Out of the five prominent German brands, Mercedes Benz could be described as being a “tweener”, where it’s not exactly a manufacturer that attracts younger consumers, but it’s not a brand for retirees either. When looking at VW, Audi, and BMW, there’s a very strong following of millennials who are being introduced to each brand thanks to the Volkswagen GTI, Audi S3/S4, and BMW E36/E46/E92 M3’s. Porsche is in a league of it’s own, as the 911 has always been a sports car that’s pinned to the bedroom walls of car enthusiasts who dream of owning an amazing driver’s car. But where does that leave Mercedes Benz?
Besides the AMG line of performance cars, Mercedes seriously lacks a car that rivals the S3 and S4 in terms of price. Sure, you could purchase a 6-10 year old W204 C63, which personally was my favorite generation of the C-Class, but a newer B8 S4 is a more appealing option thanks to an AWD system and a list of modifications that can be done immediately to personalize the car. On paper the CLA 45 AMG seems like a good option, but ask any car enthusiast and their initial response is, “it’s not a real AMG”. If we’re looking at this purely from a young person’s perspective, there’s very little to choose from to bring in millennials and establish a new generation of Mercedes Benz consumers. But the issue isn’t that simple, and this goes beyond car enthusiasts, performance cars, and AMG.
Starting around the 2014/2015 model year, Mercedes Benz made significant changes to their lineup, slowly making the C-Class, E-Class, and S-Cass resemble each other. Last year I did a review of a 2015 C300 4Matic, and even back then the interior styling was very reminiscent to the S-Class. Prior to the W205 generation, the C-Class had it’s own unique look, and the same could be said for the E-Class. Today, the entire sedan lineup for Mercedes Benz looks outdated despite the minor facelifts each model has received over the last three years, and this is most likely magnified because they almost look identical except for size and some design cues. There’s no denying that we’re experiencing an era of styling redundancy in the automotive industry, but Mercedes Benz is arguably first in line when we talk about similarities across the board for interior and exterior appearances.
Right now younger consumers are gravitating towards VW, Audi, and BMW even if they’re not purchasing S3 and S4’s or M3’s. This may be due to the older cars from these brands that are available to them, and as they start working, they’re trading up to a newer 3 Series or A4. Another indication that Mercedes is becoming an old person brand is that 20-30 year old car enthusiasts are more apt to purchase a BMW 340i over a C43 AMG despite a discrepancy in horsepower and torque figures. Whether this has anything to do with, “it’s not a real AMG” or not, Mercedes Benz just isn’t drawing interest by millennials for their consumer vehicles, and the only enthusiasm young drivers have towards Mercedes is for the C63, E63, and AMG GT which is well out of reach for them financially.
What’s even more alarming is the bloodbath Mercedes is experiencing when it comes to sales. So far this year, they’re down 14% and in the month of August, sales dropped 26% from July. Meanwhile, Audi and BMW are still experiencing gains, further backing up the observations that there’s been a shift in buying behavior, and a lot of that has to do with Mercedes Benz failing to draw in young buyers. This may also be effected by the aging lineup, and as mentioned before, there hasn’t been any significant changes to the appearance of Mercedes Benz models since 2015.
Needless to say, there is a transition period happening right now. The completely redesigned CLS and GLE are set to hit showrooms soon along with the all new A-Class, which should usher in new generations of other models in the near future. The real question is whether these changes will make an impact and reverse the sudden drop in sales, but more importantly attract buyers who are 40 years old or younger.
Ask any car enthusiast what their thoughts are on crossovers taking over the automotive industry and they’ll all reply with a worrying comment that it’s the end of cars and sedans. While the average consumer has become addicted to crossovers and brands who once only produced cars like Porsche, Jaguar, and Maserati catering to that demand, has certainly concerned gear heads. When Ford announced they were no longer selling the Fusion, Focus, Fiesta, and Taurus in the US, that’s when speculation went rampant that other manufacturers would follow suit. Despite the perception of dark times and the dominance of SUV’s, there’s been a small glimmer of light coming from unexpected brands who’ve made sedans once again appealing.
German auto manufacturers like BMW, Audi, and Mercedes Benz have committed themselves to producing crossovers in every segment of that market. It could be argued that while new models of SUV’s are being released almost every two or three years, their sedans have become quite stale, and are more of an afterthought and just a filler in their lineups. This has certainly exposed a weakness in what was once a German dominated luxury sedan market, and now there’s new players in the game ready to check in that are slowly turning heads.
2019 Volvo S60
2019 Volvo S60
The Volvo S60 was always priced in the mid $30k range, yet never got any attention because of an outdated generation that lasted almost a decade. With a complete redesign, the S60 now shares a similar appearance to it’s bigger sibling, the S90. Most importantly however, this Swedish sedan is now beginning to raise questions whether paying $40k for a base model BMW 330i or Mercedes Benz C300 is even worth the cost. With a price tag just under $36k, the S60 has the 330i beat by almost $4,500, which allows consumers to add packages to their S60 that might offer more features than what they’d get on a BMW 3 Series.
