It is a close race, one that likely will not result in deep price cutting to move models, but is certain nevertheless to be on the minds of operatives employed by 2 automakers until the clock strikes midnight for the last time this year. What the race is all about is this: the evergreen sales battle between 2 German automakers, BMW and Mercedes, with BMW expected to pass Mercedes in world sales totals for 2005. The implications are robust for each automaker and will set the tone for the way each company produces and markets autos from 2006 forward.
Mercedes finishing second to BMW isn't a cosy 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 very likely to engage in deep price cuts to attract customers and "steal" sales that they would have made in 2006 for 2005 to stave off BMW. Still, buyers of Mercedes automobiles 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 led to the shift in sales? Well, published reports indicate that Mercedes sales continue to rise, but slowly. On the other hand, BMW sales growth are in the double digit category which is what has pushed BMW before Mercedes so far this year. Oddly, it is not the posh vehicles in each automakers' fold that is spelling the difference. Unknown to many Americans, both BMW and Mercedes sell automobiles that are smaller and less plush than the vehicles that appear in the states. Autos that compete exactly against Volkswagen's Golfing and offerings from GM, Ford, many Jap automakers, and others.
Yes, it's right. Not all BMW or Mercedes models are luxury cars. Unlike in the USA where a Cadillac is solely a luxury automobile, both German brands produce vehicles for the rank and file driver too. It is these sorts of vehicles that have fueled both automakers expansion and is likely behind BMW jumping before Mercedes.
To counter BMW's surge, Mercedes does have an ace up its sleeve: the arrival of one or 2 smaller lines of automobiles to the U.S. Market by 2007. If you have not figured it out yet, Mercedes has "A" and "B" Class automobiles that are smaller and less expensive than this "baby" Mercedes, what we call the "C" Class. Mercedes hopes the US market is prepared for less pricey cars sporting the venerable Mercedes name and that these sales will push Mercedes back to 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 automobiles to the US to challenge for sales. Both lines of vehicles are positioned against Mercedes "A" and "B" class automobiles and are the same vehicles that have bumped BMW's sales figures up.
Now if only Mercedes would consider importing it's SMART vehicle to the US market.
