Group 1 CEO chides BMW and Mercedes-Benz on sales emphasis
By Julybien, 13 Jan, 2012. 0 Comments
2012 Mercedes-Benz GLK350 4MATIC
BMW AG and Mercedes-Benz have been putting more emphasis on sales leadership instead of brand value, according to Earl Hesterberg, CEO of Group 1 Automotive Inc. “The conclusion of every month brings more comments and boasts regarding which brand is selling the most,” Hesterberg said during the Automotive News World Congress conference in Detroit.
Hesterberg added that quantity seems to be surpassing quality and brand value in terms of emphasis. He also described the rhetoric of BMW and Mercedes as “concerning.” Mercedes announced January 9 that it did not disclose its final 2011 U.S. sales results because BMW might revise its figures to become the best-selling luxury brand. BMW, the newly crowned premium car top seller in the U.S., denied the accusation and made a mention of Mercedes’ incentive spending.
BMW, Mercedes and Audi are competing for the title of the world’s number one luxury carmaker, Hesterberg disclosed, adding that the companies are counting on the Chinese market this 2012. The Group 1 CEO, however, expressed concern if the Chinese market dries up. “We’ve seen it in Europe already where certain countries have dried up, and too many vehicles are getting pushed into market,” he said. [source: BusinessWeek]
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