Author: Diermeier, Daniel
Source: Kellogg School of Management
Company Name: Mercedes-Benz, Daimler-Benz AG
Number of pages: 9, 15
Describes a crisis management situation facing Mercedes-Benz, a division of Daimler-Benz AG. In 1997, Mercedes entered the compact car segment by introducing a revolutionary new car--the A-class. The A-class was positioned as an entry-level vehicle in the Mercedes line and represented Mercedes' attempt to grow beyond its core market. A few days after the car was officially introduced, it rolled over during a test known as the "moose test," conducted by a Swedish journalist. The A-class' failed "moose test" created extensive media coverage in Germany and other European countries, threatening the success of the A-class launch.