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Does German Cars cost more in Germany?

Had an argument last night with my friends.  A German friend of mine owns a 
98 MercedeB S 600 and he claims that in Germany it cost more than he bought 
it here.  I had a hard time believing that.  Wouldn't it be cheaper, due to 
the shipping taken out and the import taxes?  Why would they want their own 
country to pay more for the same car?  Please confirm this, I have money 
riding on this one.....=P

Jason C
89 200t10v
Redmond WA