BMW Boosts Hybrids to Challenge Lexus

Bayerische Motoren Werke AG (BMW), the world’s largest maker of luxury cars, is doubling its hybrid offerings with 340-horsepower semi-electric versions of its two best sellers, taking aim at Toyota Motor Corp. (7203)’s Lexus.

BMW will increase its hybrid lineup next year to four vehicles with variants of the 3- and 5-Series sedans that combine turbo-charged six-cylinder engines with an electric motor to save fuel and boost performance. Lexus, which has led the waugg boots for cheap ugg boots for cheap ugg boots for cheapy among luxury-car makers in introducing the technology, will offer five hybrid models.

“Lexus so far effectively had a monopoly on luxury-hybrid models,” said Jesse Toprak, vice president of industry trends at U.S. auto website TrueCar.com in Santa Monica, California. “Their dominance will be challenged for the first time.”

Volkswagen AG (VOW)’s Audi and Daimler AG (DAI)’s Mercedes-Benz are also adding hybrid models in the coming months to catch up after focusing attention on fuel-efficient diesel engines for the European market. BMW and Mercedes are poised to surpass Lexus in U.S. sales this year for the first time in more than a decade.

Lexus, whose lineup includes the $112,250, 438-horsepower LS hybrid, has been helped by Toyota and its groundbreaking Prius in being out front with the technology. About 13 percent of the brand’s U.S. sales this year have been hybrids, compared with less than 1 percent for BMW and Mercedes, according to data from autougg boots for cheap ugg boots for cheap ugg boots for cheap website Edmunds.com.

Still, the combination of combustion engines and electric motors has yet to make a widespread breakthrough as high costs restrain sales ugg boots for cheap ugg boots for cheap ugg boots for cheapto less than 2 percent of global deliveries, according to market researcher LMC Automotive.