Mercedes-Benz Spends Big to Catch Up in China


China accounts for more than half of worldwide sales of Mercedes' top-of-the-line S-Class sedan. The all-new S-Class, shown here, will reach Chinese dealers this fall. Photo credit: Mercedes-Benz

Daimler's Mercedes-Benz is one of the world's great luxury brands. But in China's booming auto market, Mercedes is an also-ran -- trailing far behind its German rivals BMW and Volkswagen , whose white-hot Audi lineup dominates China's luxury-car market.

That lag has spelled trouble for Dieter Zetsche, the former Chrysler chief who now leads Daimler, and he's investing big to try to get Mercedes' China effort back on track. In this video, Motley Fool contributor John Rosevear looks at what Mercedes hopes to get for that investment -- and at the mounting pressure on Dr. Z to close the gap between Mercedes and its rivals.

Mercedes is struggling in China, but some other automakers are surging as more and more Chinese enter the middle class and look to buy their first new cars. A top Motley Fool analyst has identified two automakers that are especially well poised to surge along with China's middle class over the next several years. If you want to be among the smart investors who get rich from this growing trend, then you'd be well advised to instantly download our free report on the topic by clicking here now.

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Fool contributor John Rosevear owns shares of Ford and General Motors. You can connect with him on Twitter at @jrosevear. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Originally published