The Auto Writer

One of the bright spots for Mercedes in 2009 was the GLK Class, a small crossover with a starting price in the mid-30s.

European car manufacturers experienced many of the same troubles as their Asian and North American counterparts in 2009. Sales were down, including traffic to luxury brand showrooms, and customers who did buy were attracted to a number of smaller, less expensive models. Still, if you managed to bring out an all new model, the sales were there: the Mercedes E-Class is a good example of one line that got a much needed makeover in 2009.

Every European automaker will see their sales decline in 2009 over 2008, the result of a depressed US market which bottomed out this past spring. Even with cash for clunkers and a late in the year spike in sales, most European makes will see their sales drop by at least 20 percent for the year. Volkswagen, however, will see its sales down in the single digit, enough of a difference to allow it to pick up market share.

German Lux Supremacy

BMW and Mercedes continue to duke it out for European luxury car supremacy, but even luxury car buyers are holding onto their wallets, making do with their 7-Series and C Class vehicles for another year. In November, BMW registered a sales increase for its 1- and 5-Series as well as its X5 and X6 SAVs. But it looks as if only the X6 will finish ahead of last year’s pace with even the MINI brand experiencing declines topping 15%. As for the X3, sales of the compact crossover are off by two-thirds.

Mercedes has benefited from the release of new models including the GLK Class crossover and its all new E Class. But the biggest drag on Mercedes is its cheapest brand: Smart. Sales of the Smart rocketed when the Fortwo was introduced in January 2008, staying up when gas prices surged past $4 gallon. But with sales down by 38 percent through November, the two seater is turning out to be more of a flash in the pan and a non-competitor to MINI.

Tata Troubles Ahead?

Tata Motors may rue the day that they decided to purchase Land Rover and Jaguar from Ford. But sales which were off by 30% in February are now down about 18% through November, as both brands enjoyed renewed customer traffic over the past few months. Fortunately, Tata has been able to secure funding to absorb the two British makes, but how will the company fare in 2010?

Saab and Volvo are heading in opposite direction, though the story line for the two Swedish brands seems subject to (constant) change. Koenigsegg and Spyker expressed interest in Saab, while Volvo is likely to go to Geely, a Chinese automotive manufacturer. A comparative look at their respective product lines shows why interest in Saab is limited while Volvo will be sold although for a substantial loss.

Audi Bolsters VW

Volkswagen is riding on a crest of producing clean diesel engines, a smart alternative to hybrid vehicles. Though VW itself is making strides, my thinking is that the Audi brand will become much more of a force for the automaker going forward. BMW and Mercedes have long dominated the European luxury car market, but when it comes to something different, exciting, and fairly unique, Audi delivers.

Porsche is now part of the Volkswagen camp, but as far as most enthusiasts are concerned, the brand stands head and shoulders above the rest. Those same enthusiasts are debating the merits of the Panamera, a four door Porsche sedan. Like the Cayenne, the Panamera has changed what it means to be a Porsche dramatically, something die hard Porsche owners absolutely hate.

Unaffordable Exotic Models

Finally, Maybach, Rolls Royce, Ferrari, Maserati, and Bentley continue to appeal to exotic buyers even if sales are down. Most of us can only dream of expansive financial portfolios to buy these kinds of vehicles, with even the uber rich discovering that waiting for some semblance of recovery to kick is the best course to take when considering a $300,000 car.

Photo Credit: Mercedes-Benz USA

See Also: Hits, Misses For 2009: US Style | Hits, Misses For 2009: Asian Style