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Mercedes targets new niche with GL-Class; no AMG model

Mercedes targets new niche with GL-Class; no AMG model

Mercedes is continuing to diversify its product line, with three new SUV introductions in the past year. Among the new models is the 2007 GL-Class, which is the largest SUV in the Mercedes lineup. The strategy, according to Forbes is not high volume. Rather, Mercedes hopes to add to its overall sales with an array of niche vehicles. While the Mercedes CLS-Class had a phenomenal start last year, its American sales declined by 39 percent in February 2006, compared with February 2005. But that's not a problem, according to Mercedes. The CLS is just a pricer E-Class, and it adds to the bottom line, the company says. Likewise, the GL doesn't need to sell as well as the Cadillac Escalade to be a success. Rather, Mercedes simply hopes it will add to overall SUV sales. Unfortunately for AMG fans, there are no plans for an AMG Mercedes GL, according to Forbes. The GL is simply too large to make a performance model, according to the report. (Cadillac, by the same token, is not planning a hot-rod Escalade-V).