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Redefining luxury

Paul Eisenstein — Tue, 02 Apr 2013 19:00:00 EST

What's Happening To This Once-Exclusive Segment?

These days, luxury makers seem to have an adversity to white space.

What comes before "A"? That's the problem Mercedes-Benz apparently has to cope with as it works up plans for an all-new premium minicar that's currently being referred to as the X-Class.

It's been three decades since the German maker first introduced - after much internal debate - the original "Baby Benz," the line that became today's C-Class. It's more recently added downsized B- and A-Class lines, as well, the X- expected to be even smaller. And that's on top of all the other new models that have rapidly fleshed out the Teutonic marque's lineup, from the G to the GLK, not to mention CLS, CLA (above) and SLK.

It's an alphanumeric soup, and Mercedes isn't alone, as a quick perusal of the BMW and Audi lineups - never mind the expanding mix at Cadillac, Lincoln, Lexus and Jaguar - reveals. These days, luxury makers seem to have an adversity to white space. They're struggling to fill in every possible gap in what is a luxury market that is both rapidly growing and quickly changing.

Paul A. Eisenstein is Publisher of TheDetroitBureau.com and a 30-year veteran of the automotive beat. His editorials bring his unique perspective and deep understanding of the auto world to Autoblog readers on a regular basis.

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Redefining luxury originally appeared on Autoblog on Tue, 02 Apr 2013 19:00:00 EST. Please see our terms for use of feeds.

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Audi threatening BMW as luxury leader

George Kennedy — Thu, 13 Sep 2012 10:15:00 EST

Filed under: Car Buying, Audi, BMW, Volkswagen, Earnings/Financials, Luxury

For the last seven years, BMW has had a stranglehold on the top spot in the luxury car market. That reign is in danger of coming to and end, as Audi sales are on the rise. According to an Automotive News Europe report, Audi cut the difference in sales between itself and BMW to only 2,110 vehicles sold so far this year.

Analysts point to the growth of the A-class vehicle segment, and Audi's established presence in that market in the form of the A3. Bolstered by products like the redesigned A3, Audi sold 108,100 total units in the month of August, compared to BMW's 102,730.

This time last year, BMW had a lead of more than 40,000 on Audi. But The upstart from Ingolstadt is finally seeing tangible results of a 20 billion ($25.6 billion) investment in research and development by the Volkswagen Group. Since 2003, the luxury brand has doubled its vehicle portfolio, adding the Q7, Q5, and R8, and new vehicles such as the A1 subcompact and Q3 compact crossover.

Audi overtook Mercedes-Benz in 2011, leaving only BMW in its sights. According to the report, Audi's intent is to supplant BMW as the top premium brand by the year 2020.

Another factor in Audi's success has been its sales in China, where BMW hasn't been quite so quick to develop a strong market presence.

With 961,000 vehicles sold through eight months, Audi could very likely eclipse its 2011 sales totals of 1.3 million units. Will it be enough to surpass BMW? Only time will tell.

Audi threatening BMW as luxury leader originally appeared on Autoblog on Thu, 13 Sep 2012 10:15:00 EST. Please see our terms for use of feeds.

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Rolls-Royce records highest annual sales in 107-year history

Chris Shunk — Wed, 11 Jan 2012 09:01:00 EST

Filed under: Car Buying, Rolls-Royce, Earnings/Financials, UK, Luxury

Some would say that 2011 wasn't exactly a banner year, but the good chaps at Rolls-Royce would likely respond with a definitive "Poppycock!" That's because the 107-year-old brand experienced its best-ever sales totals in 2011, with 3,538 very expensive autos sold around the globe. That's a 31 percent increase over the 2,711 models sold in 2010, thanks mostly to brisk sales of the Ghost and Phantom models.

With sales up 31 percent, it's clear that the storied automaker was on fire the world over, but certain markets really catapulted the marque. In fact, sales in Asia were up 47 percent, and the U.S. saw 17 percent growth. Austerity measures in England didn't stop the craze for new Rolls-Royce models, either, with sales up 30 percent.

