Hoovey689

iTrader: (16)

Redefining luxury

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

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

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

It used to be easy to define a luxury car. They tended to be big, heavy, powerful and loaded with lots of leather and wood. Sure, there's a new S-Class coming, and Bentley has just launched the massive new Flying Spur. But luxury cars are no longer measured by the pound or inch. Indeed, whether you call it the compact or entry-luxury segment, some of the fastest growth is occurring in the most downsized luxury segments.

That's a real problem for mainstream makers who're finding that a sizable number of buyers would rather stretch their budget to get into something with a Three-Pointed Star or a Roundel badge. On the other hand, the traditional boundary between luxury and mass market marques has gotten a lot more blurry in recent years.

You can order a Kia or a Chrysler with leather and many of the other accoutrements traditionally associated with only the most exclusive of brands. Ford has declared a strategy of "democratizing luxury," and that's especially apparent with the various high-tech features it has been rolling out, from the high-tech Sync and MyFord Touch infotainment system to advanced safety hardware like the cross-traffic alert system that debuted on the Taurus a few years back, mere months after BMW added it on the then-new 7 Series.

While there's still a cachet that consumers are willing to pay for with traditional luxury brands like Mercedes and BMW, the barrier to entry into the once-exclusive luxury club has been steadily coming down. Few believed the Japanese could challenge the vaunted Germans until Acura, Infiniti and, with particular success, Lexus came along.

Hyundai's upscale aspirations drew catcalls when it first announced the Genesis sedan. The skeptics were muted when, months later, the first version captured the coveted title of North American Car of the Year. The Korean carmaker reached even higher when it introduced the premium-luxury Equus, targeting the likes of the benchmark S-Class and 7 Series, and Hyundai's success with luxury cars has caught even senior company officials by surprise.

We've now seen the updated version of the Equus at the New York Auto Show this week, little more than a month before Mercedes has hinted it will unveil the new S-Class. Hyundai, meanwhile, is working up a number of other luxury options, possibly including a production version of the HND-9 sports coupe concept it recently unveiled at the Seoul Motor Show.

Big sedans like the S-Class, Audi A8 and Bentley Flying Spur still serve as halo cars for luxury brands but, cautions Joe Phillippi, of AutoTrends Consulting, "That's not where the growth is."

Those compact sedans, coupes and crossovers are steadily gaining traction – notably in markets as diverse as Berlin, Boston and Beijing. They are, as previously noted, within reach of some mainstream buyers. But they also reflect other key changes transforming the luxury market.

Competitive pressures, economies of scale and new technologies are all helping to lower the cost of many once-exclusive features, whether leather seats or advanced features like cross-traffic alert. That's why the new Mercedes CLA will offer a range of features, starting at under $30,000, you might once have expected only in a well-optioned E-Class at twice the price.

That is, of course, a serious challenge for luxury makers. It's why you see them raiding higher-volume mass-market segments – and forming unexpected partnerships, like the one pairing Mercedes' parent Daimler AG with the Renault-Nissan Alliance. The X-Class is expected to be based off a Renault platform even as Nissan's Infiniti brand borrows Mercedes' latest compact platform for several of its own models.

Luxury makers are also facing formidable challenges meeting increasingly stringent global safety, emissions and mileage requirements. Europe's tightening CO2 mandate led Aston Martin into an unusual alliance with Toyota. The result is the Cygnet, a well-outfitted Aston version of the Toyota/Scion iQ microcar that sells for barely a quarter the price of the next-lowest model in the British maker's portfolio.

It should be no surprise that makers as diverse as Audi and Cadillac have just introduced new plug-in hybrids, the A3 e-Tron and ELR, respectively. Tesla has been buoyed by some high-profile customers who show that even the affluent have embraced the concept of green motoring.

The good news is that "electrified" vehicles don't have to be stone ponies. Both the new LaFerrari and the McLaren P1 will integrate its Formula One hybrid system called HY-KERS. Also unveiled at the Geneva Motor Show last month, the production version of the SLS Electric Drive, a full battery-electric version of the Mercedes two-seat supercar.

Few of these new products – or brands – might have seemed possible when the original Baby Benz made its own, controversial debut. Back then, you could count the maker's models on one hand. Today, you need a scorecard. And the changes in the luxury market are only likely to continue at an ever faster pace.

http://www.autoblog.com/2013/04/02/redefining-luxury/

Fizzboy7

What's really happened here is the new CLA is the redesigned 190E. And the new A3 is the redesigned 1996 A4. It would have been easier for the public if makers just kept the same size and names with each redesign, while introducing all new larger models with all new names.

