Lincoln Sales Rise, as Mercedes and BMW Flatten and Cadillac’s Crash

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By Douglas A. McIntyre Published
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Ford Motor Co.’s (NYSE: F) Lincoln, which has been the whipping boy of the luxury car makers, made impressive gains in U.S. sales during July. Sales of market leaders Mercedes and BMW flattened year over year, and the drop in General Motors Co.’s (NYSE: GM) Cadillac sales accelerated.

BMW and Mercedes can afford a lackluster month, because they are the category leaders, along with Toyota Motor Corp.’s (NYSE: TM) Lexus division. Last month, BMW Group sales dropped 0.2% to 32,161. However, BMW sales include MINI. Its sales without that count rose 2.1% to 26,970. For BMW, a small number of models caused the improvement, according to management:

In July, notable vehicle sales included the BMW 2 Series which increased 61.1 percent to 1,028 vehicles, the BMW X3 which increased 49.5 percent to 2,340 vehicles and the BMW X5 which increased 123.6 percent to 6,011 vehicles.

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Mercedes-Benz USA sales rose only 1.2% to 27,526. As was the case with BMW, a few models led the improvement:

July sales for the Mercedes-Benz brand were led by the C-, E- and M-Class model lines. The C-Class took the top spot with 6,384 units, up 12.0% from the same month last year. The E-Class followed with July sales of 4,893, while the M-Class rounded out the top three at 3,851.

Lincoln’s division has needed a rebound in sales for some time. There have been suggestions that Ford shutter the brand because it has posted such poor numbers. Sport utility vehicles (SUVs) pulled sales higher, as the segment posted an improvement of 21.3% over July of last year to 9,536. Lincoln car sales dropped 3.6% to 3,186. Led by sharp improvements in MKC and MKX sales, SUV numbers were up 39.3% to 6,350.

Cadillac’s drop came despite its management’s forecast that the brand is in the midst of a turnaround. Cadillac sales fell 7.1% in July to 14,154 compared to July of 2014. The numbers would have been far worse if the performance of its SRX crossover were not so strong. Its sales grew by 46.8% to 6,753. The SRX was Cadillac’s top-selling vehicle. Numbers for its cars were abysmal. ATS sales fell 38.5% to 1,588. Sales of its CTS dropped 27.5% to 1,515. Sales of the XTS dropped 32.9% to 1,302. Cadillac management has run out of excuses.

Even with a slowdown in Mercedes and BMW sales, raw numbers show the U.S. luxury brands still lag well behind. At least Lincoln has started to gain some ground.

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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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