It may not be all that exciting to see that the rich can afford more Rolls Royce models, but we're guessing the 1,000 employees working in Goodwood are probably tickled at the brand's rising popularity. Hit the jump to read over the official Rolls-Royce press release.

Continue reading Rolls-Royce records highest annual sales in 107-year history

Rolls-Royce records highest annual sales in 107-year history originally appeared on Autoblog on Wed, 11 Jan 2012 09:01:00 EST. Please see our terms for use of feeds.

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Buick sales beating up on Lexus, may be this year's most popular luxury brand

Jeremy Korzeniewski — Mon, 07 Mar 2011 11:30:00 EST

Filed under: Car Buying, Buick, Earnings/Financials, Luxury

There are a number of simple, reliable truths in the world. The Earth is round. A compass points north. Nobody but the Chinese buy Buicks and Lexus is the best-selling luxury brand in the United States. Well, hold on to your horses. Lowly old Buick, long seen as the doorstop of the luxury segment, has outsold Lexus two months straight and shows no signs of slowing down.

Our friends at Kicking Tires ground through the sales figures and found that Buick also sold more luxury cars in February than Mercedes-Benz, Audi and Acura. In fact, the only luxury brand that sold more cars in the States in February was BMW, and even then only by 800 units.

What makes Buick's meteoric rise to the top of its segment even more impressive is the fact that it has done so with just four nameplates: Enclave, LaCrosse, Lucerne and Regal. By way of comparison, Lexus offers nine models in the States.

And lest you think that buyers are choosing Buicks solely because of a value proposition, Kicking Tires notes that average Buick transaction prices have increased by $11,113 since 2003, according to Buick spokesman Nick Richards. Sounds like Buick deserves some real kudos, no?

We suggest you scan over the whole article from Kicking Tires, it's a very interesting read.

[Source: Kicking Tires]

Buick sales beating up on Lexus, may be this year's most popular luxury brand originally appeared on Autoblog on Mon, 07 Mar 2011 11:30:00 EST. Please see our terms for use of feeds.

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Report: Lexus may offer $3,000 rebate to beat Mercedes

Chris Shunk — Fri, 08 Oct 2010 14:29:00 EST

Filed under: Car Buying, Lexus, Mercedes-Benz, Earnings/Financials

Though the first eight months of 2010, Lexus and Mercedes-Benz were in a dead heat in the race to be crowned the top-selling luxury brand in the States. But big-time September sales at Mercedes-Benz pulled the German marque ahead of Lexus by a substantial 3,000 units, really putting the heat on Toyota's luxury arm. Could Mercedes pull off the upset to unseat Lexus for the first time since 2000? Not if Lexus can help it.

USA Today reports that Lexus announced during dealer meetings this week that it will slap up to $3,000 in incentives on the hood of its vehicles in an effort to entice buyers to shell out for a new L-branded car, crossover or SUV. In some cases, Lexus will reportedly also resort to cut-rate financing rate in an effort to spur sales.

The move is a bit surprising given Lexus's penchant for asking for and receiving full retail for its products, though 2010 hasn't been the best year for the Japanese premium marque. Given the fact that Lexus has earned its success on the heels of a terrific reputation for quality, the recall of millions of Toyota and Lexus models for unintended acceleration issues has likely hurt sales and certainly dinged its reputation. Add in the fact that the high-volume ES350 and top-of-the-line LS are a bit long-in-the-tooth, and it adds up to a possibility that Lexus may lose its hard-earned sales crown.

[Source: USA Today]

Report: Lexus may offer $3,000 rebate to beat Mercedes originally appeared on Autoblog on Fri, 08 Oct 2010 14:29:00 EST. Please see our terms for use of feeds.

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REPORT: "Lesser luxury" is the new black

Jonathon Ramsey — Wed, 14 Oct 2009 13:59:00 EST

Filed under: Car Buying, Etc.

