Mercedes Surpasses BMW as Top Luxury Brand

Daimler AG’s Mercedes-Benz brand ended BMW’s 11-year reign as the world’s top-selling luxury brand last year by boosting its worldwide car and crossover sales 11% to 2.08 million units.

BMW mustered a 5% gain to 2.00 million vehicles, according to company data. Volkswagen AG’s Audi brand finished third with 4% growth to 1.87 million units.

BMW, with a relatively old lineup of models, tells reporters at the Detroit auto show the company’s percentage sales gain this year is likely to be in the low single digits. CEO Harald Krueger says the company will continue to focus on profits over sales volume to support investment in electrified powertrains and self-driving technology.

Separately, BMW says incoming President Donald Trump’s threats against carmakers with factories in Mexico hasn’t deterred the company’s plan to open a $1 billion factory in San Luis Potosi, Mexico, in 2019. The project broke ground in June.

The new plant will have capacity to build 150,000 of the company’s best-selling 3 Series small sedans, 70% of them for the North American market.