March 2000
Text By Ulysses Ang
Photos courtesy of BMW, Lexus and Mercedes
MOTIONCARS Magazine
http://motioncars.com/
The luxury car market has never been this good.  Sure, BMW and Mercedes-Benz have battled using their compact sedans in the 1980s with the 3-series and the 190E, but things have changed.  In the 1990s, the compact sports sedan market has become the one of the most fiercely competitive range for any luxury carmaker.  In fact, BMW and Merc have introduced every conceivable engine type to fill in any niche market ranging from a 1.8-liter hatchback (BMW 318Ci) to a full-blown 4.3-liter road rocket (Merc C43 AMG). 

In the past few years, the playing field has widen considerably, wiping out any near form of market domination from either BMW or Mercedes.  These two German firms have been subjected to the reemergence of Alfa Romeo, Audi and Peugeot plus the entrance of new players such as Acura, Infinity and Lexus. 

In basic marketing strategy, they always say that more competition is better..for the consumer.  In fact, in order to survive in this market, carmakers had one of two options: create a wonderfully refreshing and different vehicle from the rest of the market or introduce a cheaper model.  However, being luxury car markers, they have opted the first strategy and since the early 1990s, each of these makers tried to distinguish themselves from one another through exterior design, engine superiority, excellent build or superb customer service.  In any case, the market has turned into the shape-up or ship-out mode.  Some carmakers have already suffered the lack of interest and / or sales such as Infinity's G20, which has generated less enthusiasm than watching Pat Robertson.  Alfa's 155 has been despised as 'designed for monkeys' and 'built by monkeys' denoting its poor ergonomics and build quality.

In this large fray of cars, every motoring enthusiast and car nut in the world would agree that the BMW 3-series is the benchmark sedan for all the rest.  Having driven a 1994 BMW 328 convertible, I would agree that the 3-series has great handling, turn-in, response and best of all, driver enjoyment.  However, the competition is fast catching up with the new 2000 3-series, with the introduction of two new models from BMW's biggest competition: Mercedes-Benz's all-new C-class and Lexus' all-new IS300.  Both of these cars promise close to / equal / or above performance levels when compared to the BMW.  Will the promise of long-time rival Merc and Lexus prove true?  A closer look beckons.


Lexus' barging days are over with the introduction of the IS200 in 1999.  The sports sedan market hasn't been this competitive before. Now, with players from Germany (BMW, Mercedes and Audi), Italy (Alfa Romeo), France (Peugeot) and Japan (Lexus, Infinity and Acura), the competition has been very fierce.
Audi's comeback in the 1990s continously threatened BMW and Mercedes' domination in the market by introducing a fun-to-drive (and own) Audi A4. This meant that BMW and Mercedes had to continously develop their products to meet customer satisfactions at a resonable price.