Marcus Breitschwerdt, 42, became president and chief executive officer of Mercedes-Benz Canada Inc. in March, 2003.

He came from DaimlerChrysler AG in Stuttgart, Germany, where his most recent position included the responsibilities for marketing strategy for Mercedes-Benz passenger cars, product management for the A-Class and C-Class and concept development of all future Mercedes-Benz passenger cars. He is married and has two children.

Vaughan: Is it viable to put a three-pointed star on everything? A Mercedes-Benz dealer can show an SLR at about $615,000 next to a C-Class Coupe at around $35K -- and soon a Smart car at $16K. The brand is getting seriously stretched.

Breitschwerdt: We think that, on the contrary, consumers will be pleased to find the three-pointed star in new market segments, and our strategy is validated by the fact that other competitors are trying to follow it. But in keeping with its heritage and core values, Mercedes-Benz will continue to occupy the top echelon in all categories in which it is represented. We are in fact planning three new segment entries in 2005. However, for those cars with a very distinct character yet also common DNA, three brands were defined to form the Mercedes Car Group which now comprises Smart, Mercedes-Benz and Maybach. You will not find a three-pointed star on Smart or on Maybach as their respective brands speak for themselves.

Vaughan: Speaking of the Smart car, which is that weird looking little buggy that gets better than 3.5 litres/100 km and fits sideways into a parking space, what's the market for that in Canada? Can it compete with BMW's Mini?

Breitschwerdt: Since we announced in mid-February that Smart would be sold in Canada this year, the reaction has been overwhelming. We are getting thousands of hits on our website, and calls and orders are pouring in so, yes, there is very definitely an important market for Smart in Canada.

In fact, it was persistent consumer demand that convinced us to bring Smart to this country. The Smart fortwo was never intended to compete with conventional cars such as the Mini. It was designed as a fundamentally different concept. People love the Smart because it is unique, perfectly conceived and engineered, and it is simply cool.

Vaughan: Summer's coming and the second-generation SLK convertible sports car is a winner -- hugely improved over the predecessor that was mostly bought by women (not that there's anything wrong with that). The problem is that you won't have it on sale until nearly winter. What's the matter with your product introduction cycle? Convertibles are for summer!

Breitschwerdt: Your reaction to the new SLK mirrors our own sentiments about this car. Its new 3.5-litre engine makes it a performance sports car that will dominate its segment and will equally appeal to both genders, much as the current SLK does. As concerns its launch timing, please bear in mind that the SLK features its famous vario hard top that folds neatly into the trunk at the push of a button, making the SLK a true year-round car. While it is exhilarating to drive with its top down, the SLK can be converted into a spacious hard-top coupe in a matter of seconds. So whether we get this car in fall or spring doesn't really matter.

Vaughan: Mercedes-Benz built the world's first diesel passenger car in the 1930s and today sells diesels in about 40 per cent of Mercedes cars worldwide. In Canada you haven't sold a single one in five years but now you're bringing them back. Do you think you'll ever reach 40 per cent diesel penetration in MB's in Canada?

Breitschwerdt: The new generation common rail diesel technology is revolutionary, which is why we are bringing it to Canada. It no longer emits black smoke and smelly fumes that most associate with diesel engines; the new CDI engine is leading-edge, state-of-the-art engineering more than equal to current gasoline engine technology.

The CDI Diesel will impress with its torque and acceleration, and will persuade with its quiet, clean performance and exceptional fuel economy. We are just launching the new diesel now, and while we have great expectations that consumers will once again make it their engine of choice, it is premature to predict what level of share it will reach in Canada.

Vaughan: The ultra-luxury Maybach (starter model $490,000) is selling worldwide at about half the rate projected. People outside of Germany don't seem to have a clue what a Maybach is.

Maybe this is the one that needs a three-pointed star! Nevertheless, how many have you actually sold in Canada and what are the prospects in the near future?

Breitschwerdt: After a 61-year absence in the market, Maybach has made quite an impact. Its production is in line with original plans, and more than 600 units were delivered to customers worldwide in 2003. We should add that in its introductory year it sold, both in Canada and worldwide, twice as many ultra-luxury automobiles as its only competitor and established its pre-eminence in this uppermost segment of the luxury market.

Michael Vaughan is the co-host with Jeremy Cato of Car/Business, Monday nights at 8:30 p.m. on Report on Business Television. Michael Vaughan Live is on at 8 p.m. Monday to Friday.