Luxury vehicles
Encyclopedia
Luxury vehicle is a marketing
term for a vehicle that provides luxury — pleasant or desirable features beyond strict necessity—at increased expense (see: definition of luxury).
The term suggests a vehicle with greater equipment, performance, construction precision, comfort, design ingenuity, technological innovation, or features that convey brand
image, cachet, status
, or prestige—or any other discretionary feature or combination of features.
In contemporary usage, the term may be applied to any vehicle type— including sedan, coupe
, hatchback
, station wagon
, and convertible
body styles, as well as to minivan
s, crossovers, or sport utility vehicle
s and to any size vehicle, from small to large—in any price range.
Every era in automobile history has had "a group of car marques and models that have been expensive to purchase, due to their alleged superiority of their design and engineering". Aimed at wealthy buyers, such automobiles might be generically be termed luxury cars." This term is also used for unique vehicles produced during "an era when luxury was individualistic consideration, and coachwork could be tailored to an owner like a bespoke suit." Although there is considerable literature about specific marques, there is a lack of systematic and scholarly work that "analyzes the luxury car phenomenon itself."
Though widely used, the term luxury is broad and highly variable. It is a perceptual, conditional and subjective attribute and may be understood differently by different people: "What is a luxury car to some... may be 'ordinary' to others."
According to the European Commission
, the "luxury vehicle" segment is classified as F-segment. However, the boundaries between the traditional segments are increasingly becoming blurred and diluted as features once exclusive to luxury vehicles become standard equipment on even small cars.
, BMW 1 Series
, Lexus CT
, and Mercedes-Benz B-Class
.
Premium compacts may share components with mass market cars from the marque's parent company (the A3), and/or have less sophisticated platforms compared to upmarket vehicles in the lineup (such as the B-Class). The body style tends to be a hatchback
or compact wagon, previously associated with economy cars but regaining popularity in the United States for its afforded utility. The luxury branding and style, high-quality interior materials, wide range of convenience features, and performance powertrains are key to distinguishing them from mass market equivalents (one mistake made by the Cadillac Cimarron
) and making these appeal to consumers.
The classification varies, for instance Consumer Guide Automotive in the US considers the Audi A3 and A4 as part of the premium compact segment due to similar size and MSRP, though these are known in Europe as a small family car and a compact executive car, respectively.
in Britain and (Mittelklasse in German). In the US, this segment mostly includes the bottom vehicles in the line-up of luxury brands as well as the top-of-the-line models of some non-luxury brands.
Dimensionally, compact executive cars are smaller than mid-size
/large family car
s, and sometimes even smaller than compact cars. Mass market compact cars typically use the economical front wheel drive transverse engine
layout
, well suited to the inline-4 engine, which also maximizes interior room. Several compact executive cars are rear-wheel drive
with longitudinal engine
s, for improved stability and handling, and in order to accommodate the larger size of higher-performance engines (straight-6, V6, rarely V8), with four-wheel drive
often being available. Compact executive cars also tend have more complicated independent suspension
s, sportier transmissions, and high revolution engines
that may require premium gasoline. The more complex powertrain and mechanical layouts of compact executive cars comes at increased cost and reduced interior passenger and trunk space.
Compact executive cars include the Volvo S60
, Acura TSX
, Lexus IS
, BMW 3 Series
, Audi A4
, and Mercedes-Benz C-Class
which particularly emphasize sporty handling
.
Other vehicles such as the Lexus ES
, Acura TL
, Chrysler 300
, and Buick LaCrosse
are also considered entry-level luxury in the United States and Canada, being similar in price to the BMW 3 Series and Mercedes-Benz C-Class. However, the ES, TL, and LaCrosse are not sold in Europe and do not fall under European luxury classifications. The ES and TL actually began as badge engineered versions of the midsize Toyota Camry
and Honda Accord
, respectively, retaining the front wheel drive transverse engine
layout
, whereas Toyota's current Lexus IS
does not share a platform
with mass market Toyota cars. The ES and TL are not considered executive car
s either, despite similar dimensions, since executive cars usually emphasize higher performance, often being rear-wheel drive
with longitudinal engine
s. the present iterations of the ES and LaCrosse emphasize "comfortable, reasonably priced luxury", while the TL has recently been targeted at the entry-level luxury sport market
.
Recently, the entry-level luxury has been very competitive, and there has been price-overlapping with well-equipped non-luxury cars. The bestselling vehicles of the marque are frequently compact executive cars, such as the BMW 3 Series that makes up 40% of the vehicles that BMW sells worldwide.
s in Britain, Obere Mittelklasse in German, and Grandes Routières in French. Examples include the Volvo S80
, BMW 5 Series
, Mercedes-Benz E-Class
, and Jaguar XF
Although having similar dimensions to mid-size car
s and large family car
s, executive cars are engineered and positioned as premium vehicles with better performance and technology amenities. There are also higher development and production costs, as many well-known mid-luxury cars use the longitudinal (usually front engine rear wheel drive layout) engine mounting which affords space for powerful engines such as a V8, instead of the more economical transverse engine layout of mass market cars which are restricted to inline-4 or V6. Executive cars usually have lower sales and production volumes compared to mid-size car
s and large family car
s, as base trims with less equipment and smaller engines are not sold in U.S. and Canadian markets. Also due to the problem of steep depreciation, especially concerning cars from less prestigious brands, most executive cars are produced by marques that specialize in larger/more expensive vehicles. Particularly in the United States, the mid-luxury segment is dominated by Mercedes-Benz
and BMW
, as executive cars from lesser-known manufacturers such as Citroën
and Infiniti
have not had much success.
Vehicles in this segment include the mid-range models of several luxury car manufacturers. There are also some flagship sedans in this segment, such as the Acura RL
and Infiniti M
. Executive cars such as the BMW 5 Series are crucial to a luxury automaker's bottom line, and although not the highest-selling model, they generate a significant amount of profits due to the lucrative technology options.
Vehicles in this category include some of the models from the flagship lines of luxury car brands. Examples include the Audi A8
, BMW 7 Series
, Jaguar XJ
, Lexus LS
, Mercedes-Benz S-Class
, Volkswagen Phaeton
, and in the US, the Lincoln Town Car
and Cadillac DTS
.
R.L. Polk and Company, a global automotive information and marketing firm that provides solutions to automotive and related industries, has defined the term "super luxury" segment for luxury cars costing more than .
This bracket includes the entire lineup of Rolls Royce
, Bentley
, Aston Martin
, Maybach
, and Maserati
, as these marques do not offer lower-priced offerings in the entry-level luxury or mid-luxury segments like more mainstream luxury brands like BMW
and Mercedes-Benz
.
Rolls Royce and Bentley have attempted to move downmarket somewhat with offerings priced considerably lower than their traditional offerings (Rolls Royce Phantom and Bentley Mulsanne
) such as the Rolls Royce Ghost and the Bentley Continental GT
, creating what Car and Driver
describes as the "entry-opulent segment". Bentley, Maybach, and Rolls-Royce vehicles share platforms and engines with other luxury brands from their parent auto company, however Rolls-Royce
and Bentley
are assembled in England (separate from the rest of BMW
and Volkswagen Group
's production plants) and this "exclusivity" has made these British marques a sales success. By comparison, Maybachs are built alongside the Mercedes-Benz S-Class
flagship sedan which has explained why it has not fared well in the market, furthermore the Maybach's pedigree was virtually unknown outside of Germany unlike its British rivals which have long enjoyed renown worldwide. A Bentley executive was quoted as saying "that the brand’s exclusivity, history and obsessive luxury help to convince customers that a Bentley is worth the price" which is at least twice that of a flagship luxury car from BMW or Mercedes-Benz.
The top-performing variants of flagship cars from Audi
, BMW
, and Mercedes-Benz
are often included here as well. They often have 12-cylinder (usually V12
) engines for great refinement and smoothness, even though contemporary V8 engines can make similar output while being less expensive. While BMW sells far fewer V12-engined 7-Series vehicles than V8 versions, the V12 retains popularity in the US, China, and Russia, as well as maintaining the marque's prestige in the luxury vehicle market segment. These ultra-luxury trims also feature standard luxury and technology features that would be considered optional on their V8 siblings.
There are ultra-high performance cars from "exotic brands" that also exceed , but would not necessarily be categorized as luxury automobiles, such as the sports cars from Ferrari
, Lamborghini
and Porsche
, although the Porsche Panamera
does compete in the high-end luxury/full-size luxury category.
's 1966 Super Wagoneer
as the first true luxury four-wheel drive
(4x4) vehicle. It was the first SUV to offer a V8 engine
, automatic transmission
, and luxury car trim and equipment in a serious off-road model. The Super Wagoneer was "a pioneer that blazed a trail for today's luxury SUVs". It came with long list of standard equipment that included bucket seating with center console, air conditioning
, seven-position tilt steering wheel, a vinyl roof
, as well as "Antique Gold" trim panels on the body sides and tailgate. After American Motors Corporation
(AMC) purchased Jeep, the vehicles were upgraded and refined, including features such as an optional electric sliding steel sun roof, "possibly the first offered on an SUV". The late-1970s Jeep Wagoneer Limited "set the sport-utility market on its ear ... was the most luxurious four-wheeler anyone had ever seen."
