As The Luxury Brands Begin To Push Downstream - Should They Still Be Considered Tier One Brands?

Your picture tells quite a story! Simply put, moving down-market does not necessarily lessen your brand. Compare BMW to Acura, both of which have moved down-market, and you notice once has faltered while the other hasn't.

I believe it's the company's leadership that has diminished the brand. Acura's unattractive parrot-beak grill and generally lackluster styling has not been a benefit. Lexus, known for their lack of defects, has adopted angular, awkward styling that appeals to a progressively smaller audience. Infiniti? Yeah, good cars, but check that styling. Better yet, check it at the door, because it sure ain't pretty.

Yup, down-market has nothing to do with stumbling in the auto industry.

Regardless of product offering or leadership, every company is judged by their CORE competency/product.

While every company in their right mind today, regardless of industry, is moving up or down market as a means to expand their product portfolio and consumer base, the most crucial area each company is judged on and defines their category is their Core product.

For Mercedes Benz, its the S Class, a luxury car through and through now competing with the likes of Rolls and Bentley.

For BMW, it's the 3 series, the vehicle that best represents the brands overall values.

For Audi...I dunno, I mean their Quattro system is in itself more representative of the brand than any single vehicle in it's line up which is probably why the brand has not broken the 20k per month mark in the states yet...their most recognizable and successful vehicle competes with the Lexus RX.

Lexus is close to finding their identity and well on their way, however when your most successful and recognizable models are heavily based off Toyota platforms, it's hard to really capture that luxury image

Same with Infiniti, however, Infiniti has the most potential to capture a luxury image , but they MUST build a clear concise line-up with specific goals and targets in addition to a flagship sedan. With Acura, Cadillac, and Lincoln without a Flagship, this is Infiniti's time to strike

Change your name to troll009

Luxury is a mindset and a way of thinking and not just price. Take Audi's A3 Sedan for example. While it has a low base price of $29,900 it also includes such luxury features as bi-xenon headlights, leather seating and a panoramic sunroof as standard. Of course, if you option it up you can get all the bells and whistles usually found in the big German 3's more expensive offerings.

as I find it humourous how Nuttie is now defending the Audi brand for going downmarket , when about a year ago he swore that Audi would never do that and criticized BMW for coming out with the X1 and 320xi sedan for selling out their Soul. Now Audi has a A3, A1 on the way, Q3 on the way all priced below the $30k price range ... too funny and how hypocritical.

Agree with 800over and troll009

Audi saw the premium compact segment as ripe for growth and created a hugely appealing offering for that segment. The A3 Sedan has given Audi an extra spark in its sales. Many people thought Mercedes-Benz would close in on Audi for the second spot in 2014, but instead Audi is closing in on BMW for the top spot due in no small part to the A3 Sedan.

I find no reason to buy an Acura ILX over a Honda Accord except the badge. The Honda is better inside out, is way more roomy and practical, and even has better engine options.

just because a company have a diverse product range doesn't mean your brand is based on its lowest denominator...

009, you must be a great asset to autospies, helping the site bait comments with asinine headlines.

WOW...You have no clue about anything. Catera, Allante? Are you really that lost here?

People like trueluxury is the reason why the American luxury brands are never considered as "luxury" by the majority of people.

I don't even know what you're trying to say.

IMO, the only true, remaining Tier 1 brand is Mercedes. I say this because they remain as focused on their upper-crust products as they do their bottom-dwelling products, and maybe even moreso. Because of this focus, they continue to offer the most products at the high-end vs. Audi, BMW or Lexus.

Mercedes really faces no competition from Audi/BMW/Lexus for:
SL
SL63
SL65
S65
S-coupe
S63-coupe
S65-coupe
GL (Lexus excepted)
GL63
G Wagon
G63

There might be some that argue that the 6 Series competes with the S-coupe, but I feel the 6 Series competes with the Eclass coupe more than the S-coupe. And the GL is in a level above the Q7 in price and capacity.
Mercedes' focus on their upper-crust products could be part of the reason why they trail Audi and BMW in the global sales race. And I don't think that's a bad thing.

Lexus is not only Tier-1 in the U.S., it is the only one not bottom-feeding the market, looking to add volume, just for the sake of adding volume.

They hold the line on sedans at $35k. Lexus stands tall.

LOL That's really not that much "taller" than anyone else. The brand starts at $32k, not $35k. The reality is, no A3 or CLA can be had for under $32k-$35k without it having crank-up windows (just exaggerating, calm down). At the same time, Lexus is charing more for their cheapest car b/c it's a hybrid, so cost-for-cost, it's probably about even.

The brand starts at $35k. I said sedans. Lexus isn't selling the CT for volume.
The A3, CLA and 320i? You're really comparing a pimped-out Prius to those sedans?
Really?

You don't know much about luxury cars, do you?
LOL

Wrong. The little POS CT200h starts under 35K and FYI the A3 and CLA sell for about 35K typically.

LOL. Your ignorance is so shiny right now it's stupid.

The BRAND starts at $32k. You can't just discount a car because you choose to. The CT200h is PART OF THE BRAND whether you like it or not, and whether it's a gussied up Prius or not. Maybe you need a lesson on what BRAND means.

Evander -

You're tall for Lexus is short considering that Mercedes, BMW and even Audi sells cars for prices that Lexus can't even dream of, especially Mercedes. Lexus can't give away the LS600hL while Mercedes has no trouble selling a dozen different V12 and AMG cars for well over 100K. Lexus is nothing but a RX and ES, i.e. Highlander and Camry shop. The IS, GS and LS are just supporting cast members. Mercedes and BMW sells cars for more money to a wealthier clientele so I'm not sure what you're talking about and I don't think you do either. The whole name/brand "Lexus" was pulled out of a Toyota board members arse in 1983 and means nothing outside the U.S.

Just because the CT200h doesn't sell doesn't mean it isn't there and gets a pass. Lexus would love to sell that thing in "volume", but they can't. It's ugly, slow, and cramped and drives like a POS Prius. No thanks is what buyers say.

Oldsmobile hasn't even been a brand for 10 years, dawg.