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From Joe

It is a close race, one that most likely will not result in deep value cutting to move models, but is certain nevertheless to be on the minds of executives employed by two automakers till the clock strikes midnight for the final time this year. What the race is all about is this: the perennial sales battle between two German automakers, BMW and Mercedes, with BMW expected to pass Mercedes in world sales totals for 2005. The ramifications are sturdy for every single automaker and will set the tone for the way every firm produces and markets vehicles from 2006 forward.

Mercedes finishing second to BMW is not a comfortable taste for DaimlerChrysler, parent of Mercedes and now owner of The Chrysler Group, maker of Jeeps, Dodges, and Chryslers. Only Volkswagen sells far more vehicles 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.

As opposed to American automakers, Mercedes is not most likely to engage in deep cost cuts to attract consumers and steal sales that they would have produced in 2006 for 2005 to stave off BMW. Nonetheless, purchasers of Mercedes vehicles should discover an even friendlier showroom in which to shop when they negotiate the cost on their C, E, or M Classes of cars.

So, specifically what has induced the shift in sales? Well, 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 vehicles in each and every automakers' fold that is spelling the distinction. Unknown to several Americans, each BMW and Mercedes sell cars that are smaller and less luxurious than the cars that appear in the states. Cars that compete squarely against Volkswagens Golf and offerings from GM, Ford, many Japanese automakers, and other individuals.

Yes, it is true. Not all BMW or Mercedes models are luxury automobiles. In contrast to in the US where a Cadillac is exclusively a luxury automobile, each German brands make cars for the rank and file driver also. It is these types of automobiles 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 particular or two smaller lines of automobiles to the U.S. industry by 2007. If you havent figured it out but, Mercedes has A and B Class vehicles that are smaller and less expensive than the existing child Mercedes, what we call the C Class. Mercedes hopes that the US market is prepared for less pricey cars 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 excellent for BMW as the automaker explores bringing its 1 and 2 series cars to the US to compete for sales. Each lines of automobiles are positioned against Mercedes A and B class cars and are the exact same vehicles that have bumped BMWs sales figures up.

Now if only Mercedes would consider importing its Wise auto to the US market place

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