Why BMW And Mercedes Made Cheap Cars That Failed

Mar 24, 2020
1 825 837 Views

Luxury cars are typically meant to symbolize prestige, wealth, and even excess, but sometimes they can come pretty cheap. Every so often premium automakers like BMW and Mercedes push out cars with starting prices well below the market average. However, in their quest for even greater volumes, some premium automakers are trying to see if they can net a few more buyers down at the lower end of the price range, and sometimes it doesn't work out.
» Subscribe to CNBC: cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC Classic: cnb.cx/SubscribeCNBCclassic
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: www.cnbc.com/
Follow CNBC on LinkedIn: cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: cnb.cx/LikeCNBC
Follow CNBC News on Twitter: cnb.cx/FollowCNBC
Follow CNBC News on Instagram: cnb.cx/InstagramCNBC
Why BMW And Mercedes Made Cheap Cars That Failed

  • Come now to India... mg hector , mg gloster , kia Seltos area booked out for year... u need to give good price and give cheap service.... y won't ppl buy when it's cheap... cleanly germans failed because their lower price vehicles r tiny and small to cut costs.... compare BMW 2 series with my hector... it's a toy

    Praveen RanganathanPraveen Ranganathan2 days ago
  • Wow people don’t but 60k hatchbacks especially in America where you share it with f450s

    173229 MLG173229 MLG2 days ago
  • The misleading part about the jaguar xtype.... it was the highest selling jaguar model in jaguar history. It outsold by far all the other jags at the time. The s type, XK etc

    djnes2k7djnes2k74 days ago
  • I believe it's not about devaluing the brand or no. It's more like Let say the price of Honda Fit is $17,000. And now BMW or Mercedes make a cheap car with features similar to Honda Fit, at a slightly higher price, let say $20,000. Will people buy? I think so. Because with a slightly more cost, you can have similar features, but heyy.. it is a BMW! I think the problem is for people with limited budget, their main consideration is money and the features that they got. If all else is equal, sure I will gladly have the BMW.. but if the trade-off is an additional $20,000 compared to the Fit (so it is $17,000 vs $37,000) or if it is the same price (at around $17,000) but has less dull features compares to Fit... I will go with the fit. Just my opinion :)

    Filipus TjongFilipus Tjong4 days ago
  • buying used for 1000 dollars... u don't throw the money away... like i did for 3 new cars.. i could buy another flat and make a rent and having all life money back.. Car is stupid to buy new... Never again. Yes i had good payment 3000 euros.. in year 2008 and i live in slovenia.

    MakeSh00tMakeSh00t5 days ago
  • The fluffy inch classically tire because illegal clinically arrive from a adhesive kenya. jumpy, orange trade

    onestop coponestop cop5 days ago
  • My dream car, a car with a German body and mechanicals and electronics of the Japanese

    Jaco SoloJaco Solo6 days ago
  • Money pit

    Rob RayiamRob Rayiam9 days ago
  • I've never seen a Mercedes that I liked the look of

    chrizbiechrizbie9 days ago
  • Boring boring boring....wake me up......

    chad hairechad haire9 days ago
  • Jhagg-Waaaaaaar

    Me HereMe Here10 days ago
  • I don’t know how anyone will afford any kind of vehicle in the future.

    Mute StingrayMute Stingray10 days ago
    • Not with democrats in power

      chad hairechad haire9 days ago
  • "Cheap luxury" is a bit of an oxymoron don't you think?

    M0rshu64M0rshu6410 days ago
  • All about showoff, why would you care if you are getting good S Class. Hurts their sentiments, that others are also using the same brand for less money 😂 I personally would like to own a car that meets my requirements, and which i like, not what i want to show off to others. If i want a Range rover vogue and a Ford focus, i would biy them, there's no point in trying to look rich. Heck i would drive a buggy even if i am rich.

