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BMW Tops Lexus for Third Month, Aims for Luxury Lead (Update2)

By Alex Ortolani

June 2 (Bloomberg) -- Bayerische Motoren Werke AG’s BMW brand outsold Toyota Motor Corp.’s Lexus division for a third straight month in May, challenging the Japanese maker’s nine- year reign as the top seller of luxury vehicles in the U.S.

Sales totaled 18,383 for the BMW brand, a 28 percent drop from a year earlier, the Munich-based company said in an e- mailed statement. Lexus reported 16,922 vehicles sold, a decline of 36 percent.

A Lexus loss of the lead in full-year U.S. luxury sales would be another blow for Toyota City, Japan-based Toyota, which posted its first annual loss in 59 years for the period that ended in March. The BMW brand is ahead of Lexus 76,819 to 73,186 after this year’s first five months.

“Lexus tends to be more of a family-oriented buyer, versus some of the BMW buyers that might skew a little bit toward the empty nesters that are at a different place on the wealth curve,” said Craig Johnson, president of retail-consulting firm Customer Growth Partners LLC in New Canaan, Connecticut.

Lexus has led annual U.S. luxury-vehicle sales since 2000, when it displaced Daimler AG’s Mercedes-Benz, according to Autodata Corp., based in Woodcliff Lake, New Jersey.

That ranking has “never been our goal,” Mark Templin, manager of the Lexus brand, said on a conference call today. He declined to comment about BMW outselling the Toyota division so far this year.

BMW spokesman Jan Ehlen didn’t immediately return a call and e-mail seeking comment.

‘Wallets Closed’

Other makers of luxury autos also reported May declines as U.S. joblessness was at the highest rate since 1983.

Buyers of luxury goods generally “are keeping their wallets closed right now,” Johnson said. “Any kind of discretionary spending is down at multiyear lows, and luxury seems to be taking it in the chops these days.”

The Mercedes-Benz brand sold 15,134 vehicles for the month, a 31 percent drop, Stuttgart, Germany-based Daimler said in a statement. The total including the Smart brand was down 33 percent to 16,303 vehicles, the company said.

BMW U.S. sales including the Mini brand fell 28 percent to 22,993 last month.

Sales for Honda Motor Co.’s Acura division slid 36 percent to 9,469 cars and sport-utility vehicles, the Tokyo-based automaker said in a statement. Nissan Motor Co.’s Infiniti division posted a drop of 38 percent to 6,496 vehicles, according to a statement from the Tokyo-based company.

General Motors Corp., which is reducing brands in bankruptcy, said Cadillac sales fell 40 percent to 8,027 vehicles. Cadillac is among divisions Detroit-based GM plans to keep, while shedding brands such as Pontiac and Saturn.

Dearborn, Michigan-based Ford Motor Co.’s Lincoln luxury brand reported an increase of 2.4 percent to 8,566 vehicles, helped by the new MKS sedan and the Town Car.

To contact the reporter on this story: Alex Ortolani in Southfield, Michigan, at aortolani1@bloomberg.net

Last Updated: June 2, 2009 15:49 EDT

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