BMW beats Mercedes-Benz to claim first U.S. luxury sales crown

[Alan Smithee]

Originally Posted by Price

I somewhat agree, although while the segment BMW/Merc/etc position themselves is called "luxury", in reality it's more of a "premium", or "upscale", rather that "exclusive", so the risk of diluting the brand is not as high as for, say, Aston Martin brand (regrdless whether AM are trully great cars or not). And yes, BMWs incentives have been always huge, the subsidised leases alone contribute greatly.

Discounted new purchases/leases combined with an increasing flood of lease returns is a double-whammy for re-sale values.

Add in the increasing amount of obsolescence and unreliability BMW is building into their cars, and the great strides the American and Korean manufacturers are making at lower price points, and their "premium" brand formula is not a sustainable one, IMO.

[BGM]

Originally Posted by Alan Smithee

Discounted new purchases/leases combined with an increasing flood of lease returns is a double-whammy for re-sale values.

Add in the increasing amount of obsolescence and unreliability BMW is building into their cars, and the great strides the American and Korean manufacturers are making at lower price points, and their "premium" brand formula is not a sustainable one, IMO.

1) BMW and Lexus have been discounting and are mainly leased but residuals are still strong. The used car market has also increased in demand with the "down" economy. So, they off-set any projected decline in residuals.

2) I know you aren't comparing a Kia to a BMW.

[Alan Smithee]

1) We'll see. Obviously Lexus/BMW/MB have been able to pull it off so far, but I question how long it can continue. Especially with VW/Audi/Porsche hell-bent on world dominance.

2) For under $50k, Hyundai has a 429hp 5.0 V8. Comparable BMW 5-series in that price range has a 2.0 4-cylinder turbo. I'm just sayin'...

[LeMansX5]

More....dirty tricks when competition gets fierce.
After an "Unusual" Delay, BMW Claims Luxury Sales Crown | TheDetroitBureau.com

Mercedes at one point asked dealers to each roll a number of vehicles into their test fleets which allowed them to be counted as “sold” units. They were to be moved into used car inventory a day later, with dealers getting hefty bonuses – and buyers promised like-new warranties.

[motordavid]

Typical 'sales unit' maneuvering...the 'Big Three' were masters of cooking numbers in the '60s, '70s & '80s, for bragging rights and mkt share numbers.

This BMW/MB arm wrestle is a continuation of the We're Numbah One syndrome. But, really who will remember, all during this year, and does it really matter to anyone out seriously shopping for a car, of either, or any brand.

We used to load up our distributors at end of a slower than normal/predicted qtr, trying to make our quarterly number, but returns were hell for the first month of that next qtr. ;>)
GL, mD

[LeMansX5]

More on battle....
Mercedes, BMW Swap Barbs Over U.S. Sales - Bloomberg