Luxury car sales are off by at least one-third compared to last year's numbers, and the end is probably not in sight. In past recessions, the wealthy have been insulated by their money, but not this time. Real estate and banking are responsible for a large amount of the financial pickle we're in, and as those sectors get walloped by reality, the luxury cars typically purchased by agents, brokers, and bankers are languishing.

Those that haven't lost their shirts are also either holding on to what they've got for now, or buying something less ostentatious. While you might miss out on a certain brand cachet by trading a Mercedes for a Prius, it's a different kind of status symbol, just the same. Besides, why bother paying so much for a premium car when a loaded "normal" vehicle can be had with features that were once the exclusive realm of luxury cars? A desire to be less flashy, a newfound concern about the environment, and a beat-down portfolio have converged to generate the perfect financial storm, killing momentum for luxury car sales. Things might turn around a bit as environmentally conscious premium cars become available. There are the new diesels, and Lexus will have its own dedicated hybrid when the HS250h goes on sale this fall. Before any of that happens, however, current inventory will have to be cleared, so now might just be the perfect time to pick up a luxury car at a steep discount.

[Source: Detroit News, Photo: Niello Porsche]

If you've got it, flaunt it. The super high-end automotive market has been counting on that attitude for years, and it may now be coming back to bite them. It seems that sales of luxury marques such as Bentley, Maybach and Aston Martin have been on a downward trajectory over the last year. Despite the fact that there are a number of people who still have plenty of dough to purchase these expensive toys, public perception is causing some of them to hold back and keep those fat wallets in their pockets.

To combat the problem, some high-end brands are choosing to aim even higher. If ex-customers with a net-worth of less than $5 million find it socially unacceptable to make a purchase, Bentley has said it will begin marketing to those with at least a net worth of $25 million. Let us add that we've driven a few Bentleys and Rollers and can say with certainty that they are definitely conspicuous in a sea of CamCords and Mustangs.


[Source: Advertising Age]

So the Kia VG mule that has kept spy photographers busy the last few weeks has now been given a computer animated face and body. It's a nice looking ride, though has a surprising amount in common with the Hyundai Genesis... which means we also see, well, a lot of other cars in it. But that's not a bad thing, really, because the result is a tasty little creation, especially coming from Kia. The lines are a touch more forceful than those on the Genesis, which goes along with Kia being the sporting brand, or so they say. If the final version looks even close to this rendering, and they give it performance to match... well, then Kia will have taken a giant leap forward. Thanks for the tip, miha!

[Source: Kia World]

According to Audi, well, all that "ye olde worlde traditional luxury" stuff is great, but it's not the new hotness. Scott Keogh, marketing head for Audi of America, says that the key now is to combine the values of old European luxury -- high quality and traditional prestige -- with new, West Coast luxury values of "a more casual attitude, a sense of Zen and spirit and those types of things."

Audi aims to define that trend, though it doesn't say exactly how. Audi's upcoming Godfather-themed Super Bowl commercial is meant to exemplify the idea, as the movie is about a shift in power from the old to the new. Audi wants to assert itself, but it doesn't yet have the same perceived prestige of its German foes, a lot of which has to do with the fact that understatement is still the guiding principle in its car design. Audi makes some terrific cars, but it simply won't get big volume from the lifestyle crowd with handicaps like that. And as to how exactly Audi plans to incorporate "new-age" and "Zen and spirit" into its car design -- could yoga mats replace floor mats in the A5 Sportback?

[Source: Auto News]

Giving buyers an incentive to test drive a car is an old tactic, but usually these were limited to small gifts or vouchers of nominal value. With competition in the high-end luxury market heating up, automakers are now moving to more elaborate ways to attract the well-heeled.

Take Maserati for example. The exotic Italian brand offers potential buyers who take a new Quattroporte for a spin a pair of Bose headphones valued at around $179. Lexus doesn't even bother with a gift -- its dealers straight up offer you a $100 American Express gift card for taking the new IS 350 for a spin. Bentley is a little more subtle in its giving by offering to donate money to the Breast Cancer Alliance if you try their car.

Of course, such deals aren't exactly available for the average Joe, and the old trick of turning up to the dealer wearing a suit probably won't work either. You'll have to be on a mailing list targeted towards "high net worth" individuals or receive a private invite from the dealership.