The SUV models generated higher-profit-margins than ordinary automobiles, and automakers introduced new luxury models during the late 1990s. For some manufacturers such as Porsche and BMW, luxury SUVs were the first SUV models they produced. Luxury SUVs catered particularly to the U.S. market where station wagons were unpopular, often being produced in North America (such as BMW Spartanburg) instead of the luxury marque's home country. Some of these models were not traditional SUVs based on light trucks, rather they are classified as crossovers using unibody constructions. SUVs from non-luxury brands had experienced a surge in popularity through early 2000s, causing the traditional luxury marques to follow.
SUVs from the luxury marques grew at almost 40 percent to more than 430,000 vehicles, excluding SUV-only brands like Hummer
and Land Rover
, while luxury car sales in the U.S. during 2003 suffered a 1% decline, and non-luxury SUV sales were flat. By 2004, 30 percent of major luxury brands' U.S. sales are now SUVs. Luxury brands in particular led the development of crossover SUVs (as opposed to body-on-frame
SUVs), making it one of the fastest growing segments in the market, as the forecast for 2002 was approximately 240,000 vehicles and that could double by 2006. Research data showed luxury SUV buyers are compared those vehicles to SUVs of mass market brands, and not shopping around luxury cars, thus the SUV is becoming the key to bringing new customers to the luxury dealerships.
Certain luxury SUVs use body-on-frame
underpinnings, often being badge-engineered versions
of their non-luxury counterparts, and retaining the rugged off-road and towing capabilities. Examples include the Lexus LX
and Lincoln Navigator
, which are the premium versions of the Toyota Land Cruiser
(itself a luxurious SUV in the United States) and Ford Expedition
, respectively.
Other luxury SUVs are crossovers using unibody construction, often sharing the platform with compact executive and executive cars. For example, the Infiniti FX
is based upon the Nissan FM platform
that also underpins other Infiniti cars. Audi
and BMW
developed crossovers to compete in the SUV segment as they did not have an existing body-on-frame
vehicle in their lineup. The Lexus RX
was the earliest luxury crossover on the market, and it has since been the best-selling luxury vehicle in the US, so it has inspired similar competitors from rival marques. While early luxury crossovers released in the late 1990s have resembled traditional boxy SUVs, recent offerings have prioritized sportiness over utility — such as the Infiniti FX and BMW X6
.
Luxury cars tend to offer a higher degree of comfort than their mainstream counterparts, common amenities include genuine leather upholstery and polished "woodgrain-look" dashboards. Compared to mainstream vehicles, luxury cars have traditionally emphasized comfort and safety. Luxury vehicles are also a status symbol for conspicuous consumption
.
Contemporary luxury cars also offer higher performance and better handling, which is often known as sport luxury
. However in Europe, where large-displacement engines are often heavily taxed and many luxury buyers shy away from conspicuous consumption, brands offer buyers the option of removing exterior engine-identifying badges.
Forbes noted that the reputation of luxury marques enables them to continually introduce many new safety technologies and comfort amenities, such as anti-lock brakes
, electronic stability control
and DVD
entertainment systems, before they trickle down to mass market cars. Numerous "smart car
" features are largely only found on luxury cars as of 2009.
The rear-wheel drive
with longitudinal engine
s (FR) is a common layout of luxury cars. European marques like Mercedes-Benz
, BMW
, and Jaguar have almost never adopted front-wheel drive and retained a lineup mostly or entirely made up of FR cars. Japanese brands such as Lexus
and Infiniti
also have predominantly FR lineups. The FR layout, while more expensive than the FF, has been retained by these luxury manufacturers as it allows for higher performance engines (particularly the straight-6, V8
, and other engine configurations with more cylinders), better handling, and a smoother ride.
American manufacturers also largely followed the FR for their luxury brands (as well as their mass-market cars of the time). However, due to the Arab Oil Embargo of 1973 and the 1979 fuel crises, began eliminating their FR platforms in favor of the more economical front wheel drive transverse engine
layout
(FF). Chrysler went 100% FF by 1990 and GM
's Cadillac
and Buick
brands for the US were entirely FF by 1997. One of the few notable holdouts was Ford's Lincoln Town Car
and Lincoln LS
.
In the 21st century, as part of the revamp of its design and image, Cadillac returned most of its lineup (sedans, roadsters, crossovers and SUVs) to rear- or all-wheel-drive, the only exceptions being the front-wheel drive Cadillac BLS
(which is not sold in North America) and the Cadillac DTS
. Chrysler
returned its full-size cars to this layout with the Chrysler 300
. Ford's Lincoln retained the longtime FR platform for the Town Car, intended for use as a limousine
and chauffeur
ed car, but newer offerings such as the MKZ
and MKS
will use newer FF platforms shared with mainstream Ford vehicles, with all-wheel drive as an option.
In the United States luxury market, Cadillac and Lincoln had been long the best-selling and second best-selling luxury brands until 1998, when they were overtaken by Japanese and German brands. Since the 2000s, with the Cadillac CTS
, the marque has seen a resurgence in sales and brand value. Ford's Lincoln, which had seen sales fall as a result of an aging lineup, has attempted to return that luxury marque to competitiveness, by releasing new models such as the Lincoln MKS
, as well as divesting itself of its other Premier Automotive Group
brands. Mercedes-Benz and BMW were the top-selling luxury import until 1991, when they were overtaken by Lexus. Since 2000, Lexus has been the number-one-selling luxury car marque in the U.S., holding that title ever since.
Since the 1980s, a host of new manufacturers have entered the luxury market to challenge the traditional players. The three major Japanese auto manufacturers, Honda
, Toyota, and Nissan, created their respective luxury brands particularly for the US. As a result of voluntary export restraint
s imposed in 1981, these manufacturers were limited to a number of vehicles they could export. While these companies sidestepped this by establishing US production facilities for mass market vehicles, their home factories soon begun producing higher-priced cars as they carried a greater profit margin per car. Acura
was launched in 1986, while Lexus
and Infiniti
were unveiled in 1989. By 1992, these three divisions had sales of over , using lower prices and innovation to take market share from both domestic (Cadillac, Lincoln) and the European (Mercedes, Volvo, BMW, Audi and Jaguar) luxury car makers. Hyundai
had recently released the Genesis
and plans to launch the Equus
, hoping to repeat the same strategy of undercutting their established competitors.
The Late-2000s recession was the first time since the Great Depression
of the 1930s that the luxury car market suffered considerably, something not seen in previous economic downturns. Many such customers saw their net worth decline following the collapse in financial markets and real-estate values. For instance, some of the steepest dropoffs came at the high end, including the BMW 7 Series
and Rolls Royce Phantom, and Mercedes-Benz
unexpectedly dropped the starting price of its all-new 2010 E-Class
. The unusually sharp decline in luxury car sales have led observers to believe that there is a fundamental shift and reshaping of the luxury automotive market, with one industry official suggesting that the marques no longer command the premiums that they used to, and another saying that conspicuous consumption was no longer attractive in poor economic conditions.
Additionally, mainstream brands have been able to offer amenities and devices such as leather, wood, and anti-lock brakes, previously found only on luxury cars, as the costs decline.
However, luxury vehicle sales have not collapsed as much as their non-luxury counterparts. Luxury vehicle marques generally benefited from financially healthier dealerships, better leasing and certified pre-owned programs and loyal customers, so sales are expected to rebound more quickly than mass market cars.
Others note that there is growing interest in luxury vehicles from emerging markets such as China and Russia.
Also, the entry-level luxury segment has been very competitive, and there has been price-overlapping with well-equipped non-luxury cars. For instance, in Canada, several luxury manufacturers set sales records in August 2009, due mostly to aggressive incentives on entry-level luxury vehicles. In September 2009, BMW, Mercedes-Benz, Lexus and Audi all saw their Canadian sales increase by more than 10 per cent compared to a year earlier, despite overall Canadian auto sales being down 3.5 per cent compared to September 2008. The head of Mercedes-Benz Canada suggested that the brand "has been able to attract 'middle-class' consumers even during the recession because of the sense that owning a Mercedes comes with 'membership in a club'." BMW Canada's chief said luxury cars continued to be attractive, "I think due to new product offensives and due to new design and due to the fact that we are the benchmark in all areas when it comes to fuel efficiency... that together stimulates a lot of the market". BMW has managed to remain profitable in 2009 while other competitors were posting losses, by scaling down production quickly to avoid cash burn through bloated inventories.
Since March 2010, BMW
is the best-selling luxury vehicle manufacturer by sales, ahead of rivals Audi AG (NSU.XE) and Daimler AG's (DAI.XE) Mercedes-Benz marque.
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
term for a vehicle that provides luxury — pleasant or desirable features beyond strict necessity—at increased expense (see: definition of luxury).
