Car News Articles

Rising U.S. gas prices and the American mortgage meltdown has hit sales of new vehicles hard. In terms of the product mix, a lot of ink has been expended on the rapid, ongoing transition from gas-guzzling SUVs to more miserly models– a change that’s hurt the truck-heavy domestics particularly hard. There’s been something of a presumption that luxury and near-luxury brands are safe from the tumbleweeds blowing through mass market showrooms. Marketing Daily reveals that it ain’t necessarily so. “Recent years represented a boom-time for American investors and the luxury marketers that filled their homes with Lexus SUVs, Rolex timepieces and Coach handbags. Now, the net worth of even wealthy Americans is dipping as real estate prices slump and stock portfolios sag. And, as investment banks and government economists begin beating the drums of recession, even high-net-worth households are cutting back.” Is this the right time for Mercedes to launch their AMG sub-brand, or VW to go upmarket? Hell no. And one has to wonder if [presumed] declining sales at Lincoln (the main cause for optimism at Ford), Land Rover (whose sale is already in jeopardy), Jaguar (mega-dittos) and Cadillac (whose CTS is the poster child for GM hopes of a product led turnaround) will stress the automakers to the point of no return. Watch this space. 

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