Mercedes-Benz expects to loose U.S. luxury race in front of Bmw

Article by Christian Andrei, on December 17, 2012

Mercedes-Benz estimates that BMW will take the lead in the U.S. luxury market. It’s expected that BMW will be offering huge incentives this month. This market is very competitive and the race at the top has been very tight. Through November, Mercedes was slightly ahead of BMW by about 2,000 vehicles.

Last Thursday, a top Mercedes executive said that the luxury nameplate will probably go down even when it achieves record sales in the U.S. of over 270,000 for the year. Steve Cannon, the head of Mercedes-Benz USA, told reporters that he doesn’t expect to be the winner of the sales race this year. Cannon, who received the promotion to his current position one year ago, said that the top officials in Germany were not pressuring him to get the No. 1 spot.

He said that the expanded and refreshed Mercedes lineup boosted U.S. sales to get to the highest level so far. The two automakers will probably use incentives and special financing offers to increase sales for the holidays. However, Mercedes spokeswoman Donna Boland said that BMW “pulls some very large numbers" in December.

IHS Automotive analyst Rebecca Linland said that BMW offers more incentives in December as well as be more aggressive in its marketing deals. Last year, BMW was the top-selling luxury brand in the U.S., putting an end to the 11-year winning streak of Lexus, Toyota Motor Corp's luxury brand. Through November 2012, Mercedes has posted sales of around 246,000 vehicles, slightly higher than BMW, which sold about 244,000 units.

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