LONDON, Nov 2 — As automakers roll out their monthly domestic sales figures yesterday — the strength of luxury — or the lack thereof will be in the spotlight.
Sales at the high-end of the market are lagging this year, says Reuters transportation editor Joe White.
“Even though the stock market is near a record level, which is usually great for luxury vehicle sales, a lot of the big luxury car brands are having a down year and part of the explanation for that is they just got the wrong vehicles and the wrong products in their showrooms. People who are buying luxury brands want luxury SUVs,” White says
The BMWs, Mercedes, Lexuses, Cadillacs, and Audis of the world can't change up the production line fast enough to keep up.
And there's another thing they're not doing fast enough: “They are still playing catch up particularly in the area of connectivity — what you see in your dashboard, how much information — music, news, all that kind of thing you can get in your dashboard. They need to catch up with Tesla. They are working on it. They are not there yet.”
In the meantime, luxury car sales are slowing and inventories are building — bad for automakers, good for drivers — expect major discounts heading into the holidays as luxury car makers try to lure customers back and prevent the year from going bust. — Reuters