Audi AG (NSU.XE) in April continued to narrow the gap to its two larger German peers BMW AG (BMW.XE) and Daimler AG's (DAI) Mercedes-Benz brand, but demand for luxury cars deteriorated further amid the economic downturn with the timeframe for a recovery still uncertain.
The premium brand and key earnings contributor of Volkswagen AG (VOW.XE), Europe's largest automaker by sales, has been less affected by the industry gloom than its rivals due to the launch of new and revamped models such as the A4 and the Q5 sports-utility vehicle as well as a favorable regional sales mix. Audi is the market leader in China and has only a relatively small presence on the troubled U.S. market.
BMW, the world's best-selling premium car maker, posted a 25% sales fall on the year to 84,218 cars in April. But it maintained pole position as year-to-date sales totaled 317,722 cars, 22% less than in the same period last year.
"The situation on the global automotive markets remains very challenging," said BMW sales chief Ian Robertson in a statement.
"The situation on the global automotive markets remains very challenging," said BMW sales chief Ian Robertson in a statement.
Audi's April sales came in at 81,923 cars, down 5.6% on the year, and decreased 14% in the first four months to 291,951 vehicles.
Daimler's core Mercedes-Benz brand posted a 23% sales fall on the year in April to 80,700 cars, slightly less than Audi, with sales in the first four months contracting 25% to 296,700 vehicles.
The world's second best-selling luxury automaker is pinning its hopes on the revamped Mercedes-Benz E-Class, which is poised to help sales volumes from the second quarter onward, as well as contribute to a better model mix. The E-Class is a crucial model for the Stuttgart-based company in terms of sales volume as well as revenue per vehicle.
The Mercedes-Benz division, which also comprised the Smart and Maybach brands, reported a EUR1.12 billion loss in earnings before interest and tax in the first quarter compared with profit of EUR1.15 billion last year.
The luxury car maker said it will increase prices of certain new models in some markets and launch the E-Class in the U.S. in June, earlier than initially planned.
BMW's EBIT swung to a EUR55 million first-quarter loss from EUR827 million profit in 2008.
Audi posted a 29% fall in first-quarter earnings year-on-year but stayed in the black with operating profit of EUR363 million.
All three premium automakers expect full-year sales to come in below the level of 2008. BMW views 2009 as a year of "transition," before several important new model launches are expected to fuel demand from 2010 onward.
SOURCE: wsj
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