Mercedes-Benz Says BMW Inflated Sales Reports and Will Offer 7 Series Incentives of $8000

By Tim Burt, Motor Industry Correspondent Jul 08, 2002

A story on the FT.com site says that a war of words has erupted between Mercedes-Benz and BMW, Germany's two premium carmakers, amid claims by Mercedes that its rival has inflated its sales figures in the US and begun offering incentives of $7-$8000 dollars on its new 7-series flagship model.

The dispute - breaching the normal consensus among German carmakers on their retail figures - threatens to overshadow BMW's announcement this week of its first-half sales.

According to Mercedes-Benz, part of DaimlerChrysler, BMW brought forward vehicle sales in the US last month to flatter its record in the world's largest car market. BMW has angrily denied the claims.

Senior sales managers at Mercedes-Benz in the US, however, have complained to Joachim Schmidt, DaimlerChrysler's board member for sales and marketing, about BMW's alleged activities.

In a confidential document, obtained by the Financial Times, Mercedes claims: "It is our belief that, upon receiving competitive market intelligence on June sales, BMW retailed additional units that it held back for this specific purpose."

The allegation follows a routine circular by BMW to other carmakers last week announcing its preliminary sales figures. In it, BMW indicated that it had sold 17,469 units last month. But when it subsequently issued a press release, the figure had changed to 19,868 units.

The case exposes the increasing ferocity of the battle to dominate the premium car sector in the US. The world's leading carmakers, including Toyota, Ford Jaguar and Volvo, are fighting to lift premium sales to offset margin pressure in the volume car businesses.

BMW has rejected Mercedes' allegations and said the altered sales figures were due to retailing demonstration cars and tax-free imports not included in the preliminary figures.