Luxury car sales represent just a small portion of overall car sales, but they generate big profits for their makers. So far in 2013, German giant Daimler's (MBGA.F -1.05%) Mercedes-Benz brand leads the U.S. luxury-car market. But key rivals have been gaining ground, and the battle for this lucrative market is growing fierce.

In this video, Fool.com contributor John Rosevear looks at the state of the battle for this small but lucrative market, and at the efforts being made by one big competitor that is spending billions to overturn the global luxury-car pecking order.