Mercedes-Benz has made up serious ground in the American luxury market, beating out both BMW and long-reigning Lexus in sales last month. The Silver Arrow saw deliveries climb by 17 percent in the US, up to 19,862 units in September. What’s more, Ernst Lieb, the company’s chief executive officer, said that he expects the Mercedes-Benz market share to continue to grow throughout the remainder of 2010.

That news comes as BMW announced its sales had grown by 21 percent compared to this time last year. Lexus, meanwhile isn’t fairing so well. The Japanese luxury marque saw its sales fall off by a hefty six percent to 16,948 units, even in light of booming ES sales. The company delivered 21 percent more of its front-wheel-drive sedan in September, but those gains were demolished by the fact that sales of the company’s IS line dropped off by 27 percent.

It would seem that buyers are still somewhat skittish of Lexus products after a torrent of recalls earlier this year. Even so, Brian Smith, the U.S. vice-president of Lexus sales, says that he doesn’t believe his company will lose its position as the number one luxury automaker in the States when all of 2010 is counted.

Source: Bloomberg