The term suggests a vehicle with greater equipment, performance, construction precision, comfort, design ingenuity, technological innovation, or features that convey brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
image, cachet, status
Social status
In sociology or anthropology, social status is the honor or prestige attached to one's position in society . It may also refer to a rank or position that one holds in a group, for example son or daughter, playmate, pupil, etc....
, or prestige—or any other discretionary feature or combination of features.
In contemporary usage, the term may be applied to any vehicle type— including sedan, coupe
Coupé
A coupé or coupe is a closed car body style , the precise definition of which varies from manufacturer to manufacturer, and over time...
, hatchback
Hatchback
A Hatchback is a car body style incorporating a shared passenger and cargo volume, with rearmost accessibility via a rear third or fifth door, typically a top-hinged liftgate—and features such as fold-down rear seats to enable flexibility within the shared passenger/cargo volume. As a two-box...
, station wagon
Station wagon
A station wagon is a body style variant of a sedan/saloon with its roof extended rearward over a shared passenger/cargo volume with access at the back via a third or fifth door , instead of a trunk lid...
, and convertible
Convertible
A convertible is a type of automobile in which the roof can retract and fold away having windows which wind-down inside the doors, converting it from an enclosed to an open-air vehicle...
body styles, as well as to minivan
Minivan
Minivan is a type of van designed for personal use. Minivans are typically either two-box or one box designs for maximum interior volume – and are taller than a sedan, hatchback, or a station wagon....
s, crossovers, or sport utility vehicle
Sport utility vehicle
A sport utility vehicle is a generic marketing term for a vehicle similar to a station wagon, but built on a light-truck chassis. It is usually equipped with four-wheel drive for on- or off-road ability, and with some pretension or ability to be used as an off-road vehicle. Not all four-wheel...
s and to any size vehicle, from small to large—in any price range.
Definition
Automobile manufacturers market specific makes and models that are targeted at particular socio-economic classes, and thus "social status came to be associated more with a particular vehicle than ownership of a car per se." Therefore, automakers differentiate among their product lines in "collusion" with the car-buying public. While a high price is the most frequent factor, it is "styling, engineering, and even public opinion which cars had the highest and lowest status associated with them."Every era in automobile history has had "a group of car marques and models that have been expensive to purchase, due to their alleged superiority of their design and engineering". Aimed at wealthy buyers, such automobiles might be generically be termed luxury cars." This term is also used for unique vehicles produced during "an era when luxury was individualistic consideration, and coachwork could be tailored to an owner like a bespoke suit." Although there is considerable literature about specific marques, there is a lack of systematic and scholarly work that "analyzes the luxury car phenomenon itself."
Though widely used, the term luxury is broad and highly variable. It is a perceptual, conditional and subjective attribute and may be understood differently by different people: "What is a luxury car to some... may be 'ordinary' to others."
Global references
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
, the "luxury vehicle" segment is classified as F-segment. However, the boundaries between the traditional segments are increasingly becoming blurred and diluted as features once exclusive to luxury vehicles become standard equipment on even small cars.
- ACRISSACRISS Car Classification CodeThe ACRISS Car Classification Code is a code used by many car rental companies, including Sixt, Avis, Auto Europe, Budget, Alamo, Europcar, Hertz and National, for classifying vehicles...
is a code system used by many car rentalCar rentalA car rental or car hire agency is a company that rents automobiles for short periods of time for a fee...
companies in the US for classifying vehicles (but not brands or marques). The system includes Luxury and Premium categories. - Australia In Australia, for taxation purposes a luxury car is defined as a passenger car whose value exceeds a certain threshold (see: Luxury Car TaxLuxury Car TaxLuxury Car Tax is a tax within the Australian taxation system, collected by the Australian Taxation Office on behalf of the Australian Government....
). - Germany: In Germany the term "Upper class" is used.
- Russia: Russian markets use the term "representative class vehicle" .
- United States Consumer Guide's categorization which sorts luxury vehicles by size acknowledges that there can be considerable price variations within a class; for instance the Lincoln Town CarLincoln Town CarThe Lincoln Town Car is a full-size luxury sedan that was sold by the upscale Lincoln division of Ford Motor Company; it was produced from 1981 to the 2011 model years...
has a relatively low MSRP (Manufacturer's Suggested Retail Price) compared to the Jaguar XJJaguar XJJaguar XJ is the designation that has been used for a series of luxury saloon cars sold under the British Jaguar marque. The first XJ was launched in 1968 and the designation has been used for successive Jaguar flagship models since then. The original model was the last Jaguar saloon to have had...
, BMW 7 SeriesBMW 7 SeriesThe BMW 7 Series is a line of full-size luxury vehicles produced by the German automaker BMW. Introduced in 1977, it is BMW's flagship car and is only available as a sedan or extended-length limousine...
, Lexus LSLexus LSThe Lexus LS is a full-size luxury sedan that serves as the flagship model of Lexus, the luxury division of Toyota. Four generations of the sedan have been produced, all equipped with V8 engines and rear-wheel drive, although since 2006 all-wheel drive, hybrid, and long-wheelbase variants have also...
, or Mercedes-Benz S-ClassMercedes-Benz S-ClassThe Mercedes-Benz S-Class is a series of luxury sedans produced by Mercedes-Benz, a division of Daimler AG. The classification was officially introduced in 1972 with the W116 S-Class, which succeeded previous Mercedes-Benz models dating to the mid-1950s...
.
| US Luxury Car Segments, according to MSRP (in ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Price | $15k — $20k | $20k — $30k | $30k — $40k | $40k — $50k | $50k — $60k | $60k — $70k | $70k — $80k | $80k — $90k | $90k — $100k | $100k or more | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | $29k | |$38k | |$40k | | | $60k | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Luxury car manufacturers | Entry-level | Mid-level | High-end | Ultra | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premium compact segment
The premium compact segment or small-luxury class is relatively new, having been initiated by several European brands in the mid-2000s, and constitute the least expensive offerings in their lineups. These cars are targeted at a niche market of young customers who have a more refined taste in their automobiles and the means to pay for them. By offering a smaller, lighter, more fuel-efficient, and less expensive vehicle, this serves to introduce a younger customer to the luxury marque, in hopes of retaining the coveted customer loyalty. This includes the Audi A3Audi A3
The Audi A3 is a small family car produced by the German automaker Audi since 1996. Two generations of A3 exist, both based on the Volkswagen Group A platform, which they share with several other models such as the Audi TT, Volkswagen Golf, Volkswagen Caddy and Volkswagen Touran as well as SEAT...
, BMW 1 Series
BMW 1 Series
The BMW 1 Series is an entry level sports car produced by the German automaker BMW since 2004. The 1 Series is unusual in its class as it features rear-wheel drive, 50:50 weight balance, a longitudinally-mounted engine and an advanced aluminum multilink suspension...
, Lexus CT
Lexus CT
The Lexus CT 200h is a hybrid electric automobile introduced by Lexus and is an entry-level luxury hatchback. It made its debut at the March 2010 Geneva Auto Show, six months after the unveiling of the LF-Ch concept car; it is primarily targeted at the European market but will be sold worldwide and...
, and Mercedes-Benz B-Class
Mercedes-Benz B-Class
The Mercedes-Benz B-Class is a small family car introduced by German automaker Mercedes-Benz in March 2005. It is essentially an enlarged A-Class keeping the same engine and suspension system...
.
Premium compacts may share components with mass market cars from the marque's parent company (the A3), and/or have less sophisticated platforms compared to upmarket vehicles in the lineup (such as the B-Class). The body style tends to be a hatchback
Hatchback
A Hatchback is a car body style incorporating a shared passenger and cargo volume, with rearmost accessibility via a rear third or fifth door, typically a top-hinged liftgate—and features such as fold-down rear seats to enable flexibility within the shared passenger/cargo volume. As a two-box...
or compact wagon, previously associated with economy cars but regaining popularity in the United States for its afforded utility. The luxury branding and style, high-quality interior materials, wide range of convenience features, and performance powertrains are key to distinguishing them from mass market equivalents (one mistake made by the Cadillac Cimarron
Cadillac Cimarron
The Cadillac Cimarron was a compact car built by Cadillac based on the GM J platform. It was first introduced in 1981 for the 1982 model year, and sold through 1988. During its seven-year model run, 132,499 Cimarrons were built.-Development:...
) and making these appeal to consumers.
The classification varies, for instance Consumer Guide Automotive in the US considers the Audi A3 and A4 as part of the premium compact segment due to similar size and MSRP, though these are known in Europe as a small family car and a compact executive car, respectively.
Entry-level luxury/compact executive cars
The entry-level luxury category is also known as the compact executive carCompact executive car
Compact executive car is a car classification term applied to premium cars smaller than executive cars. In European classification, compact executive cars are part of the D-segment. In North American terms, close equivalents are compact premium car, compact luxury car, entry-level luxury car and...
in Britain and (Mittelklasse in German). In the US, this segment mostly includes the bottom vehicles in the line-up of luxury brands as well as the top-of-the-line models of some non-luxury brands.
