The Definition of Luxury Cars is Changing and the KBB Top 2012 Redesigned Vehicles Proves It

Over the past several years the definition of luxury within the car market has started to change.  The biggest difference used to be size, features, and price however that is no longer the case.  For example, you can get a well-equipped mainstream vehicle like a Honda Accord or Toyota Camry for around $35,000, which is slightly more expensive than an introductory level luxury Lexus CT Hatchback.  As you can see, the luxury car is less expensive, smaller, and has fewer features than the well-equipped mainstream car.  This has raised questions among car owners and manufacturers alike as to what defines a luxury vehicle.

The Kelley Blue Book 2012 Top Redesigned Vehicles list includes 3 luxury cars, which is more than any other type of vehicle.  By looking at the recent changes, it becomes more evident what luxury now means.  For example, the Mercedes-Benz SLK has redesigned the interior to make it much sexier and the exterior has become sportier.  Additionally, a new high-tech feature has been added known as the Magic Sky Control.  It allows you to change the amount of tint on the roof with a touch of button.  The roof goes from completely clear to a very dark-smoked tint. 

The BMW 6 Series has undergone a redesign as well.  It has added adjustable suspension and favors sheet metal on much of the exterior.  Just looking at the new interior brings a combination of luxury and new technologies to life.  The Audi A6 is much improved as well.  While the outside still looks fairly similar from a distance, the improvements are easy to notice once you are behind the wheel.  It includes a full-color, head-up display and the ability to navigate using Google Map Data.  Along with Google Map access, every passenger gets access to the internet. 

Looking at these 3 redesigns, the changes in the luxury car market become more apparent.  Luxury cars are now becoming part sport car.  Overall performance has become a priority.  Not only are luxury car buyers expecting a lavish interior and sleek look, but also a high performance vehicle.  Even Hyundai, which is best known for fuel-efficient, low-cost vehicles has added a V-8 engine to its luxury cars.  The Equus and Genesis both now offer 385 and 429 horsepower.

Along with heightened performance expectations, the technologies included have become a focal point as well.  For several years, this was a problem for luxury cars as more mainstream vehicles added a number of features which used to be reserved solely for luxury vehicles, such as heated front and rear seats.  With all of the redesigns in the luxury car market, new technologies are being introduced that have never been seen before.  This jump in technology is once again starting to separate luxury from mainstream options.

There are two characteristics that have begun to be less important to luxury car buyers.  The first is space.  While luxury cars still tend to be a little more spacious, the mid-sized sedan is starting to close the gap.  The big difference is that luxury cars seem to use their space much more effectively.  This has to do with not only overall styling, but also the new technologies that are being included.  Another characteristic that is starting to lose traction is the tradition of luxury car brands.  In the past, the manufacturer’s history played a large role in defining luxury.  However, with so many new manufacturers entering the luxury car market, this is no longer the case.  Again, Hyundai has become an excellent example of this.  While big brands still claim that they offer the only “true” luxury cars, newcomers to the market are gaining ground because new luxury car buyers feel like they are in on a secret that the masses don’t yet know about.

It didn’t start with Henry Ford or Ransome Olds.  The modern age of the automobile didn’t really begin until after World War II.  Prior to that time, the automobile was a convenience and a luxury item, not a necessity.  After WW II, in the mid and late forties, automobile production ramped up after the auto plants were converted back to car manufacture from their war time production of tanks, military trucks, airplanes and other war material.  The assembly lines were running fast and smooth from all the military efforts.  There was a huge demand for new cars, generated by returning veterans and the need to replace all the cars worn out during the war years when no new cars were built.  Americans had always loved the automobile, but now the designers and manufacturers were giving them a lot to love.

