Will Mercedes Import Their Smart Car to Compete In the US
It is 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 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 between 2 German automakers, BMW and Mercedes, with BMW expected 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 vehicles from 2006 forward.
Mercedes finishing second 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 likely to engage in deep price cuts to draw in shoppers 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 shop when they negotiate the price on their “C”, “E”, or “M” Classes of vehicles.
So, precisely what has lead to 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 by many Americans, both BMW and Mercedes sell automobiles that are smaller and less plush than the cars that appear in the states. Vehicles that compete squarely against Volkswagen’s Golf and offerings from GM, Ford, many Eastern automakers, and others.
Yes, it’s correct. Not all BMW or Mercedes models are luxury cars. Unlike in the USA where a Cadillac is exclusively a luxury car, both German brands produce automobiles for the rank and file driver too. It is these sorts of automobiles that have fueled both automakers expansion 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 2 smaller lines of autos to the U.S. market by 2007. If you have not worked it out yet, Mercedes has “A” and “B” Class automobiles that are smaller and less costly than the present “baby” Mercedes, what we call the “C” Class. Mercedes hopes that the US market is ready 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 automobiles to the US to compete for sales. Both lines of autos are positioned against Mercedes “A” and “B” class autos and are the same vehicles that have bumped BMW’s sales figures up.
Now if only Mercedes would consider importing it’s SMART vehicle to the US market.
If you can have any car in the world, what would it be? Visit thesupercars.org for information and specs on the greatest cars in the world, also take a look at BMW M5 for sale.
