• WSJ (paid subscription required), Monday, January 30, 2006 3:31 PM

Mercedes-Benz is embarking on a new ad campaign design to improve the venerable German automaker's image following a series of problems that tarnished its vaunted reputation for excellence. Mercedes dropped to No. 4 in the luxury car market in recent years after being ranked No. 2 in consumer quality surveys. The decline was attributed to defects in some models, including a glitch in a high-tech brake system that forced a vehicle recall in 2004. But a redesigned version of the company's flagship S-class sedan is about to hit showrooms, backed by 60 to 90 print ads that will run throughout the year. Mercedes won't disclose how much it is spending, other than noting it is a "significant campaign." In 2005, the company spent $102 million on advertising, according to TNS Media Intelligence.

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