When adding the Audi A4 into the equation, the comparison in terms of price and standard features then become more interesting. However, Volvo still has the A4 beat because when we start looking at $40k+, the S60 T6 then comes into play, offering 316 HP and AWD. Optional technology and comfort features for the Volvo adds similar technology that can be found on the A4, making this a very tough decision for car buyers in this segment.
Also new for this generation is the 400 HP hybrid T8 engine that can be found in most vehicles in the Volvo lineup. Volvo claims the S60 T8 will do 0-60 in 4.4 seconds, and it’s going to be interesting to see how consumers perceive this performance sedan, as Swedish cars have never been known for their straight line speed.
The redesigned S60 is a breath of fresh air and has certainly taken this Swedish mid-sized luxury sedan to a completely different level than its predecessors, but it’s not the only sedan entering the market that’s ready to make a big splash.
Genesis G70
2019 Genesis G70
Much anticipated the last few weeks has been the arrival of the Genesis G70 models at dealerships. The all new entry level sedan for the Genesis brand is going to start just under $36k, and just like with the Volvo S60, undercuts its German rivals by almost $5k. But excellent pricing takes a back seat on this one, as the G70 comes with an optional manual transmission which should appease car enthusiasts. This good news could have been better had the manual transmission been paired with the optional 3.3L V6 engine that gets 365 HP instead of the 2 liter four cylinder engine, but as the saying goes, “You can’t have it all”.
The cost for a manual transmission on the Genesis G70 will set you back almost $46k, but you’ll get nappa leather seats and Michelin Pilot Sport 4 tires. Standard features for the G70 include: power front seats, dual-zone automatic climate control, an 8.0-inch touchscreen, and some safety features such as emergency automatic braking.
In an age of crossovers, Genesis’ decision to release another four door luxury sedan in their lineup to compete with the BMW 3 Series, Audi A4, and Mercedes Benz C300 is almost a throwback to what the automotive industry used to be. Before the days of crossovers, luxury brands would compete with each other in all segments of sedans, and between Volvo and Genesis adding legitimate competition into the mix of German luxury sedans, this is like reminiscing back to the old days.
Kia Stinger GT
Kia Stinger
The argument could be made that the Stinger GT isn’t a luxury car, and that’s completely understandable. However, the last few years we’ve seen the rise of sportbacks from BMW, Audi, and Mercedes Benz that’s begun to take the automotive design of four door cars by storm and has influenced the appearance of the current Honda Accord. Where the Stinger GT is priced, it takes on the Audi A5 Sportback and BMW 430i Gran Coupe and out performing both with it’s 3.3L V6 engine that gets 365 hp. This is the same engine that is offered on the Genesis G70.
The Stinger GT, for the time being and maybe even 5-10 years from now, could be a car we remember as being a risk taken by Kia that actually succeeded. While the Stinger was in the works for years, you could question whether brands like Kia are seeing the opportunity to sneak into the sedan segment and slowly take market share away from German luxury automakers who seem more focused on crossovers at the moment.
Genesis, Volvo, and Kia are taking the unconventional approach and putting time into the sedans they’re releasing. Despite Volvo having a crossover for every segment, they didn’t abandon their mid-sized sedan, and instead improved it unlike the current BMW 3 Series and Mercedes Benz C300. On a side note, BMW is working on the next generation 3 Series, and I’m interested to see what changes they make to take on new upcoming rivals. But this renaissance of sedans doesn’t just pertain to luxury or performance cars; this is quietly happening elsewhere.
Toyota and Honda
Earlier this year I raved about the 2018 Toyota Camry XSE V6. A sedan that gets 301 HP, an optional two-toned exterior with red interior, and paddle shifters. A sedan that got absolutely no love in the car community has certainly garnered some attention by drivers who want to have some fun behind the wheel, but not necessarily desire the stares from fellow motorists. The design is sleek, almost resembling a Lexus, which is most likely Toyota’s goal, and for the first time making this sedan attractive to consumers in any age demographic.
2019 Honda Insight
For the 2019 model year, Honda is reintroducing the Insight. Remember the days when this hybrid was a small two-door, computer mouse-shaped alternative energy vehicle in the early 2000’s? Or when the second generation took on the appearance of a Toyota Prius to try making strong gains in the hybrid segment? Well now it’s a four-door sedan that I’d argue is the best looking hybrid under $30k right now.
Built on the same platform as the Civic, the Insight gets many design cues from it’s compact vehicle relative which should draw in consumers who are on the fence of whether to purchase a gas powered car or make a commitment to hybrid technology. Highlighting the features on the Insight is its exceptional fuel efficiency with the LX and EX trims getting 55 mpg in the city and 49 mpg on the highway. The Touring trim will get slightly lower numbers due to the upgraded 17″ alloy wheels, but with a base price of just over $22k for the LX, this is one hybrid that’s going to the Prius a run for its money.
