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Not sure I agree. The Mercedes products, even the AMG machines, have a different feel and character than BMWs. I am certainly not suggesting one is better than the other but, for the most part, I think BMW and Mercedes each appeal to different market segments. Athough there certainly is competition between the two, I dont perceive them as arch rival head to head competitors.
I want a luxury car that not only performs well in terms of power and handling but is also a bit rough around the edges. I perceive (and perceptions are my reality), Mercedes products are big, heavy, cumbersome, very luxurious machines that totally insulate the driver from the driving experience. This perception has been validated to me every time I ride in a Mercedes. Many people want this type of car and it was exactly what my Dad wanted when he switched from big heavy metal Buicks to Mercedes in the late 1970s. On the other hand, my BMWs were never the car that appealed to my Dad.
In other words, for me, and I believe for a very significant segment of the BMW customer base, a Mercedes is not a vehicle I would ever seriously consider. My X3 is so much more satisfying than a friends similary sized Mercedes SUV (that he loves).
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