Up until very recently, the reason that you bought a BMW 3 Series or a Mercedes-Benz C-Class was to prepare you to buy a 5 or an E in a few years. You know, ladders to climb, blowing up to do, de-luxe apartments in the sky to own. These days, according to a new study, that is less and less the case: fewer premium buyers are moving up and more buyers are actually moving down.

According to numbers compiled by the Power Information Network, in 2006, nearly 16% of new car buyers moved from a compact to a mid-sized car, but through the first half of this year, only about 11% did so. And compared to 2006, this year two other categories showed 4% gains: people moving from large to mid-sized cars, and those moving from mid-sized to compact cars.

Gas prices have a bit to do with that, as does the democratization of high-end features, but the real story appears to be that unless David Stern signs your paychecks, being a baller is out. Customers don't want to look like they're flaunting their money, or they simply don't want to spend it. Even brand-loyal buyers are either keeping their cars, or instead of buying new ones they're going for pre-owned certified or an off-lease deal. Even Acura and Lexus are seeing their customers turn their aspirations downward.

According to Automotive News, brands that appear to be poised to benefit from this trend include Hyundai and Audi. The Korean firm's Genesis sedan is an all-the-luxury-you-want option for $10,000 less than most comparable brands. Less flashiness and an engineering-led message could also be the catalyst for Audi, whose sales declines are a third of the luxury market's overall. Said Scott Keogh, Audi's chief marketing officer, "There is affluence, and consumers have means, but frivolousness has gone away."

[Source: Automotive News, sub. req'd]

REPORT: "Lesser luxury" is the new black originally appeared on Autoblog on Wed, 14 Oct 2009 13:59:00 EST. Please see our terms for use of feeds.

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The rich are affected: Luxury car sales declining

Dan Roth — Sat, 21 Feb 2009 10:59:00 EST

Filed under: Car Buying, Earnings/Financials

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]

The rich are affected: Luxury car sales declining originally appeared on Autoblog on Sat, 21 Feb 2009 10:59:00 EST. Please see our terms for use of feeds.

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Super rich may avoid super expensive cars because of bad image

Jeremy Korzeniewski — Thu, 02 Oct 2008 19:29:00 EST

Filed under: Car Buying, Marketing/Advertising, Supercars, Bentley, Maybach, Rolls-Royce, Lifestyle

Click the image above for a hi-res gallery of the Rolls-Royce Phantom Coupe

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.

Gallery: First Drive: Rolls-Royce Phantom Coupe

[Source: Advertising Age]

Super rich may avoid super expensive cars because of bad image originally appeared on Autoblog on Thu, 02 Oct 2008 19:29:00 EST. Please see our terms for use of feeds.

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Rendered Speculation: Kia's big VG

Jonathon Ramsey — Tue, 02 Sep 2008 17:57:00 EST

Filed under: Sedan, Kia, Rendered Speculation

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]

Rendered Speculation: Kia's big VG originally appeared on Autoblog on Tue, 02 Sep 2008 17:57:00 EST. Please see our terms for use of feeds.

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Audi says it will define the "new luxury"

Jonathon Ramsey — Sun, 27 Jan 2008 09:57:00 EST

Filed under: Marketing/Advertising, Audi, Lifestyle

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]

Audi says it will define the "new luxury" originally appeared on Autoblog on Sun, 27 Jan 2008 09:57:00 EST. Please see our terms for use of feeds.

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The good life: getting gifts for test-driving luxury cars

Siddharth Raja — Thu, 19 Jul 2007 11:02:00 EST

Filed under: Marketing/Advertising

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]

The good life: getting gifts for test-driving luxury cars originally appeared on Autoblog on Thu, 19 Jul 2007 11:02:00 EST. Please see our terms for use of feeds.

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Forbes names "Most Affordable Luxury Cars"

Frank Filipponio — Thu, 12 Jul 2007 11:28:00 EST

Filed under: Car Buying

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]

Forbes names "Most Affordable Luxury Cars" originally appeared on Autoblog on Thu, 12 Jul 2007 11:28:00 EST. Please see our terms for use of feeds.

