Aluxury car is a passengerautomobile providing superiorcomfort levels, features, and equipment. More expensive materials and surface finishes are used, and buyers expect a correspondingly highbuild quality.
The term is relative and unavoidably subjective, reflecting both objective qualities of a car and projected and perceivedimage of the vehicle'smarque.[1] Luxury brands rank abovepremium brands, though there is no clear distinction between the two.[2]
Several car classification schemes include a luxury category, such as:
Australia: Since the year 2000, the Federal Government'sluxury car tax applies to new vehicles over a certain purchase price, with higher thresholds applying for cars considered as fuel efficient.[3][4] As of 2019, the thresholds were approximately AU$66,000 (US$50,000) for normal cars and AU$76,000 (US$57,000) for fuel-efficient cars.[5]
Italy: The term "auto di lusso" is used for luxury cars.[9]
France: The term "voiture de luxe" is used for luxury cars.[10]
Germany: The termGerman:Oberklasse (upper class) is used for luxury cars.[11]
Russia: The term (автомобиль представительского класса ("representative class vehicle, also translated asluxury vehicle) is used for luxury cars.[12]
Rental cars: TheACRISS Car Classification Code is a system used by manycar rental companies to define equivalent vehicles across brands. This system includes "Luxury" and "Luxury Elite" categories (along with "Premium" and "Premium Elite" categories).[13] The criteria for a vehicle to be considered "luxury" is not published.
Luxury cars have traditionally emphasized higher levels of comfort, performance, and safety.[14] Manufacturers often introduce new safety technologies and comfort amenities on luxury models before they are available on more affordable models.[15] Some brands, likeAudi andBMW have expanded their marketing downscale out of the traditional luxury realm by "introducing lesser priced and strip-down economy versions of their products."[16]
Luxury vehicles can be a status symbol forconspicuous consumption.[17] However, to sort the theft of the most exotic models in a line, and cater to European luxury car buyers who shy away from being identified with conspicuous consumption, brands offer buyers the option of removing exterior badges that identify the model name or engine size.[18]
The suspension system of most luxury cars is tuned to prioritizeride quality overhandling; however, some are marketed as "sports luxury" and have a greater emphasis on handling characteristics,[19][20] while others seek to optimize both.
Traditionally, luxury cars have used afront-engine, rear-wheel drive (FR) layout. Due to improvements in technology, the FR layout is more expensive to produce andproduces lower fuel economy than a front-wheel drive layout;[citation needed] however, it allows for larger engines (particularlystraight-six,V8, andV12) to be used.[18][21][22][23]
Some American luxury cars during the 1970s through the 1990s switched to a front-wheel drive layout with atransverse engine provoked by theArab Oil Embargo of 1973 and the1979 oil crisis, which caused automakers to discontinue many FRplatforms in favor of the more economicalfront-wheel drive (FF) layout.[24] From the early 2000s, several of these American luxury cars reverted to FR layouts.[25][26][27][28]
France was a leading producer of powerful luxury automobiles before World War II.[32] After World War II, the French government usedpuissance fiscale tax regulations to encourage manufacturers to build cars with small engines and French motorists to buy them.[32] The Maserati-poweredCitroën SM and theCitroën C6 were arguably the last domestic French luxury cars.[33][34] In the 2010s, some French manufacturers have attempted to develop luxury cars; however the lack of a historical legacy has hindered these efforts.[35] In 2014, Citroën introducedDS Automobiles sub-brand to market luxury cars.[36][37]
Following World War II, Germany rose to become an export powerhouse, building on success with the Mercedes-Benz brand. Aircraft engine manufacturerBMW, began making motorcycles, then small cars, including under license from the Austin Motor Company, and evolved into the luxury market segment ultimately acquiring Rolls-Royce Motor Cars in 1998.[38][39]Volkswagen entered the high-end market by expanding or acquiring additional brands such asAudi,Porsche,Bentley,Lamborghini, andBugatti.[40]
In the Soviet Union, the manufacturerZiL (then called Zis) began producing representational limousines in the mid-1930s.[41] In the early 1950s,GAZ joined with the somewhat smaller "Chaika" model range. In 2018,Aurus Motors was established to produce luxury vehicles for the Russian market.