Despite the claims made by some automotive journalists and car enthusiasts, the four-door sedan isn’t going away anytime in the near future. If anything, the crossover craze has opened the door for manufacturers to not rush their products, and instead continuously improve the sedans they have in their lineups. Toyota still sells 200,000+ Camry’s per year, and Nissan has similar numbers with the Altima. There’s been no steep decline in the sales of these models over past decade, which should indicate that there’s still a demand for sedans in a crossover dominated automotive market.
Since the mid 90’s, BMW, Audi, and Mercedes Benz have enjoyed two decades of dominance in the luxury sedan segment after toppling the American automotive giants based in Michigan. What has seemed to be an unstoppable force is now ripe for the picking as we get closer to 2020. In recent years, German automakers have put a lot of emphasis on their crossovers and trying to one up each other with every new model they release. Meanwhile, scattered across the European continent, Volvo, Alfa Romeo, Maserati, and Jaguar have made strides in the US, but only Volvo has taken the initiative to go all in and take on the Germans singlehandedly.
Volvo’s all new lineup is just about ready to be completed with the redesigned S60/V60 hitting the market later this year. The XC40, XC60, and XC90 are positioned perfectly to compete in all segments of the crossover market, while the S90/V90 flagship brings Swedish luxury and design to German dominated full-sized sedan and wagon segments. But it’s the S60 that’s going to be a significant competitor; one that will certainly make consumers very conflicted on whether to buy a BMW 3 Series, or go with a Swedish car instead of being mainstream.
Having seen the new S60 in person at Larz Anderson Auto Museum in Brookline, MA during Swedish Car Day, my initial impression is that this car is purposely built to rival any compact to mid-sized sedan Audi, Mercedes Benz, and BMW have to offer. With a starting price just under $36k, the standard equipment on the S60 should already draw interest by consumers. LED headlights, a panoramic moonroof, Apple CarPlay and Android Auto compatibility, an 8″ digital information display, and dual zone climate control are the highlighted features on a “base model” S60 T5 Momentum.
If 250 hp isn’t enough, you can option for a T6 with AWD that gets 316 hp and 295 lb. ft. of torque for an additional $4,500. Optional features that are also available on the T5 include: 19″ alloy wheels, exterior styling kits that give the S60 a more sporty appearance with a different rear diffuser and slightly aggressive side skirts, and a multimedia package that adds a 12.3″ digital instrument cluster, a Harman Kardon Premium Audio system, and a navigation system. Volvo has built a brand on safety, and it shouldn’t be surprising that additional safety technology such as blind spot detection, rear cross traffic alert, and a 360 degree birds eye view camera are available as well.
For the Inscription and R-Design trims an all new T8 plug-in hybrid engine is going to make the S60 one stealthy performance sedan on the road. 400 hp and 495 lb. ft. of torque will leave fellow motorists bewildered and speechless as Volvo’s aren’t known for their quick 0-60 accelerations. For this type of performance you’re looking at a price tag around $55k which is in line with the Audi S4.
Where the Volvo S60 is really going to excel at is right around the $40k price range. To put this into perspective, the base price for the S60 would get you a BMW 320i xDrive sedan, a front wheel drive Audi A3 and A4, or a CLA 250 4MATIC. The standard equipment alone puts Volvo at an advantage, and if you went with a T5 engine, you’d have the additional $4,500 to spend on packages before you reach the price of an entry level C300 and BMW 328i. When doing a quick comparison, the Audi A4 would probably be the closest competitor to the S60 at this price range which offers some similar features. You could probably make a case for the A3 to be in this conversation, but then we’d be comparing a compact sedan with an S60 that is the A4’s Swedish counterpart.
The S60 is priced to succeed in a segment that gets little to no attention. While the Germans have been set in their ways, Volvo made crucial changes that will immediately turn heads. Geely did the best they could with the remains of the Ford DNA in Volvo vehicles, and now that these models are built on their platform, Volvo can attract a new generation to a brand that’s appealed to older consumers for decades.
At the end of the day Volvo has been a feel-good story. From being on the ropes a few years ago to now producing classy and luxurious vehicles, the Swedish automaker hasn’t even hit the ceiling of potential. There’s plenty of excitement surrounding the brand, and with the redesigned S60, 2019 could be a very good year for Volvo.
It appears the cool thing to do in 2018, or really ever since the Maserati Ghibli and Levante hit showrooms, is to find a way to critique or bash the vehicles for interior and overall design quality. While I have reviewed a 2014 Ghibli in the past and was disappointed after years of building an expectation that never met reality, I can honestly say that is not the case for the Maserati Levante. In fact, I’m going to argue that it’s the complete opposite, especially for the 2018 model year. I can already see the eye rolls, but the Levante is one vehicle that you have to test drive and experience for yourself, rather than just parroting what a car reviewer is spewing on YouTube.
