Mercedes Car Group sales top BMW's in August 2006

FRANKFURT, Sept 7, 2006; Reuters reported that global sales at DaimlerChrysler's Mercedes Car Group rose 1.2 percent to 88,600 units in August, nudging past archrival BMW in the race to be the world's biggest premium carmaker.

Powered by record deliveries in the U.S. and Asian markets, Mercedes-Benz brand sales advanced 3.2 percent to 81,700 vehicles, the world's fifth-biggest automaker said.

Sales at the loss-making Smart minicar brand fell 18.2 percent to 6,900 cars as it scaled back its model lineup.

Sales at Mercedes Car Group -- which includes the Mercedes-Benz, Smart and Maybach brands -- rose 6.9 percent in the first eight months of 2006 to a record 818,200 units as an 10.8 percent gain at Mercedes-Benz offset a 19.8 percent drop at Smart.

BMW earlier reported that group sales fell 10.9 percent in August to 88,394 vehicles as BMW brand sales retreated 10.1 percent to 76,502 cars.

Its year-to-date sales still led Mercedes, however.

DaimlerChrysler shares were down 1.2 percent at 40.12 euros by 1007 GMT, when the DJ Stoxx European car sector index <.SXAP> was off 1.3 percent. BMW shares slipped 1.2 percent to 39.14 euros.

DaimlerChrysler has forecast that full-year sales at Mercedes Car Group would at least match 2005 levels thanks mainly to a new model offensive at Mercedes-Benz, whose unit sales were expected to rise in 2006.

An earnings rebound at the division helped the group beat market forecasts for second-quarter operating profit, and Mercedes remains on track to boost operating margins to 7 percent next year, the company says.

Mercedes-Benz is riding a wave of demand after launching revamped versions of its M-Class offroader and S-Class executive car last year. It also rolled out the new R-Class and B-Class sport wagons while introducing new V6 and V8 engines.

Year-to-date deliveries of the S-Class -- which Chief Executive Dieter Zetsche has boasted outsells the BMW 7-Series and Audi A8 combined -- hit 61,500 units.

Sales got another boost from a freshened-up version of the E-Class sedan that hit European showrooms in June and the U.S. market in July. August sales of the model hit 19,300 units.

Sales of Mercedes-Benz sport utility vehicles more than doubled in the first eight months to 103,200 units, making the brand the best-selling premium SUV in western Europe, it said.