It's a close race, one that likely will not result in deep price cutting to move models, but is certain however to be on the minds of executives employed by 2 automakers till 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 strong for each automaker and will set the tone for the way each company produces and markets automobiles 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 automobiles 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 American automakers, Mercedes is not going to engage in deep price cuts to draw in purchasers and "steal" sales that they might have made in 2006 for 2005 to stave off BMW. Still, purchasers of Mercedes vehicles should find an even friendlier showroom in which to shop when they barter the price on their "C", "E", or "M" Classes of vehicles.
So, precisely what has been responsible for 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 class which is what has pushed BMW before Mercedes so far this year. Oddly, it isn't the luxurious autos in each automakers' fold that is spelling the difference. Unknown by many Americans, both BMW and Mercedes sell autos that are smaller and less opulent than the vehicles that appear in the states. Cars that compete exactly against Volkswagen's Golf and offerings from GM, Ford, many Eastern automakers, and others.
Yes, it's right. Not all BMW or Mercedes models are top end cars. Unlike in the US where a Cadillac is solely a luxury car, both German brands produce automobiles for the rank and file driver too. It is these types of automobiles 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 2 smaller lines of autos 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 that 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 compete for sales. Both lines of cars are positioned against Mercedes "A" and "B" class cars 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.
