plus SUV with Class IV towing capacity also marks the first time Mercedes will go head-to-head against Cadillac's best-known modern-day vehicle.

"Thirty to 35 percent of domestic luxury SUV owners own a Mercedes sedan, so we said, 'Why not give them a Mercedes full-size SUV?' " said Ron Mueller, manager of the GL-Class product management.

Vince Piarulli, product specialist for the GL, added that 8 percent to 9 percent of owners of the midsize Mercedes ML-Class defected to larger SUVs such as the Escalade over the years.

Those statistics, combined with the fact the new GL is based on the unibody architecture of the ML-Class and is being built at the same Tuscaloosa, Ala., assembly plant as the ML, encouraged Mercedes to enter a segment where Escalade is the leader.

More than 300,000 Escalades have been sold since the vehicle debuted in the 1999 model year, and calendar 2005 sales of 51,144 gave the Escalade a 36 percent share of the large luxury sport utility category, according to Cadillac.

The luxury SUV market has been an anomaly when compared with recent lagging SUV sales for most automakers.

While many companies have seen SUV sales drop in 2005, the two brands that sell only SUVs have had sales increase.

Land Rover had a 30 percent increase in sales in 2005, selling 46,175 vehicles. Hummer, which also offers the less expensive H3, had a 93 percent jump in total sales last year, selling 56,727 vehicles.

The redesigned 2007 Escalade arrived in showrooms early this year and is selling above expectations, Cadillac spokesman Kevin Smith said.

"Many dealers have their early months' allocations of Escalades pre-sold, and the vehicles that aren't pre-sold are sold within a few days," Smith said.

Among the early buyers is actor Adrien Brody, who hosted an Escalade party for Hollywood on behalf of Cadillac in Beverly Hills' famed Rodeo Drive shopping district in November.

Mercedes officials decline to provide a sales target for the new GL, which will be advertised as "More Mercedes to Love."

But George Peterson, president of the automotive research firm AutoPacific Inc. of Tustin, Calif., figures GL-Class annual sales in the United States could be 12,000 to 18,000.

He and other analysts said gasoline prices aren't likely to restrain sales of large luxury SUVs to Mercedes' well-to-do target buyers with annual household income of over $100,000.

"If the Europeans could be criticized, it's that they entered the U.S. SUV market with products that were a bit too small (for American tastes)," he said.

What would be the primary draw away from the big, bold Escalade that has starred in many music videos and has a high-profile following in Hollywood and among professional athletes?

Not the GL's exterior styling, which basically makes the nearly 17-foot-long, seven-passenger Mercedes look like a bigger version of the company's M-Class, analysts said.

"The Escalade is the vehicle of bling," said Tina Jantzi, manager of North American forecasting at automotive researcher J.D. Power and Associates, based in Westlake Village, Calif.

Piarulli explained the GL design is "subdued" to fit more with German tastes. Bold, ostentatious styling isn't as appealing as it is for American SUV buyers.

Indeed, while the Escalade has become a favorite canvas for aftermarket accessories and customization, the Specialty Equipment Marketing Association has yet to hear from Mercedes officials about custom touches for the GL.

"They are on our radar screen," said Carl Sheffer, vice president of original equipment manufacturer relations at SEMA, which represents American aftermarket companies. "We hope to get access to the GL for a measuring session for our members."

SEMA members already are working on popular accessories for the 2007 Escalade, he added.

Cadillac officials understand now more than ever that buyers of expensive SUVs like to personalize their vehicles. Indeed, Cadillac is offering its largest wheels ever -- 22-inchers -- on the new Escalade.

Tim Herrick, assistant chief engineer for full-size SUVs at Cadillac's parent company, General Motors Corp., said a beefed-up Escalade frame and robust suspension are designed to provide a comfortable, well-managed ride even with the trendy larger wheels and tires that add weight at a vehicle's corners.

The largest factory wheels for the Mercedes GL450 are 20 inches in diameter. Mercedes officials said that although they're aware some buyers might install larger, flashier wheels, they're not catering to that group.

Rather, they are counting on American families with two or more children, household income of more than $100,000 a year and that already own Mercedes cars to want to swap their current large SUVs for the new GL.

"It will stop people from leaving (Mercedes)," Mueller said, adding that Mercedes' ML is good for small families, but "when you have more than one kid, that size SUV goes away (from consideration)."

The ML "is going to gather those people (with larger families) back into our brand," he said.

Starting manufacturer's price for the GL450 is in "the upper $50,000s," but Mercedes officials said final pricing won't be out until April.

The base price does not include full leather interior.

Cadillac kept the starting MSRP for the new Escalade in line with its predecessor at $55,405 for the all-wheel-drive model that has standard leather-finished seats.

A two-wheel-drive Escalade is due in August. Escalades are also offered in an extended-wheelbase version, the ESV, and as a four-door pickup called the EXT.

Mercedes offers only one version of GL -- a 4Matic all-wheel-drive SUV with three rows of seats standard.

It has unibody construction, not the body on frame that typifies the Escalade and other large SUVs, and thus weighs hundreds of pounds less than a 5,600-plus-pound Escalade.

The lighter weight aids the performance of the 4.6-liter, double overhead cam V-8, but the Escalade still outmuscles the GL.

The Escalade's 6.2-liter overhead valve V-8 generates 403 horsepower compared with the GL's 335.

The GL is the first large SUV with a seven-speed automatic transmission, and Mercedes officials plan to add a diesel V-6 next year.

Fuel economy numbers for the GL haven't been finalized with the federal government.

While Mercedes won't talk about it just yet, a high-performance AMG version of GL is expected by analysts.

The two separate third-row seats in the back of the GL fold into the floor and go back up by electric power, and there's more leg room there than is found in the Escalade third row.