From 1946 until the late 1990s, Cadillac was the top-selling brand of luxury cars in the U.S., while Lincoln was second.[46] The most successful and long-running model names during this era were theCadillac DeVille,Lincoln Continental, and theChrysler Imperial. TheLincoln Mark Series andCadillac Eldorado were positioned in the personal luxury category, and competition between them continued into the 1990s.[47]
Thepersonal luxury car emerged into mass popularity and affordability as an America-specific category of popularly-priced cars made from the 1950s by the four domestic manufacturers (GM, Ford, Chrysler, and AMC) that reached peak popularity in the 1970s.[48] The cars were stylized, mass-produced two-doorcoupés orconvertibles, relying on standard components.[49] These distinctively styled cars were targeting the needs of individual customers, not an entire family.[50] The longest running model lines were the 1958-1997Ford Thunderbird, 1956-1998Lincoln Mark Series, and the 1967-2002Cadillac Eldorado.
In 1990, American luxury brands dominated, with Cadillac selling over a quarter-million cars, and Lincoln had its best year ever at 231,660 units.[51] However, the market was changing with an ever greater acceptance of smaller, more efficient imported luxury brands while at the same time, the domestic manufacturers were downsizing their models with product decisions that backfired on quality and brand respect.[51]
Since the late 1990s, Japanese and German brands have sold the most luxury-type cars in the United States. However, theCadillac Escalade has led the luxury SUV segment sales in the United States since its introduction in 1998, with the highest sales for 15 out of its first 20 years on the market.[52][53]
In the 2000s, both Ford and General Motors produced luxury pickups: 2002-2013Cadillac Escalade EXT, 2002-2003Lincoln Blackwood, and 2006-2014Lincoln Mark LT.In the late 2000s, theCadillac CTS andCadillac DTS led to a resurgence in the brand's luxury sedans.[54] The equivalent sedan from the Ford group, the 2008Lincoln MKS, was also regarded as a significant improvement over previous models.[55] In 2010, BMW was the best-selling luxury vehicle manufacturer by sales, with Audi and Mercedes-Benz the second and third highest selling luxury brands.[56]
Chinese manufacturerHongqi was launched in 1958, making it the oldest Chinese luxury car marque.[57] Later newcomers joined taking advantage of the rise of electric powertrains, withNEV brands such asNio in 2014,Lynk & Co in 2016,HiPhi in 2019, andZeekr in 2021 producing luxury electric and hybrid vehicles.
Several East Asian manufacturers have created sub-brands for the marketing of luxury cars. The first of these was the 1986 launch ofAcura (a Honda sub-brand), followed byLexus (Toyota) in 1989,Infiniti (Nissan) in 1989, andGenesis (Hyundai) in 2015.[61]
2007–2008 financial crisis and the Great Recession
The time of the2007–2008 financial crisis and theGreat Recession was the first time since theGreat Depression that the luxury car market suffered considerably, something not seen in previous economic downturns. Many such customers saw their net worth decline during this time.[17][62] For example, some of the steepest drop-offs came at the high end, including theBMW 7 Series andRolls-Royce Phantom, and in 2010 Mercedes-Benz dropped the price of theW212 E-Class. The unusually sharp decline in luxury car sales has led observers to believe that there is a fundamental shift and reshaping of the luxury automotive market, with one industry official suggesting that the marques no longer command the premiums that they used to and another saying that conspicuous consumption was no longer attractive in poor economic conditions.[61] Additionally, mainstream brands have been able to offer amenities and devices such as leather, wood, and anti-lock brakes, previously found only on luxury cars, as the costs decline.[61]
However, luxury vehicle sales remained relatively high compared to their non-luxury counterparts.[63][64] This was aided by growing interest in luxury vehicles from emerging markets such as China and Russia.[61]
Sales in the entry-level luxury segment remained strong throughout the GFC, due to prices being lowered to compete with well-equipped non-luxury cars.[65][66] For example, in Canada, several luxury manufacturers set sales records in August 2009, due mostly to discounted pricing on entry-level luxury vehicles.[67][68]
Some auto manufacturers market their luxury models using the samemarque as the rest of their line. Others have created a separate marque (e.g.Lexus, launched byToyota in 1989)[74] or purchased one (e.g.Bentley, byVolkswagen in 1998).[75][76]
Acompact executive car or a compact luxury car is a premium car larger than apremium compact and smaller than anexecutive car. In European classification, compact executive cars are part of theD-segment. In North American terms, close equivalents are "compact premium car", "compact luxury car",[99] "entry-level luxury car" and "near-luxury car".[100] Compact executive cars are usually based on the platform of amid-size car (also known as large family car orD-segment), while some models may be based on acompact car (also known as small family car orC-segment).
