Mexican Media Brands
Has Demand for Luxury Cars Peaked?
Worldwide demand for luxury vehicles has plateaued, thereby threatening the business model of Germany’s Audi, BMW and Mercedes-Benz brands, says Jefferies Group LLC.
#economics
Share
Worldwide demand for luxury vehicles has plateaued, thereby threatening the business model of Germany’s Audi, BMW and Mercedes-Benz brands, declares Phillippe Houchois, managing director of investment bank Jefferies Group LLC.
Houchois tells an Automotive News Europe conference in Sweden that the German premium business model—continuing growth through a proliferation of models touted for their social status—“is probably reaching a peak.”
Jefferies Group has a “neutral” position on all three brands, which means it doesn’t recommend that investors buy shares in the manufacturers. Last year, demand for Audi cars and crossovers dropped 4%. BMW and Mercedes sales rose 2% and 1%, respectively.
But all three brands have cautioned that a global slowdown in sales, coupled with the high cost of developing electric, connected and autonomous technologies will challenge margins this year and beyond.
RELATED CONTENT
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.