Mercedes-Benz, BMW vie for US luxury car crown

Tuesday, 3 January 2012 00:53 - - {{hitsCtrl.values.hits}}

DETROIT (AFP): In a first, two German manufacturers-Mercedes-Benz and BMW- are dueling for the honor of being the top luxury brand sold in the United States.

With the champion of the past 11 years, Toyota’s Lexus, hobbled by the fallout from Japan’s March 11 earthquake-tsunami-nuclear meltdown disaster, the two giants are going at it head-on to snatch the crown, a highly visible symbol of automotive supremacy.

The 2011 race is closing in a genuine side-by-side, wheel-to-wheel sprint to the finish. Right now, BMW holds a slight lead, but US sales for Mercedes surged in November, climbing more than 40%. Sales of BMWs rose only seven percent, leaving it clinging to a slender lead of only 1,500 units for the year.

The latest figures from the companies show BMW has sold 221,073 vehicles so far this year, while Mercedes has sold 219,491.

The bragging rights the crown brings can help in future sales.

“The marketing guys love it. You can use it in advertising. So that makes it worth pursing,” said Joe Phillippi, an independent industry analyst. Publicly, both are playing down their battle.

“We’re not going to chase the title with incentives,” Mercedes Benz USA new chief executive Steve Cannon told reporters during a luncheon in Detroit. However, Cannon also noted Mercedes has completely overhauled its product line in the US this year.

And the latest models, such as the new C-Class Coupe and M-Class, are now available at dealers, bolstering chances for strong December sales. Ian Robertson, BMW board member for sales and marketing, said the company is pleased with its position.

“This was our best ever November sales month,” he said recently. In fact, both have ramped up incentive spending as the sales showdown intensified.

Mercedes has increased its incentives by 57 percent this year, according to estimates from TrueCar.com. In November, BMW began offering a finance credit of up to $2,500 on some of its most popular models, including 3 Series and 5 Series sedans, along with X5 crossover vehicles.

Lexus was hurt when Japan’s massive earthquake forced parts makers to shut down for weeks, disrupting the supply chain.