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It is a close race, a single that probably will not result in deep price cutting to move models, but is specific nevertheless to be on the minds of executives employed by two automakers till the clock strikes midnight for the final time this year. What the race is all about is this: the perennial sales battle amongst two German automakers, BMW and Mercedes, with BMW expected to pass Mercedes in globe sales totals for 2005. The ramifications are sturdy for each automaker and will set the tone for the way every business produces and markets autos from 2006 forward.

Mercedes finishing second to BMW is not a comfortable taste for DaimlerChrysler, parent of Mercedes and now owner of The Chrysler Group, maker of Jeeps, Dodges, and Chryslers. Only Volkswagen sells far more cars 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.

In contrast to American automakers, Mercedes is not likely to engage in deep price cuts to attract buyers and steal sales that they would have produced in 2006 for 2005 to stave off BMW. Nonetheless, purchasers of Mercedes cars really should find an even friendlier showroom in which to shop when they negotiate the price tag on their C, E, or M Classes of automobiles.

So, precisely what has triggered 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 category which is what has pushed BMW ahead of Mercedes so far this year. Oddly, it isnt the luxury automobiles in each automakers' fold that is spelling the difference. Unknown to several Americans, both BMW and Mercedes sell vehicles that are smaller and much less luxurious than the cars that seem in the states. Automobiles that compete squarely against Volkswagens Golf and offerings from GM, Ford, several Japanese automakers, and other people.

Yes, it is correct. Not all BMW or Mercedes models are luxury automobiles. In contrast to in the US exactly where a Cadillac is exclusively a luxury vehicle, each German brands make vehicles for the rank and file driver too. It is these sorts of vehicles that have fueled each automakers development and is probably behind BMW jumping ahead of Mercedes.

To counter BMWs surge, Mercedes does have an ace up its sleeve: the introduction of one or two smaller lines of vehicles to the U.S. industry by 2007. If you havent figured it out yet, Mercedes has A and B Class vehicles that are smaller and much less expensive than the existing infant Mercedes, what we call the C Class. Mercedes hopes that the US marketplace is prepared for less pricey automobiles sporting the venerable Mercedes name and that these sales will propel Mercedes back into the lead.

Of course, what is great for Mercedes is great for BMW as the automaker explores bringing its 1 and 2 series cars to the US to compete for sales. Each lines of cars are positioned against Mercedes A and B class vehicles and are the very same cars that have bumped BMWs sales figures up.

Now if only Mercedes would think about importing its Intelligent auto to the US market place