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 (NASDAQOTH:DDAIF) 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, 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.

Fool contributor John Rosevear owns shares of General Motors. Follow him on Twitter at @jrosevear. The Motley Fool recommends BMW and General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.