When the Levante hit the market back in 2016, there were a few flaws that would later be corrected. One being for the base model that front and rear parking sensors did not come standard, which was one major complaint especially when you’re paying more than $70k for a luxury crossover. Next would be that if you wanted to shift into reverse, the Levante would refuse to do so, and instead would shift into drive or park. This is something I didn’t encounter during my time with the 2018 model, and speaking of the current model year, front and rear parking sensors do come standard for all trims of the Levante.
Having read and watched many reviews prior to spending time with the sports crossover, there was a level of low expectations, and in the back of my mind I’m thinking this might turn out to be the Ghibli all over again. The minute I stepped inside and put the Levante in sport mode, that’s when everything changed. To drive a crossover that not only sounded like a sports car, but handled and drove like a luxury crossover immediately put a smile on my face. Where critics do give the Levante favorable ratings is the driving experience, and for good reason as your time behind the wheel isn’t boring and mundane like other vehicles in this segment.
The Levante I was testing was a fully specced $106k S GranLusso that came with Zegna silk and leather seats. They were some of the most comfortable bucket seats I’ve ever sat in, which certainly helped make the drive memorable. For a larger crossover, the Levante handled impressively well, and in tighter corners felt glued to the roads with very little, if any body roll. The gear shifts were almost instantaneous when using the paddle shifters, and for the first time, a test drive in a crossover was actually fun.
Obviously being an FCA product, the same infotainment system that can be found in a Chrysler was in the Levante. What I’ve never really understood was why this was that big of a problem, as Apple Car Play and Android Auto are offered, you get navigation, and you’ll also receive Sirius XM Radio and Travel Link. The one valid critique is that to access the heated and ventilated front seats there’s no button in the center console and instead to turn that feature on and off you have to use the touchscreen.
The smaller touches that can be seen in Dodge products is another problem most people have with the vehicle, but it’s something you begin to overlook when getting behind the wheel. That’s where Maserati may have the edge on competitors. The driving experience is nothing like other luxury crossovers from German automakers because you feel more engaged, and when the valves open in sport mode it will be irresistible to just drop a gear and leave the car that’s in the rearview mirror far behind you. The V6 engine that comes with 424 hp is going to surprise a few of your fellow commuters, and whether you want to have fun or go for a leisurely cruise on backroads, the different driving modes are suitable for either style of driving.
Pricing is one of the larger issues consumers have with the Levante, which is certainly a valid point. As a certified pre-owned crossover after the initial hit of the depreciation, the Levante then becomes a potential sought after vehicle that could be the better option for buyers in this segment.
Overall, Maserati’s first crossover isn’t a bad vehicle. Does it have flaws? Absolutely, but it’s nowhere near disappointing and if you can deal with the FCA infotainment system, you’re going to have one of the best sounding crossovers on the road today.
Here’s the full review for the 2018 Maserati Levante S GranLusso. Is it worth the price and a vehicle that should garner more respect in the automotive community? That’s up to the consumer and the individual.
It’s 1996 and you’re sitting in your living room watching the Olympics. During a commercial break, BMW’s award winning commercial for their redesigned BMW 5 Series shows the streets of New York City flooded with water, but most notably boats floating up and down city streets with the E39 540i navigating its way trough maritime traffic. It’s possible that at this point in time, the viewers who saw this commercial that summer had no idea of the ramifications the 5 Series would have on the automotive industry, while also ushering in an era of European luxury cars dominating the market.
Before dissecting this commercial and then fast forwarding to the present day, 1996 was a year of transition for the American auto market. Japanese manufacturers like Toyota and Honda are continuing to grab market share away from Ford, GM, and Chrysler due to their cheaper and practical cars, which is creating a seismic shift in consumer behavior as even in the mid 90’s, Americans were still loyal to auto manufacturers based in Detroit. As history tells us 20 years later, this transition will continue at a rapid pace leading to Toyota and Honda becoming prominent brands in the US Market.
It’s in this same year that BMW, Mercedes Benz, and Porsche unleash two seater convertibles: the Z3, SLK Class, and the Boxster. The Z3, already receiving notoriety after being featured in the James Bond movie “GoldenEye”, arrives at BMW showrooms shortly after the release of the movie. The Porsche Boxster will soon play a significant role in the German brand’s emergence in the US, and is just one of the few surprises Porsche is going to release within the next 10 years. The Mercedes Benz SLK is often the forgotten one out of the three, mostly due to the Z3 getting the spotlight, but also by the new millennium the redesigned SL is going to take center stage, overshadowing the SLK’s existence.