Dimensionally, compact executive cars are smaller than mid-size
Mid-size car
A mid-size car is the North American/Australian standard for an automobile with a size equal to or greater than that of a compact...
/large family car
Large family car
A large family car, also known as a D-segment car, is a European automobile classification which is larger than a small family car and smaller than an executive car. Multi-purpose vehicles based on a large family car design are often called large MPVs, while similarly-priced models from luxury car...
s, and sometimes even smaller than compact cars. Mass market compact cars typically use the economical front wheel drive transverse engine
Transverse engine
A transverse engine is an engine mounted in a vehicle so that the engine's crankshaft axis is perpendicular to the long axis of the vehicle. Many modern front wheel drive vehicles use this engine mounting configuration...
layout
Automobile layout
In automotive design, the automobile layout describes where on the vehicle the engine and drive wheels are found. Many different combinations of engine location and driven wheels are found in practice, and the location of each is dependent on the application the vehicle will be used for...
, well suited to the inline-4 engine, which also maximizes interior room. Several compact executive cars are rear-wheel drive
Front-engine, rear-wheel drive layout
In automotive design, an FR, or Front-engine, Rear-wheel drive layout is one where the engine is located at the front of the vehicle and driven wheels are located at the rear. This was the traditional automobile layout for most of the 20th century....
with longitudinal engine
Longitudinal engine
In automotive engineering, a longitudinal engine is an internal combustion engine in which the crankshaft is oriented along the long axis of the vehicle, front to back....
s, for improved stability and handling, and in order to accommodate the larger size of higher-performance engines (straight-6, V6, rarely V8), with four-wheel drive
Four-wheel drive
Four-wheel drive, 4WD, or 4×4 is a four-wheeled vehicle with a drivetrain that allows all four wheels to receive torque from the engine simultaneously...
often being available. Compact executive cars also tend have more complicated independent suspension
Independent suspension
Independent suspension is a broad term for any automobile suspension system that allows each wheel on the same axle to move vertically independently of each other. This is contrasted with a beam axle, live axle or deDion axle system in which the wheels are linked – movement on one side affects...
s, sportier transmissions, and high revolution engines
Redline
Redline refers to the maximum engine speed at which an internal combustion engine or traction motor and its components are designed to operate without causing damage to the components themselves or other parts of the engine...
that may require premium gasoline. The more complex powertrain and mechanical layouts of compact executive cars comes at increased cost and reduced interior passenger and trunk space.
Compact executive cars include the Volvo S60
Volvo S60
The Volvo S60 is a compact executive sedan produced by the Swedish automaker Volvo from 2000. Two generations of the sedan have been produced to date.-First generation :...
, Acura TSX
Acura TSX
-Overview:Named as Touring Sportscar eXperimental. The 2004 model year TSX's powertrain consisted of a 2.4-litre inline four-cylinder engine, a six-speed manual transmission , and a front wheel drive layout. A five-speed automatic transmission was a no-cost option in the U.S...
, Lexus IS
Lexus IS
The Lexus IS is a series of entry-level luxury cars / compact executive cars sold by Lexus since 1998. The IS was introduced as an entry-level sport model slotted below the ES in the Lexus lineup...
, BMW 3 Series
BMW 3 Series
The BMW 3 Series is a compact executive car manufactured by the German automaker BMW since May 1975. Successor to the BMW New Class, it has been produced in five different generations and in no less than five different body styles. It is BMW's best-selling model, accounting for around 30% of the...
, Audi A4
Audi A4
The first generation Audi A4 debuted in 1994, with production starting November 1994. It was built on the Volkswagen Group B5 platform, which it shared with the fourth generation Volkswagen Passat . It had a front-mounted longitudinal engine and front-wheel drive...
, and Mercedes-Benz C-Class
Mercedes-Benz C-Class
The Mercedes-Benz C-Class is a compact executive car produced by the Mercedes-Benz division of Daimler AG. First introduced in 1993 as a replacement for the 190 range , the C-Class was the smallest model in the marque's lineup until the 1997 arrival of the A-Class...
which particularly emphasize sporty handling
Sports sedan
A sports sedan or a sports saloon is a descriptive term applied to a sedan automobile that is designed to look and feel "sporty", offering the motorist more connection with the driving experience, while providing the comfort and amenities expected of a luxury sedan. A wider definition that includes...
.
Other vehicles such as the Lexus ES
Lexus ES
The Lexus ES series is a family of mid-size luxury sedans sold by Lexus since 1989. Now in its fifth generation, the series has been consistently built on the Toyota Camry platform with a V6 engine, automatic transmission, and front-wheel drive...
, Acura TL
Acura TL
The TL "Touring Luxury" debuted as 1996 model, first with the 1996 2.5 TL available with the 2.5 L 176 hp SOHC 20-valve 5-cylinder engine from the Vigor. The 3.2 TL used the 3.2 L 200 hp SOHC 24v V6 from the second generation Acura Legend. The 2.5 TL was positioned as the...
, Chrysler 300
Chrysler 300
The Chrysler 300 is a full-size upscale car first shown at the 2003 New York Auto Show as a concept car. Sales in the U.S. began in the spring of 2004 as an early 2005 model year car. Designed by Ralph Gilles, the new 300 was built as a high-end sedan while the SRT-8 model was designed to be the...
, and Buick LaCrosse
Buick LaCrosse
The Buick LaCrosse is a mid-size entry-level luxury sedan produced by General Motors. It replaced the Buick Century and Regal in North America beginning in the 2005 model year.-North America:...
are also considered entry-level luxury in the United States and Canada, being similar in price to the BMW 3 Series and Mercedes-Benz C-Class. However, the ES, TL, and LaCrosse are not sold in Europe and do not fall under European luxury classifications. The ES and TL actually began as badge engineered versions of the midsize Toyota Camry
Toyota Camry
The Toyota Camry is a series of mid-size automobiles manufactured by Toyota since 1982, and sold in the majority of automotive markets throughout the world...
and Honda Accord
Honda Accord
The Honda Accord is a series of compact, mid-size and full-size automobiles manufactured by Honda since 1976, and sold in a majority of automotive markets throughout the world....
, respectively, retaining the front wheel drive transverse engine
Transverse engine
A transverse engine is an engine mounted in a vehicle so that the engine's crankshaft axis is perpendicular to the long axis of the vehicle. Many modern front wheel drive vehicles use this engine mounting configuration...
layout
Automobile layout
In automotive design, the automobile layout describes where on the vehicle the engine and drive wheels are found. Many different combinations of engine location and driven wheels are found in practice, and the location of each is dependent on the application the vehicle will be used for...
, whereas Toyota's current Lexus IS
Lexus IS
The Lexus IS is a series of entry-level luxury cars / compact executive cars sold by Lexus since 1998. The IS was introduced as an entry-level sport model slotted below the ES in the Lexus lineup...
does not share a platform
Automobile platform
An automobile platform is a shared set of common design, engineering, and production efforts, as well as major components over a number of outwardly distinct models and even types of automobiles, often from different, but related marques...
with mass market Toyota cars. The ES and TL are not considered executive car
Executive car
Executive car is a British term that refers to a car's size and is used to describe an automobile larger than a large family car. In official use, the term is adopted by EuroNCAP, a European organisation founded to test car safety.- History :...
s either, despite similar dimensions, since executive cars usually emphasize higher performance, often being rear-wheel drive
Front-engine, rear-wheel drive layout
In automotive design, an FR, or Front-engine, Rear-wheel drive layout is one where the engine is located at the front of the vehicle and driven wheels are located at the rear. This was the traditional automobile layout for most of the 20th century....
with longitudinal engine
Longitudinal engine
In automotive engineering, a longitudinal engine is an internal combustion engine in which the crankshaft is oriented along the long axis of the vehicle, front to back....
s. the present iterations of the ES and LaCrosse emphasize "comfortable, reasonably priced luxury", while the TL has recently been targeted at the entry-level luxury sport market
Sports sedan
A sports sedan or a sports saloon is a descriptive term applied to a sedan automobile that is designed to look and feel "sporty", offering the motorist more connection with the driving experience, while providing the comfort and amenities expected of a luxury sedan. A wider definition that includes...
.
Recently, the entry-level luxury has been very competitive, and there has been price-overlapping with well-equipped non-luxury cars. The bestselling vehicles of the marque are frequently compact executive cars, such as the BMW 3 Series that makes up 40% of the vehicles that BMW sells worldwide.
Mid-luxury/executive cars
The mid-luxury segment are commonly referred to as executive carExecutive car
Executive car is a British term that refers to a car's size and is used to describe an automobile larger than a large family car. In official use, the term is adopted by EuroNCAP, a European organisation founded to test car safety.- History :...
s in Britain, Obere Mittelklasse in German, and Grandes Routières in French. Examples include the Volvo S80
Volvo S80
The Volvo S80 is a mid-size executive saloon/sedan from Swedish automaker Volvo Cars, and was introduced in 1998 to take the place of the rear-wheel drive Volvo 960/S90 saloons in the model range. The Volvo S80 was built at the Torslanda Plant in Gothenburg, Sweden. Unlike most Volvo models, it...
