Analysts Warn The Luxury Market Has Peaked And The Germans Are In Trouble

The move towards in cabin tech becoming the most important selling factor to many will marginalize the Germans traditional advantages.

I would disagree and say the Germans are market leaders in terms of in-cabin technology. Look at BMW inventing the wheel system with iDrive. Audi launching its Virtual Cockpit before anyone else. Audi's new dual touch screen setup is also far ahead of what other automakers offer. Look at Mercedes-Benz's AI-powered MBUX.

iDrive is total garbage. MBUX and the Mobile cockpit are solid offerings. No one has beat Tesla yet in terms of overall UI/UX and infotainment capabilities.

Sorry but people have been buying brands for social status for, well, forever. That won’t stop.

Exactly !!

"Analysts" don't know what they're talking about 99% of the time

But were you actually sorry?

I saw the CEO of BMW speak 5 years ago and saying it was becoming increasingly difficult the differentiate between luxury brands and the upper range of mass market cars. And the move toward SUVs makes it even harder.

LOL. Well, it's especially hard when your design remains stagnant for over a decade. That certainly doesn't help draw attention to a brand.

But I don't disagree with the statement. There is becoming more and more of a blurred line between upper non-premium and entry-level premium.

The advancement of cars is yet another thing that has been going on for decades. The newest features start on the higher end premium cars - and eventually the cost of these features goes down enough to make them available to lower end vehicle - first as option - and later as standard equipment. The "Prestige" of a premium car - is not based on performance of cars 10 years ago - or features that have already trickled down - it is based on Public perception of the Brand - and while they do move up and down - just because a Hot Ford Hatchback could outrun some other premium cars - does not make that FORD a premium car.

At least one problem is manufacturers have been trying to take second tier premiums and move their Higher profits - example Volvo, DS, Infiniti, lots of others (Audi, Volvo and Saab were second tier 30 years ago) - more cars in the space spread the sales out.

But the biggest problem is that we are nearing an end to the record setting expansion of the last two administrations. As usual - the plan for profits to "Trickle down" to the middle classes has again NOT happened - and these class people really cannot afford the expensive cars that they bought - PLUS their LONG leases and/or 6 year loans - reduces the ability to quickly replace these cars on the market. S0 when you now see MORE people late on their mortgages - late on their car payments - you should he getting a clear message - we are heading toward some type of recession

The luxury market hasn't peaked so much as the mainstream market has risen. Given how posh mainstream crossovers and pickups can be, each one of those highly optioned models is one less at the luxury level.

Mercedes will always win. BMW may or may not, while Audi has never achieved victory. The British? Not even in the hunt. Lexus = Buick. American luxury? Lincoln will win while Cadillac continues to be more and more irrelevant.

I think a broader range of consumers are open to other premium brands. theres still a huge group of consumers that still aspire to own a Lexus - even old & busted used models. but this younger generation isn't very team-oriented as past generations. they'll have to heavily convinced that they need to own a $100k vehicle when a $30k alternative exists.

the luxury market as we understood it, has moved up-market. the top level mainstream vehicles are the entry-level luxury. SUV's in every category has artificially increased prices for that range simply due to demand & popularity. also, older drivers - who in the past hated SUV's - now prefer them bcuz of easier egress & a perception of being safer.

So MB, BMW, Audi and Porsche will next begin competing with the crappy Hyundai and Kia rice burners....so this article forecasts.

You're an anti-Korean bigot.

Analyst have to say something to remain relevant and the more outrageous, the more relevant, or so they think. The problem is that analysts' track record is about the same as weather forecasters...

We are basically at a point where all cars and SUV's are basically "converging" - that is, all cars and SUV's are basically at a point where they are all basically, at an equal level of quality and performance and differences in quality and performance are pretty minute.

Obviously, if you spent more money, you get better 'materials' (wood, leather, rims, styling) but the basic package is pretty much the same. The days are gone from, say 2000 where the quality and driving experience of, say a BMW or MB, was SO MUCH better than that of a GM car, Ford, or a Toyota or Hyundai. Back then, you could spend double at get, say a BMW that was really, arthithmetically, "twice as fast". Cars routinely would go 0 to 60 in 10 seconds and the luxury/performance cars would do it in 5 or 6 seconds - big differce. Now most cars (and TRUCKS!!!) get to 60 in 6 seconds and who really cares if your $200,000 SUV can get to 60 in 4 seconds.

Hyundai's and Kia's are now all pretty nice. In the Hamptons, people who would once drive a Mercedes (i.e. older people) now drive Outbacks or Honda SUV.s' They can certainly afford a Euro-Turbo-Luxury-Sport vehicle but basically have concluded "why bother".

The brand is now all about prestige and how much coin you drop. Any pretense of spending more money to get a "better" vehicle is now a fallacy.

This fact will be a challenge for the high-end car makers.

I, for one, am eagerly awaiting the new Genesis SUV that is built on the Telluride platform.

Why buy a $90,000 German SUV when you can get a Genesis for $50-$60,000 that's just as nice inside and will get trashed anyway (as all SUV's do if they are used for their intended purpose).

MD - put me on the list!

@mre30 It is my understanding that the Genesis SUV is on the G890/90 platform. Trick out a Telluride and get one. I really am loving the one I'm driving.

Oh, so Genesis is doing what Cadillac should have done, base their SUV on the ST6 platform with bold styling rather than use a platform that is under another car.
I found a loaded Telluride at my local dealer and going to test drive today. It has everything I could imagine wanting. Will report back.