BMW Stomps Mercedes in October

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By Douglas A. McIntyre Published
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The monthly race, which becomes an annual race, for luxury car sales in the United States really has only two contestants — Mercedes and BMW. Managements at the two automakers say they do not care which company wins in terms of unit sales. Profits are more important than sales, each one claims. But bragging rights are worth something. The momentum of those rights went to BMW last month.

Momentum means something too. In October, BMW sales rose 11% to 30,602. Mercedes sold a few more cars — 30,733. However, its sales dropped 4.3% from October of last year. For the first 10 months, the news was just as bad for Mercedes, in terms of growth rate. Its sales are up 7.5% to 281,728, but BMW sales for the same period rose 11.3% to 267,193.

BMW’s improvement was mostly from the heart of its line-up. The new 3-Series and 4-Series, which used to be one series and are now two, posted sales up 16.3% to 13,621. Sales of the flagship 7-Series were modest, which should be expected for a car that can cost nearly $100,000. They reached 1,680, but that was up 169.7%. Another workhorse of the line-up, the X5 SUV series, posted a sales increase of 56.8% to 3,355. The brand’s biggest stumble was sales of the smaller X3 SUV, which fell 42.9% to 1,610.

Mercedes sold a lot of SUVs last month. Sales of its M-Class rose 22% to 3,797. Sales of the expensive S-Class cars rose 39.3% to 2,666. Mercedes suffered in large part due to weakness in the middle and bottom of its line-up. E-Class sales fell 39% to 3,936, and CLA sales fell 47% to 2,596. CLA sales will not be helped in the future by the new Consumer Reports rating, which said it was one of the least reliable “new luxury car[s] you can buy.”

It is worth noting that Audi continues to claw its way into contention with the top two German manufacturers, and it is doing a good job. October sales rose 16.5% to 15,150. For the first 10 months, sales rose 14.7% to 146,133.

One thing all three luxury car companies can celebrate is that their growth rates were well above the entire industry in October, which rose 6.1% to 1,281,313.

ALSO READ: Ford October Auto Sales Better Than Expected, but Still Weak

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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