Tough Times, Big Sales

All you need to do is read the headline of the Wall Street Journal to discover that the US and Global economy is going through one of the worst recessions...ever.  During this time, many consumers hold back from spending, however interestingly enough many European automakers, especially Mercedes Benz, are still selling more and more cars.  They are not selling C-Class sedans, rather more of their flagship S-Class sedans which are priced around $98,000 in the US.  Compared to 2009 sales records, Mercedes managed to increase sales in 2010 by 15%, a shocking number for such an unstable economy.  Ironically, MB's Smart brand had a 17% drop in sales compared to 2009!  In the US alone, Mercedes sales increased 22%, partly due to the re-designed 2010 E-Class sedan and coupe.  Many European automakers including Mercedes Benz have been seeing many emerging markets such as China aiding the increase in sales.  In China the average market for a S-Class Hybrid, which costs well over $100,000 in the US market, is a 26 year old, compared to the average 55 year old.  This year alone in China, Benz has secured almost 61,000 sales.  Many Benz representatives believe that more and more young people want to buy into the Mercedes Benz lifestyle.  While many of the American auto manufacturers such as GM, Ford, and Mercedes sister brand Chrysler are struggling in this market- European success is definitely not helping their recovery.