But passengers still have to fumble manually with a lever to fold down and flip forward a second-row seat to get access to the third row.

In the Escalade, this second-row function is done via electric power with the touch of a button.

But the Escalade's third-row seats must be folded down manually.

They're fully removable, too. The GL's are not, which contributes to the GL's smaller maximum cargo volume.

The GL is the first Mercedes passenger vehicle that can tow a 30-foot boat or a three-horse trailer. Maximum reported towing capacity is 7,500 pounds, which is just over the Escalade's 7,400 pounds.

In the end, experts say Mercedes will have to offer more value to customers than the Escalade to be crowned king of the luxury SUVs.

"To dethrone the Escalade," Jantzi said, "will take a lot more than the Mercedes name."

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Both Are Really Ugly But The Escalade Has A Really Impressive Engine...i Would Go With A Tahoe

I like the Escalade personally....

I think they are the best of trucks. They drive great and have plenty of torque and appeal.... Sexy truck...

I have mixed feelings about the Mercedes GL.

While I think it looks good. I think it's an unnecessary model to the MB range.

I can't see the GL-Class as a huge threat to the Escalade kingdom. Quite simply, because, it'll be a whole lot more expensive than the Caddy and it paisn me to admitt. The GL-Class lacks the 400 Bhp power from the Esclade.

Better they hurry up with a GL 63 AMG!

And I cannot even picture, these two SUVs (GL and Escalade) disputing for the leadership, in the market of large SUVs here in Europe.

This market it is currently dominated by the Range Rover.

As for the Cadillac...

You wouldn't caught me dead in one of those GM Coffins...the Escalade is nothing more than a gussied-up Chevy Tahoe and just as a Rubbish.

Those idiots in Detroit, now decided to sell the Escalade in Europe, without even a Turbodiesel engine. How stupid can they get?!

I'm sorry...but instead of wasting resources, making dumb decisions, such as, trying to introduce the Cadillac brand in Europe, with a Boring Looking Saloon and selling LHD cars in UK. As stupid as it gets!

Why don't GM put more effort to save Saab?

This is one market Mercedes isn't going to take just like that. The Slade is a big ticket item for athletes and everyone in the recording industry, just like Mercedes' cars are. The GL doesn't have the interior or engine (in the U.S.) to take out the Escalade of the Range Rover. The Range Rover SC with 400hp and that interior is the best luxury SUV you can buy. Mercedes goofed big time by giving the GL the same interior as the ML, the GL is outclassed and outpowered by the Range Rover and outpowered by the Cadillac. Now a GL550 with a completely different (re: more expensive) interior an 388hp would get close, but the GL still doesn't have the size to compete in the Sumo class of SUVs.

I will never get why the U.S. isn't getting the top line GL500 (550).

M

The number of replies to this thread, just shows, on how we feel about the GL-Class.

How on earth can Mercedes attend to a gun fight armed with an empty gun?

The Escalade is Rubbish. But it's a heap of rubbish that sells and it is more powerful than the GL.

The GL has the good looks, it is a capable off-roader (something the Escalade isn't) but lacks a competitive engine.

On top of that, the GL will certainly be more expensive than the Escalade. You can count on that!

As far interior concern, they both have ugly interiors.

Mercedes was dumb to give to the GL-Class, the same interior you find in the M-Class.

The Escalade interior looks cheap and outdated.

It will be a tough fight for the GL-Class. And MB will have to find a really good argument, to make the GL-Class a winner and dethrone the Escalade.

I think the GL-Class is pretty nice looking actually. It's rather conservatively styled but still comes across as elegant, and somewhat tough. The M-Class interior doesn't bother me, it looks nice and the materials are decent and ensure you feel like you're sitting in a premium vehicle.

The GL-Class has several advantages here IMO:

1) Permanent 4WD (4Matic): the Escalade will come with an optional RWD version, which means buyers who opt for this won't take it offroad. And while it's hardly any different with the GL-Class when you think about it, the added benefit of permanent 4Matic might have psycological advantages for some buyers. I also feel that the GL will be better offroad. I don't think the Cadillac was even designed to go offroad (correct me if I am wrong).

2) 7Gtronic automatic transmission: improved acceleration and fuel economy as well as midrange performance. Will make the most out of the engine, which I don't think is underpowered at all. Besides, there's bound to be a GL550...

Either way, I wouldn't even consider the Escalada because it lacks a more practical engine. The GL-Class in Europe will come with the excellent 3.0 V6 CDI diesel, which would be my choice. Screw the V8's!

i dont mean to be rude or to bash people but....
the escalade is ugly as crap
sooner or later, they might dethrone themselves

im from america and to most in europe and other parts of the world dont always look at bigger is better. Here in america most people want the biggest engine, biggest car they can even though they will probably never use all of the space, hp. But i am with the americans and american trucks just hit it right with me. I find the new escalade, tahoe and so on sweet lookin suvs. But then again if it was against a range rover, g55, q7, or x5 i would not take the american one. Thats why american trucks sell so well over here and there just starting to sell over in other parts of the world

Well personally the Lincoln Navigator has always been the best looking in my book as far as full-size luxury SUVs go. The Cadillac was simply created based on how Cadillac saw how successful lincoln was with the navigator. Now the new Nav is about as shameful as a hill of beans (07 navigator)
. The Cadillac is the big face of all vehicles, but it can HARDLY match the germans or range rover as far as luxury or technology. Even though it seems as though people love Cadillac over hear, the Benz name still means a hell of a lot more. I guess we will see if I'm right when the sales number come around.

I do wish the GL was bigger thought. Thats the only thing I don't like. Other then that



It's a work of art.