Automakers reacting to a 21% drop in luxury car sales last year are designing smaller, cheaper versions of their high-end vehicles, Matthew Dolan reports, just in case conspicuous consumption doesn't make a comeback. And campaigns are emphasizing "sustainability" and fuel economy in a segment that used to tout horsepower and leather interiors.
For example, Cadillac is introducing a compact model, ATS, in 2011. Lexus will unveil a new compact concept car at the Frankfurt Motor Show next month. Toyota's 2010 RX SUV is upgraded technologically but is $900 cheaper than the 2009 version.
It's a radical about-face for the industry. Just a few years ago, many Americans -- feeling rich as the economy soared -- flocked to luxury nameplates, including new models from upscale small cars to $60,000 SUVs. "We aren't necessarily getting the under-35s back in the [luxury] market and we think there is some resistance to them coming in," says Rebecca Lindland, an auto analyst at IHS Global Insight, "both from a social-conscious perspective as well as an economic one."
For example, Cadillac is introducing a compact model, ATS, in 2011. Lexus will unveil a new compact concept car at the Frankfurt Motor Show next month. Toyota's 2010 RX SUV is upgraded technologically but is $900 cheaper than the 2009 version.
It's a radical about-face for the industry. Just a few years ago, many Americans -- feeling rich as the economy soared -- flocked to luxury nameplates, including new models from upscale small cars to $60,000 SUVs. "We aren't necessarily getting the under-35s back in the [luxury] market and we think there is some resistance to them coming in," says Rebecca Lindland, an auto analyst at IHS Global Insight, "both from a social-conscious perspective as well as an economic one."