    Bharat bhushan SinghBharat bhushan Singh12 days ago
  • BMW doesn’t have a mass market brand?! Only Mini, one of the worlds most successful sub brands

    James RutherfordJames Rutherford13 days ago
  • luxury BMW and Mercedes have already come with so many expensive problems that only rich people can afford to take care of, left alone cheap BMW and Mercedes because middle class incomes won't be able to handle the common problems that come with the two high end vehicle manufacturers. It probably cheap to buy but won't be cheap to maintain.

    PatPat13 days ago
  • They failed in that time but they are again and this time they come to stay.

    Rock ShumiRock Shumi13 days ago
  • The economic surfboard unpredictably regret because play respectively cover versus a encouraging wolf. tranquil, agreeable shorts

    David KangDavid Kang13 days ago
  • Arrogant USA. As always their situation is the worlds situation. Stupid country.

    Lumix S1 NPLumix S1 NP13 days ago
  • Damn so many negative reviews for my current car :(

    RidwanRidwan14 days ago
  • Repent of Fornication and drunkenness immediately! God Bless You!

    Ifa GirmaeIfa Girmae14 days ago
  • And the mercedez class A? One of them tried to be cheaper... Was a disaster, lot of problems in the car.

    null nullnull null15 days ago
  • Dumb move by Mercedes and BMW because these cheap cars diluted the brand...watering down the exclusivity of the propeller and 3-pointed star badge... The aura and magic was lost to chase the almighty dollar... Ferrari does a better job, though not having a prancing horse on a an expensive and exclusive SUV is arguably hurting them..

    alexandergoldmanalexandergoldman15 days ago
  • They made expensive cars still fail miserably

    Oblitz KatokiOblitz Katoki15 days ago
  • Why does this pass as news?

    Henry AtkinsonHenry Atkinson16 days ago
  • problem is to maintain that car...not buying prices

    Ahmed SalmanAhmed Salman17 days ago
  • Funnily enough the cheap BMW/Mercedes are incredibly popular in Germany. Like Vitos for example make great family cars

    never go full Ponynever go full Pony17 days ago
  • They can potentially cut cost by removing the turn signal lights and lever.

    Chen GongChen Gong17 days ago
  • I want to thank all of you in the comment for saving me 11 minutes of my life. I bid you well.

    Bryan GarayBryan Garay18 days ago
  • Because if they make cars that last then they won't be able to sell new.

    nsxnsx18 days ago
  • I thought Mercs and BMW gave you superior drivetrain, handling, drive, ride - and that is why people pay more for them. Those are the things that make the difference and I pay more for. And here "premium" is described as having gadgets, leather seats and a wooden steering wheel...

    kiril Kkiril K18 days ago
  • Feel and comfort of car by providing a engine and good engineering

    Naveed AhmadNaveed Ahmad18 days ago
  • What I want in a vehicle, safety, reliability, comfort and reasonable cost for maintenance.

    Mate FamilyMate Family18 days ago
  • The BMW i8 wasn't sold in 2020 I think it was discontinued in 2019

    Jared SalemJared Salem18 days ago
  • So, a Mercedes for 33000 $ is a cheap car? Quite gentrified and distorted frame of reference at CNBC. Mercedes A-class (incl. derivates) and BMW 1 series (incl. derivates) are the globally fastest growing segments for both brands. Just because Americans like to drive around in 3 ton trucks doesn't mean the smaller Mercedes and BMW models failed. Why don't you just produce a video titled: "Why the U.S. Auto industry keeps only producing cars that fail". Name one U.S. car model of the last 60 years that was an economical success outside the U.S. There are many iconic U.S. cars, none of them earned money outside the states.

    The Stonegate RoadrunnerThe Stonegate Roadrunner18 days ago
  • Who told you that they failed. They never and will never fail .only when you have such mindset you see them failing. Bring them to india and then tell. If you sell them at low price but maintain service at much higher price, they fail. If the companies have the right intent, they will never fail.

    kiran saikiran sai19 days ago
  • Coz' a lot must be overspent before it can be called as luxury

    Amitabha BasuAmitabha Basu19 days ago
  • If the price of a Honda Pilot Touring = MB C300 I will 100% buy Honda.

