Last post on May 02, 2013 at 12:57 PM
You are in the Automotive News & Views
What is this discussion about?
Lexus, BMW, Mercedes-Benz
#4 of 21 Re: From Today's Detroit Free Press... [fintail]
Sep 28, 2012 (6:34 am)
Of course, the Germans are not a static target. When the 1990 LS 400 was introduced, with stellar reviews in terms of product and value, the press gave the impression that Mercedes' dominance of the luxury market was probably over. Well, it didn't quite turn out that way, in that MB improved quality and adjusted its pricing. Lexus fought its way to #1 in the U.S., but not worldwide. It could be argued that, from global perspective, the LS400 was the best thing that could have happened to MB. That's may be an exaggeration, but it points out the benefits of competition.
Going back further, who, in the '60s, would have thought that any brand would have seriously challenged Cadillac? If Lincoln couldn't, who could?
Now, much more than then, we have to think internationally. MB, BMW and Audi comprise ~75% of the Chinese luxury car market. The incremental volume from China helps reduce unit prices in other markets.
#5 of 21 Re: From Today's Detroit Free Press... [hpmctorque]
Sep 28, 2012 (8:08 am)
I think the quality issue came immediately after Lexus. The Germans went into a panic, and brought out some iffy products with cost cutting that really left a mark. But the pricing point is very true - adjusted for inflation, a new S550 is significantly cheaper than a new 500SEL in 1992.
The first LS was like a reverse engineered and updated W126. Many of the design angles are virtually identical. It took some of the edge off MB executive arrogance, perhaps. They have learned smaller profit margins are a new reality. Also it was at a time when the US market was more important, and the LS was definitely tuned to US tastes.
#6 of 21 Mercedes Leads
Oct 03, 2012 (6:49 am)
DETROIT (Bloomberg) -- "Daimler AG's Mercedes-Benz, after a 7 percent sales gain in September, extended its lead over BMW to 5,221 units after nine months in the race to be the No. 1 U.S. luxury auto brand.
Mercedes, helped by updated versions of the C-Class compact sedan and GLK compact sport-utility vehicle, sold 23,156 vehicles in the U.S. last month, the automaker said today in a statement. BMW's U.S. sales rose 0.1 percent to 21,761 in September compared with the same month a year earlier. Toyota Motor Corp.'s Lexus rose 36 percent to 20,386."
#7 of 21 Re: From Today's Detroit Free Press... [fintail]
Oct 04, 2012 (8:04 am)
If M-B kept going in its pre-Lexus direction, you'd have an E-Class that was built and engineered as solid as a Tiger tank and cost $150K!
#8 of 21 Re: From Today's Detroit Free Press... [lemko]
Oct 04, 2012 (8:13 am)
I do have to credit Lexus with price competition. Sadly, it created a period of quality issues.
1992 500SEL based at roughly 85K, 2012 S550 bases at roughly 95K. 1992 190E based around 30K, 2012 C250 bases around 35K. That says something.
#9 of 21 looking like third place for 2012
by steve_ HOST
Dec 03, 2012 (6:32 pm)
Lousy sales in Europe means more buys for US luxury consumers.
"Germany's three big luxury auto makers racked up record U.S. sales in November, fueled by aggressive holiday promotions and new models.
The German brands have used a combination of incentives to woo customers, including cash rebates, early lease buyouts and cheap leases. BMW and Mercedes are pushing aggressively to claim the crown as the top-selling luxury brand in the U.S.
Boosting U.S. sales is especially critical for the German luxury brands because demand in Europe is declining, and is expected to remain depressed for some time, according to industry executives.
BMW and Mercedes both are on track to beat the Lexus brand of Japan's Toyota Motor Corp. for the second year in a row."
German Luxury-Car Brands Surge in U.S. (WSJ)
#11 of 21 Re: BMW > MB [steve_]
Jan 07, 2013 (11:53 am)
I am kind of surprised at that - the good 5er lease rates must have worked. I thought the F10 wasn't exactly setting things on fire sales-wise, so far.