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Mercedes’ sales jumped 15.6 per cent to a record 28,065 vehicles last year from 2009 while BMW volumes climbed 10 per cent to 27,202 in the same period.
The two German-based auto makers have dueled for the sales lead in the premium auto market for most of the last decade but BMW prevailed every year.
Mercedes chief executive officer Marcus Breitschwerdt said Thursday the company has gradually increased its business here by adopting a strategy of shifting away from a model lineup that suited Americans to one that was more European.
“In Canada, the social structure is like many European countries – middle class, hard working and skilled people,” he said in an interview. “They also care more about fuel economy and the environment.”
It led to Mercedes creating the compact luxury segment in Canada for buyers who wanted something more in quality at an affordable level but not necessarily bigger.
“We want to give someone who drives a (Honda) Civic, a Mercedes-Benz alternative that they can afford,” he added. “You pay a little more but you get much more in quality, technology and innovation in a car that is fun to drive.”
He also noted that in addition to more new products this year, the company is investing in its dealerships and used car salesrooms. The company also plans to increase if 53-store network by five to eight outlets during the next two years.
Veteran auto industry watcher Dennis DesRosiers said dealers told him that Mercedes hit record sales and remained “very profitable” at the same time.
“Of course everyone discounts but most of the sales in the luxury segments were driven by great product rather than heavy duty discounting,” he added.
Despite falling behind, BMW said the company is happy with its 2010 results, the second best performance in the company’s history.
“We had a great year and we did it with some older product,” said Barb Pitblado, the company’s director of corporate communications. “We are confident our sales will be even better in 2011.
She said a new X3 sports utility vehicle and a full year of business for its 5-Series sedans should fuel higher sales and boost prospects in overtaking Mercedes.
“We definitely hope so,” she added.
Although BMW lost the lead in annual sales in the luxury segment to Mercedes, it sold slightly more vehicles when other models are taken into account.
BMW Group said sales including the MINI brand increased 9 per cent to 31,703. Mercedes sales including smart cars and Sprinter vans rose
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