Doron Levin: German Carmakers Taking On All Competitors in U.S.

According to Doron Levin reporting for Bloomberg News, German automakers are trolling for U.S. buyers where they've never ventured before, are posing a tough new threat for rivals. The free-for-all is just starting. Bayerische Motoren Werke AG and DaimlerChrysler AG's Mercedes division, after selling mostly luxury sedans, are about to introduce Americans to models suitable for middle-class pocketbooks. Volkswagen AG, once known for its Beetles, is heading in the other direction: a $60,000 luxury sedan called Phaeton to go on sale in the U.S. in 2003. "The German automakers are beginning to look here more as they do in their home markets," said Art Spinella of CNW Marketing Research in Bandon, Oregon. As recently as 1995, Germany's Big Three automakers together sold 303,299 vehicles in the U.S.; by 2001 their sales reached 858,696 and are set to rise again this year. Japanese automakers have been more aggressive, gaining an even bigger share of the U.S. market than German rivals.