, BMW 5 Series
BMW 5 Series
The BMW 5 Series is a mid-size / executive car manufactured by BMW since 1972. The car, now in its sixth generation, is sold in sedan and touring body styles....
, Mercedes-Benz E-Class
Mercedes-Benz E-Class
The Mercedes-Benz E-Class is a range of executive-size cars manufactured by Mercedes-Benz in various engine and body configurations. The E initially stood for Einspritzmotor, ; a new feature in volume production vehicles at the time that the E-Class first appeared, with the E as a suffix to the...
, and Jaguar XF
Jaguar XF
The Jaguar XF The Jaguar XF The Jaguar XF (type (X250) is a mid-size luxury car / sports saloon produced by British car manufacturer Jaguar. The car, which replaced the Jaguar S-Type, was launched at the 2007 Frankfurt Motor Show following the public showing of the C-XF concept in January 2007 at...
Although having similar dimensions to mid-size car
Mid-size car
A mid-size car is the North American/Australian standard for an automobile with a size equal to or greater than that of a compact...
s and large family car
Large family car
A large family car, also known as a D-segment car, is a European automobile classification which is larger than a small family car and smaller than an executive car. Multi-purpose vehicles based on a large family car design are often called large MPVs, while similarly-priced models from luxury car...
s, executive cars are engineered and positioned as premium vehicles with better performance and technology amenities. There are also higher development and production costs, as many well-known mid-luxury cars use the longitudinal (usually front engine rear wheel drive layout) engine mounting which affords space for powerful engines such as a V8, instead of the more economical transverse engine layout of mass market cars which are restricted to inline-4 or V6. Executive cars usually have lower sales and production volumes compared to mid-size car
Mid-size car
A mid-size car is the North American/Australian standard for an automobile with a size equal to or greater than that of a compact...
s and large family car
Large family car
A large family car, also known as a D-segment car, is a European automobile classification which is larger than a small family car and smaller than an executive car. Multi-purpose vehicles based on a large family car design are often called large MPVs, while similarly-priced models from luxury car...
s, as base trims with less equipment and smaller engines are not sold in U.S. and Canadian markets. Also due to the problem of steep depreciation, especially concerning cars from less prestigious brands, most executive cars are produced by marques that specialize in larger/more expensive vehicles. Particularly in the United States, the mid-luxury segment is dominated by Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
and BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
, as executive cars from lesser-known manufacturers such as Citroën
Citroën
Citroën is a major French automobile manufacturer, part of the PSA Peugeot Citroën group.Founded in 1919 by French industrialist André-Gustave Citroën , Citroën was the first mass-production car company outside the USA and pioneered the modern concept of creating a sales and services network that...
and Infiniti
Infiniti
is the luxury division of automaker Nissan. Infiniti officially started selling vehicles on November 8, 1989 in North America. Marketing operations have since grown to include the Middle East, South Korea, Russia, Taiwan, China, Ukraine and the United Kingdom. Infiniti began sales in additional...
have not had much success.
Vehicles in this segment include the mid-range models of several luxury car manufacturers. There are also some flagship sedans in this segment, such as the Acura RL
Acura RL
The Acura RL is the flagship car for North American luxury brand Acura — marketed in Japan as the Honda Legend and manufactured in Saitama, Japan...
and Infiniti M
Infiniti M
The "M" nameplate has been used on various mid-luxury cars from the Infiniti luxury division of Nissan.The first iteration was the M30 Coupe/Convertible, which were rebadged JDM Nissan Leopard....
. Executive cars such as the BMW 5 Series are crucial to a luxury automaker's bottom line, and although not the highest-selling model, they generate a significant amount of profits due to the lucrative technology options.
High-end luxury/full-size luxury cars
Also known as full-size luxury cars, grand saloons, or premium large cars, while "Oberklasse" is used in Germany. Many of these are the marque's showcases for the newest automotive technology. Several nameplates also offer long-wheelbase versions that offer additional rear legroom and amenities. Full-size luxury cars sold in Canada and the U.S. typically have mid-displacement V8 engines, though recently some marques have offered six cylinder powerplants but without much success.Vehicles in this category include some of the models from the flagship lines of luxury car brands. Examples include the Audi A8
Audi A8
The Audi A8 is a four-door, full-size, luxury sedan car manufactured and marketed by the German automaker Audi since 1994. Succeeding the Audi V8, the A8 has been offered with front wheel drive or permanent four-wheel drive, with multitronic or tiptronic automatic transmissions — and in short- and...
, BMW 7 Series
BMW 7 Series
The BMW 7 Series is a line of full-size luxury vehicles produced by the German automaker BMW. Introduced in 1977, it is BMW's flagship car and is only available as a sedan or extended-length limousine...
, Jaguar XJ
Jaguar XJ
Jaguar XJ is the designation that has been used for a series of luxury saloon cars sold under the British Jaguar marque. The first XJ was launched in 1968 and the designation has been used for successive Jaguar flagship models since then. The original model was the last Jaguar saloon to have had...
, Lexus LS
Lexus LS
The Lexus LS is a full-size luxury sedan that serves as the flagship model of Lexus, the luxury division of Toyota. Four generations of the sedan have been produced, all equipped with V8 engines and rear-wheel drive, although since 2006 all-wheel drive, hybrid, and long-wheelbase variants have also...
, Mercedes-Benz S-Class
Mercedes-Benz S-Class
The Mercedes-Benz S-Class is a series of luxury sedans produced by Mercedes-Benz, a division of Daimler AG. The classification was officially introduced in 1972 with the W116 S-Class, which succeeded previous Mercedes-Benz models dating to the mid-1950s...
, Volkswagen Phaeton
Volkswagen Phaeton
The Volkswagen Phaeton is a full-size luxury sedan/saloon manufactured by German automaker Volkswagen, and is described by Volkswagen as their "premium class" vehicle...
, and in the US, the Lincoln Town Car
Lincoln Town Car
The Lincoln Town Car is a full-size luxury sedan that was sold by the upscale Lincoln division of Ford Motor Company; it was produced from 1981 to the 2011 model years...
and Cadillac DTS
Cadillac DTS
The Cadillac DTS is a full-size luxury sedan produced by General Motors, an American automobile company. The DTS replaced the Cadillac DeVille as General Motors' largest luxury car for the 2006 model year...
.
Ultra-luxury cars
This bracket includes the entire lineup of Rolls Royce
Rolls-Royce (car)
This a list of Rolls-Royce motor cars and includes vehicles produced by:*Rolls-Royce Limited *Rolls-Royce Motors , which was owned by Vickers between 1980 and 1998, and after that by Volkswagen...
, Bentley
Bentley
Bentley Motors Limited is a British manufacturer of automobiles founded on 18 January 1919 by Walter Owen Bentley known as W.O. Bentley or just "W O". Bentley had been previously known for his range of rotary aero-engines in World War I, the most famous being the Bentley BR1 as used in later...
, Aston Martin
Aston Martin
Aston Martin Lagonda Limited is a British manufacturer of luxury sports cars, based in Gaydon, Warwickshire. The company name is derived from the name of one of the company's founders, Lionel Martin, and from the Aston Hill speed hillclimb near Aston Clinton in Buckinghamshire...
, Maybach
Maybach
Maybach-Motorenbau GmbH is a German luxury car manufacturer. It was founded in 1909 by Wilhelm Maybach and his son. The company was originally a subsidiary of Luftschiffbau Zeppelin GmbH and was itself known as Luftfahrzeug-Motorenbau GmbH until 1912.Today, the ultra-luxury car brand is owned by...
, and Maserati
Maserati
Maserati is an Italian luxury car manufacturer established on December 1, 1914, in Bologna. The company's headquarters is now in Modena, and its emblem is a trident. It has been owned by the Italian car giant Fiat S.p.A. since 1993...
, as these marques do not offer lower-priced offerings in the entry-level luxury or mid-luxury segments like more mainstream luxury brands like BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
and Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
.
Rolls Royce and Bentley have attempted to move downmarket somewhat with offerings priced considerably lower than their traditional offerings (Rolls Royce Phantom and Bentley Mulsanne
Bentley Mulsanne
The Bentley Mulsanne is a performance luxury car which was produced by Bentley Motors Limited from 1980 until 1992, though derivative models like the Continental T and Azure continued in production into the 2000s...
) such as the Rolls Royce Ghost and the Bentley Continental GT
Bentley Continental GT
-Flying Spur:The four door Continental Flying Spur saloon was first displayed at the 2005 Geneva Motor Show. The Flying Spur utilizes most of the technical underpinnings of the Bentley Continental GT, and was introduced to European and North American markets in the summer of 2005...
