PRESIDENTS ALL Peter Trettin with Felix Ang
The insignia of the three-pointed star in a circle from the German automotive gods has been ubiquitously etched in the consciousness of almost every Filipino. Show anyone the logo, and the smile would eventually mouth out the name “Chedeng.”
It’s that instant recognition that is not unique to Pinoys. It’s the magic of marketing and technical innovations that has characterized Daimler and Benz, the two oldest motor manufacturers on the planet, since they merged in 1926, forming Daimler Benz AG. Today, the Daimler Group is among the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles. Its divisions include Mercedes-Benz cars and vans, Daimler buses and trucks.
Of course, Gottlieb Daimler and Karl Benz aren’t around anymore to marvel at their work. But their automotive legacy—at least in this part of the world—is assured with the next generation of automobile worshippers.
The president and CEO of Daimler AG Central/Eastern Europe, Africa and Asia, Peter Alexander Trettin, in a visit to Manila on Oct. 11, told a group of local reporters that the Philippines has a “huge potential” for the brand, adding that “Southeast Asia is the driving force of our success.”
Trettin made his pronouncements to the motoring media in a roundtable discussion at the Manila Peninsula, while outside, the victory parade for newly crowned Miss World Megan Young was happening along the rain-drenched Ayala Avenue.
Trettin remarked that the humongous traffic jam caused by the parade was nothing. “My personal feeling is Jakarta (traffic) is even worse,” he laughed.
Trettin turned serious and then remarked at how strong the middle-class Pinoys were: “If you see how the Philippines’ GDP per capita is growing, the country has a strong middle layer in the distribution of wealth. Mercedes-Benz is in the luxury (market) but the Philippines’ strong GDP gives stability, and this is what we’re aiming for as a target group.”
Like a typhoon
Accompanied by Daimler Southeast Asia CEO Wolfgang Huppenbauer, CATS president Felix Ang and CATS vice president for sales and marketing Robert “Bobby” Shaw, an extremely busy Trettin came into the country like a typhoon—in and out within 24 hours. He checked the spanking new showroom at CATS Greenhills in Edsa, then visited the Mercedes-Benz showroom in Bonifacio Global City.
Trettin oversees Daimler in 120 countries. CATS Motors Inc. is the general distributor of Mercedes-Benz in the Philippines, among other brands.
Asked for his impression of the automotive market in the Philippines, Trettin said, “I have a very positive impression. First of all, the economic environment is very promising, the government has clear directions to develop the country.”
TRETTIN with the author
Trettin enumerated the positive economic indicators. “Let’s talk about the car business. We are extremely successful. We know that we are No. 3 in the premium segment, after BMW and Audi.
To which Ang interjected and said: “Excuse me, second.”
“I’m talking worldwide level,” quipped Trettin.
Laughter filled the room.
Trettin, who has, no doubt, been witness to the pomp and pageantry of Mercedes-Benz showrooms in the 120 countries he has visited in four years, was still in awe of the CATS showrooms, particularly the Edsa showroom, sprinkling his praise with words such as “excellent” and “state-of-the-art.”
Trettin then shifted his talk to Mercedes-Benz’s plan of shifting its attention to more “affordable” luxury cars.
“We are entering a new target group. And this is a need for us because, clearly, the average age of a Mercedes-Benz driver in the world and in Western Europe is around 50. We have to add the younger market, but we do not want to lose the existing ones.”
Trettin explained that going into more affordable luxury cars wouldn’t necessarily hurt the luxury image that Mercedes-Benz has been projecting for over 90 years.
“What we are reaching is another entry level. This is not cheap, but different. It is quite clear that you cannot differentiate an A Class customer from a B Class customer, because there is a life cycle. One may start with an A Class, and move up. One may start with a C Class, and later on move to E Class. We have to find another entry for young business people.”
Dream of September
Trettin beamed that last September was the best month ever for Daimler.
“We sold 143,000 units, which means we are the fastest growing market at the moment by percentage, so we are gaining momentum.”
This would be in step with Trettin’s vision for 2020. “This is not a secret: In 2020, we want to be No. 1 in the premium segment worldwide. This year will be the turnaround.”
He added: “We have additional product ranges now, and we can target customers also at the lower end, and we are aiming for much younger people, the younger business people.”
Mercedes-Benz’s alphabets
Trettin revealed the Mercedes-Benz vehicles that would see their debut in the Philippines. “Beginning with the new A Class, and with the CLA, which is a very sexy car, and next year the GLA. That means, the off-road version that compares with the (BMW) X1 is available, and we have seen it at the auto show at Frankfurt. The response has been overwhelming. And with that we see the average age of this target group really going down.”
He added that the new S Class is also set to be launched in the Philippines on Nov. 27, to be exact.
“It’s still under wraps (as we speak). Not to be printed for the next two weeks,” he said with a laugh.
He gushed over the S Class. “I think it’s an amazing car. I’ve driven it. We launched it in Western Europe, and it’s also called the best car in the world. This is really modern luxury. We put so many innovations in this S Class. We think this is the right car for the Southeast Asian region.”
He exclaimed that the car “is so good that we had to drop the Maybach (from our roster) because we couldn’t position ourselves between the S Class and the Maybach, especially considering that we will offer the extended version of the S Class as well. And the S Class is even more affordable than a Maybach.”
Trettin observed that the S Class would be an ideal car for the Philippines as well.
Good to know that Mercedes-Benz has put its best foot, car, and men forward in one of the most economically exciting regions and countries to watch nowadays. The names Mercedes, and Megan, really do belong here.
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