German luxury carmakers abandon price war in China
Mercedes-Benz and Audi will join BMW in withdrawing from the car price war in China, according to a report by Caixin. While Mercedes-Benz has not officially confirmed the news, sales personnel expect prices to rise. They revealed that each Mercedes-Benz C-Class sold results in a loss of 70,000 RMB ($9,635) for the dealer, making this unsustainable business model force Mercedes-Benz to reconsider its pricing strategy. Audi is in a similar situation, with slight price increases already observed for its main Q5L, A6L, and A4L models.