Friday, June 25, 2010

BMW, Audi, and Mercedes Brand Demand Rises;



Mercedez-Benz, BMW AG, and Audi AG are increasing their production as earlier than expected demand from the luxury automakers has risen. Ford who produces the Lincoln luxury line and Ford Focus has also improved its luxury market share over the past year. Other automakers like GM whose luxury cars can be repaired at a Buick Service hope to compete better with the top German luxury manufacturers in the next few years.

Daimler AG who owns Mercedes has hired 1,800 temporary workers for the summer to help them meet demand. Saturday shifts have also been added at their German manufacturing plants. The Mercedes GLK SUV, SLS AMG gullwing supercar, and E-class convertible have been in very high demand. BMW has hired 5,000 extra workers and Audi, a division of Volkswagen AG, has added extra shifts for its current workers to meet their own demands.

The luxury car market hit a decline during the recession of 2008 as many buyers worldwide simply could not afford the higher priced models. However, recently surges in China and North America have boosted sales for all three major German luxury automakers. The new E-class has been in high demand since its release. The BMW 5-Series is sold out throughout the world. And Audi's demand has increased 15 percent.

Just one year ago both Daimler and BMW had to slash hours for thousands of workers as the luxury market slowed down. Car production was reduced by 23 and 13 percent respectively. BMW had laid off much of its non-temporary staff during the financial crisis of 2008 and into 2009.

Whether or not the improving luxury auto sales are a sign of a worldwide economy emerging out of a recession will remain to be seen, however Daimler, BMW, and Audi are enjoy the current trend of success that they hope will continue for the rest of 2010.

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