In 1948, Cadillac gave the industry the first tailfins on the rear fenders.  The look caught on and soon every manufacturer had fins on some or all of their models, culminating in the huge, soaring fins of the 1959 Cadillac with the integrated torpedo-like tail lights.  General Motors also heralded the modern era of overhead valve V-8 engines in 1949 with the “Kettering” engines in both Cadillac and Oldsmobile.  Ford continued with their flat-head V-8 until 1954 and then introduced their OHV eights.  Chevrolet introduced their first V-8 in 1955, the same year as the Plymouth installed the “hemi” V-8 from their sister company, Dodge.  Chrysler had switched from straight-eights to a hemi-head V-8 in 1951 in both Chrysler and DeSoto models.

Chevrolet brought out an American “sports car” in 1953, the Corvette, powered by an anemic OHV “Blue Flame” six and a Powerglide automatic.  The Corvette became a true sports car in 1955 with the installation of the 265 CID V-8.  Also in 1955, Ford introduced the Thunderbird, a two-seater aimed at competing with the Corvette.  The Corvette got sportier over the next few years and incorporated greater performance, while the Thunderbird morphed into a bigger four-seat personal-luxury-sporty car.

The Muscle Car wars began in the early sixties when every manufacturer in the USA began to cram bigger and hotter engines into their sporty coupes.  John Z. DeLorean who headed GM’s Pontiac Division, created a whole new market segment by putting a V-8 into their Tempest compact coupe.  What started as an accessory package, the GTO became a whole separate model in 1964.  Also, in 1964 Pontiac sourced the Bonneville model 389 CID V-8 for a Catalina model coupe and called it the Grand Prix, competing with the hot, personal sporty coupe class with the Thunderbird.

The movement of the population from the cities to the suburbs brought about more need for the car as personal transportation.  The subsequent lack of public transportation to serve commuters need to get to and from work, brought on the real automobile boom that continues to this day.  Eisenhower’s Interstate Highway System linked the nation’s cities with a high-speed network that surpassed any other system in the world.  Cars, not buses and trains, became the common mode of transportation.  Europe has the Autobahn in Germany the Autostrada in Italy and other super highway systems, but they still have vast public transportation systems used by most people.  It is only in the USA that the automobile is king.

It’s Car Show season again. That magical time of year when car makers dazzle us with their exciting concept cars, and tempting new models. From low-slung supercars, to environment-friendly hybrids. There is sure to be a new model to suit just about anyone.

Every year, the New York International Auto Show plays host to more than 1 million people. With more glitz, and showmanship than the Academy Awards. Auto makers pull out all the stops to introduce their latest models.

Since this is the biggest show in North America, many car companies chose to debut their latest models here. For 110 years, the buzz generated at the NYAS has either made, or broke many auto makers.

Trying to capitalize on the International spotlight, several important new cars are being introduced this year.

• 2011 BMW 335is – Long considered the standard of performance coupes. The 2011 335is will try to win the hearts of show goers with its revised sheet metal and more powerful engine.
• 2011 BMW X5 – Beemer’s popular SUV is receiving a makeover for 2011. New styling cues, and more exciting power plants should prove popular with family-minded attendees.
• 2011 Hyundai Sonata Hybrid – Aiming squarely at icons like the Toyota Camry and Honda Accord, Hyundai is hoping that its new Hybrid Sonata will woo new customers into its fold. With dramatic styling, and an efficient new Hybrid system, show goers will have yet another excellent family car to consider.
• 2011 Nissan Juke – This exciting, new crossover from Nissan promises to be a real show stopper. With futuristic looks, and a compact size, attendees will get a glimpse at the future of urban transport.

Besides all of the shiny new models, there is lot to see and do at the New York Auto Show. Held at the Jacob Javits Convention Center in Manhattan, NYAS exhibits are spread across 4 levels.

Interactive exhibits, classic cars, concept cars, and the latest in electric vehicles are just some of the things that you can expect to see at this years show.

There’s even going to be a huge, outdoor exhibit called Camp Jeep. A 45,000 sq foot off road driving course is being constructed to give attendees a real-world taste of a Jeep’s off road abilities. Professional drivers will be on hand to take visitors through the course’s many obstacles. This promises to be a hit with both young and old alike.