However, there’s still one segment Ford and GM own with a tight grip, and that’s the luxury sedan market. Lincoln, Mercury, Cadillac, Oldsmobile, and Chrysler (to an extent) are the old giants that stand in the way, and BMW is ready to accept the challenge with their E39 5 Series.
Back to analyzing the commercial, the boats signify the American luxury cars of the day. We can joke about the modern day Challenger being a boat, but the Lincoln Town Car and Continental, Mercury Grand Marquis, Cadillac Deville and Fleetwood were all bigger cars with boxy exteriors. Seeing the BMW weave through traffic with ease was meant to show it’s maneuverability, and not be a huge car that couldn’t get out of its own way. The last statement made in that commercial was, “Why float through life, when you can drive?”. This would resonate with younger consumers who really had a limited selection of luxury cars to choose from, especially if they didn’t want to drive cars their grandparents and aging parents owned.
The E39 540i/M5 wasn’t just a four door performance car that even today we marvel at, but the E39 in general was a luxury sedan that would reshape the automotive industry forever. In 1996, Mercedes Benz and Audi hadn’t found their way yet, but they too would be emboldened to compete with BMW by the end of the decade. This would then lead us to almost 18 years of competition between the German brands, which eventually dragged Jaguar, Maserati, and Volvo into the mix by 2014. But I’m getting way ahead of myself.
The 540i that was shown in that commercial was priced at $50k, but the 5 Series in 1996 had a base price of around $38k which was right in line with American luxury sedans. While the US economy was very different 22 years ago, the slow progression to European luxury cars dominating the market can easily be attributed to the E39 5 Series, and it was the beginning of bigger and better vehicles from Germany that would continue to put nails in the coffin of American automotive giants that ruled for over 60 years.
BMW E39 540i
Too often we look at the E39 from a performance aspect, and some believe that the Chevrolet SS is the only car since 1996 that most resembles the E39 5 Series. However, when it comes to defining a luxury sedan, that’s where BMW reshaped an entire segment. Luxury cars in the 90’s were boats, much like their predecessors before them. While cars were slowly downsizing, the E39 accelerated the change by not only being smaller than a Lincoln or Cadillac, but also being sporty. If we walk into dealership showrooms today, luxury cars come with optional sports appearance packages and engines putting out impressive horsepower numbers. It wouldn’t be a stretch to go back 20 years and attribute that to the 540i.
Indirectly, the success of the 5 Series kickstarted the beginning of an arms race between the German auto manufacturers which then got the rest of Europe involved by the late 2000’s to early 2010’s. Mercedes Benz and Audi started producing sleek cars to compete against BMW, Jaguar then replaces the S-Type with the XF and later the XE enters showrooms, Maserati releases the Ghibli, Alfa Romeo reemerges in the US with the Giulia, and now under the ownership of Geely, Volvo is ready to be a legitimate threat to German manufacturers with a very impressive redesigned S60.
Jaguar, Maserati, Alfa Romeo, and Volvo were really niche brands, and even today they still are to an extent. I’m not going to downplay the effect crossovers have had on these brands, which is a story for another day as BMW and Mercedes Benz could be the patriarchs of a luxury SUV craze that swept through an entire industry with the X5 and ML Class hitting the market in 1998-1999. However, the E39 has certainly played a role, whether directly or indirectly, in the decision to produce four door sports cars that also have luxury car qualities, and the Audi B9 S4 is the perfect example of that.
At the end of the day, no matter which car you want to pinpoint as the culprit for the modern day four door luxury sedan, the E39 5 Series challenged the status quo, making luxury cool for younger consumers and not just a vehicle for aging Americans 65 and older. The performance side of the 540i/M5 certainly helped grab attention from drivers who wanted an exhilarating and engaging driving experience. This car’s massive impact on the automotive industry shouldn’t be overlooked, and as car enthusiasts who now have a variety of luxury sports sedans to choose from, we owe that to the E39 5 Series.
The month of October was not friendly to most car manufacturers, as overall sales in the United States dropped 6%. This sharp drop can be attributed to volume sellers who saw declines that haven’t been posted in quite sometime. Is this a reason for concern moving forward? Is a slowing auto market going to be the new reality that manufacturers will face for at least the short term? New car sales have been slowing over the past few months, but October’s sudden drop in overall sales is nothing that should be taken lightly.
It should be noted that October of 2016 had two fewer selling days than October of 2015, but with some of the percentages that were posted, not even two extra selling days could change the outcome of a bleak new car market.
Fiat-Chrysler Massacre
It has not been a good year for the Fiat-Chrysler group, and October magnifies the downward trend in sales for most of the brands. Chrysler posted a decline of 44.7%, Fiat down 24.3%, Dodge -16.4%, and Jeep -6.6%. Three out of the four brands listed are down on the year for new car sales, while Jeep is still maintaining an increase of 9.7%. With Dodge ending the Dart and Chrysler no longer producing the 200, sales figures being down was to be expected, but for the auto group as a whole, there’s not much excitement for any of the brands, besides Dodge which produces the Challenger and Charger.
