Daimler earns $3 billion in first quarter on strong China sales

[Mr. Mercedes]

Let them have it! I wish M-B would be less catered to being a "Mass Manufacturer" in the States, and let BMW explore such entry-models, quirky concepts, and mass Sales, but I understand why that can't really be a reality.

What shocked me, is how substantially more the E-Class is still selling than the 1st year and 1 year newer 5-Series. I know that the Coupe/Vert is also under the "E" nameplate, but the Sedan takes up the vast majority of "E" Sales.

KA do you know what the figures are for 5 vs E, sedans only. I don't like that the E-coupes figures are mixed in with the sedan. I'd be very surprised to see an E outsell a 5 in the US.

 

[Mr. Mercedes]

Yes, Audi profit margin will continue to rise in the future, due to VAG plans for further platform & components sharing. That will not only help Audi, but also Porsche & other VAG brands, incl. VW itself.

The enormous size of well-managed VAG is formidable! I'm sure main rivals of VAG-owned brands will have difficulties in the future to catch up ... after the VAG consolidation fully implemented.

IMO BMW & MB will have to find some strategic partners to be able to fight Audi & even Porsche in the next decade.

I know. I'm scared. DAMN VAG!

Just as well I like Audis too.

 

[EnI]

KA do you know what the figures are for 5 vs E, sedans only. I don't like that the E-coupes figures are mixed in with the sedan. I'd be very surprised to see an E outsell a 5 in the US.

It does (E-sedan vs 5-sedan). And it doesn't surprise me at all, since this time around base price for E-class models is lower than the base price for comparable 5-series models in US.

It seems BMW goes more for profit this time, not so much for sales. Rather selling a bit less @ higher prices, and generating more profit, then selling more @ lower prices @ lower profit rate. Not to mention that 5er is a hot product right now, and they rather sell it in the markets where exchange rate is favorable for BMW, and where 5er prices are high (in US are very cheap compared to other countries around the world!) - even excl. taxes.

So, the 11.9% vs 9.3% profit margin in 1Q 2011 indicates that BMW generates more profit from 5er than MB does from E-class. Since both companies acknowledged 5er / E-class were the most prominent 1Q 2011 profit generators.

It would be nice to see and compare BMWNA & MBUSA financial results.

 

[K-A]

I'm pretty sure that the E Sedan is outselling the 5 Sedan, since I doubt that the E-Coupe is selling more than 1,000-2,000 models a month, MAX.

Not to mention, the 5 is in its first year, it is more than probable that its sales will drop off next year a tad.

M-B is REALLY moving the W212, and they are REALLY focusing on doing whatever they can to move them.

I'm glad it's so damn popular, and the reception has been very well, however, I kind of respect BMW's approach in this, in "not going for max Sales". Now, I don't know if that's just cover-up because they can't beat out the 1 year older E-Class, or if it's actually true. Knowing BMW, I'd assume the former, but I wouldn't be surprised either way. And don't forget, the E60 put a hurting on the VERY popular W211 in U.S Sales, outselling it by a strong margin, but I'm sure the W211's horrible initial quality, and dropping of "Free Maintenance" had much to do with that. Not sure how the W210 VS E39 compared in Sales.

I also don't like how the E-Coupes Sales are jumbled in with the Sedans BTW.

 

[EnI]

Eg. the German market, Jan - Apr 2011 registrations:

5er (sedan + wagon + GT): 20,683 (4,986 in April)
E-class (sedan + wagon + AMG): 14.547 (3.750 in April)
A6 (sedan; no wagon!) + A7: 12.302 (3.369 in April)

 

[K-A]

Actually, on the flip side of the W212 turning the tables impressively in the U.S on the 5'er, it seems like the 5'er is doing the same in Germany. Didn't the W211 post stronger German sales, while the 5'er was "beating it" out here in the U.S?

If that is in fact the case, seems safe to assume that the Germans appreciate a more understated and fuss-free, simple/elegant design, whilst the U.S prefers a bolder and "look at me" approach.

 

[EnI]

If that is in fact the case, seems safe to assume that the Germans appreciate a more understated and fuss-free, simple/elegant design, whilst the U.S prefers a bolder and "look at me" approach.

I'm not sure it's all about the design. It's more a price factor IMO. In the case W211 vs E60, E-class had higher base price, and E60 also offered higher overall incentives. This time E-class has a bit lower base price, better lease offers. E-class is priced very aggressively this time. And that can be seen in sales figures as well.

W212 is a really great car, and when having a chance of getting it at better price than F10, I'm sure that's a very luring option! Unless you are a BMW fanatic, or really preferring BMW drive & ride experience. Price does matter. Eg. Lexus LS proved that in the past. It wasn't the most beautiful design, and certainly not the best car in the segment - but good enough, with superb price offers.

Yet I'm sure for a certain group of customers E-class offers crispier design, having greater presence. For those I'm sure W212 is a great choice. Just like E60 was. But I'm not sure they are prevalent.

 

[K-A]

Good points. They're all definitely playing factors.