Daimler AG share price down, to revive Maybach as a sub-brand of Mercedes

Daimler AG said it would release new high-end versions of its Mercedes-Benz S-Class, including a sports utility vehicle and a luxury limousine carrying the Maybach emblem.

Daimler AG said that the Maybach logo will be brought back to life as a sub-brand of Mercedes. The limousine is expected to challenge BWMs ultra-luxury Rolls-Royce brand and Volkswagens Bentley.

“The customer gets the best our house has to offer,” said sales chief Ola Kaellenius. “I’m confident and optimistic that Maybach will be successful on the market.”

The first vehicle of the renewed Maybach series is expected to be named Mercedes-Maybach S 600 and introduced later this month at both the Guangzhou Motor Show and the Los Angeles Auto Show. The series will be sold in China, the United States, Russia and Japan.

Daimler seized Maybach production in 2012, after the brand reported disappointing sales results. At that time the vehicles were sold for around $380 000 and individually built with unique design.

The company also announced a new labeling system for its numerous model series, in an effort to help consumers understand better Mercedess expanding range of vehicles. Apart from renaming the M-class SUV to GLE, the company is also changing the abbreviation of its sport-utility vehicles, roadsters and coupes starting next year.

“They are cleaning up past mistakes that they allowed to produce chaos,” said Juergen Pieper, an analyst at Bankhaus Metzler, cited by Bloobmerg. “It’s a good and logical move.”

According to the new policy, Mercedes SUV labels will start with GL, disposing of the M-class name and the association with BMW’s M performance unit with it. The GL will be renamed to GLS, as a better association with the S-class and the compact GLK will be known as GLC, as in C-class, while roadsters shall be called SL. Mercedess G-class will not be affected by these chances.

The company is also bringing lower-case letters for different motors – “d” for diesel, “e” for electric, “h” for hybrid, “f” for fuel cell and “c” for compressed natural gas.

“It’s time to bring order to it,” said Mr. Kaellenius. “We’re bringing in a clear logic that everybody understands.”

The new Maybach brand, originally created in 1909, will feature special seats, more space, more customization options and “lavishly designed” interior. The new models will be cheaper than the old ones sold back in 2012, the company announced, as it said that China is expected to be the most important market for the series.

Daimler AG lost 0.73% on Tuesday and closed at €62.41 in Frankfurt. The stock dropped 1.51% to trade at €61.47 at 11:02 GMT on Wednesday, marking a one-year increase of 4.22%. The company is valued at €66.77 billion. According to the Financial Times, The 28 analysts offering 12-month price targets for Daimler AG have a median target of €75.00, with a high estimate of €85.00 and a low estimate of €60.00. The median estimate represents a 20.17% increase from the last close price of €62.41.