German Cars Sell in US
January 2, 2007
The preliminary figure represents a 3 per cent increase over 2005, while General Motors, Ford and Chrysler have reported slumping sales, billions of dollars in losses and tens of thousands of job cuts.
Mercedes-Benz, Audi and Porsche each expect record sales figures for the United States.
BMW appears headed to hold firm its previous year's sales, with more than 300,000 BMW and mini models in its most important foreign market, compared to 307,000 in 2005.
Mercedes Benz's final figures could show as much as 8 per cent increase or more, with more than 240,000 vehicles.
Volkswagen for the first time in several years is reporting a slight increase of 4 per cent, to 233,000 vehicles, although it continues to lose money in the US market and is not expecting to be in the black until 2008 or 2009.
Audi is expected to have boosted sales more than 5 per cent, with 88,000 vehicles sold. Porsche was headed to sales of 34,000 sport and SUVs, or more than 7 per cent more than 2005.
Sobering projections
For 2007, projections are somewhat sobering. After total US sales of 16.5 million in 2006, experts at the credit rating agency Fitch expect that Americans will only buy 16.1 million cars in 2007. Detroit projects sales will remain stagnant at 16.5 million.
The slowing US economy, higher interest rates and price wars as well as increasingly brisk competition from Toyota and other Asian producers are expected to erode sales for German as well as domestic producers. The dollar has lost 12 per cent against the euro in 2006, making it more difficult for European producers.