Mercedes Losing Ground in Luxury Race as Audi Leads China: Cars

Daimler AG’s Mercedes-Benz is falling further behind in the luxury car contest.

Burdened by a disjointed strategy in China, sluggish expansion of entry-level models and an aging S-Class sedan, the once-dominant upscale nameplate has slipped deeper into third place. The Mercedes sales gap to Volkswagen AG’s Audi has more than doubled within a year, hampering Chief Executive Dieter Zetsche’s pledge to retake the lead.