• James River Coal Company (NASDAQ:JRCC) upgrads to a sector outperform rating
  • Reports On Yahoo! Inc. (NASDAQ:YHOO) Board Approval For Tumbler Inc. – GOOG, FB
  • Genco Shipping & Trading Ltd. (NYSE:GNK) shares increase by 16.30%
  • JP Morgan Chase & Co. (NYSE:JPM) Stock To Decline
  • FDA Approves Drug By GlaxoSmithKline Plc. (NYSE:GSK) And Theravance Inc. (NASDAQ:THRX)
Recent Posts
  • James River Coal Company (NASDAQ:JRCC) upgrads to a sector outperform rating
  • Reports On Yahoo! Inc. (NASDAQ:YHOO) Board Approval For Tumbler Inc. – GOOG, FB
  • Genco Shipping & Trading Ltd. (NYSE:GNK) shares increase by 16.30%
  • JP Morgan Chase & Co. (NYSE:JPM) Stock To Decline
  • FDA Approves Drug By GlaxoSmithKline Plc. (NYSE:GSK) And Theravance Inc. (NASDAQ:THRX)
  • Groupon Inc. (NASDAQ:GRPN) Rises With Increasing Revenues
  • Coca Cola Co. (NYSE:KO) To Fight Obesity – PEP
  • Christie Raises $6.2 Million For Reelection Bid
  • UnitedHealth Group Inc (NYSE:UNH) faces flak from Pentagon
  • Goldman Sachs Group, Inc (NYSE:GS) $31 million tax evasion under scrutiny – GOOG, SBUX

Automobile

Gap between Mainstream and Luxury Cars Shrinking to Unbelievable Levels

December 3, 2012 by Mike Anderson in Automobile with 0 Comments

The day could arrive soon when a new class of auto buyers starts considering the luxury cars with a choices starting at as low as $30,000, and the million dollar question would then be the choice between options like the tiny Mini Cooper or the fully-loaded Ford Focus.

Luxury car manufacturers already are making a living in the United States on their smaller vehicles, like BMW 3 Series. Americans are more interested in compact or subcompact entries and have started to display concept versions of remarkably smaller vehicles in the auto show lineup. On the other hand, mainstream manufacturers, like Ford are now adding some features on their smaller vehicles and trying to increase the prices to boost the profit margins. Detroit automakers are hoping to boost the profit of small car segment to balance the loss of their huge earnings that they got from SUVs or big trucks during earlier times, because their demands have gone down drastically.

Car purchasers, to a greater extent, will need to decide whether they should value a premium company enough to sacrifice size and possibly well-equipped amenities they could get from the non-luxury marquees for the same amount. Industry experts believe that it is a strange area, and deciding on pure luxury and mainstream brands can be quite a tricky affair. A tiny car may not work or decline the value of the luxury companies by making it inexpensive.

The 2012 LA auto show is going to host debuts of a number of mainstream and high-end small cars, showing the market’s battle for lead in the fuel efficient sector. Ford Motors thinks that execution and design, rather than the brand can dominate the future.

The redesigned version of the 2013 Fusion sedan is attracting a notable number of exchanges from Audi, Acura, and BMW owners. It is said that half of its yearly sales are from non-Ford customers and majority of them are former luxury brand owners. Talking about the top-of-the0line Fusion Titanium, the executive director of the automaker’s North American division, Frank Davis said Titanium model would be sold to BMW, Audi, or Acura buyers as at $40,000, it is gets optional AWD and many other latest features.

BMW’s 128 coupe is priced at $32,000 and it shares its chassis with the Mini models. It is a remarkable illustration of how desperate the luxury brands are, to play in the lower end market.

About Mike Anderson

Mike Anderson started in Economy and markets, but soon made the switch as editor. While in school, Mike had television internships in Washington D.C., New York City, and Dublin. Mike was also been integral part of nonprofit for citizen activists, and has worked at The Heritage Foundation, Hills dale College's Washington office, the U.S. Chamber of Commerce and the senior levels of the legislative and executive branches of government. Mike covered the U.S. House for Roll Call. He has also worked for Congress Daily, covering the House, Senate and campaign finance beats.

View all posts by Mike Anderson →

Related Posts

Leave a reply

Your email address will not be published. Required fields are marked *

*

Trade Watch Media Company
Trade Watch Media Company 320 North Dearborn Street Chicago, IL

Contact Us / Phone Us

  • Support:312-744-1856
  • Media:312-744-1932
  • Sales:312-744-1933
Trending..
  • James River Coal Company (NASDAQ:JRCC) upgrads to a sector outperform rating
  • Reports On Yahoo! Inc. (NASDAQ:YHOO) Board Approval For Tumbler Inc. – GOOG, FB
  • Genco Shipping & Trading Ltd. (NYSE:GNK) shares increase by 16.30%
  • JP Morgan Chase & Co. (NYSE:JPM) Stock To Decline
  • FDA Approves Drug By GlaxoSmithKline Plc. (NYSE:GSK) And Theravance Inc. (NASDAQ:THRX)