Automakers luxuriate in car-buying trend
The Detroit News
DETROIT — It's getting pretty claustrophobic in the luxury vehicle business.
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Cadillac is confident a new lineup of distinctive vehicles will boost its U.S. sales over the next couple years.
A civilian version of the Hummer, first designed as a military vehicle, is among the class of luxury vehicles projected for increasing sales.
But also confident are Lincoln, BMW, Mercedes-Benz, Lexus, Acura, Infiniti, Audi, Porsche, Land Rover, Volvo, Saab, Jaguar, Hummer ... and the list goes on.
Even tiny Bentley — which sold just 558 ultra-luxury cars in the United States last year — believes a new mid-sized Bentley due out in 2003 will push its worldwide sales from 1,500 units to 9,000 during the next five years. The car will retail for more than $150,000.
"It's going to get more crowded," said Mark McNabb, vice president and general manager of Infiniti.
Despite a slowdown in overall car and light truck sales, auto executives believe there is room for growth in the luxury end.
"There's a lot of wealth-effect going on out there," said Mark Hutchins, president of Ford's Lincoln Mercury division.
Ford now juggles five luxury brands — Lincoln, Jaguar, Land Rover, Volvo and Aston Martin. General Motors has Cadillac, Saab and Hummer. GM also plans to bring Alfa Romeo back to the United States. Jaguar expects its sales to skyrocket with its upcoming X-Type mid-sized sedan, and Land Rover wants to nearly double sales of its premium sport-utes in 2002.
Acura said it is on target to sell 170,000 vehicles in the United States this year. And BMW has told its dealers that it wants to sell 300,000 vehicles per year by the second half of the decade, up from 190,000 last year.