, creating what Car and Driver
Car and Driver
Car and Driver is an American automotive enthusiast magazine. Its total circulation is 1.31 million. It is owned by Hearst Magazines, who purchased prior owner Hachette Filipacchi Media U.S. in 2011...
describes as the "entry-opulent segment". Bentley, Maybach, and Rolls-Royce vehicles share platforms and engines with other luxury brands from their parent auto company, however Rolls-Royce
Rolls-Royce Motor Cars
Rolls-Royce Motor Cars is a British manufacturer of luxury automobiles based at the Goodwood plant in West Sussex, England. It is the current producer of Rolls-Royce branded automobiles, whose historical production dates back to 1904. The factory is located across from the historic Goodwood Circuit...
and Bentley
Bentley
Bentley Motors Limited is a British manufacturer of automobiles founded on 18 January 1919 by Walter Owen Bentley known as W.O. Bentley or just "W O". Bentley had been previously known for his range of rotary aero-engines in World War I, the most famous being the Bentley BR1 as used in later...
are assembled in England (separate from the rest of BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
and Volkswagen Group
Volkswagen Group
Volkswagen Group is a German multinational automobile manufacturing group. , Volkswagen was ranked as the world’s third largest motor vehicle manufacturer and Europe's largest....
's production plants) and this "exclusivity" has made these British marques a sales success. By comparison, Maybachs are built alongside the Mercedes-Benz S-Class
Mercedes-Benz S-Class
The Mercedes-Benz S-Class is a series of luxury sedans produced by Mercedes-Benz, a division of Daimler AG. The classification was officially introduced in 1972 with the W116 S-Class, which succeeded previous Mercedes-Benz models dating to the mid-1950s...
flagship sedan which has explained why it has not fared well in the market, furthermore the Maybach's pedigree was virtually unknown outside of Germany unlike its British rivals which have long enjoyed renown worldwide. A Bentley executive was quoted as saying "that the brand’s exclusivity, history and obsessive luxury help to convince customers that a Bentley is worth the price" which is at least twice that of a flagship luxury car from BMW or Mercedes-Benz.
The top-performing variants of flagship cars from Audi
Audi
Audi AG is a German automobile manufacturer, from supermini to crossover SUVs in various body styles and price ranges that are marketed under the Audi brand , positioned as the premium brand within the Volkswagen Group....
, BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
, and Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
are often included here as well. They often have 12-cylinder (usually V12
V12 engine
A V12 engine is a V engine with 12 cylinders mounted on the crankcase in two banks of six cylinders, usually but not always at a 60° angle to each other, with all 12 pistons driving a common crankshaft....
) engines for great refinement and smoothness, even though contemporary V8 engines can make similar output while being less expensive. While BMW sells far fewer V12-engined 7-Series vehicles than V8 versions, the V12 retains popularity in the US, China, and Russia, as well as maintaining the marque's prestige in the luxury vehicle market segment. These ultra-luxury trims also feature standard luxury and technology features that would be considered optional on their V8 siblings.
There are ultra-high performance cars from "exotic brands" that also exceed , but would not necessarily be categorized as luxury automobiles, such as the sports cars from Ferrari
Ferrari
Ferrari S.p.A. is an Italian sports car manufacturer based in Maranello, Italy. Founded by Enzo Ferrari in 1929, as Scuderia Ferrari, the company sponsored drivers and manufactured race cars before moving into production of street-legal vehicles as Ferrari S.p.A. in 1947...
, Lamborghini
Lamborghini
Automobili Lamborghini S.p.A., commonly referred to as Lamborghini , is an Italian car manufacturer. The company was founded by manufacturing magnate Ferruccio Lamborghini in 1963, with the objective of producing a refined grand touring car to compete with established offerings from marques like...
and Porsche
Porsche
Porsche Automobil Holding SE, usually shortened to Porsche SE a Societas Europaea or European Public Company, is a German based holding company with investments in the automotive industry....
, although the Porsche Panamera
Porsche Panamera
The Porsche Panamera is a four-door a coupe. It is front-engined with rear-wheel drive, with four-wheel drive versions also available....
does compete in the high-end luxury/full-size luxury category.
Luxury SUV/Crossover
This category can be said to have been created with Kaiser JeepKaiser Jeep
Kaiser Jeep was the result of the merger between the Kaiser-Frazer Corporation, an independent automaker based in Willow Run, Michigan, and the Toledo, Ohio-based Willys-Overland Company....
's 1966 Super Wagoneer
Jeep Wagoneer
The Jeep Wagoneer was an early sport utility vehicle and the first luxury 4x4, produced under varying marques from 1963 to 1991. It was noteworthy for being in production for more than 28 years with only minor mechanical changes...
as the first true luxury four-wheel drive
Four-wheel drive
Four-wheel drive, 4WD, or 4×4 is a four-wheeled vehicle with a drivetrain that allows all four wheels to receive torque from the engine simultaneously...
(4x4) vehicle. It was the first SUV to offer a V8 engine
V8 engine
A V8 engine is a V engine with eight cylinders mounted on the crankcase in two banks of four cylinders, in most cases set at a right angle to each other but sometimes at a narrower angle, with all eight pistons driving a common crankshaft....
, automatic transmission
Automatic transmission
An automatic transmission is one type of motor vehicle transmission that can automatically change gear ratios as the vehicle moves, freeing the driver from having to shift gears manually...
, and luxury car trim and equipment in a serious off-road model. The Super Wagoneer was "a pioneer that blazed a trail for today's luxury SUVs". It came with long list of standard equipment that included bucket seating with center console, air conditioning
Air conditioning
An air conditioner is a home appliance, system, or mechanism designed to dehumidify and extract heat from an area. The cooling is done using a simple refrigeration cycle...
, seven-position tilt steering wheel, a vinyl roof
Vinyl roof
Vinyl roof refers to a vinyl covering for an automobile's top. This covering was originally designed to give the appearance of a convertible to models with a fixed roof, but eventually it evolved into a styling statement in its own right. Vinyl roofs were most popular in the American market, and...
, as well as "Antique Gold" trim panels on the body sides and tailgate. After American Motors Corporation
American Motors
American Motors Corporation was an American automobile company formed by the 1954 merger of Nash-Kelvinator Corporation and Hudson Motor Car Company. At the time, it was the largest corporate merger in U.S. history.George W...
(AMC) purchased Jeep, the vehicles were upgraded and refined, including features such as an optional electric sliding steel sun roof, "possibly the first offered on an SUV". The late-1970s Jeep Wagoneer Limited "set the sport-utility market on its ear ... was the most luxurious four-wheeler anyone had ever seen."
The SUV models generated higher-profit-margins than ordinary automobiles, and automakers introduced new luxury models during the late 1990s. For some manufacturers such as Porsche and BMW, luxury SUVs were the first SUV models they produced. Luxury SUVs catered particularly to the U.S. market where station wagons were unpopular, often being produced in North America (such as BMW Spartanburg) instead of the luxury marque's home country. Some of these models were not traditional SUVs based on light trucks, rather they are classified as crossovers using unibody constructions. SUVs from non-luxury brands had experienced a surge in popularity through early 2000s, causing the traditional luxury marques to follow.
SUVs from the luxury marques grew at almost 40 percent to more than 430,000 vehicles, excluding SUV-only brands like Hummer
Hummer
Hummer was a brand of trucks and SUVs, first marketed in 1992 when AM General began selling a civilian version of the M998 Humvee. In 1998, General Motors purchased the brand name and marketed three vehicles: the original Hummer H1, based on the Humvee; and the H2 and H3 models that were...
and Land Rover
Land Rover
Land Rover is a British car manufacturer with its headquarters in Gaydon, Warwickshire, United Kingdom which specialises in four-wheel-drive vehicles. It is owned by the Indian company Tata Motors, forming part of their Jaguar Land Rover group...
, while luxury car sales in the U.S. during 2003 suffered a 1% decline, and non-luxury SUV sales were flat. By 2004, 30 percent of major luxury brands' U.S. sales are now SUVs. Luxury brands in particular led the development of crossover SUVs (as opposed to body-on-frame
Body-on-frame
Body-on-frame is an automobile construction method. Mounting a separate body to a rigid frame that supports the drivetrain was the original method of building automobiles, and its use continues to this day. The original frames were made of wood , but steel ladder frames became common in the 1930s...
SUVs), making it one of the fastest growing segments in the market, as the forecast for 2002 was approximately 240,000 vehicles and that could double by 2006. Research data showed luxury SUV buyers are compared those vehicles to SUVs of mass market brands, and not shopping around luxury cars, thus the SUV is becoming the key to bringing new customers to the luxury dealerships.
Certain luxury SUVs use body-on-frame
Body-on-frame
Body-on-frame is an automobile construction method. Mounting a separate body to a rigid frame that supports the drivetrain was the original method of building automobiles, and its use continues to this day. The original frames were made of wood , but steel ladder frames became common in the 1930s...
underpinnings, often being badge-engineered versions
Badge engineering
Badge engineering is an ironic term that describes the rebadging of one product as another...
of their non-luxury counterparts, and retaining the rugged off-road and towing capabilities. Examples include the Lexus LX
Lexus LX
The Lexus LX is a full-size sport utility vehicle sold by Lexus since 1996. Three generations of the Lexus LX have been produced, all based heavily on the long-running Toyota Land Cruiser series of SUVs. The first generation LX 450 debuted in 1996 as Lexus' first entry into the SUV market. Its...
and Lincoln Navigator
Lincoln Navigator
The Lincoln Navigator is a full-size luxury SUV built by the Ford Motor Company for its luxury division, Lincoln. Introduced as a 1998 model, production began May 14, 1997 with sales beginning in August. The Navigator was Lincoln's first SUV as well as its first four-wheel drive capable vehicle...
