Mercedes keeps an eye on the dollar

By ALASTAIR SLOANE

The plummeting New Zealand dollar will push up the cost of the new Mercedes-Benz C-Class when it goes on sale next month.

Before the dollar went on life support, DaimlerChrysler was hopeful of avoiding a significant price hike, at least for the entry level C180.

But Martin Dawson, marketing manager for the company, said there would be "some price movement" in the new models.

"Most people are looking at their level of pricing every day. The cross rate between the euro and deutschmark has plummeted.

"It climbed the other day but we are watching it very carefully. It has got to be the worst time to be launching a car.

"We would love to be able to hold the price, like we would love to have won more gold medals at the Olympics."

The well-equipped C-Class has already broken sales records in Britain, where there is a waiting list.

It will initially come in four models in New Zealand, starting with the entry-level C180 priced at about $75,000.

Dawson wouldn't confirm the price but the new car's higher specification levels alone are expected to add to the $69,000 price of the outgoing C180.

The increase price of the C-Class isn't unexpected, even with the knee-capped dollar.

The range contains standard equipment mostly found in cars costing more than $100,000.

Indeed some of the features in the top-end S-Class are also standard in the C-Class.

The new C180 is in fact powered by a 2.0-litre engine, unlike the old model with its 1.8-litre powerplant.

The other models in the line-up are the C200 Kompressor, the C240 and the C320.

The C200K uses a supercharged version of the 2.0-litre engine. The C240 uses a 2.6-litre V6 and the C320 a 3.2-litre V6, the entry-level engine in the flagship S-Class.

A turbo-diesel model, the C270, will arrive in April next year, powered by the same engine found in the M-Class.

The C-Class sports coupe, which was unveiled at the Paris motor show, will arrive probably late next year.

The coupe is based on the same underpinnings as the sedan but has had a substantial cosmetic makeover.