With BMW continuing to enjoy the largest market share of the premium sector, Mercedes-Benz is about to hit back with the launch of two all- new vehicles, one of which sees it enter a segment for the first time.
With the 3-Series adding to an attractive range that includes the award winning 5-Series, the entry-level 1-Series and the X3 and X5 SUVs, BMW's market share continues to grow at record levels in Ireland. The company now enjoys a massive 27 per cent of the premium sector, compared to just 24 per cent for Mercedes-Benz, its nearest competitor.
Overall, BMW now has a record 3.3 per cent of the total new car market in Ireland - a formidable share for a premium manufacturer and one that continues to grow thanks to aggressive marketing, such as its popular buy-back residual guarantee programme on the 1 Series.
But with all the significant BMWs now on the market there is little new in the pipeline for 2006. A high performance 6-Series the 3-Series Coupé and a hardtop Z4 represent the major 2006 launches planned by BMW.
Mercedes-Benz on the other hand has a healthy roll out programme for 2006, starting with this week's launch of the new B and M-Class. These will be joined in February by the flagship S-Class and later by the niche G Wagon 4X4 favoured by the hunting/shooting set that actually take their Mercs off road.
With such an array of new cars coming, Mercedes is adamant it will recapture ground lost to BMW over the year, as its recently appointed chief executive, Stephen Byrne, said: "Ultimately in 2006, we will regain our number one position."
B-CLASS
The first and the most significant addition to the Mercedes' stable is the B-Class. Marketed as a compact sports tourer, the B-Class is in essence a large family hatchback. Indeed, its side profile is not dissimilar to the more mainstream Opel Astra, although that's where the similarity ends.
Unsurprisingly, the B sits between the A and C-Class and for the first time offers a stepping stone for Mercedes' buyers who have outgrown the A but cannot afford the leap straight to the C-Class. Starting at €27,995 for the entry-level 1.5-litre petrol, the B-Class is substantially more than the €22,650 Mercedes asks for the similarly powered entry A-Class.
As a result, it is unlikely many will opt to jump straight into the B-Class as their first Mercedes car. However, Motor Distributors, the importer of the marque in Ireland, hopes at least 500 buyers will either do that or trade up from an A-Class in 2006.
The B-Class is the smaller sibling in the new sports tourer family from Mercedes that will include a grand sports tourer, the R-Class, in March 2006. Clearly aimed at the younger buyer, this five-seater offers impressive interior space - 2,245 litres at best - and yet the designers have retained some of the styling cues of a streamlined hatch rather than the high sides and utilitarian look of many MPVs.
However, to benefit from the impressive load space, one must opt for the removable seats, and then remove them. Powering what will undoubtedly be the best seller of the B-Class range is Mercedes' familiar 95bhp 1.5-litre petrol unit, which is never going to astound with its performance taking over 13 seconds to reach 100km/h. For brisker performance, there are some interesting new offerings including a 2.0-litre 193bhp turbo petrol, which takes this 1.3-tonne car from standing to 100km/h in 7.6 seconds. For power and economy head for the diesels, such as the 2.0-litre 140bhp unit, which pumps out a hefty 300Nm of toque and offers a sub-10 second 100km sprint time, as well as a claimed 5.6l/100km.
But costing almost €10,500 more than the entry-level petrol, that huge extra outlay is never going to be recouped at the pumps. Safety is high on Mercedes buyers' tick list and the B doesn't disappoint.
Traits of the smaller A-Class can be found, such as the transverse mounted engines and raised floor, which allow the engine block to travel under the passenger safety cell in the event of a head-on collision. For added safety, airbags surround all occupants.
Particular attention has also been paid to pedestrian safety, such as crumple spaces in the bonnet and wings, and what is sure to disappoint some drivers, the pedestrian unfriendly three-pointed star no longer protrudes from the end of the bonnet.
The B-Class is one of the most significant vehicles to emerge from the Mercedes' stable and counts as the third of seven new models coming out of Stuttgart over a 14-month period, all of which make up the company's product offensive aimed at recapturing its marketshare.
M-CLASS
Joining the B-Class in the showrooms in time for the New Year rush is the new M-Class. Although completely new, this latest generation Mercedes SUV remains instantly recognisable as the M-Class.
Battling in a segment that has shown huge growth in recent years in Ireland, the new M-Class comes laden with a surprising amount of off-road technology: a new permanent four-wheel drive system, adapted ABS for off-road use, hill start, hill descent control and electronic traction control are all standard.
In addition, the new ML now also comes with an optional off-road pack that includes a high and low- range transfer box, front and rear locking differentials and modified air suspension that raises ground clearance to almost 30cm.
Impressive kit for a vehicle that will rarely get dirty. There's a range of engines, including three all-new units powering the latest M, which stays true to the industry norm by being longer (by 15cm) and wider (7.1cm) than its predecessor.
It is also sits slightly, although imperceptibly, lower, confirming the manufacturer's desire for the M-Class to be considered more as an on-roader. The most interesting of the powerhouses is Mercedes' 3.0-litre third-generation common-rail diesel, which pumps out either 190bhp or 224bhp depending upon which model one opts for.
What's of more interest for those intending on towing is this engine's massive low down torque output: it produces either 440Nm or 510Nm, which translates into a huge amount of pulling power. Two petrol units - a 3.5-litre and a 5.0-litre - complete the initial line-up. Expect a high performance 6.3-litre 510bhp AMG version to arrive shortly, but costing well into six figures, its appeal here will be limited.
More realistic is the 190bhp 3.0-litre diesel, which at a shade under €70,000 will make up the vast majority of the 400 M-Class sales next year. This sub-€70,000 price means the M-Class comes in at €4,000 less than the equivalent X5 - achieving those BMW conquest sales is clearly high on the Mercedes' to do list for 2006.
As Mercedes is well aware, the X5 remains market leader and has already sold over 500 units this year, closely followed by the Range Rover and VW Touareg.
Mercedes claims to have invented the premium SUV segment when it first launched the M-Class in 1997. Undoubtedly Range Rover would take exception to this claim. However, what is undisputable is that since it was first launched, the M-Class has achieved over 640,000 sales.
Intending to build on that solid foundation, the new M, which has Mercedes' seven-speed automatic transmission as standard across the range, offers an impressive package for the price.
The next 12 months will reveal whether it is enough to tempt over those X5 buyers.
With Mercedes taking the fight to BMW's door, the two German prestige manufacturers are set to go head-to-head in 2006. BMW however is typically unphased. "It will certainly become more competitive next year," said a BMW spokesperson. "However, we are confident we will remain market leader."
But with a major new product offensive aided by surprisingly high sales of models such as the Mercedes-Benz CLS - demand for this niche coupé continues to outstrip supply and sales will top 425 units in 2006 - Mercedes is not going to be satisfied with second place next year.