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From Ibstudy

It is a close race, one that likely will not outcome in deep cost cutting to move models, but is particular nevertheless to be on the minds of executives employed by two automakers until the clock strikes midnight for the final time this year. What the race is all about is this: the perennial sales battle in between two German automakers, BMW and Mercedes, with BMW anticipated to pass Mercedes in planet sales totals for 2005. The ramifications are strong for each and every automaker and will set the tone for the way each and every firm produces and markets cars from 2006 forward.

Mercedes finishing second to BMW is not a comfy 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 tends to make with Audi a distant third.

In contrast to American automakers, Mercedes is not likely to engage in deep price tag cuts to attract customers and steal sales that they would have created in 2006 for 2005 to stave off BMW. Nevertheless, purchasers of Mercedes autos should locate an even friendlier showroom in which to shop when they negotiate the price tag on their C, E, or M Classes of autos.

So, exactly what has induced the shift in sales? Nicely, published reports indicate that Mercedes sales continue to rise, but slowly. On the other hand, BMW sales increases are in the double digit category which is what has pushed BMW ahead of Mercedes so far this year. Oddly, it isnt 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 cars that appear in the states. Automobiles that compete squarely against Volkswagens Golf and offerings from GM, Ford, a number of Japanese automakers, and other individuals.

Yes, it is accurate. Not all BMW or Mercedes models are luxury cars. In contrast to in the US where a Cadillac is exclusively a luxury automobile, each German brands generate cars for the rank and file driver also. It is these kinds of vehicles that have fueled each automakers development and is most likely behind BMW jumping ahead of Mercedes.

To counter BMWs surge, Mercedes does have an ace up its sleeve: the introduction of one or two smaller lines of cars to the U.S. market place by 2007. If you havent figured it out but, Mercedes has A and B Class vehicles that are smaller and much less expensive than the current infant Mercedes, what we contact the C Class. Mercedes hopes that the US industry is prepared for much less pricey vehicles sporting the venerable Mercedes name and that these sales will propel Mercedes back into the lead.

Of course, what is very good for Mercedes is great for BMW as the automaker explores bringing its 1 and two series automobiles to the US to compete for sales. Each lines of cars are positioned against Mercedes A and B class vehicles and are the exact same vehicles that have bumped BMWs sales figures up.

Now if only Mercedes would think about importing its Smart vehicle to the US marketplace