Are Mercedes And BMW Screwed Because They Can't Keep Up With This Automaker?

SUV

The luxury car segment may need to crown a new king.

While Lexus is killing it at the luxury car game, the segment is almost as clogged full of competitors as the standard passenger car market. So how does Lexus rank among its peers? With companies like Audi, BMW, and Mercedes all fighting for high-end customers' open wallets, Lexus has its work cut out for it. That doesn’t seem to be a problem for the brand because the high-end arm of the world’s largest automaker has sold more cars in the US than any other luxury brand this year.

Mercedes held the number one spot for some time, but Lexus has reclaimed it while BMW has been sitting in the back wondering what went wrong. A good part of the reason as to why this is happening is that Americans are buying SUVs like it’s the good ol’ days and polar bears are no longer cute animals deserving of saving. Sales of the Lexus NX crossover jumping 24%, that combined with the 45% spike in sales of the $88,000 LX SUV are what is propelling the brand ahead. This comes despite the dip in overall sales that Lexus is experiencing alongside all automakers. This means that the older and more established brands could learn a thing or two from Lexus.

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No clear path to salvation is in sight for BMW, but Mercedes is attempting to reclaim its title by dangling SUVs and CUVs in all heights and combinations in front of consumers while force-feeding the public more AMGs. However, it isn’t all pre-housing collapse business as usual. With smooth and rigid unibody chassis, fuel efficient engines, and car-like reflexes, consumers see no reason to drive smaller cramped vehicles that offer less utility. Another factor could be the low interest rates, which are driving more people to the dealerships for an upgrade, even if their SUVs are a lease. Either way, Lexus seems as if it has gotten the recipe right this time, and now the establishment is playing catch up.

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