Have MFR's Jumped The Shark With "Small Premium" Cars?

Have MFR's Jumped The Shark With
As we have seen automakers become niche-crazy followers, it seems the latest trend are small premium luxury cars. It was only so long ago that I recall 001 asking "Who's next?" Even Lexus has gotten in on the act with its CT200h. I wonder if Infiniti is standing in the batter's box warming up.

Regardless, The Truth About Cars' Edward Niedermeyer explores this topic a bit more and questions the Audi A1's ability to sell as its pricing is a bit on the higher side and fuel remains relatively cheap globally.

But it seems the real problem comes when you cross-shop small vehicles and realize you can get something with similar size at a more affordable price. Take, for example, the Volkswagen Golf and Audi A3. Besides the A3's cachet, what's keeping a buyer from getting into the Golf?

With that said, would you ever consider a "small premium" car or will you save some bucks at the dealership?

Let us know in the comments below...


Ever since four-door coupes became a dime a dozen, the European auto industry has been looking for a new niche, and for much of the past year or so, it seemed that the next big thing would be “small premium.” Inspired by the MINI, European automakers from Alfa to Audi have been trying to get consumers to spend big money on tiny, plush cars. But with Audi’s A1 starting at €15,800 ($20,873), it seems that even the efficiency-happy Germans aren’t willing to pay the price of entry for this new niche. Audi built capacity for 100k A1s at its Brussels plant, but since introducing the car in August, Audi has sold only 20k of the pricey subcompacts. And yes, the slow sales do seem to be tied to the exorbitant pricetags...

[Source: The Truth About Cars]


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chewychewy - 12/16/2010 8:29:20 PM
+2 Boost
The A1 is significantly cheaper than the A3, but I could see why more buyers would rather go for a Golf at the same price level.


SoMuchCheddaSoMuchChedda - 12/16/2010 9:24:28 PM
+6 Boost
Because everyone knows its a fancy polo, the A1 is a flop.


CarCrazedinCaliCarCrazedinCali - 12/17/2010 7:40:27 PM
+1 Boost
that argument WAS true for a long time with Audis and MAY still be... I think some of the Audi's have their own platforms, but the days are numbered where manufacturers will be using dedicated platforms for their products... How sound is the argument anyway, why would a VW platform be that inferior to an Audi platform- they both have to be rigid to feel good and save your life in a wreck... It's what goes on top and the technologies associated with the product that make it superior from one to the next, right?


SoMuchCheddaSoMuchChedda - 12/17/2010 8:19:37 PM
+2 Boost
The polo is not inferior, so that's why for a majority of people the polo with the Audi badge is not worth the premium price.


CarCrazedinCaliCarCrazedinCali - 12/17/2010 10:14:12 PM
+1 Boost
Chedda- by default the Polo cannot be as "nice" as the A1, otherwise how could they sell the more expensive version... Upgrading the overall materials inside the car (softer plastics, better grades of leather, nicer gauges, etc) and adding more features (larger moonroof, xenon adaptive headlights are just some features that come to mind that are likely available on the Audi and not the VW) and engineering to the A1 is the only way to make it sell and command the premium price. At least that is how my brain works...


SoMuchCheddaSoMuchChedda - 12/17/2010 10:52:41 PM
+2 Boost
I agree, the Audi is equipped nicer, but the platforms are essentially the same, and the polo can be had with leather. For most people the premium price/benefit ratio is not worth it. So for most people it makes sense just to buy the polo. That is why the A1 sales are so far below there projected output.


SteveSteve - 12/17/2010 10:05:25 AM
+7 Boost
Another flame-bait by OOR. God, how I miss the days when Autospies was full of facts, scoops, and came across as the "wikileaks" of the auto industry, instead of The Enquirer :-(


AgentOrangeAgentOrange - 12/17/2010 4:01:46 PM
+1 Boost
The "small premium" cars of today are the same size of the midsized cars of 10 years ago.
The 1-series BMW is a good case in point.
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