Chinese auto market continues to be the best for German luxury carmakers

German luxury carmakers owe much to the Chinese auto market for its increase in sales. It is no secret that they have not benefited greatly from the scrapping programs in Europe and the United States .

The companies (Daimler AG’s Mercedes-Benz, Volkswagen AG’s Audi and BMW AG’s flagship BMW brand) all posted year-on-year volume gains of more than 35 percent in the China last month. Globally, BMW and Daimler sales have dropped considerably in 2009 this year while Audi has cut its sales contraction to slightly below 10%. Without their success in China , these numbers could have been more tragic.
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david999 - 10/6/2009 4:53:29 PM

-1 Boost

I guess selling stripped-down versions in China is working.

Agent63 - 10/7/2009 12:30:00 AM

+1 Boost

What are you talking about? the Chinese order these vehicles fully loaded most of the times.

david999 - 10/7/2009 1:24:30 PM

+1 Boost

Bullsh**t Agent 63

GermanNut - 10/6/2009 5:03:30 PM

+1 Boost

Apparently so....

agent507 - 10/7/2009 5:13:02 AM

+2 Boost

Three important things:

1. The Chinese people wo buy German premioum cars pay cash (sometimes even directly in EURO´s), which is perfect from a financial point (lease and finance doesn´t deliever a lot of "fresh" money)

2. German Premium cars in China are always delivered fully loaded / equipped (and as we all know, they make more money on the extras than on the actual car), the second homerun for the makers in terms of pure cash

3. Trust me: Everybody else, especially the japanese pseudo luxury makes, are a hell of a lot jealous about not being part of that boost

GermanNut - 10/7/2009 9:23:39 AM

+2 Boost

Audi has a contract with the Chinese government to sell limousines that carry Chinese officials.

Dieter Zetsche, the CEO of Daimler, incorrectly said that Audi sells more for volume while Mercedes-Benz sells more on the high-end of the scale.

To respond to Zetche's comment, Audi CEO, Rupert Stadler, said Audi correctly saw the opening of lucrative government contracts to drive sales and took advantage while Mercedes-Benz stayed complacent and failed to seize a golden opportunity.

VISO - 10/7/2009 12:24:34 PM

+1 Boost

As always, Mercedes-Benz misses the boat. Their Chrysler debacle, their failed vision in 1965 when they sold Auto Union to VW, and so forth their story of blundered and poor decision making continues.