    Ye TianYe Tian19 days ago
  • Germany 🇩🇪🇩🇪🇩🇪🇩🇪🇩🇪🇩🇪🇩🇪

    PapaCocoPapaCoco19 days ago
  • As an American I love to watch content from different contries and get angry when they don’t talk about me at all

    mexicaneauxmexicaneaux19 days ago
  • How about these luxury brands ,are not a good value and are not the most reliable

    captiantim1captiantim119 days ago
  • What about the 1 series?

    Sebastian WatsonSebastian Watson19 days ago
  • tell that to the Lexus is brand lol

    -Burak.k --Burak.k -19 days ago
  • I had fancy cars for 20 years. Realized I wasted a lot of my money. Now if it’s reliable and looks clean Good enough. For me Rather have my money in the bank

    Vince BlackVince Black19 days ago
  • More Americans can't buy the cheapest new sedan! What ownership???

    Faust Von BarleyFaust Von Barley19 days ago
  • Ask Apple they know about this

    Thomas PolinzeThomas Polinze19 days ago
  • But these cars aren’t meant to be luxurious though... Also, when they talk about cheap BMW and Mercedes cars and show an S-class which was expensive when it came out😭

    AsdfghjklAsdfghjkl19 days ago
  • Please add "in the USA" to the end of the title, the compact 3 series paved the way for the 1 series which is an extremely popular car in Europe. Likewise Mercedes A class and derivatives like the GLA and CLA are also extremely popular here. Their lower entry point prices have meant they have stolen significant market share from traditional sellers of this size of car

    Andrew PatersonAndrew Paterson19 days ago
  • Cadillac tried this numerous times. A couple of the results were the Cimarron, which I guess some refer to as the worst Cadillac ever. There was also the Catera, which I drove once, and thought it was based off the 4-door Chevy Cavalier (A ~$10,000 car at the time).

    Falcon TimeFalcon Time19 days ago
  • BMW and MERCEDES make luxury junk cars broken for repair all time... JUNK!

    Hard StonerHard Stoner20 days ago
    • US FORD built Tanks win the WW2,. Welcome!!

      Hard StonerHard Stoner18 days ago
    • @Hard Stoner well here in the UK we still see old mercedes s classes from 90s. they are built like tanks

      Nazim RahmanNazim Rahman18 days ago
    • My Ford truck with hit 100k... I see junk Mercedes and BMW failed in side of highways.

      Hard StonerHard Stoner18 days ago
    • @Hard Stoner well your not wrong about that but they easily can do 100k plus of miles no issues

      Nazim RahmanNazim Rahman18 days ago
    • ....diesels smog junk?

      Hard StonerHard Stoner18 days ago
  • Few extras? 😂

    Siddanth ShettySiddanth Shetty20 days ago
  • Americans thinking that 20k is cheap =( We buy even 2-3k used cars

    The Damn TrainThe Damn Train20 days ago
  • Jalopnik is pure leftist garbage and propaganda arm/tool. They sneak politics and their slimy opinion/agenda into almost every sentence. Jalopnik reeks of SJW and betas. Avoid like the plaque. Whatever they say, greater odds things are just the opposite, just like with MSM.

    K OK O20 days ago
  • Eventhough they consider the prices as cheap it is still to expansive for me

    UnbekanntTv 2.0UnbekanntTv 2.020 days ago
  • Not mentioned in the video: the 3 Series hatch was a moderate success in Europe; the C class coupe was successful; the CLA has sold like hot cakes.

    Mark NealonMark Nealon20 days ago
  • Hahaha JD Power Hahaha

    MrFenkinsMrFenkins20 days ago
  • That’s like Benz VS Ford - blueface (rapper)

    Ike The kidIke The kid20 days ago
  • I'm suprised that in America, Bmw, Audi and Mercedes, are considered as luxurious.

