Last November, Daimler announced its plans to shut down its ultra-luxurious Maybach brand after sales fell short of forecast year after year.
There are many ways to explain the once-glorious company’s demise; one is the use of an outdated platform, a second is the brand’s questionable design language, and a third is a very limited lineup. These valid explanations combined paved the way for the final nail in Maybach’s coffin.
According to England’s CAR Magazine, the biggest reason for the end of the Maybach brand is that it was far from profitable. In fact, CAR calculated that Daimler lost over $500,000 on each Maybach it sold.
The English magazine did not disclose how it got to that number. What is known is that Daimler forked over about $1.3 billion to revive the brand in 2002. A base-model Maybach 57 retailed for about $370,000 and to date, the brand has only sold about 3,000 cars, not enough for it to turn a profit.
According to CAR Magazine, inside sources at Daimler revealed that if the brand had not been given the axe, it would have significantly diversified its lineup by the end of this decade. Its portfolio was likely to include five or six models spread out among various market segments, including an SUV and a smaller, more affordable entry-level sedan called the Maybach 52.
The gap left by Maybach’s demise will be filled in 2014 when the next generation of the Mercedes S-Class hits the market.
