It’s 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 managers employed by 2 automakers until the clock strikes midnight for the last 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 robust for each automaker and will set the tone for the way each company produces and markets cars 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 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 very likely to engage in deep price cuts to draw in purchasers and “steal” sales that they would have made in 2006 for 2005 to stave off BMW. Still, purchasers 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 been responsible for the shift in sales? Well, revealed 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 ahead of Mercedes so far this year. Oddly, it is not the posh autos in each automakers’ fold that is spelling the difference. Unknown to many Americans, both BMW and Mercedes sell autos that are smaller and less plush than the cars that appear in the states. Vehicles that compete exactly against Volkswagen’s Golf and offerings from GM, Ford, many Eastern automakers, and others.
Yes, it is true. Not all BMW or Mercedes models are expensive cars. Unlike in the USA where a Cadillac is exclusively a luxury vehicle, both German brands produce automobiles 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 ahead of 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 haven’t figured it out yet, Mercedes has “A” and “B” Class cars that are smaller and less expensive than the current “baby” Mercedes, what we call the “C” Class. Mercedes hopes the US market is prepared for more economical automobiles sporting the venerable Mercedes name and that these sales will propel Mercedes back to the lead.
Of course, what 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 vehicles 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 auto to the US market.
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Tags: BMW, BMW Vs Mercedes