Executive car is aBritish term for anautomobile larger than alarge family car. In official use, the term is adopted byEuro NCAP, a European organization founded to test for car safety. It is a passenger car classification defined by the European Commission.
The next category of luxury cars is known in Great Britain as a "luxury saloon" or "luxury limousine,"[101][102][103][104] and is known in the United States as a full-size luxury sedan, large luxury sedan, or flagship sedan.[105][106][107][108] It is the equivalent of the EuropeanF-segment and the GermanOberklasse segment.
Many of these luxury saloons are theflagship for the marque and include the newest automotive technology.[109] Several models are available in long-wheelbase versions, which provide additional rear legroom and may have a higher level of standard features.[110]
Grand tourers are essentially high-performance luxury vehicles. These vehicles are generally two-door coupes and are made for long-distance driving, combined with the luxury of anexecutive car orfull-size luxury car.[120]
Long before the luxurySUV segment was defined and became popular, the 1966Jeep Super Wagoneer was marketed at the time as a fully-equipped station wagon.[121][122][123][124]: 3 It was the first off-road SUV to offer aV8 engine andautomatic transmission along with luxury car trim and equipment.[125] Standard features includedbucket seating, a center console, air conditioning, a seven-position tilt steering wheel, avinyl roof, and gold-colored trim panels on the body sides and tailgate.[124]: 3 By the late 1970s, optional equipment included an electric sunroof.[124]: 4 The 1978 Jeep Wagoneer Limited was the spiritual successor to the Super Wagoneer and was the first four-wheel drive car to use leather upholstery.[124]: 5
TheRange Rover was released in 1970 as a two-door vehicle for off-road durability with few "creature comforts."[126] A four-door version was added in 1981, and the model was pushed upmarket in 1983 by introducing an automatic transmission (Chrysler's A727TorqueFlite) as an option.[127] The Range Rover had a long-travel coil-spring suspension and an aluminium V8 engine.[128]
In the mid-1990s, the SUV market expanded with new entrants. By the mid-1990s, the entry-levelFord Explorer and upscaleJeep Grand Cherokee were the market leaders for SUVs.[129] The fastest-growing sector of this market was for the so-called luxury SUVs, which included the Jeep Grand Cherokee ... the Grand Cherokee's allure: "This vehicle is proof you can have a true off-road vehicle without giving up luxuries and amenities" with the Jeep providing a crucial new intangible factor for buyers—image.[130]
The SUV models generated higher profit margins than passenger cars, and car manufacturers began introducing new luxury SUVs during the late 1990s.[131] SUVs such as the 1995Lexus LX, 1997Mercedes-Benz M-Class, and 1998Lincoln Navigator were the first SUVs produced by these luxury car brands. Some of these early luxury SUV models usedunibody construction, becoming part of the trend moving away from thebody-on-frame construction traditionally used by off-road vehicles.
