WSJ: BMW, Audi, and MB face tough times

On the front page of today's Wall Street Journal, the gloomy outlook of the Big 3 German Luxury manufacturers was displayed front and center. The Big 3 German luxury automakers have traditionally been helped by strong profits due to expensive flagship models such as the 7-series, A8, and S-class respectively. However, with American and British consumers left scrambling, sales of the higher-end models have come to a startling decline.

Mercedes-Benz fared the worst of the three in January, posting a 35% decline in global sales to 53,900 cars. Audi posted a 29% global drop in January to 56,200 cars and BMW posted a 22% global drop to 60,248 cars.

Analysts suggest Audi, due to its economies of scale with Volkswagen AG, and its successful A3 model is best positioned to face the storm. BMW is second-best positioned to a market-niche filling, albeit low margin 1-series. Mercedes is worst positioned, but quite frankly, all 3 are in trouble.
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fatandsassy - 2/16/2009 3:44:53 PM

+1 Boost

What will we do without the 3 germans?

veyron1001 - 2/16/2009 4:00:18 PM

+3 Boost

Clearly not near as bad as the failing 3

neutral - 2/17/2009 1:41:16 AM

-2 Boost

shut up ignorant moron. Oh yea, Toyota / Nissan / Honda are loosing money too... are those the "failing 3" you are talking about? Hows it feel to know that 99% of your comments are ignorant and show that you have an IQ of about 45?

VISO - 2/16/2009 5:28:32 PM

-3 Boost

Yes, the Big Three Premium brands lost sales in January, but I do not think that they will implode. Audi and BMW are best positioned due to their committment to small premium cars that do well. Also, Audi is not dependent on the US as much as th others so it benefits from that. But it will be very tough for all three this year. So, I wish all three the best. Also, Lexus is not exactly doing so hot with their global sales less than half of the Big Three, no real small premium vehicles, dependent only on hybrid technology, no serious diesels, no real presence outside the US and sales falling here, and nor real performance or motor sport arm to boost image around the world. Parent Toyota not doing so hot doesn't help. Actually, VAG is better positioned.

Jordanski - 2/17/2009 1:43:24 AM

-2 Boost

audis suck. stfu. benz & bimmer ftw.

neutral - 2/17/2009 1:48:02 AM

+2 Boost

cmon Jordanski... im Mercedes (and domestic) for life... but I could never say Audi or BMW is anything less than top notch.

Ricks2Dogs - 2/16/2009 6:31:19 PM

+3 Boost

Maybe now the Germans will finally ditch the 'superior' attitude that has plagued them since day 1, which they have always been able to overcome by actually producing superior products. They have opened their eyes a bit over the last 15 years or so thanks to the competition from Japan...but not nearly enough. Three times over the last 6 years I've eagerly walked into my local BMW dealer and left without buying anything because of arrogance in the showroom air. Mercedes was not as bad strangely, but still treated me like I was window shopping and could not really afford a Benz. Audi was the best of the three...actually quite helpful. Times have changed and will continue to do so...now is definately no time for any attitude in the showroom.

2ndbimmer - 2/17/2009 10:04:51 AM

0 Boost

i am sure they did. You have a trans am logo for your icon, did your mullet throw them off?

S4cabriofoxone - 2/16/2009 11:06:05 PM

+2 Boost

Am I the only one who is shocked to see that Audi outsold Mercedes last month?

fabulescent - 2/17/2009 10:58:45 AM

+1 Boost

Yes. Audi seems to have a better line up for the times. If one assumes luxury buyer want to give up a little and still buy luxury vehicles, Audi's line up, vehicle for vehicle against their competitors, becomes quite attractive.

LUXCAR32 - 2/17/2009 12:18:19 AM

+3 Boost

Still notin close to the danger GM, Ford and Chrysler are facing. The german companies will be fine, they will just be in the situation that the failing american companies were in 2 years ago, which fortunately they know how to get themselves out of. They are still respectable and once the economy oes back up, so will their sales...can't say the same for American companies.

neutral - 2/17/2009 1:45:49 AM

+1 Boost

yea but the Big3 are a whole different market and business. The German3 build for the luxury market that does not demand bargain basement prices like a large segment of the Detroit3's market. Just like Toyota, GM is a company that makes its money on large sales volumes, unlike the Germans who while selling rather large numbers still are relatively smaller than their Japanese/US siblings.

Either way, I don't know how this is big news, no one expects these companies to be kicking ass right now, the world economy is a mess. They will be fine in the end, the Germans always seem to snap back regardless of past/current hardships. Kudos to them.

spruce_rd - 2/20/2009 11:05:03 AM

+1 Boost

badgeWHORE,
you are right.
I've got a flat tire yesterday.
It's obvoiusly Detroit/Bush/Cheney's fault.
Ignorance is a bliss.

2ndbimmer - 2/17/2009 10:08:29 AM

-1 Boost

sadly enough badgewhore, i think you are right. its a very plausible conspiracy theory. just like the government plotting 9/11. They all knew this was going to happen. maybe they hate the unions that much to try to fail the big 3 so they are forced out?