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Lutz: Camaro could spawn big Caddy

Chris Tutor — Mon, 26 Feb 2007 06:56:00 EST

Filed under: Concept Cars, Cadillac

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]

Lutz: Camaro could spawn big Caddy originally appeared on Autoblog on Mon, 26 Feb 2007 06:56:00 EST. Please see our terms for use of feeds.

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BusinessWeek identifies fuel sipping luxury cars

Erin Mays — Mon, 28 Aug 2006 14:56:00 EST

Filed under: Convertible, Coupe, Budget, Hybrid, Sedan, SUV, Truck, Wagon, Green, Technology, Hatchback

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]

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BusinessWeek identifies fuel sipping luxury cars originally appeared on Autoblog on Mon, 28 Aug 2006 14:56:00 EST. Please see our terms for use of feeds.

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New York Auto Show: Kickin' back in the Chrysler 300 LWB

John Neff — Fri, 14 Apr 2006 11:57:00 EST

Filed under: New York Auto Show, Sedan, Etc., Chrysler

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...

Continue reading New York Auto Show: Kickin' back in the Chrysler 300 LWB

New York Auto Show: Kickin' back in the Chrysler 300 LWB originally appeared on Autoblog on Fri, 14 Apr 2006 11:57:00 EST. Please see our terms for use of feeds.

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BLS set for sale in Europe - Caddy lowers expectations

John Neff — Sun, 02 Apr 2006 19:00:00 EST

Filed under: Sedan, Europe, Cadillac

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]

BLS set for sale in Europe - Caddy lowers expectations originally appeared on Autoblog on Sun, 02 Apr 2006 19:00:00 EST. Please see our terms for use of feeds.

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Jaguar aluminum plans recycled by Ford

Joel Arellano — Sun, 12 Mar 2006 15:00:00 EST

Filed under: Concept Cars, Trends, Sedan

Jaguar, Ford Motor Co.'s most troubled member in its Premiere Automotive Group (PAG), suffered another setback when its parent company halted the luxury brand's plans to develop its newest vehicles based on an aluminum architecture. The company had hoped to use this new platform to bolster its image as 'cutting-edge' against such competitors as BMW and Mercedes-Benz. Cost of the new architecture, though, lead to Ford's decision.

"Given the current financial circumstances of Jaguar we have pretty tight reins on them (costs)," said Lewis Booth, executive vice president of Premier Auto Group and Ford of Europe. "That may restrict us getting to the perfect architecture line-up as quickly as we might have liked but...we need short-term improvements as well as planning for the long term."

The upcoming S-Type would have been the first recipient of the new platform. Instead, its current steel-based frame will be upgraded instead.

[Source: Financial Times via MSNBC]

Jaguar aluminum plans recycled by Ford originally appeared on Autoblog on Sun, 12 Mar 2006 15:00:00 EST. Please see our terms for use of feeds.

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2006 Buick Lucerne CXS: In the Autoblog Garage Day 1-2

John Neff — Tue, 07 Mar 2006 12:00:00 EST

Filed under: In the Autoblog Garage, Sedan

The new 2006 Buick Lucerne is a very large car, which is a good thing considering it has mighty large shoes to fill. It not only replaces the LeSabre in Buick's lineup but also pinch hits for the now defunct Park Avenue. This means that the Lucerne's price cuts a wide swath, with the entry level CX beginning at $25,990 and our range topping CXS tester starting at $34,990.

From this it's apparent that the Lucerne was designed to compete on many different levels. Where the LeSabre fought tooth and nail for the middle class family sedan dollar, the Park Avenue went after luxo-cruiser cash. The Lucerne must attract attention from both types of clientele if it's to be considered a successful replacement. We were handed the keys to an executive class CXS and plan to find out over the next week whether the Lucerne can fill both of Buick's vacant shoes.

Continue reading 2006 Buick Lucerne CXS: In the Autoblog Garage Day 1-2

2006 Buick Lucerne CXS: In the Autoblog Garage Day 1-2 originally appeared on Autoblog on Tue, 07 Mar 2006 12:00:00 EST. Please see our terms for use of feeds.

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