BMW, Volkswagen, Volvo and Land Rover Experience Sales Decline
Volvo and Land Rover, two manufacturers who are both up on the year in new car sales in the United States, saw sharp declines in the month of October. Volvo, a brand that has been revived thanks to the all new S90 and completely redesigned XC90, experienced a 14.6% drop in sales. Land Rover saw a decline of 23.2% in October. Despite the sharp drop in sales in the United States, Volvo and Land Rover are still having a fantastic year overall, and shouldn’t be too concerned about the final quarter of the year, unless lower sales figures overall in the automotive market becomes a trend.
BMW may be the biggest surprise for lower volumes in sales, not only for October, but for the year of 2016. Down 18.4% last month, and down 9% for the year, BMW is the only brand out of the big three luxury manufacturers in Germany that has experienced declines. Mercedes Benz and Audi are still strong, and while sales were flat in October, the loss of two sales days could be a contributing factor. Volkswagen on the other hand has not recovered from Diesel Gate, and with a loss of 13.5% on the year and another double-digit loss last month, it just continues to get worse for the German auto brand.
Bentley, Jaguar, Maserati, and Porsche Have Strong October
Not everyone is reeling from the October blues, there are car brands that had a fantastic month with Bentley, Jaguar, Maserati, and Porsche having double and even triple digit increases in sales. The British are leading the way and Jaguar’s 226% sales increase can be attributed to the F-Pace and XE, which have both taken their respective markets by storm. The F-Pace is Jaguar’s first attempt at making an SUV, and so far it has been a great success, while the XE, which is the British’s answer to the BMW 3 Series, is seeing strong sales since it’s arrival to the market earlier this year.
Bentley’s impressive gain of 158% in sales last month is all thanks to the Benteyga, which is Bentley’s first ever SUV. In October, the Benteyga contributed more than 33% of sales for the Bentley brand. While the British luxury car maker is down on the year by 6.8%, the entrance into the luxury SUV market has yielded strong sales figures, with the Benteyga making up about 50% of Bentley’s sales in the US since it’s debut on the market in August.
Maserati, much like Bentley and Jaguar, has seen strong sales numbers since entering the SUV market as well. The Levante, which also brought in about 33% of sales in October for Maserati, has received raved reviewed by journalists and consumers. Maserati has hit a home run with their luxury SUV, and that is starting to trickle down to other cars in the lineup. The Ghibli had a strong month alongside the Levante, leading to Maserati’s 11.8% increase in sales for the month of October.
Porsche had the best month out of all German brands in October, with luxury SUV’s again being the main contributor for strong sale. Up 10.7% in October and 3.2% for the year of 2016, Porsche has seen tremendous sales figures and it’s the Cayenne and Macan that is carrying the once sports car dominated lineup.
Strong sales across the board for luxury brands could be a good sign, despite the slowing of overall sales in the market. While Fiat-Chrysler, BMW, Volvo, and many others struggled in October, there’s no reason to panic just yet. If the fourth quarter of 2016 continues a downward trend and that transitions into the new year, then there would be a legitimate reason for concern. As for right now, we can only hope that October isn’t the start of a trend, and that the holiday season and the incentives that come with it could motivate consumers to buy in November and December.
With YouTube and Instagram being the catalyst for car scenes across the United States in the 21st Century, car culture has always been considered more prominent in California, Texas, and Florida. Due to our inability to have year round events in the Boston area with our harsh winters and very unpredictable spring and fall months, the summer is really the only time of year we can take our cars out with full confidence that rain will not cancel events. With that being said, where does the Boston car scene rank, and is it underestimated and overlooked to some degree in the car world?
As a Bostonian and having seen the transformation this city has gone through over the past decade, car culture and its relevance in the automotive world is directly linked to our local economy. Over the past few years Boston has attracted business leaders and entrepreneurs, which in turn has brought some very rare exotics to the streets of our historical city.
This year a Pagani Zonda S showed up to Tutto Italiano at Larz Anderson Auto Museum, which is the largest event for Italian cars in the Northeast. Also present was a Ferrari Enzo that drew a crowd immediately when it pulled in. Herb Chambers Lamborghini of Boston held a get-together for Lamborghini owners prior to the event, and when all 18 cars including four Aventador SVs showed up, the entire park and the spectators there flocked to see them park on the lawn to meet their Alfa Romeo counterparts.
It’s not just Italian exotics that have become more of a common sight in and around the city. 2016 has been the year of the Porsche GT3 and GT3 RS. At Cars & Coffee, you can fully expect to see at least 2 of each to show up, and on some occasions even more. With the addition of a McLaren dealership 20 miles south of Boston, and the Aston Martin dealership in the western suburbs, the British car market has increased in popularity as well.
