Mercedez Never took any car maker seriously, they just always laughed at Cadillacs, Jaguars, BMWs, etc. and never even thought in their wildest imagination that a Japanese car maker will come from Behind and Beat them in their own game.
The executives at DhaimlerChrysler have admitted recently that Lexus is a real Competition to its Mercedez Benz line up. The only serious competitor that has made Mercedez people think twice about their future strategies, this is one of the reason why Mercedez Merged with an otherwise third class automaker like Chrysler. Mercedez DID it to gain a strong entry in the US market, a very important Luxury car market. So, far, Lexus has been a source of major headache for Mercedez people and continue to be, as Lexus sales are continuing to rise in US. It has beaten Mercedez in terms of Most Reliable and least problematic car in all the categories.
Looking at just how shortly this car maker Lexus, a luxury brand of Toyota has come in just 16 years or so, is really impressive.