Share

Mercedes takes US luxury car crown

Chicago - Mercedes-Benz overtook rival BMW to snatch the crown of best-selling luxury brand in the United States after an incentive-fuelled race to the finish of 2011, industry data showed on Wednesday.

With the champion of the past 11 years - Toyota's Lexus - hobbled by the fallout from Japan's devastating March 11 earthquake and tsunami, the two Teutonic giants went head-on to snatch the highly visible symbol of automotive supremacy.

Neither German automaker had reported their sales results as expected by end of business on Wednesday, but Autodata released estimates using data gleaned from a "credible industry source".

Mercedes extended November's massive gains to post a 28% jump in December sales and end the year with sales up 16% at 261 846 vehicles, Autodata estimated.

BMW sales rose just 16% in December, to end the year with sales up 13% at an estimated 248 073 vehicles.

Lexus finished a distant third as 2011 sales dropped 13% to 198 552.

"The 2011 luxury sales race might as well be a battle of the deal-seekers versus the trend-setters," said Edmunds.com analyst Ivan Drury.

"In one corner, you have great deals available on BMW's remaining 2011 3 Series vehicles, and in the other corner is a fresher product with the 2012 C-Class."

But since luxury car buyers notoriously crave the newest models and the new BMW 3 series won't hit show rooms for at least two months, Mercedes-Benz had the advantage.

BMW raised its incentive spending more than $200 to $3 694 per vehicle sold from November to December, while Mercedes' average spend remained virtually flat at $3 174, Edmunds.com found.

The average discount percentage on a new BMW in December was 11.2% off the sticker price, compared to 9.5% for a new Mercedes, the automotive website determined.

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 said in a recent interview.

Lexus, like many Japanese car makers, was hurt when Japan's massive earthquake forced parts makers to shut down for weeks, disrupting the supply chain of the Japanese auto industry.

But Phillippi said the country's triple disaster wasn't the only reason for the Lexus decline.

Both Mercedes and BMW have invested heavily in new vehicles designed to fit into more market niches, he said. Lexus has not kept pace. And the rise of Audi also has cut into Lexus' market share, he said.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.11
+0.4%
Rand - Pound
23.80
-0.4%
Rand - Euro
20.46
-0.0%
Rand - Aus dollar
12.40
-0.2%
Rand - Yen
0.12
+0.4%
Platinum
920.40
-1.1%
Palladium
1,026.50
+1.1%
Gold
2,322.61
-0.2%
Silver
27.34
+0.6%
Brent Crude
87.00
-0.3%
Top 40
68,051
+0.8%
All Share
74,011
+0.6%
Resource 10
59,613
-2.2%
Industrial 25
102,806
+1.7%
Financial 15
15,897
+1.8%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders