BMW AG and Daimler AG's Mercedes-Benz are set to enhance their showrooms in Manhattan with a combined spending of $280 million, aiming to be the bestselling brand in the United States luxury vehicle market. Specifically, BMW is spending $60 million while Mercedes is spending $220 million.
Only three blocks away from Mercedes’ showroom, BMW will make its store more eco-friendly, free up some floor space and renovate the establishment’s facade. Meanwhile, Mercedes is investing in a new dealership that will feature changing light colors and soaring ceilings once it opens in May.
TrueCar.com analyst Jesse Toprak stated in a telephone interview that some of the two carmakers’ best customers are in Manhattan. He added that the financial markets are becoming lucrative for the two company’s once again, especially that bankers are doing fine once again as they will be getting their bonuses.
Mercedes and BMW are targeting to outperform the Lexus of Toyota Motor Corp. as the bestselling luxury brand in the U.S., and they have done so for the first time in 11 years.
Specifically, for the first quarter this year, Lexus recorded sales of only 47,356 light vehicles in the U.S., compared to Mercedes’ deliveries of 53,346 vehicles and BMW's 52,617 units sold. Last year, Lexus kept its title last year, outperforming BMW by 9,216 sales and bringing Mercedes to the third spot.
The results do not include the non-luxury vehicles of BMW, which is the Mini brand, and Daimler, which are the Smart cars and Sprinter vans. According to BMW’s plans revealed during the New York International Auto Show this week, the company’s new U.S. flagship store replaces its location on 41st Street.