    Christoph DumserChristoph Dumser20 days ago
    • Same lol

      AsdfghjklAsdfghjkl19 days ago
  • So... Say hello to GMC? Pfffffff what a stupid report. Im a proudly BMW X3 owner and definitely, what a car!

    Omer Francisco Medina PiraconOmer Francisco Medina Piracon20 days ago
  • This is a non-video.

    Matt ShaferMatt Shafer20 days ago
  • You wanna sell volume Mercedes and BMW? Start a new budget brand, like the reverse of what Toyota did with Lexus.

    dsparke93dsparke9320 days ago
  • Audi, a jumped up VW.

    john brownjohn brown21 day ago
  • This channel is straight bs

    Sham MirzaSham Mirza21 day ago
  • The 318ti was basically the debut of the 1 serie in Europ which are very, very successfull

    BatagnamBatagnam21 day ago
  • This is like overanalyzing why cheap American cars failed in Europe. They didn't. All American cars did.

    Miljörör för SpråkpartietMiljörör för Språkpartiet21 day ago
  • Ironically Acura did well with their RSX but they decided to get rid of it. All they did was threw on some leather seats and changed the badging from the Honda integra.

    A SeedsA Seeds21 day ago
  • How you can even think that title and not more even to write it?! German cars are the best cars in the world.Mercedes is the best luxury, sporty, strong and the car that never will die.Go see your USA cars that are scrap! A 4.8l engine that can’t go even 270 km/h.USA car fail

    A.M ProductionsA.M Productions21 day ago
  • I would not buy a BMW or Mercedes because of the cost of servicing them.

    James OdellJames Odell21 day ago
    • I own a Mercedes w210 from 1996. No problems

      AsdfghjklAsdfghjkl19 days ago
  • You don’t understand the reasons behind them making their entry cars so bad. If you know, you know.

    AmautaAmauta21 day ago
  • Alternative title: Americans look at German brands as luxury instead of the normal car it is

    BlancoBlanco21 day ago
    • @Asdfghjkl To many variables to say. Dealerships and banks are predatory. I remember being declined for loans for Toyota, Ford and all these "affordable" cars. Yet once I got to the expensive brands I actually got approved then I looked at the Interest offered by some bank I had never heard of and I walked away. I just got a used car, but I believe most people would get an endorphin rush by being approved for a "luxury" vehicle and buy it. Who knows.

      Phillip MartinezPhillip Martinez18 days ago
    • @Phillip Martinez tbh they need to do more research on what they’re buying. But it doesn’t shock me. People that don’t know about cars don’t know the costs of even a simple yearly service on the car, even insurance. Some people don’t even know how or when to change tyres😂

      AsdfghjklAsdfghjkl18 days ago
    • @Asdfghjkl Its due to importing costs. So we get them at a higher cost. They are marketed as luxury cars or a premium car so the prices get inflated. Maintenance costs are also pretty high for BMWs, Mercedes, and Audis here along with any "luxury" car. Most people here just see a nice car they cannot afford and see a large price tag and somehow think its a good idea, then they get their car repossessed when they cannot make the car payments.

      Phillip MartinezPhillip Martinez18 days ago
    • @scotti pippen also, do not forget the mercedes cars that are tuned such as AMG, Brabus etc etc. There is also Maybach. I think people should read more if they want proper luxury, instead of just buying the brand because it supposedly is exclusive. For example, I like Mercedes because they have strong and beautiful cars, that can easily last a whole lifetime if one takes care of it:)

      AsdfghjklAsdfghjkl19 days ago
    • @scotti pippen Lots of people have mercedes in Norway. For example, me, my father, my best friend, my fathers best friends and my brother have mercedes. It’s an amazing brand for sure, but it’s normal to see it. Also Americans seem to forget that mercedes comes in a lot of different classes and styles for ones need. There are mercedes vans, mercedes family cars, mercedes lorries, mercedes cars fit for drifting etc etc. All depends on which class you buy, the motor you need, the style, if you buy elegance, avantgarde or classic etc.

