"Germany's luxury car makers, fresh from record 2012 sales, plan to launch new, lower priced models that would draw younger, less affluent U.S. customers away from mass market brands such as Ford, Honda, and Toyota."
Recent news tied to this includes:
1. Toyota just surpassed GM as the number one car seller in the world. They have managed to to this in the face of the tsunami in Japan cutting into sales numbers.
2. Detroit's own 'Lincoln Car Company' is currently overseeing a mass makeover initiative, to redeem themselves amongst the luxury brand companies mentioned above. If you've seen the new "Introducing the Lincoln Motor Company" commercials, this illustrates this effort perfectly. (A classy commercial, I must say)
So what does this move by German car makers say, about their response to the strategies of their competitors? What approach are they taking as as a retort?
I think it is a good move not only in a competition sense but also in accordance with the economy. May people are struggling through these rough times in the economy and even though the economy is picking up; by lowering prices, German car makers are implementing themselves into a wider age range. In turn this will add to their profits and sales of lower vehicles because companies like Audi's are seen as prestigious and a very sporty luxury car that now, a younger generation has a chance to drive.
ReplyDeleteLove the topic! It goes perfectly with the upcoming International Auto Show in Detroit, which everyone should consider checking out. It looks like in terms of luxury for a good price; the new Audi A3 is beating out competitors at $25,000-29,000. As the baby boomers are moving out as the key demand target audience, German luxury automakers are targeting young, successful professionals, thus lowering their prices but still keeping their brands luxury. In regards to Andrew’s question, it looks like German luxury auto makers are doing whatever it takes to get ahead of the global competition. If German wants to be the international hub for luxury automobiles, I am sure they are anticipating reactions from Japan and Detroit. It will be interesting to see if companies from these places have a response to Germany’s recent automobile advancement.
ReplyDeleteI think that is the fairest price for a brand new mid-size, regardless the company. BMW and Mercedes are both making big moves to adjust with world economies. This not only will attract young buyers but middle class families looking for a brand new spacious car. I've noticed that is the perfect range for such families and why not a BMW?
ReplyDeleteI think that many people will switch over to these German luxury brand cars. Cars like Mercedes-Benz and Volkswagen are better quality of cars compared to GM and Ford. If people can get this quality in a car for the same price as a car of less quality why wouldn't they make the switch. Also, many of GM's cars are similar in style. They have the same body style and amenities. Buying one of these other cars would set people apart from driving just another car. Great move by German auto makers.
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