During the mid-2000s, SUVs from luxury car brands grew by almost 40% in the United States to more than 430,000 vehicles (excluding SUV-only brands likeHummer andLand Rover), at a time when luxury car sales suffered a 1% decline, and non-luxury SUV sales were flat. By 2004, 30% of major luxury brands' U.S. sales were SUVs.Crossover SUVs became increasingly popular in the mid-2000s, and manufacturers also began to produce luxury versions of crossovers. TheLexus RX was the earliest luxury crossover on the market, and it has since been the best-selling luxury vehicle in the US.[132] Some luxury crossovers are built on aplatform shared with sedans or hatchbacks. For example, theInfiniti FX is based upon the same platform as theInfiniti G35 sedans and coupes.[133] While early luxury crossovers released in the late 1990s have resembled traditional boxy SUVs, later crossovers, such as theInfiniti FX andBMW X6, have been designed with a sporting appearance.[134][135][136]
Research data from the mid-2000s suggested that luxury SUV buyers did not consider traditional luxury cars (e.g. sedans and coupes), therefore the SUV is becoming the key to bringing new customers into luxury dealerships.[138]
Manufacturers such asMercedes-Benz,Toyota,Lexus,Buick,Hongqi,Zeekr andVolvo have marketed upscaleluxury MPVs as luxury vehicles, mainly marketed for Asian markets.Luxury MPVs generally have 3-rows of six or seven seats; however, range-topping flagship models may also offer a 2-rows option with four seats, which typically have more features than their cheaper counterparts. By the early 2020s, manufacturers have found additional strategies to improve technologies, such as new materials, new systems, and improving exteriors.
^Kapferer, Jean-Noël; Bastien, Vincent (2009).The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands. Kogan Page. p. 43.ISBN978-0-7494-5477-7.
^Schechner, Sam; Pearson, David (5 October 2012)."French Begin New Luxury Car Drive".The Wall Street Journal.Archived from the original on 2 February 2018. Retrieved1 February 2018.
^Carson, Richard Burns (1988).The Olympian Cars: the great American luxury automobiles of the twenties & thirties (Second ed.). Beaver's Pond Press.ISBN978-1-890676-02-5.
^Rhodes, David; Stelter, Daniel (16 February 2010)."The Great Depression put many luxury car manufacturers out of business". Boston Consulting Group.Archived from the original on 25 May 2022. Retrieved3 July 2022.Virtually all the smaller companies competed in the expensive or midpriced segments of the market. They were highly exposed to sharp drops in sales as demand fell away. They were slow to cut costs and introduce low-priced models. Apart from Chrysler, the small players either went out of business or lost so much market share that they could no longer compete effectively.
^"How the Big Three survived Depression".wheels.ca. 9 May 2009.Archived from the original on 4 July 2022. Retrieved4 July 2022.Many of the smaller automakers folded during the 1930s, including Cord, Durant, Franklin, Peerless, Pierce-Arrow and Stutz. Others survived the Depression, but were so damaged they eventually went out of business, including Graham-Paige, Hudson, Nash, Packard, Studebaker and Willys-Overland.
^"This is Volvo".media.volvocars.com. 2022.Archived from the original on 24 March 2022. Retrieved16 March 2022.Volvo Car Group (Volvo Cars) is owned by Zhejiang Geely Holding (Geely Holding) of China.
^Frankel, Ernst G. (2006).Challenging American Leadership: Impact of National Quality on Risk of Losing Leadership. Springer-Verlag. p. 35.ISBN978-1-4020-4892-0.
^Gross, Ken (1 September 2000)."Lexus The Truckmaker". Automotive Industries. Archived fromthe original on 30 December 2008. Retrieved15 November 2008.
.jpg)
.jpg)
.jpg)
_(cropped).jpg)
.jpg)
.jpg)
_Retro_Classics_2024_IMG_8999.jpg)
.jpg)
_IMG_0556.jpg)
.jpg)
.jpg)
