Posts Tagged ‘BMW Vs Mercedes’

BMW and Mecedes Competing For Sales

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 final time this year. What the race is all about is this: the evergreen sales battle between two German automakers, BMW and Mercedes, with BMW predicted to pass Mercedes in world sales totals for 2005. The implications are powerful for each automaker and will set the tone for the way each company produces and markets autos from 2006 forward.

Mercedes finishing 2nd to BMW is not 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 autos 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 would have made in 2006 for 2005 to prevent BMW. Still, purchasers of Mercedes automobiles should find an even friendlier showroom in which to buy when they barter the price on their “C”, “E”, or “M” Classes of vehicles.

So, exactly what has caused 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 isn’t the luxurious autos 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 vehicles that appear in the states. Cars that compete squarely against Volkswagen’s Golf and offerings from GM, Ford, several Japanese automakers, and others.

Yes, it is true. Not all BMW or Mercedes models are top 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 sorts 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 1 or two smaller lines of cars 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 less costly than the current “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 propel Mercedes back to the lead.

Of course, what’s 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 cars are positioned against Mercedes “A” and “B” class automobiles and are the same autos that have bumped BMW’s sales figures up.

Now if only Mercedes would consider importing it’s SMART auto to the US market.

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