MERCEDES' IMPROVED QUALITY

Mercedes attack on the niche markets has often been ridiculed, sometimes mocked, sometimes applauded. Sometimes all three at once, even here at GoodCarBadCar. As we near the end of 2007, however, Mercedes-Benz is on a roll. Listen to these quick points; all music to Dr. Z's ears:

• Germany's J.D. Power survey ranked Mercedes quality second only to Honda in problems per 100 vehicles
• Warranty costs are down 45% since 2002.
• Attempts to lower operating costs, beginning in 2004, have saved M-B $8.5 billion.
• Because of better manufacturing techniques, quicker development, better quality, and lower supplier costs, the new C-class has a cost base somewhere between 20 to 30% less than the older version of Mercedes' smallest sedan.

In the wake of their divorce, Mercedes is overcoming a brief lull during which their reputation descended rapidly. Chrysler has not yet begun its ascent back to credibility.