If you plan to attend, mark your calenders for Saturday, April 3^rd. Opening ceremonies will start at 9:30am, and the show floor will open at 11am.  Wear comfortable shoes, and get ready to experience the best that the Automotive world has to offer.

The US auto industry crisis has caused pain for both workers and investors.  Workers have been laid off from long-held jobs as bankruptcies mount and cut-backs are made.  Investors in auto companies have seen the value of their stockholdings slashed.

However, Government intervention has meant that little has been done to weed out the weak and restore capacity to more sustainable levels.  Because of the political sensitivity Governments have become involved but the number of particpants (manufacturers and the like) will most likely not reduce.  There is some likelihood of auto makers joining forces to better enable global scale and improve technologies.

One such technology that is benefiting is electric and petrol-electric hybrids.  Such vehicles are becoming more desireable by wealthy drivers with BMW, Mercedes and Audi all releasing more environmentally friendly models.  More and more hybrids are being fitted with plugs which is moving the consumer away from oil-producing companies and towards utility corporations producing electricity.

But nervousness remains throughout the auto industry.  After the completion of the Cash For Clunkers scheme there are few signs of demand from consumer growth leaving some industry analysts to ponder that the next year may be even tougher for the auto industry.

The US Auto Industry is bracing for tougher fuel efficiency standards.  The new standards call for new vehicles to average 35.5 miles per gallon by 2016.  The new measures were announced on September 15 in the midst of falling sales of small fuel-efficient cars.

Sales in small car segments have dropped 15 per cent or more in the year to date.  Used car buyers are also buying less small cars.

Used car buyers also are showing less interest in smaller cars. Kelley Blue Book officials say residual values for small cars have plummeted while they have gone up considerably for large cars and sport utility vehicles.

Adesa, a large wholesale auto auction company that conducts sales all over the country, reported that while pickup truck prices plummeted 17 percent in value from August 2007 to August 2008, they have risen 23 percent since then. Meanwhile, the auction house said, compact car prices went up by 17 percent from August 2007 to August 2008, but have fallen 15 percent since then.

Research is showing that US car buyers are wanting to buy more fuel efficient vehicles but they are not wanting to buy a smaller car.  This is posing a new set of problems to be solved by auto-makers if they are to satisfy consumers in the future.  As the gas prices at the pump fall people are moving back towards larger vehicles.  But how long gas prices remain at low levels remains to be seen.

Few Auto shows are anticipated more than the upcoming LA Auto show. After a pretty dismal show last year due to the financial state of America’s big three car manufacturers, (Chrysler couldn’t even afford to have lights on their stand) this years show is going to be a watershed.

There’s a host of new models to be launched and a few cars making their North American Debut. Chief of which is the Ferrari 458 Italia, quite possibly the most beautiful car Ferrari has made since the 355. The 458 is of course a technological tour-de-force with a 4.5 litre V8 and computer controlled dual clutch 7 speed transmission, you have a car that will make you feel like the driving god you know you are. There are even rumours of Ferrari launching a hybrid at the show so stay tuned.

Not to be outdone Porsche will be displaying the updated Turbo and the Panamera. They’ll also be showing the hybrid Cayenne. You’ll have to wait until next year though to see the all new Cayenne which is slightly smaller and lighter than the current model, so it should be kinder to the planet and in my opinion its a lot better looking.

No LA auto show is complete without taking a look at what Toyota has to offer. There’s a new version of the Prius the darling of Hollywood, oh and there’s the Matrix, no nothing to do with Keanu Reeves, not much to say about it really, except it’s a five door hatch with a sporty engine and a big rear spoiler, Ken Block watch out.

GM are perhaps the most beleaguered of the big three US auto makers. Looking to rebound after the worst year in their corporate history, they have a host of new models to show. Some of which should have been shown at last years show but they were short of funds.

The most exciting of these is the new Chevy Camaro, not exactly a green car with a 6.2 litre V8 but exciting never the less. Then comes an updated version of the little Aveo5 the hatchback version of the Aveo, it gets a round of updates including rounder styling and a bigger body with some new wheels and trim pieces.

