It's a close race, one that likely won't result in deep price cutting to move models, but is certain however to be on the minds of operatives employed by two automakers until the clock strikes midnight for the last time this year. What the race is all about is this: the perennial sales battle between two German automakers, BMW and Mercedes, with BMW predicted to pass Mercedes in world sales totals for 2005. The implications are powerful for each automaker and will set the tone for the way each company produces and markets automobiles from 2006 forward.

Mercedes finishing second to BMW isn't a comfortable taste for DaimlerChrysler, parent of Mercedes and now owner of The Chrysler Group, maker of Jeeps, Dodges, and Chryslers. Only Volkswagen sells more automobiles than either make, but when it comes to a predominately luxury line up Mercedes and BMW battle alone amongst German makes with Audi a distant third.

Unlike Yankee automakers, Mercedes is not likely to engage in deep price cuts to draw in shoppers and "steal" sales that they might have made in 2006 for 2005 to prevent BMW. Still, buyers of Mercedes vehicles should find an even friendlier showroom in which to buy when they barter the price on their "C", "E", or "M" Classes of vehicles.

So, exactly what has led to the shift in sales? Well, published reports indicate that Mercedes sales continue to rise, but slowly. On the other hand, BMW sales increases are in the double digit class which is what has pushed BMW before Mercedes so far this year. Oddly, it is not the luxurious autos in each automakers' fold that is spelling the difference. Unknown by several Yankees, both BMW and Mercedes sell autos that are smaller and less opulent than the vehicles that appear in the states. Cars that compete squarely against Volkswagen's Golf and offerings from GM, Ford, many Jap automakers, and others.

Yes, it's right. Not all BMW or Mercedes models are high end cars. Unlike in the USA where a Cadillac is totally a luxury automobile, both German brands produce vehicles for the rank and file driver too. It is these sorts of automobiles that have fueled both automakers expansion and is likely behind BMW jumping before Mercedes.

To counter BMW's surge, Mercedes does have an ace up its sleeve : the introduction of one or 2 smaller lines of cars to the U.S. Market by 2007. If you have not worked it out yet, Mercedes has "A" and "B" Class automobiles that are smaller and less costly than the current "baby" Mercedes, what we call the "C" Class. Mercedes hopes that the US market is ready for less dear vehicles sporting the venerable Mercedes name and that these sales will propel Mercedes back into the lead.

Of course, what is good for Mercedes is good for BMW as the automaker explores bringing its "1" and "2" series autos to the US to challenge for sales. Both lines of cars are positioned against Mercedes "A" and "B" class automobiles and are the same cars that have bumped BMW's sales figures up.

Now if only Mercedes would consider importing it's SMART auto to the US market.

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