 Small models cash in on fuel woes
(China Daily)
Updated: 2008-07-03 07:58 Americans' concerns over record gasoline prices is translating into some success for German carmakers Daimler AG and BMW AG as demand grows for their smallest, most fuel-efficient vehicles. Daimler's June US sales rose because of its new Smart two-seat car; its Mercedes brand fell. BMW's Mini brand gained as the company sold fewer of its namesake luxury vehicles in a weakening economy. Daimler and BMW, known best for their offerings aimed at affluent buyers, are having trouble meeting demand for more affordable fuel-efficient cars as gasoline climbs above $4 a gallon. US industry sales fell 18 percent in June, the most in almost six years, dragged lower by plunging sales of big trucks at General Motors Corp, Toyota Motor Corp and Ford Motor Co. "BMW sales in June were probably also impacted by the stock market and declining home values," said John Wolkonowicz, an automotive analyst at Global Insight Inc. in Lexington, Massachusetts. "BMW's buyers are younger than Mercedes buyers, causing them to feel the pinch more from their declining stock portfolio and home equity." Mini's June sales climbed 25 percent to 5,211 cars, Munich- based BMW said in a statement. The company's total fell 11 percent to 26,155 vehicles, because of a 17 percent slide in the BMW brand. US sales for Daimler were up 13 percent from a year earlier to 22,121, including 2,545 Smart cars, the Stuttgart, Germany-based company said in a statement. Its Mercedes-Benz unit reported a drop of less than 1 percent to 19,576. Luxury, SUV sales The companies' US sales of luxury cars and sport-utility models are dropping as the German automakers curb shipments from Europe because of the euro's strength against the dollar, Wolkonowicz said. BMW has only a four-day supply of Mini Cooper cars, said Andrew Cutler, a BMW spokesman in Woodcliff Lake, New Jersey. A 60-day inventory is typical for the industry. Prices for the cars start at about $18,000, and a Mini Cooper with manual transmission gets about 37 miles per gallon. Mini sales are up 34 percent this year through June. BMW began selling the Mini in the US in 2002 and reached record sales in 2007 of 42,045. This year's sales of 26,400 through June put the brand on pace for another record. Agencies (China Daily 07/03/2008 page15) |
