It is a close race, one that likely will not result in deep price cutting to move models, but is certain nevertheless to be on the minds of executives employed by two automakers until the clock strikes midnight for the final time this year. What the race is all about is this: the perennial sales battle between two German automakers, BMW and Mercedes, with BMW expected to pass Mercedes in world sales totals for 2005. The ramifications are strong for each automaker and will set the tone for the way each company produces and markets vehicles from 2006 forward.
Mercedes finishing second to BMW is not a comfortable taste for DaimlerChrysler, parent of Mercedes and now owner of The Chrysler Group, maker of Jeeps, Dodges, and Chryslers. Only Volkswagen sells more cars than either make, but when it comes to a predominately luxury line up Mercedes and BMW battle alone amongst German makes with Audi a distant third.
Unlike American automakers, Mercedes is not likely to engage in deep price cuts to attract customers and steal sales that they would have made in 2006 for 2005 to stave off BMW. Still, purchasers of Mercedes vehicles should find an even friendlier showroom in...
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