[Source: New York Times - Sub. Req'd via Automobiles Deluxe]

One of our favorite non-auto-publications-laughably-doing-car-stories, Forbes has just issued its list of the most affordable luxury cars available today. Sound like an oxymoron? Well, it is, sort of, but their point is a logical one. Even the entry-level models from most luxury players are getting the toys from their bigger siblings. And even in cars that don't necessarily have more expensive siblings, they have had to adopt those features to stay competitive. The idea behind the article is to show us the most luxury you can get on a budget. And most of the choices are pretty sound. The trouble comes in where they start to make suggestions like, "Preparing to plunk down $61,715 on a brand-new Lexus LS460? Save your money. Instead, buy a $30,000 IS 250." The implication that the IS is somehow as good as the LS at a much lower price is ludicrous. They just tend to focus on features rather than performance or room or style, but it makes a decent buyers guide overall. These are solid choices in the near-luxury segment for the most part. Click through the read link to see photos of each along with some of the reasons it was selected.

[Source: Forbes via AIADA First Up]

The Car Connection spoke to GM vice chairman Bob Lutz at the Chicago Auto Show who told them a bigger, badder Cadillac built on the new Camaro chassis could be in the works. Lutz said the reason Camaro's expected on-sale date was delayed was so that the platform could be better integrated with future products.

While Lutz never utters the name "Sixteen" in the conversation, we just have to wonder if the ultra luxury Caddy is what GM has in mind. We reported back in December that GM had absolutely no plans for the Cadillacs of Cadillacs, but maybe, just maybe, Lutz has changed the beancounters' minds and the company will, after all, make real the Sixteen concept.

[Source: The Car Connection]

In the event that high gas prices begin hitting even the wealthy, displacement-loving, power-toting blokes among us, BusinessWeek has compiled a list of the top ten most fuel efficient luxury cars. The list, especially when you include the runners-up, is a diverse showing of both automakers and fuel types, with hybrids and diesels finding a place alongside with their gasoline-powered siblings.

• Mid-size: Mercedes E320 CDI, runner up: Lexus GS300
• SUV: Lexus RX 400h, runner up: Volvo XC/70
• Sub-compact: Acura RSX, runner up: Lexus IS250
• Compact: Audi A4, runner up: Volvo S40
• Small wagon: Audi A3, runner up: Volvo V50
• Mid-sized wagon: Volvo V70, runner up: Saab 9-5 SportCombi
• Two-seater: BMW Z4 3.0, runner up: Porsche Boxster
• Mini-compact: Audi TT, runner up: BMW 330Ci
• Full-size: Jaguar XJ8, runner up: Mercedes-Benz S430
• Truck: Lincoln Mark LT, runner up: Cadillac Escalade EXT

The cheapest among them to drive is the Acura RSX, with the A3 and A4 coming in second if you actually want to stow some junk in the trunk.

[Source: BusinessWeek]

Related Posts
Top ten most fuel-efficient large vehicles

Absent the Imperial Concept, nothing says “Upper Middle Class” like the Chrysler 300 LWB and its six-inches of extra length, 10.2-cubic feet of additional interior space and whopping 46-inches of rear legroom. Those extra six inches are extremely transparent from the outside, as evident from the ten minutes we wasted unsuccessfully attempting to pick out the LWB from a group of 300s Chrysler had on display.

As you can see, our dogs quit their barking once we sat down in the LWB’s back seat. What you can’t see is that we took a time out from the show back there that lasted another ten minutes. While the rear seats may not recline in place or offer a retractable ottoman like some multi-hundred-thousand-dollar luxury cars we know, on our middle-class incomes we’ll take what we can get.

More shots of my feet and some official images from Chrysler after the jump…

The Cadillac BLS represents many innovations for GM’s luxury brand. It’s not only the first Cadillac designed and built in Europe, but it will also be the first Cadillac available with a diesel engine. Based on the Saab 9-3, Cadillac expects the FWD BLS to make up around 70-percent of its European sales, according to the Detroit News. That may sound like a lot, though Cadillac has just lowered its target volume for sales in Europe from a previously mentioned 20,000 units by 2010 to a more attainable amount – 10,000 units. That volume includes Cadillac’s other models that will be on sale in Europe – the CTS, STS, SRX, XLR and Escalade.

Cadillac is perhaps taking note of the inherent difficulty of breaking into the European luxury market, which is dominated by BMW, Mercedes-Benz and Audi. Lexus has learned this lesson the hard way, selling a mere 29,000 units in Europe last year after having been on sale there for 17 years. Cadillac’s hoping there are a few thousand Europeans bored enough with the Teutonic styling and billet craftsmanship of the German brands that they’re willing to try something new. The BLS, which goes on sale in April, is that something new.

[Source: The Detroit News]