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BMW and Mecedes Competing For Sales
By Performance Guru | August 12, 2009
It is a close race, one that likely won’t result in deep price cutting to move models, but is certain however to be on the minds of operatives employed by 2 automakers until the clock strikes midnight for the final time this year. What the race is all about is this: the perennial sales battle between 2 German automakers, BMW and Mercedes, with BMW expected to pass Mercedes in world sales totals for 2005. The ramifications are powerful for each automaker and will set the tone for the way each company produces and markets cars from 2006 forward.
Mercedes finishing second to BMW isn’t a comfortable taste for DaimlerChrysler, parent of Mercedes and now owner of The Chrysler Group, maker of Jeeps, Dodges, and Chryslers. Only Volkswagen sells more cars than either make, but when it comes to a predominately luxury line up Mercedes and BMW battle alone amongst German makes with Audi a distant third.
Unlike Yankee automakers, Mercedes is not likely to engage in deep price cuts to draw in shoppers and “steal” sales that they might have made in 2006 for 2005 to prevent BMW. Still, purchasers of Mercedes vehicles should find an even friendlier showroom in which to buy when they negotiate the price on their “C”, “E”, or “M” Classes of vehicles.
So, exactly what has caused the shift in sales? Well, revealed reports indicate that Mercedes sales continue to rise, but slowly. On the other hand, BMW sales increases are in the double digit class which is what has pushed BMW before Mercedes so far this year. Oddly, it is not the luxury cars in each automakers’ fold that is spelling the difference. Unknown to many Americans, both BMW and Mercedes sell automobiles that are smaller and less luxurious than the autos that appear in the states. Automobiles that compete squarely against Volkswagen’s Golfing and offerings from GM, Ford, many Jap automakers, and others.
Yes, it’s correct. Not all BMW or Mercedes models are high end cars. Unlike in the US where a Cadillac is totally a luxury car, both German brands produce vehicles for the rank and file driver too. It is these types of vehicles that have fueled both automakers growth and is likely behind BMW jumping before Mercedes.
To counter BMW’s surge, Mercedes does have an ace up its sleeve: the introduction of one or two smaller lines of automobiles to the U.S. Market by 2007. If you haven’t figured it out yet, Mercedes has “A” and “B” Class automobiles that are smaller and more cost effective than the present “baby” Mercedes, what we call the “C” Class. Mercedes hopes the US market is prepared for less dear vehicles sporting the venerable Mercedes name and that these sales will push Mercedes back into the lead.
Of course, what’s good for Mercedes is good for Mercedes is good for BMW as the automaker explores bringing its “1″ and “2″ series autos to the US to challenge for sales. Both lines of autos are positioned against Mercedes “A” and “B” class automobiles and are the same cars that have bumped BMW’s sales figures up.
Now if only Mercedes would consider importing it’s SMART vehicle to the US market.
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