BMW and Mercedes outsell Lexus

USA Today reports that BMW and Mercedes outsold Lexus in the first quarter, this for the first time in 5 years. The article doesn't offer specifics, but assuming the report is accurate this could mean that Toyota's recall problems are beginning to have an effect on it's luxury car sales.

Add the troubles that Toyota is experiencing from the March earthquake, and the outlook might be dismal for the Japanese carmaker. Toyota just announced severe cuts in production, and it's dealers are bracing for a shortage of cars to sell this spring and summer.

Bad news for Toyota and Lexus, but maybe good news for the Germans.