From the Brits we have yet another new Aston Martin, the Rapide and yes it’s beautiful, kind of like a stretched DB9 with two extra doors. And of course the Bentley Mulsanne will make its show debut in the town where it probably feels most at home. The replacement for the venerable old Arnage has a classic yet sleek look and all new engine to help keep the Co2 down and keep the green brigade happy.

Chrysler will be showing the Dodge Challenger about the only thing of interest on their stand until a host of new models are launched in the next few years, after a fresh injection of capital. There’s a possibility of an exciting concept car though.

Ford has the updated mustang which debuted last year but which you can actually buy this year, and the updated Fusion, which has been heavily restyled for this year, updated everything really nothing totally new so again keep a look out for a sexy concept car.

The future of the US auto industry will be the backbone of the discussion at a special forum to he held on October 8th at Nova Southeastern University in Davie from 8.15am to 9.30am. The forum will be open to the public.

GM CEO Fritz Henderson and AutoNation CEO Mike Jackson will host the “Road Ahead Forum” at the University’s School of Business. The forum should be riveting to stakeholders and those interested in the US car industry.

Henderson took over at GM in March this year and is leading the turn-around of the big auto-maker. Jackson has been head of the US’s largest auto retailer for 10 years.

Thanks to the Cash For Clunkers scheme, the US Auto Industry had a bumper month in August.  The increased sales figures were led by a 17% jump at Ford Motor Co. Ford’s sales performance was underpinned by its truck sales which posted its first year-on-year increase in three years.

Auto industry sales were boosted by the Cash For Clunkers offer which was more popular with consumers than anticipated.  It gave immediate relief to the struggling auto industry but, after winding up last month, will most likely lead to a sluggish September for auto companies.

Chrysler, meanwhile, fell 15% which was partly attributed to a lack of inventory.  Most of Chrysler’s plant sat idle for three months as it battles bankruptcy.  Chrysler finished with inventory which was 74% lower than a year ago.  It has just a 28-day supply of vehicles so the Company has announced a 50,000 vehicle boost to planned output.

GM reported a fall in sales of 20% with car sales down 4.6%.  However, Mark LaNeve, Vice President of U.S. Sales said “We’re very pleased with the sales performance in our Western region, where sales were up more than 41% compared with July”.  He noted customers were responding to a pilot program it launched last month with online auction site eBay Inc. That effort will be extended through September.

The US Government’s Cash for Clunkers rebate program has undoubtedly given the US auto industry the shot in the arm it needed to get it going again.  Many Americans have embraced the program and rushed out to trade in their “gas guzzlers” on a new car.  Car manufactures are hiring new staff to cope with the demand it has created for new cars.  The fact that the Government needed to extend the program from $1 Billion to $3 Billion after just the first week underlines how successful the scheme has been.

However, Jeremy Anwyl, CEO of the auto Web site Edmunds.com, said the US government incentives could dry up new car sales in September and October.  Along with a tight vehicle inventory, higher prices for new models arriving in the fall and consumers who are focused on finding a good deal may result in a lean few months for new car dealers.  Used car dealers, many whom have suffered during the Cash for Clunkers program, will welcome the end of the scheme.  But it has got more consumers into car lots over the past few weeks which should continue to create demand for new and used cars going forward.

It appears that the worst of the US auto industries woes are over.  While there has been a lot of pain for all auto industry stakeholders, it seems that the mood of the heart of the US car industry, Detroit, is improving. 

With the bankruptcies of Chrysler and GM now passing, increasing optimism is coming over the auto industry which should be warmly welcomed by all.  The US Government has used the recent demise in the car industry to implement key strategic changes that should ensure that the auto industry comes out of the recession better than before. 

Offers to consumers to trade in their old “gas guzzlers” and upgrade to a newer, more efficient vehicle, and the further development of alternative fuel powered cars should result in renewed passion for the car industry.  Investment in electronic cars, hybrids and battery operated vehicles will see a shift away from the US’s dependency on foreign oil.