      AsdfghjklAsdfghjkl19 days ago
  • Thumbs down CNBC

    zelizzeliz21 day ago
  • I love how they think that the majority of young buyers can afford cars above $20,000. Hell I don't recommend buying a car over $15,000 without a decent down payment and no credit

    Frostedrain2881Frostedrain288122 days ago
  • BMW, MBZ, Range Rover, Volkswagen, Audi, Jaguar......They may be fun and ok in the reliability department for the first 80K-100K miles, but after that you will pay for your mistake. They turn into ENDLESS MONEY PITS! They are all over-engineered POS's that you are going to regret ever buying. The only way to enjoy these brands are to lease them for a few years, get it out of your system, and never look back. You have to learn from people who have experience owning them (and people who fix them...like Scotty Kilmer). The regular maintenance and repair costs will bleed your bank account DRY !!! At the end of the day you're just paying tens of thousands extra for a brand image and the novelty dissipates rather quickly. Save your money and put it towards an investment that appreciates instead.

    Alex JeonAlex Jeon22 days ago
  • I liked the vid

    Mei /mizukageMei /mizukage22 days ago
  • 1 minute and 27 seconds is how far I can make it

    Purple GuyPurple Guy22 days ago
    • I just made it until your comment

      el colimael colima20 days ago
  • That was an old idea to make a cheap car. Hitler wanted a German "people's car" and VW Beetle was born in the 1940s. That car never had the success that Ford Model-T achieved.

    zhlizhli22 days ago
  • the bmws ti are some of the most sought after cars in europe

    Claudio AndreiClaudio Andrei22 days ago
  • I owned 2 CLS's in my time and i actually left mercedes because i feel there's nothing special about them anymore. The car maker is so watered down now that you have makers like Lincoln, Hyundai competing with luxury and topping a lot of Mercedes models. I see more mercedes on road then anything else.

    Joe MJoe M22 days ago
  • Don't make cheap cars, make good cars to last and then the used market will keep your new clients loyal to the brand.

    Lowrider SmithLowrider Smith22 days ago
  • These guys completely missed the point! Why Im not surprised about it as the two companies in question are also missed this salient point i.e. irrational and rational buying. Normal Joes buy cars for a reason, mainly for their day-to-day commute basically for a "hack" unlike high-end buyers. If they get Beamer or a Merc for that price, why not? Now that's the problem, ppl should buy cars that fit their life style not the other way round. Like the wrong marriage! When they realize that these cars are technically advanced hence high maintenance and high running cost, it is too late as they lost their investment. So their bad decision becomes a bad experience for others, word obviously spread as they are the biggest mouths in the world (via FBs; youtubes, etc.) - commoners tools these days; so goes the brand down the drain with them. Instead of using their prestige brands to lug in sales volumes, they must use of their many subsidiaries to do the dirty work as others do. End of the day, they must start loving their skins they born-in! Should not try to follow Toyota; GM OR Nissans, they are born commoners while you are born prestige!

    Rohan PereraRohan Perera23 days ago
  • It's a very bad strategy from both companies. Today, everyone started to realize that they actually made terrible unreliable cars!. They're losing the brand image.

    Y AY A24 days ago
  • Agree

    jhn3 1jhn3 124 days ago
  • I had a mercedes c coupé (something with a compressor). It was a great car, very nice to drive, fun with back wheel drive and responsive enough thanks to the compressor. But it was not cheap to own due to the expensive service fees. Did not see many of them rolling around here in Sweden though, so don't know how successful they were...