, which are the premium versions of the Toyota Land Cruiser
Toyota Land Cruiser
The is a series of four-wheel drive vehicles produced by the Japanese car maker Toyota Motor Corporation. It is not related to the Studebaker Land Cruiser car produced in the US from 1934-1954....
(itself a luxurious SUV in the United States) and Ford Expedition
Ford Expedition
The Ford Expedition is a full-size SUV built by the Ford Motor Company. Introduced in 1997 as a replacement to the Ford Bronco, it was previously slotted between the smaller Ford Explorer and the larger Ford Excursion, but as of the 2005 model year, it is Ford's largest and last truck-based,...
, respectively.
Other luxury SUVs are crossovers using unibody construction, often sharing the platform with compact executive and executive cars. For example, the Infiniti FX
Infiniti FX
The Infiniti FX is a mid-size luxury crossover SUV produced by the Nissan-owned Infiniti luxury vehicle brand since the 2003 model year. The FX replaced the QX4 as Infiniti's mid-size luxury-type SUV, although the QX4 was smaller than the FX. It was released at the same time as its competitors,...
is based upon the Nissan FM platform
Nissan FM platform
The Nissan FM platform is a modern FR automobile layout. The name is derived from the "front midships" location of the engine, referring to the engine's center of mass being located behind the front axle centerline, shifting weight to the middle of the car, leaving the front suspension less...
that also underpins other Infiniti cars. Audi
Audi
Audi AG is a German automobile manufacturer, from supermini to crossover SUVs in various body styles and price ranges that are marketed under the Audi brand , positioned as the premium brand within the Volkswagen Group....
and BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
developed crossovers to compete in the SUV segment as they did not have an existing body-on-frame
Body-on-frame
Body-on-frame is an automobile construction method. Mounting a separate body to a rigid frame that supports the drivetrain was the original method of building automobiles, and its use continues to this day. The original frames were made of wood , but steel ladder frames became common in the 1930s...
vehicle in their lineup. The Lexus RX
Lexus RX
The Lexus RX is a crossover sport utility vehicle sold since 1998 by Lexus, the luxury division of the Japanese automobile manufacturer Toyota. Three generations of the Lexus RX have been produced to date, the first being compact in size, and the latter two classified as mid-size...
was the earliest luxury crossover on the market, and it has since been the best-selling luxury vehicle in the US, so it has inspired similar competitors from rival marques. While early luxury crossovers released in the late 1990s have resembled traditional boxy SUVs, recent offerings have prioritized sportiness over utility — such as the Infiniti FX and BMW X6
BMW X6
The BMW X6 is a mid-size luxury crossover released for sale in the second quarter of 2008 by German automaker BMW. The X6 was marketed as a Sports Activity Coupé by BMW...
.
Characteristics
Luxury cars tend to offer a higher degree of comfort than their mainstream counterparts, common amenities include genuine leather upholstery and polished "woodgrain-look" dashboards. Compared to mainstream vehicles, luxury cars have traditionally emphasized comfort and safety. Luxury vehicles are also a status symbol for conspicuous consumption
Conspicuous consumption
Conspicuous consumption is spending on goods and services acquired mainly for the purpose of displaying income or wealth. In the mind of a conspicuous consumer, such display serves as a means of attaining or maintaining social status....
.
Contemporary luxury cars also offer higher performance and better handling, which is often known as sport luxury
Sports sedan
A sports sedan or a sports saloon is a descriptive term applied to a sedan automobile that is designed to look and feel "sporty", offering the motorist more connection with the driving experience, while providing the comfort and amenities expected of a luxury sedan. A wider definition that includes...
. However in Europe, where large-displacement engines are often heavily taxed and many luxury buyers shy away from conspicuous consumption, brands offer buyers the option of removing exterior engine-identifying badges.
Forbes noted that the reputation of luxury marques enables them to continually introduce many new safety technologies and comfort amenities, such as anti-lock brakes
Anti-lock braking system
An anti-lock braking system is a safety system that allows the wheels on a motor vehicle to continue interacting tractively with the road surface as directed by driver steering inputs while braking, preventing the wheels from locking up and therefore avoiding skidding.An ABS generally offers...
, electronic stability control
Electronic stability control
Electronic stability control is a computerized technology that may potentially improve the safety of a vehicle's stability by detecting and minimizing skids. When ESC detects loss of steering control, it automatically applies the brakes to help "steer" the vehicle where the driver intends to go...
and DVD
DVD
A DVD is an optical disc storage media format, invented and developed by Philips, Sony, Toshiba, and Panasonic in 1995. DVDs offer higher storage capacity than Compact Discs while having the same dimensions....
entertainment systems, before they trickle down to mass market cars. Numerous "smart car
Intelligent car
Vehicle Automation involves the use of mechatronics and in particular, artificial intelligence to assist in the control of the vehicle, thereby relieving responsibilities from the driver or making a responsibility more manageable. These features and the vehicles employing them may be labeled as...
" features are largely only found on luxury cars as of 2009.
The rear-wheel drive
Front-engine, rear-wheel drive layout
In automotive design, an FR, or Front-engine, Rear-wheel drive layout is one where the engine is located at the front of the vehicle and driven wheels are located at the rear. This was the traditional automobile layout for most of the 20th century....
with longitudinal engine
Longitudinal engine
In automotive engineering, a longitudinal engine is an internal combustion engine in which the crankshaft is oriented along the long axis of the vehicle, front to back....
s (FR) is a common layout of luxury cars. European marques like Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
, BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
, and Jaguar have almost never adopted front-wheel drive and retained a lineup mostly or entirely made up of FR cars. Japanese brands such as Lexus
Lexus
is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. The Lexus marque is marketed in over 70 countries and territories worldwide, and has...
and Infiniti
Infiniti
is the luxury division of automaker Nissan. Infiniti officially started selling vehicles on November 8, 1989 in North America. Marketing operations have since grown to include the Middle East, South Korea, Russia, Taiwan, China, Ukraine and the United Kingdom. Infiniti began sales in additional...
also have predominantly FR lineups. The FR layout, while more expensive than the FF, has been retained by these luxury manufacturers as it allows for higher performance engines (particularly the straight-6, V8
V8 engine
A V8 engine is a V engine with eight cylinders mounted on the crankcase in two banks of four cylinders, in most cases set at a right angle to each other but sometimes at a narrower angle, with all eight pistons driving a common crankshaft....
, and other engine configurations with more cylinders), better handling, and a smoother ride.
American manufacturers also largely followed the FR for their luxury brands (as well as their mass-market cars of the time). However, due to the Arab Oil Embargo of 1973 and the 1979 fuel crises, began eliminating their FR platforms in favor of the more economical front wheel drive transverse engine
Transverse engine
A transverse engine is an engine mounted in a vehicle so that the engine's crankshaft axis is perpendicular to the long axis of the vehicle. Many modern front wheel drive vehicles use this engine mounting configuration...
layout
Automobile layout
In automotive design, the automobile layout describes where on the vehicle the engine and drive wheels are found. Many different combinations of engine location and driven wheels are found in practice, and the location of each is dependent on the application the vehicle will be used for...
(FF). Chrysler went 100% FF by 1990 and GM
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
's Cadillac
Cadillac
Cadillac is an American luxury vehicle marque owned by General Motors . Cadillac vehicles are sold in over 50 countries and territories, but mostly in North America. Cadillac is currently the second oldest American automobile manufacturer behind fellow GM marque Buick and is among the oldest...
and Buick
Buick
Buick is a premium brand of General Motors . Buick models are sold in the United States, Canada, Mexico, China, Taiwan, and Israel, with China being its largest market. Buick holds the distinction as the oldest active American make...
brands for the US were entirely FF by 1997. One of the few notable holdouts was Ford's Lincoln Town Car
Lincoln Town Car
The Lincoln Town Car is a full-size luxury sedan that was sold by the upscale Lincoln division of Ford Motor Company; it was produced from 1981 to the 2011 model years...
and Lincoln LS
Lincoln LS
The Lincoln LS is a mid-size, rear wheel drive sedan from Lincoln. For its production run from 1999 until 2006, it was based on the Ford DEW98 platform, which was shared with the Jaguar S-Type and Ford Thunderbird...
.
In the 21st century, as part of the revamp of its design and image, Cadillac returned most of its lineup (sedans, roadsters, crossovers and SUVs) to rear- or all-wheel-drive, the only exceptions being the front-wheel drive Cadillac BLS
Cadillac BLS
The Cadillac BLS is a compact executive car marketed in Europe by Cadillac, a division of General Motors. Based on GM's Epsilon architecture, the BLS is a heavily restyled version of the Saab 9-3. The development was done by Saab and cost more than one billion kronor to design...
