USA - Mercedes-Benz has best month yet for 2013

Best month yet for 2013

In the 10th consecutive month of its 2013 sales streak, Mercedes-Benz USA (MBUSA) today reported total October sales of 32,620 units for the Mercedes-Benz, Sprinter and smart model lines, a 22.4% increase from the 26,642 vehicles sold in the same period last year.  Retail volumes for the Mercedes-Benz brand alone broke October records at 30,069, up 25.4%, while year-to-date sales rose 13.7% to a landmark  245,125 units.  Adding year-to-date volumes of 16,978 for Sprinter Vans and 7,450 vehicles at smart, MBUSA’s year-to-date totals reached 269,553 units, making this the best October in the company’s history.

“It’s been an extraordinary year for the brand, embodied in two cars— the CLA and the S-Class —as stunning as they are technologically fit,” said Steve Cannon, president and CEO of MBUSA.  “More importantly, October sales show they’re resonating with customers.  The recently-launched CLA is already one of the top volume models and our flagship S-Class, just rolling into dealerships, is up 75%.  With sustained momentum and compelling product across the model range, we’re looking toward a record finish in the final stretch of 2013.”

Mercedes-Benz October sales were led by the C-, E- and CLA-Class model lines.  The sporty C-Class came in first at 6,548 units, followed close behind by the E-Class with sales of 6,456—an increase of 22.6% from October 2012.  Sales of MBUSA’s newest star, the sporty CLA-Class four-door coupe, rounded out the top three at 4,895.

The Sprinter model line posted month-to-date gains of 22.3% at 2,038 units, driven by the popularity of its redesigned 2014 lineup on sale since September.  Month-to-date sales at smart totaled 513 units.

Sales of Mercedes-Benz’s BlueTEC diesel models were 1,536 for the month, up 60% versus October 2012 (960) and up 10.1% for the year at 13,368.  The company’s high-performance AMG models finished the month with sales of 729, an increase of 49.4% from last October.

Separately, Mercedes-Benz Certified Pre-Owned (MBCPO) recorded sales of 7,612 vehicles in October, an increase of 13.1% when compared to October 2012 (sales of 6,732 vehicles).  On a year-to-date basis, MBCPO sold 80,502 vehicles, an increase of 21.4% over the 66,318 vehicles sold during the comparable period last year.

Mercedes-Benz gained ground against larger premium-car competitors BMW and Audi last month

Mercedes-Benz gained ground against larger premium-car competitors BMW and Audi last month as the introduction of the CLA coupe helped demand almost double for the company's compact models.

Sales by the Mercedes brand rose 16 percent from a year earlier in September to 143,000 cars and SUVs. That beat an 8 percent jump at BMW brand and a 10 percent gain at Audi.

BMW, Audi and Mercedes are all targeting record global deliveries in 2013, seeking to attract buyers with new vehicles such as the CLA, the BMW 4-series coupe and the sedan version of Audi's A3 compact. Audi and Mercedes are competing to overtake BMW as the world's biggest premium-car seller by the end of the decade.

"Mercedes is getting some tailwinds from its model cycle," said Frank Biller, a Stuttgart-based analyst at LBBW. "The young products are pushing sales."

Daimler's Mercedes probably also improved profit margins in the third quarter, reducing the gap with competitors earnings, he said.

Nine-month sales by Mercedes jumped 10 percent to 1.06 million cars and SUVs.

BMW brand's deliveries in September totaled 158,000, pushing the nine-month figure up 9 percent to 1.21 million. Audi reported an 8 percent nine-month increase to 1.18 million. Mercedes's sales in the period amounted to 88 percent of BMW's, narrowing the gap from 87 percent a year earlier. Audi's sales difference with BMW widened to 98 percent from 99 percent.

The companies are focusing expansion in the growing auto markets of China, the United States and South America to make up for a sixth straight drop in annual industry wide sales in Europe.

Nine-month Chinese deliveries rose 21 percent at Audi and 20 percent at BMW, while increasing 8 percent at Mercedes, which is revamping its sales network in the market.

Compact demand

Global growth at Mercedes was propelled by a 91 percent sales surge of compact models in September as the company added the four-door CLA to new versions of the A- and B-class models, Daimler said in a statement last week. Mercedes is expanding in the segment with the small GLA SUV due in the showrooms early next year. The carmaker also revamped the up-market E-class sedan in April.

Deliveries of BMW's 3-series car lineup increased 28 percent in the first nine months of the year, the company said today. A Gran Turismo version of the 3 series went on sale in June. The company is also introducing diesel-powered models of the car in the U.S., where it began selling an all-wheel-drive version in 2012. Demand in China was boosted by a stretched 3 series that entered showrooms in June 2012. The carmaker also began sales of the 4 series, which shares underpinnings with the 3 series, in September.

BMW plans a new generation of the X5 SUV, built at BMW's plant Spartanburg, South Carolina, which is scheduled to enter dealerships in November.

"We have been able to keep our European sales on a similar level year-on-year, and once again reported major gains in the U.S. and Asia," Ian Robertson, BMW's head of sales and marketing, said in today's statement. "We are therefore well on our way to another increase in deliveries for the full year 2013 and a new sales record."

A3 Sedan

Audi is counting on further gains after the A3 sedan reached the European market in September. The VW unit will begin selling the model in China in the second quarter of 2014. Audi predicts that the car will be the most popular variant of the A3 line, which also includes hatchback and convertible models.

"The two main drivers of why the German luxury carmakers are so successful are internationalization and the broadening of the model lines," said Marc-Rene Tonn, a Hamburg-based analyst with Warburg Research.

The three carmakers are all expanding production in China, the world's biggest automotive market, and taking steps to begin vehicle assembly in Brazil to tap into the growing number of affluent consumers in South America's biggest economy. Mercedes will begin assembling the mid-sized C class and the GLA at a new plant in Iracemapolis, Brazil, in 2016. The move will follow BMW's production start next year in Brazil's southern state of Santa Catarina at a plant with capacity to build least 30,000 vehicles annually. Audi has said it will build the A3 sedan and Q3 SUV in the country.

"I expect BMW to remain the No. 1 luxury carmaker for another couple of years," said Frank Schwope, a Hanover, Germany-based analyst with NordLB. "They already have an advantage and it's very likely that they will retain the lead, even if the gap to Audi and Mercedes might decrease."

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