CEO Says To Fear Not, BMW Will Overtake Mercedes In US Sales... But With What?

CEO Says To Fear Not,  BMW Will Overtake Mercedes In US Sales... But With What?

Mercedes-Benz held off BMW again last month to preserve its substantial midyear lead in U.S. luxury auto sales. BMW's CEO isn’t ready to accept being relegated to the second position.

Mercedes sold 28,994 cars and light trucks in the U.S. last month, a record for June and up 1.8 percent from a year ago. BMW eked out a gain of 0.4 percent and sold just 32 vehicles fewer than Mercedes, which has won five of the past six months. With Monday’s results, Mercedes retains a lead of about 12,900 vehicles this year.


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GermanNutGermanNut - 7/5/2017 10:24:47 AM
+2 Boost
Considering BMW trails Mercedes-Benz by 12,900 units YTD and there are only 6 months left in 2017, BMW would have to outsell Mercedes-Benz by an average of 2,150 units per month in order to make up the sales gap.

Given that Mercedes-Benz has outsold BMW in 5 of the last 6 months and that BMW only has a new X3 high-volume model out this year, I would say BMW's chances are pretty close to zero in terms of outselling Mercedes-Benz in 2017 in the U.S.

BMW's recent percentage change has trailed its rivals and without a new high-volume model, it's unrealistic to expect that to somehow change. In 2016 BMW's U.S. sales were down 9.5% whereas Mercedes-Benz was down just 0.8% and Audi was up 4.0%. BMW continues to have the worst percentage change in 2017 as its YTD sales are down 2.8%, Mercedes-Benz is down 0.5% and Audi is up 6.2%.

In order for BMW to catch up, it would likely need a new 3-Series/4-Series and more than one brand-new SUV model.


autopalautopal - 7/5/2017 11:39:06 AM
+3 Boost
I think the guy means BMW will eventually regain the number one position. Certainly not this year, and maybe not even in 2018, but maybe 2019 if their new X3 is the hit they are projecting, and the next generation 3/4 series turns out to be very good. I don't think it will happen, but we will see


GermanNutGermanNut - 7/5/2017 11:52:15 AM
+3 Boost
If BMW CEO Harald Krueger was referring to BMW eventually being number one in let's say another 2-3 years, yes, that's obviously possible but I agree with you that 2017 is out of the question. I also think 2018 will be close to impossible given the large current gap. Forecasting 2-3 years out is simply too difficult given the rapidly advancing technologies like autonomous driving, electric vehicles, ride-sharing etc. that will fundamentally change the auto industry.

I also question the CEO's quote when he said, "“You can’t be the No. 1 company in the world if you’re not No. 1 in the U.S.” Given China's dramatic rise, I believe it will be very possible that if a company experiences explosive growth in China but remains in second place in the U.S. it could still be the number one seller globally. Of course a company's sales in Europe play a big role in determining who is number one globally, but I believe number one position in the U.S. will not necessarily mean number one in the world.


autopalautopal - 7/5/2017 2:08:10 PM
+3 Boost
Cut the man some slack, as the CEO, he has to say that, even though, I'm sure deep down in his cranium, he knows it wont happen anytime soon, but I guess he has no choice but to say they will regain the number one spot. Is like these guys would be happy to sell less, and make less money, as long as they are number one. Ridiculous


FirewombatFirewombat - 7/5/2017 11:15:05 AM
+1 Boost
I don't think that BMW has a good chance, not without a smaller sedan compete against the CLA/ upcoming A-class sedan and even with the X7. It's the same case globally, with MB adding a pick-up truck in some markets and additional products like the V-class large MPV I think they'll remain no.1 for some time but for all 3 brands it's always a balance between sales and the quality of products.

I don't think most fans or buyers care whether a car brand is no.1 or no.3 as long as the product is good. Shareholders are a different story however.


TheSteveTheSteve - 7/5/2017 11:20:36 AM
+3 Boost
The "We're No.1" bragging rights between Mercedes and BMW is similar to Audi's "78 consecutive months of increasing sales" brag, in that the one doing the bragging (e.g., BMW's "we'll beat Mercedes") wants you to believe "we're the best, so you should buy our product." Meh.

Get what you want, and as long as you're happy, who cares which manufacturer is bragging about what?


PUGPROUDPUGPROUD - 7/5/2017 1:55:28 PM
+2 Boost
BMY has gone from the "The Ultimate Driving Machine" to "The Ultimate Mercedes Follower Machine." Once loved these cars but the styling never really changes and bores me. BMY use to make a major styling change every second generation to keep fresh interest in the brand. Now the styling has remained drab and the cars performance softened. Brand has been diluted. Mercedes has remained true to its brand values though lately they too may have stretched the cookie cutter too far across the line. my advice to BMY is "No risk, No reward."


MDarringerMDarringer - 7/5/2017 4:23:43 PM
-1 Boost
BMW will be bought out by Toyota at some point if BMW doesn't clue in. Mercedes could wind up owning Renault/Nissan/Mitsubishi by contrast.


FirewombatFirewombat - 7/6/2017 12:10:20 PM
0 Boost
BMW Group is larger than Daimler in terms of global premium passenger car sales, not sure if you know how the car industry works but the brands you mentioned are owned by larger holding companies. The fact that you think Daimler is capable of buying the companies you mentioned, e.g. Renault / Nissan is near impossible considering how large Renault / Nissan are. Also not sure why BMW group would want to sell to anyone,they're the best selling premium automotive group in the world, not a long list of competitors but Daimler is quite a bit behind.


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