(which is not sold in North America) and the Cadillac DTS
Cadillac DTS
The Cadillac DTS is a full-size luxury sedan produced by General Motors, an American automobile company. The DTS replaced the Cadillac DeVille as General Motors' largest luxury car for the 2006 model year...
. Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
returned its full-size cars to this layout with the Chrysler 300
Chrysler 300
The Chrysler 300 is a full-size upscale car first shown at the 2003 New York Auto Show as a concept car. Sales in the U.S. began in the spring of 2004 as an early 2005 model year car. Designed by Ralph Gilles, the new 300 was built as a high-end sedan while the SRT-8 model was designed to be the...
. Ford's Lincoln retained the longtime FR platform for the Town Car, intended for use as a limousine
Limousine
A limousine is a luxury sedan or saloon car, especially one with a lengthened wheelbase or driven by a chauffeur. The chassis of a limousine may have been extended by the manufacturer or by an independent coachbuilder. These are called "stretch" limousines and are traditionally black or white....
and chauffeur
Chauffeur
A chauffeur is a person employed to drive a passenger motor vehicle, especially a luxury vehicle such as a large sedan or limousine.Originally such drivers were always personal servants of the vehicle owner, but now in many cases specialist chauffeur service companies, or individual drivers provide...
ed car, but newer offerings such as the MKZ
Lincoln MKZ
The Lincoln MKZ, initially named the Lincoln Zephyr, is a mid-size, entry-level luxury car from the Lincoln division of the Ford Motor Company. Lincoln revived the Zephyr name in the fall of 2005 as a platform-mate for the Ford Fusion and Mercury Milan; the vehicles were based on the CD3 platform,...
and MKS
Lincoln MKS
The Lincoln MKS is a full-size luxury sedan from the Lincoln division of the Ford Motor Company. The MKS first appeared in concept form at the North American International Auto Show in January 2006 with the production version, a 2009 model, appearing later at the Los Angeles International Auto...
will use newer FF platforms shared with mainstream Ford vehicles, with all-wheel drive as an option.
History and sales
Cadillac CTS
The Cadillac CTS is a mid-size car manufactured by the Cadillac marque of General Motors currently available in three body styles: Sedan, Coupe, and Sport Wagon. It was introduced in 2002 as a sports sedan, replacing the Cadillac Catera. The CTS and the supercharged CTS-V variant have been named...
, the marque has seen a resurgence in sales and brand value. Ford's Lincoln, which had seen sales fall as a result of an aging lineup, has attempted to return that luxury marque to competitiveness, by releasing new models such as the Lincoln MKS
Lincoln MKS
The Lincoln MKS is a full-size luxury sedan from the Lincoln division of the Ford Motor Company. The MKS first appeared in concept form at the North American International Auto Show in January 2006 with the production version, a 2009 model, appearing later at the Los Angeles International Auto...
, as well as divesting itself of its other Premier Automotive Group
Premier Automotive Group
The Premier Automotive Group , was a group within the Ford Motor Company which was formed in 1999 to oversee the business operations of Ford's high-end automotive marques....
brands. Mercedes-Benz and BMW were the top-selling luxury import until 1991, when they were overtaken by Lexus. Since 2000, Lexus has been the number-one-selling luxury car marque in the U.S., holding that title ever since.
Since the 1980s, a host of new manufacturers have entered the luxury market to challenge the traditional players. The three major Japanese auto manufacturers, Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...
, Toyota, and Nissan, created their respective luxury brands particularly for the US. As a result of voluntary export restraint
Voluntary Export Restraints
A voluntary export restraint or voluntary export restriction is a government imposed limit on the quantity of goods that can be exported out of a country during a specified period of time....
s imposed in 1981, these manufacturers were limited to a number of vehicles they could export. While these companies sidestepped this by establishing US production facilities for mass market vehicles, their home factories soon begun producing higher-priced cars as they carried a greater profit margin per car. Acura
Acura
Acura is the luxury vehicle division of Japanese automaker Honda Motor Company. The brand has been available in the United States and Canada since March 1986, marketing luxury, performance, and near-performance vehicles. It was introduced to Hong Kong in 1991, Mexico in 2004, and China in 2006...
was launched in 1986, while Lexus
Lexus
is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. The Lexus marque is marketed in over 70 countries and territories worldwide, and has...
and Infiniti
Infiniti
is the luxury division of automaker Nissan. Infiniti officially started selling vehicles on November 8, 1989 in North America. Marketing operations have since grown to include the Middle East, South Korea, Russia, Taiwan, China, Ukraine and the United Kingdom. Infiniti began sales in additional...
were unveiled in 1989. By 1992, these three divisions had sales of over , using lower prices and innovation to take market share from both domestic (Cadillac, Lincoln) and the European (Mercedes, Volvo, BMW, Audi and Jaguar) luxury car makers. Hyundai
Hyundai
Hyundai ) is a global conglomerate company, part of the Korean chaebol, that was founded in South Korea by one of the most famous businessmen in Korean history: Chung Ju-yung...
had recently released the Genesis
Hyundai Genesis
The Hyundai Genesis is a full-size luxury car initially introduced as a concept car in the 2007 New York International Auto Show. Hyundai has introduced the vehicle worldwide, known internally as the BH model, and markets the Genesis as a "premium sports sedan". The Genesis is currently not...
and plans to launch the Equus
Hyundai Equus
The Hyundai Equus , known as the Hyundai Centennial in the Middle East, is an upscale full-size luxury car that serves as the flagship model of Hyundai Motor Company worldwide, named after the Latin word for "horse". The Hyundai Equus is the largest and most expensive sedan in the company's lineup...
, hoping to repeat the same strategy of undercutting their established competitors.
The Late-2000s recession was the first time since the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
of the 1930s that the luxury car market suffered considerably, something not seen in previous economic downturns. Many such customers saw their net worth decline following the collapse in financial markets and real-estate values. For instance, some of the steepest dropoffs came at the high end, including the BMW 7 Series
BMW 7 Series
The BMW 7 Series is a line of full-size luxury vehicles produced by the German automaker BMW. Introduced in 1977, it is BMW's flagship car and is only available as a sedan or extended-length limousine...
and Rolls Royce Phantom, and Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
unexpectedly dropped the starting price of its all-new 2010 E-Class
Mercedes-Benz W212
The Mercedes-Benz W212 is a sedan sold as the ninth-generation E-Class, replacing the previous W211 model. C207 is the chassis code for the related E-Class Coupe, a replacement for the CLK-class coupe and cabriolet...
. The unusually sharp decline in luxury car sales have led observers to believe that there is a fundamental shift and reshaping of the luxury automotive market, with one industry official suggesting that the marques no longer command the premiums that they used to, and another saying that conspicuous consumption was no longer attractive in poor economic conditions.
Additionally, mainstream brands have been able to offer amenities and devices such as leather, wood, and anti-lock brakes, previously found only on luxury cars, as the costs decline.
However, luxury vehicle sales have not collapsed as much as their non-luxury counterparts. Luxury vehicle marques generally benefited from financially healthier dealerships, better leasing and certified pre-owned programs and loyal customers, so sales are expected to rebound more quickly than mass market cars.
Others note that there is growing interest in luxury vehicles from emerging markets such as China and Russia.
Also, the entry-level luxury segment has been very competitive, and there has been price-overlapping with well-equipped non-luxury cars. For instance, in Canada, several luxury manufacturers set sales records in August 2009, due mostly to aggressive incentives on entry-level luxury vehicles. In September 2009, BMW, Mercedes-Benz, Lexus and Audi all saw their Canadian sales increase by more than 10 per cent compared to a year earlier, despite overall Canadian auto sales being down 3.5 per cent compared to September 2008. The head of Mercedes-Benz Canada suggested that the brand "has been able to attract 'middle-class' consumers even during the recession because of the sense that owning a Mercedes comes with 'membership in a club'." BMW Canada's chief said luxury cars continued to be attractive, "I think due to new product offensives and due to new design and due to the fact that we are the benchmark in all areas when it comes to fuel efficiency... that together stimulates a lot of the market". BMW has managed to remain profitable in 2009 while other competitors were posting losses, by scaling down production quickly to avoid cash burn through bloated inventories.
Since March 2010, BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
is the best-selling luxury vehicle manufacturer by sales, ahead of rivals Audi AG (NSU.XE) and Daimler AG's (DAI.XE) Mercedes-Benz marque.
See also
- Luxury goodLuxury goodLuxury goods are products and services that are not considered essential and associated with affluence.The concept of luxury has been present in various forms since the beginning of civilization. Its role was just as important in ancient western and eastern empires as it is in modern societies...
- Veblen good
- Sport luxurySports sedanA sports sedan or a sports saloon is a descriptive term applied to a sedan automobile that is designed to look and feel "sporty", offering the motorist more connection with the driving experience, while providing the comfort and amenities expected of a luxury sedan. A wider definition that includes...