All this relates to America's obsession with size and obesity. Car makers only followed the trends of what we wanted and demanded (more size, more size, more size). The best example is what Cadillac did with the CTS. That car's history and positioning has been wiped off the map due to the pig factor.

PhilipMSPT

iTrader: (5)

^^ But it's just not about size.

It's about how much amenities, upscale material, and technology can you shoehorn into any car.

You can pay for a $18k for a Scion iQ, or pay $75k for an Aston Martin Cygnet.

Redefining Luxury: If automakers want to define it in their own terms, then so be it.

Hyundai and Buick defines luxury different than Lexus and Mercedes. But let's understand that one person's perception of luxury (as well that the value of luxury in terms of pricing) will always be different between individuals. Think of Coach and Louis Vuitton. Movado and Rolex. Tiffany and Cartier. One is cheaper than the other, but opinion can say it's still as luxurious as the other.

spwolf

A, B and CLA cars are econoboxes turned luxury... it has nothing to do with 190E.

I think all 3 look great on the outside, but interior is not luxury... and probably rest of it is hardly luxury too. Engines they get from Renault, some of them go into $12k cars here in Europe.

So you have Mercedes for €30k that has same engine as €12k Renault Clio.

mmarshall

Another difference between what is considered "luxury" today and what it was years ago is that, today, there seems to be much less difference, overall, between today's mainstream family-vehicles and what are considered their "luxury" versions. Years ago, luxury/upmarket vehicles included a lot of features (and comfort) not found on lower-priced vehicles (and they were usually larger in physical size, too). Today, much of the auto-industry has become so homoginized that, with more expensive vehicles, you end up paying more for the actual nameplate than for more actual vehicle itself. Virtually everything today is full of safety-features, electronics, touch-screens, GPS-options, real or imitation wood-tone and brushed-metal/chrome trim, sport/bucket front seats, self-driving features, downsized four-cylinder engines (often with with turbos), and, unfortunately, increasingly sport-oriented tires/suspensions that have all but forgotten true luxury ride/comfort.

pbm317

I'm pretty sure this is nothing new.

mmarshall

Well, yes and no. Measured in terms of just a few years, you're right.....probably not. But, decades ago, there was a huge difference between, say, a full-sized Ford or Chevy sedan-platform (Galaxie/LTD, Bel-Air/Impala, etc...) and their luxury/upmarket corporate brothers (Mercury Marquis, Lincoln Continental, Cadillac DeVille, Buick Electra 225, Olds 98). After getting out of a typical Ford/Chevy/Plymouth into a Buick/Olds/Chrysler/Imperial, you could often immediately tell the difference even blindfolded. Today that is generally not the case....many different vehicles have more or less the same exterior size and the feel of their interiors, seating, noise-level, and ride-comfort (or lack of ride-comfort)

trexlexus

Am i missing something here? I thought Chrysler used to be considered a luxury brand. Just that in the recent years, it has become lower quality and more mainstream.

spwolf

yep... when 1 series was just released in Europe, base equipment did not have radio at all, it came with empty 1 DIN slot.

How funny was that? But hey, you got the badge!

Outrage

BMW 318i:



Note the plastic wheel covers and unpainted bumper covers. With 138 horsepower, it might take a little longer to achieve Autobahn speeds.

Nospinzone

Easy, AA, and then before that AAA ............ and so on!

tex2670

When you could buy this car new, what was the spread between the cheapest 3-series and the most expensive? I'm not ready to call the new 320 "stripped down", but the most expensive 3-series doubles the price of the base 320 (that doesn't even count an M-3). I just think that's nuts. Price range $30,000-$60,000????

T0ked

iTrader: (2)

Agree that each category of car has gotten bigger and bigger. in the 1990s, my mom had a mazda 626 and it was the mid-sized segment, it was about the size of the current corolla. Cars in the "mid-size" segment now are huge in comparison.

Back to the OP, another culprit is that due to such a strong used car market, lease rates on their "entry level" make it easier for consumers who once never imagined they could ever own a MB, realize they can. For similar price, many would prefer a less optioned Lexus over a fully optioned Toyota.

Also, I realize you're not a caddy fan, but the new CTS size makes much more sense in its segment and its actually lighter than its predecessor and its direct competition. With the ATS within a couple of inches of the old CTS, there was no other way the CTS could go. It's now more clearly positioned with the 5, E and GS.

trexlexus

The redesigned CTS looks really stately! Everything past the hood of the car reminds me of a Rolls Royce profile. They did a great job on it.

The push downmarket will be very interesting in the later years. Soon we will be seeing $20k Benzes driving all around town. Lol hope not.

ISFPOWER

iTrader: (20)

kill that with fire now!