Mercedes-Benz has launched an all-out offensive on quality problems and is prepared to sacrifice profits to eliminate the problems that have tarnished the brand's reputation in recent years. Juergen Hubbert, outgoing chief of DaimlerChrysler's Mercedes unit, told the trade journal Automotive News that improving quality is his top priority between now and Oct. 1, when he hands over the reins of the company to his replacement, Eckhard Cordes.

"We have organized the company in a new way to make quality the top priority," Hubbert said. Mercedes has increased the size of its test fleets and dispatched quality engineers to suppliers "to monitor and make sure we get better quality from our colleagues."

Mercedes ranked 10th on J.D. Power's 2004 Initial Quality Survey, after brands such as Buick, Mercury and Hyundai.