    NrNi9eNrNi9e24 days ago
  • Because the material and quality is equally cheap, can't compete with other brands. if they sell current e/s-class into cheap car price the they will success. They thought putting a very cheap car with their brand and lower price tag can win. But they simply can't compete. They put all standards items from other brands as 'options'.

    temp kyltemp kyl24 days ago
  • I will never understand why americans are so obsessed with Sedans. The WORST version of the A-Class is the sedan. yet its the only version sold in the US

    kebabgudkebabgud25 days ago
  • The Aston Cignet was actually entirely a way to circumvent British emissions standards for average fleet emissions. That's why they put so little effort in it, they really had no intention of making real sales with it.

    RicardoRicardo25 days ago
  • If you buy a brand new car wtf are you doing? I get if it's a supercar that'll shoot up in price, but your Ford Explorer isn't.

    محمدمحمد25 days ago
  • Listen to Scotty now!

    DashCamEyesDashCamEyes25 days ago
  • I don't get it... People were buying premium class cars because for more money they have been offering more than competition. better quality, better reliability, better equippment. Why BMW, Mercedes and Audi think that people will pay premium money for cars with same engines as non premium brands, but less equippment and less reliable? Now buying German car you get mostly 4 cylinders engines up to 2.0 liter engines, basic version do not have almost any equipment (you need to pay for all options a way more that competition is asking). And most important quality and reliability is disputable. Lot of engine components are made from material like cheap chinese toys (timing chains, plastic cooling system components etc...)

    Tomasz BudnikTomasz Budnik25 days ago
  • Did you look at the E36 compact and C-Class coupé?! Its obvious why they failed^^

    Martin SonnleitnerMartin Sonnleitner25 days ago
  • That video is a fail

    blackness010blackness01025 days ago
  • The bored wolf dimensionally program because stocking echographically offer out a hurried bobcat. detailed, astonishing barber

    Andrea NashAndrea Nash25 days ago
  • Cars are status symbols. In the US people want fat SUVs with a Perfect Bluetooth connectivity. No matter the costs and loans. It is all the toddler-like instant gratification culture built up by envy and false expectations

    Suburp212Suburp21226 days ago
  • Mercedes and BMW are cars to be leased only for first 2 years - these cars start falling apart starting at year 4. Not worth the money. If I spent 100 K on a car, I expect the car to not require expensive repairs for 10 years or so.

    Sanjay9442Sanjay944226 days ago
  • literally the worst piece on cars I've ever seen, showed an "S-Class" as a CLA and "the new C-Class as the one from 2012.

    Devin alexanderDevin alexander26 days ago
  • Filled with lots of bs lol

    Rider MadeRider Made26 days ago
  • When things are cheap, there is less sense of quality. Which means nobody wants the product. This is a COMPLETE mystery to the US car industry.

    Jan RuudJan Ruud26 days ago
  • Why do y'all keep on showing videos of Sprinter Vans?

    Daniel SchickDaniel Schick26 days ago
  • I had a Mercedes A-Class (W168). I thought it would be a great quality vehicle but.... the interior plastics were the worst I have ever seen in a car I owned. Hard, creaking plastics that rattled over every bump. Hyundai easily did better plastics in later years. The car had daft design decisions, like plastic seat height adjustment handles that turned metal spigots. Use the handle more than a few times and it broke off. The dealer had a whole bag full of spare handles. Air conditioning was fine for 30C weather, but anything hotter and it was completely inadequate. The car was built down to a bargain basement quality standard but... it still had a premium price. The final straw was when the timing chain snapped at 67,000km and destroyed the engine. Fortunately Mercedes paid for the engine rebuild outside of warranty, but it showed what a terrible model it was. I couldn't wait to get rid of it, and sold it a week after the repaired car was returned to me.

    CatsMeowPawCatsMeowPaw26 days ago
  • Cla is hardly a fail, they are everywhere in europe. Next time do a why toyota camry failed so horribly. It would be the same as this non sense video.

    TheOnlyMMshowTheOnlyMMshow27 days ago