GERMANY: Analysts expect increased competition between Mercedes and BMW

Experts expect the duel between Mercedes and BMW to heat up in terms of German luxury vehicle sales. According to information from the trade magazine Automotive News Europe (ANE), analysts from Morgan Stanley estimate that BMW will sell 1,236 million vehicles in 2007 versus 1,165 million for Mercedes.

“We don’t believe that Mercedes is going to take the title this year,” says analyst Adam Jonas in an interview with ANE.

“But next year it will have much better chance.” The firm is banking on the redesigned C-class sedan and station wagon as well as a small premium SUV to help boost Mercedes sales. Jonas also stressed that Daimler is set to concentrate on developing superior cars, with sales returns taking second place. BMW surpassed Mercedes in global sales in 2005, holding the lead since.

So far in 2007, BMW is 21,273 vehicles ahead, but some analysts say Mercedes could soon regain the title. An inside source predicted that should the C-class launch go well, Mercedes could pass BMW this year. The source added that the split with Chrysler and allows Mercedes to concrete on developing superior cars.