Mercedes outsells BMW for first time since March

Michael Shields, European Auto Correspondent FRANKFURT (Reuters) - BMW group vehicle unit sales fell 7.7 percent in July, the world's largest premium carmaker said on Monday, allowing rival Mercedes-Benz to outsell the core BMW brand for the first time since March.

But deliveries of BMW's Mini brand handily beat sales of the Smart minicar, keeping BMW group sales including luxury marque Rolls-Royce ahead of those at DaimlerChrysler's Mercedes Car Group, which also includes Maybach limousines.

BMW group sales slipped to 102,452 units last month -- still its second-best July ever and trailing only July 2005, when the then-new BMW 3 Series saloon sent sales rocketing.
Limited availability of the 3 Series coupe version before a new generation of that model arrives in September also weighed on sales, as did slumping deliveries of its ageing X5 and X3 offroaders, BMW said in a statement.

BMW brand global vehicle sales fell 7.7 percent to 86,597 units in July, while Mini brand deliveries also retreated 7.7 percent to 15,804 cars as capacity upgrades at the Mini plant in Britain restricted supply.

Roll-Royce sales gained 13.3 percent to 51 Phantoms.

In the first seven months, group deliveries rose 5.7 percent to 800,931 units. Sales of the 3 Series were up by a quarter to over 290,000 cars, while top-of-the-line 7 Series sales gained 16.4 percent and 5 Series sales rose 3.3 percent.

Bank Sal Oppenheim car sector analyst Michael Raab said the sales slowdown at BMW was set to continue for the next few months while customers await a facelifted X3 due out next month and new generations of the X5 and Mini by year's endThe picture should reverse back in favour of BMW early next year," he said, but the arrival of the new Mercedes-Benz C-Class car next year would shuffle the desk once again.

The question of whether to own BMW or DaimlerChrysler stock hinges largely on perceptions of the economy, Raab said. He anticipated a weaker economic environment over the next six months, particularly in the United States.

"Assuming that this is correct, you want to see quality with little risk, and if you do that you clearly choose BMW," he said.

DaimlerChrysler is more exposed to any downturn via its U.S. arm, Chrysler, and its role as the world's biggest truckmaker.

BMW has forecast record sales volume this year and vowed to remain the world's top premium carmaker.

Outgoing BMW Chief Executive Helmut Panke said last week that group sales through July would show a clear rise, although not to the same extent as the 8 percent gain in the first half as year-on-year comparisons became more difficult.

Mercedes Car Group reported last week that July sales rose 1.7 percent to 102,300 units, bringing seven-month sales up 7.7 percent to 729,600 vehicles.

Its sales charge has been led by the Mercedes-Benz brand, which delivered 11.9 percent more cars and SUVs through July. Sales at the Mercedes-Benz brand last month surpassed BMW brand vehicle sales by around 6,000 units.