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Mercedes, BMW boost U.S. sales on Ann Taylor shoppers

From Bloomberg| July 04 , 2010 12:51 BJT

The top three luxury auto brands boosted U.S. sales in June as high-end car companies and dealers added Ann Taylor shoppers to their Gucci-loving loyalists.

Sales of Daimler AG's Mercedes-Benz cars and trucks rose 21 percent to 18,269 in June, while Bayerische Motoren Werke AG's namesake brand boosted U.S. deliveries 15 percent to 19,182, the automakers said yesterday. The German brands narrowed the gap against Toyota Motor Corp.'s Lexus, which increased sales 2.7 percent to 17,332 cars and light trucks.

Luxury automobiles will continue to rebound if they can lure customers battered by the recession who are just starting to consider high-end cars, said Pam Danziger, president of Unity Marketing, which tracks luxury trends.

"Many people are looking at themselves and saying, 'We're really middle class, not upper class,'" Danziger said. "They're realizing you can buy very acceptable fashion from Ann Taylor, you don't need to go buy Gucci. It's the same with cars."

Lexus remains the group leader at the mid-year point with 107,430 sales. Mercedes sold 103,674 through six months and BMW delivered 100,632. All three have boosted sales this year, reversing last year's trend. In 2009, U.S. sales fell 17 percent for Lexus, 15 percent for Mercedes and 21 percent for BMW.

Luxury brands can attract people who are recovering their wealth by focusing on entry-level models, Danziger said.

"They're looking for real value, not the nameplate," she said.

'Room to Grow'

Lexus, Mercedes, BMW and other luxury brands are pulling those people in with incentives on leases, said Jesse Toprak, an auto-industry analyst at Truecar.com.

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