America's SUV Thirst Hits Luxury Brands With Hidden Hangover
- Slow-selling sedan models make up much of lease-return glut
- BMW reports October U.S. sales 24 hours late due to IT glitch
Photographer: Graham Crouch/Bloomberg
Luxury carmakers benefiting from red-hot demand for lucrative SUVs are dealing with a behind-the-scenes headache because of just how swiftly demand has shifted away from their sedans.
The glut of vehicles being returned after their leases expire disproportionately affects premium lines like Daimler AG’s Mercedes-Benz, BMW AG, Toyota Motor Corp.’s Lexus and Volkswagen AG’s Audi, because they rely more on leasing than mainstream brands. Sales for luxury manufacturers’ car models have dropped dramatically the last few years, leaving them in a bind with both too much supply and falling demand.