Boston’s car scene may never grow to the size of Florida’s, California’s, or Texas’, but it’s one that deserves a lot of respect. Car events have become fun for many who attend, and with the sightings of Aventador SVs, McLaren 650s, newer Ferraris, and even a Pagani Zonda S, the car community has gained a lot of traction, which is now introducing a new generation of car lovers to brands such as Audi, Mercedes Benz, and BMW, which has a very strong and loyal following.
Bigger and better things are sure to come, especially with the growth that the community has experienced over the past year. Hopefully with the growing number of car photographers constantly posting on Instagram, Boston’s car culture will bring further awareness to car lovers in New England who are looking to be a part of something big, that Texas, California, and Florida has monopolized.
What lacks from most automotive advertisements is emotion, passion, and a connection between the driver-to-be and the car. Vehicles are often more than just objects to people. For some, cars are a means of transportation, going from one destination to another, but for others, vehicles are a way of life. Some of you may ask, “How can there be such a relationship where the driver is completely engaged with the car?” Certain brands have built and engineered cars that make the driver feel as if they’re one with the car they own, and feeling very connected to the road through the twists and turns on a back country road. These machines grasp the imagination and excitement of drivers and kids of all ages.
Porsche’s commercial, presumably from 2005, pulls at the heartstrings of car enthusiasts. At one point or another in a person’s life, they looked out the window daydreaming of the sports car they’d own when they got older. No doubt that the Porsche 911 was on a poster in kids’ bedrooms, as even today, the 911 is an exotic car many only dream of owning. In a commercial that is primarily music with very limited dialogue, the kid is drawn in by the Porsche’s presence as it passes his school. He’s so captivated that immediately after school he rides his bike to the nearest Porsche dealership just to get a close up look at the new 911.
When he’s allowed to sit in the cabin, his emotions can easily be felt by the viewers. Even today as adults, we space out when we finally get to touch the car that’s been at the center of our dreams for years, or for one split second, we see ourselves driving it. Porsche’s commercial hits all the right notes that no doubt motivated people to buy the car immediately, or work harder to obtain their aspirations of owning a 911.
While there are a few funny moments when the kid asks for the salesman’s business card, or when he says he’ll see him again in 20 years, it still ties into the message, which is the connection to the car itself. Emotion and feeling are often the greatest motivators in life, yet car commercials of today don’t express what the consumer is feeling. Instead, it’s marketing the features of the car, or the add-ons that can be seen on most models in 2016, that’s taken precedence over what the consumer desires.
Owning a car should be fun, especially when consumers buy exactly what they wanted. A Porsche 911 is the car that enthusiasts want because it hugs the road, offers performance and luxury, and gives the owner many years of smiles and memories. These feelings haven’t died as some have suggested, including the Washington Post which had an article saying car culture is shrinking in the United States. Enthusiasts beg to differ as car shows and events are growing at a rapid rate across the country. Car enthusiasm isn’t dying, it’s being awoken.
Luxury car manufacturers are experiencing high volumes in sales, and for those who aren’t, it’s time to start reviving the emotion, joy, and excitement that once drew customers toward the brand. Instead of trying to be funny, or marketing your cars for what they aren’t, be real. Consumers are human beings with emotions, and their buying decisions are made through those emotions. Start appealing to the younger generations, get them excited for the vehicles you offer.
By not bringing your cars to life, you become like every other high volume seller. Bring back the emotion and appeal that has a lasting impact on consumers, and you’ll begin to see a loyal following that will continue to buy from your brand. Only then will you find the voice that speaks up amongst the rest on YouTube, Facebook, Twitter, and Instagram.
In the month of April, Volvo was outsold by Porsche in the United States, 5,217 cars to 4,636 sold by the Swedish automaker. This is very alarming, especially since Porsche’s prices are higher than Volvo’s, and also their vehicles were once rarer. What happened? It wasn’t too long ago, 8 years ago in fact, that Volvo’s yearly sales were in the six figure range. In 2014, the annual sales were at 56,366, which was a 5,000 car drop from the previous year. Volvo is heading into a very dangerous time, and you could say that the new XC90 will keep the company afloat until the major lineup changes take affect in 2017, but I don’t think you can wait another two years before sales figures could, and I stress could, rebound.
Mercedes Benz, Audi, and BMW are in contention for the number one spot, steamrolling over any car brand that even tries to compete with the German luxury car market. But the fact that Volvo was outsold by Porsche is a major concern, and here’s why. The Porsche Macan, Cayenne, and Panamera made up a huge portion of sales in the month April, which means they’re successfully selling their four-door vehicles. The bulk of Volvo’s sales came from the XC60 and S60, with the V60 and V60 CC chipping in with a combined total of just over 700. Now that we’ve seen what’s working for both automakers, it’s time to look at how Volvo dealerships can help improve car sales for the brand. Yes, you the dealerships can play a major role in your car brand’s overall sales.
