M-B cuts price of new S class

Mercedes-Benz USA is lowering the price of the redesigned S class by $2,100 from that of the outgoing version, while adding standard equipment.

The lower price is part of an effort to maintain sales leadership in the premium luxury sedan segment, said CEO Steve Cannon.

The 2014 S550 sedan that goes on sale on Oct. 15 will have a base price of $93,825, down from the current price of $95,925. Prices include shipping.

"We have a seven-year life cycle with the all-new S class and we want to get it out of the gate as one of the most sought-after products," Cannon said.

The S class is not only competing with its traditional rivals, the BMW 7 series and the Audi A8, but new models from Jaguar, the Porsche Panamera and even Tesla, he said.

"Every time we bring in a brand new generation we ... like to improve the value equation," Cannon said. "It sends a signal that Mercedes-Benz is as competitive as we are innovative."

Cannon said that adding a rearview camera, sunroof, LED lights inside and out, and an adaptive windshield wiper as standard equipment raises the value of the S550 by 3 percent.

The new S class has more than 30 standard and optional active and safety technologies that Mercedes has bundled together as Intelligent Drive. A $2,800 option package uses stereo cameras and radar to scan the road and stop the car to prevent an impending collision.

"It is the most significant step in the automotive industry towards autonomous driving," Cannon said.

He said dealers already have 5,000 orders for the new sedan.

Mercedes sold 7,238 S-class cars through August, a decline of 1 percent from a year earlier. Sales of the BMW 7 series during the same period fell 10 percent to 6,850.

Cannon would not forecast U.S. sales of the S class for 2013 or 2014 because production will be limited due to high worldwide demand.

"If we could get more production, the sky is the limit," he said.

The 2014 S550 4Matic with all-wheel drive goes on sale in November with a base price of $96,825. The S63 AMG 4Matic also debuts in November and will start at $140,425. Prices include shipping.