Price War Brewing in Luxury Automotive Sector

A price war is underway in the Canadian auto sector as market leaders Mercedes and BMW seek to capitalize on post-recession consumer spending by offering deep discounts even as industry experts question whether these companies can sustain profitability in this highly competitive marketplace. The two incumbents aggressive battle for market share may play into the hands of VW's luxury brand, Audi, whose business is booming as consumers flock to its quality line of automobiles. Audi's been largely successful in drawing in leads with its value proposition of offering quality cars at luxury prices, thereby maintaining significantly better profit margins than its larger competitors. With Mercedes and BMW battling it out for the title of leader, Audi may be well positioned to continue to gain ground as it loads its war chest with resources that will surely be put to good use when BMW and Mercedes begin to falter.

With the competition expected to climax by year's end, if you've got the excess equity to blow (considering vehicles are anything but wise investments) on a ride that seemed out of your budget up until now, 2010 may be a great year to purchase that new car.

Read more here.