I’ve had the pleasure of being inside the Volvo S60, and quite honestly, it was enjoyable to drive and sit in. Comfortable interior, and being the owner of an S40, I didn’t feel like I was in a drastically different car, which I liked. With 240 horsepower for the base model, that competes with and beats some of the German competitors in terms of power. You’ve got to let the consumer know that. Brand perception is still holding strong with the “It’s a family man’s car” or “For the Middle-aged adult”. I was at the car show in Boston this past January and there were more than just families in the Volvo section. Twenty-five year olds were surrounding the S60 Polestar, and they didn’t just sit and stare at it, they read the description next to it. There was a genuine interest.
Looking at the various lease options for the S60 from a number of local Volvo dealerships, the S60 is also cheaper to lease monthly than the Audi A3 and A4, Mercedes Benz CLA, and C-Class, and in some cases even cheaper than the BMW 320i X-drive. The S60 beats the competition, not only in power but also price. You have to make that known to the customer, and by advertising and posting content on social media, you can help spread the awareness.
The XC60 seems to be your best seller, and for good reason. But very rarely do I see Volvo dealerships making the XC60 a main focal point on social media. I know that the XC60 is due for a platform change that should happen in 2017, along with the S60/V60, but with a two year buffer, you have to continue pushing the crossover SUV. Porsche is clearly beating you to the punch, and consumers are willing to pay extra if need be to get a luxury crossover or SUV.
The V60 is another car that I don’t see being pushed much on social media, or even in other forms of advertising for that matter. The V60 Cross Country almost outsold the XC70, while also being 87 cars behind the V60 variant. In terms of luxury the V60 is one step higher than Subaru, and again, Volvo isn’t playing this up to their advantage. The V60 CC could have seen stronger sales, especially after the winter we experienced here in the Northeast. But again, Volvo dealerships missed a golden opportunity to promote their off-road capable station wagon.
Lastly, with the XC90 being the most iconic car for this generation of Volvo’s, it’s been somewhat disappointing to see dealerships not emphasizing the importance of this car, while also building up excitement for its release. Right now dealerships are doing the best they can, but hopefully with the new XC90 hitting showrooms, Volvo dealerships will give customers an inside look of their cars, whether that be at local events, or on social media.
Social media is vital to your car brand’s success. You have to utilize Facebook and Instagram. I see the passion for Volvo’s by current owners. They need a reason to go back to the dealership and consider trading in their old Volvo for a new one. The new Volvo’s are absolutely beautiful and I find them to be a dark horse in its market. You have to bring them to light, and make consumers aware of the better options your car company can provide.
The age of the manual transmission is coming to a close. With automatics dominating the auto market, auto-shift and paddle shifters replacing the traditional manual, hard core car enthusiasts will have to either buy an older car or hope an auto manufacturer specifically targets to a dwindling market. As of right now, manuals make up about 6-10% market share, leaving the other 90-94% to being automatics or non traditional manuals that allow the driver to switch from manual to automatic when he/she so chooses. Last month, Acura announced that the only car in their lineup that will have a manual transition will be the ILX, which hasn’t generated great sales for the Honda-owned car brand.
When Ferrari, Lamborghini, and McLaren have paddle shifters on their models, you know we’re entering into a new era of cars. People have given many reasons as to why this phenomenon is happening. Some say it’s because the infotainment systems in cars require too much attention from the driver, so manually shifting become a second thought. Others say it’s because automatics have become just as fuel efficient as manuals, and due to the computer systems in cars now, the car can shift just as good, if not better than a human. But I personally believe that automatics are more convenient. Isn’t that where our culture is heading? Convenience?
A 16 year old who is learning how to drive, or just got his/her license can just get behind the wheel, put the key in the ignition, and drive off to their destination. There is no energy required, no secondary action needed while driving, and with the cars that are being produced today, a person driving an automatic can fully enjoy their vehicle just the same as owners of manuals.
Let’s also remember that auto manufacturers are companies. They’re following the money, and that trail does not lead to a large market for manuals. Six to ten percent isn’t a huge chunk of the market. In the last 35 years, we’ve seen a 25% drop in demand for the traditional manual, which means less money is going to that market. For these companies to survive they need to follow the money. This is the same reason that every car brand is entering the crossover market. Porsche manufacturing two SUV’s and a four door, and Ford bringing the Focus RS to America to compete with the likes of the Subaru STI and the Volkswagen GTI, is another example of car brands getting into a market that is making money.
We’re seeing a massive change and shift in the automotive world. Because of these changes, transmissions, infotainment systems, and other components have been updated to appeal to a broader market. Unless consumers start buying manuals, the days of the traditional stick shift will be over. It’s been a valiant effort, but it might be all for not.
