"My Maserati does one eighty five,
I lost my license, now I don't drive."
-- "Life's Been Good," Joe Walsh
U.S. auto sales most likely will register yet another year-over-year decline when Big Three auto manufacturers report November sales on Tuesday.
But that's not to say that all segments of the auto market are in free-fall, revenue wise: sales of many high-end or luxury cars are doing just fine. Sales of many high-end luxury cars are flat or down just slightly this year, in contrast to double-digit declines seen in typical vehicle categories.
Ferrari's U.S. sales are down just 3%, Mazerati's sales are up 10%, and Rolls-Royce's sales have risen an eye-opening 32%, according to data collected by Autodata.
It's been a great decade . . . for the gentry
Economist David H. Wang said the luxury car statistics are consistent with a macro-consumption theme pervasive throughout the decade: for the most part, luxury brands and super-exclusive brands did well.
"One thing the decade's economic policies did accomplish was a substantial increase in wealth among upper income groups, especially the already wealthy and the super rich. Most people earning more than $300,000 a year have had their best decade ever," Wang said. "That's been very good for luxury product sales, like luxury cars, luxury homes, fine art, jewelry, and vacation homes. Unfortunately, the decade's income and wealth gains at the high end doesn't mean too much for broad-based consumer demand, and for the overall U.S. economy." Wang added that he does not have a rating on or an investment stake in any auto manufacturer.
"We may see some high-end consumers 'downgrading' from a new Maserati to, say, a new BMW 7-series, but I think most people would agree this is not a meaningful downgrade," Wang said.
Auto Sector / Economic Analysis: There's nothing wrong with consumption at the high end, but the fact one segment is purchasing cars at a reasonable pace, while other consumers -- if they're in a position to buy a new car -- can't get a reasonable financing package, speaks to the problems currently plaguing the U.S. economy. The U.S. economy will not resume a sustainable growth track until a broad section of society is seeing their real income rise, and normal credit conditions reappear.











Reader Comments (Page 1 of 2)
12-01-2008 @ 4:14PM
Mark said...
Wait till Obama takes office. He will put a stop to all of that luxury spending and high end manufacturing! Of course this will cause the loss of a lot of middle class jobs. You get what you vote for. Looks like a re-run of the Clintoon administration anyway.
12-01-2008 @ 10:14PM
dave said...
guess trickle-down isnt wahat its hyped to be, is it?Unless your at the top.
12-03-2008 @ 7:25AM
SUSAN CROUCH said...
Trickle down does not mean hand it over. We are in the group this article speaks about. We own a business and live well. Our buying expensive stuff, traveling, and using services keeps everyday people employed and the hugh amount of taxes we pay helps support all of you. We have not been affected by the current crisis because our business is a needed service, we don't have investments and we don't over extend ourselves.
12-03-2008 @ 7:49AM
FB said...
Everyone wants the "American Dream", but if you educate yourself, work hard, take risks, and finally achieve it you become "fortunate" and are despised for it. Bravo to you Susan.
WORRIED ABOUT TRAILER THEFT?? You need to:
http://www.carrythebigstick.com
12-03-2008 @ 8:24AM
Melanie said...
If you're in a stable financial position to begin with; haven't lost your job and aren't currently living off your investments, how is this horrible economy affecting you? Stock prices are LOW - with dollar cost averaging everyone in the market who doesn't sell knows it will make a huge comeback; it always does. We recently bought two cars (financed one) and several new appliances and had no trouble with financing.
12-03-2008 @ 8:27AM
joel said...
I am in this group as well. I came from a lower income home and support my parents today to some degree. My father drove a taxi 15 hrs a day to barely make ends meet. I decided I was not going to live that lifestyle I give to charity and support the economy to the fullest. Little of what I make goes to savings. I pay taxes to the tune of over 37% of my income. So how could I trickle any more down than I already do!!!
12-03-2008 @ 9:07AM
Jon Boy said...
Found this
Six Things You Should Never Say to a Car Salesman
http://www.curiousread.com/2008/11/six-things-you-should-never-say-to-car.html
12-03-2008 @ 9:40AM
rich in spirit said...
Wealth comes with a big lonliness sticker!
ENJOY!!!!!!!!
You are the ones that have to worry about everything!!!!
Even if all your acqaintences are bought!!!
12-03-2008 @ 10:13AM
John said...
It looks like the rich have been getting richer while most people have been suffering.
THANK GOODNESS we have a new administration to help balance things out. Much like when Clinton was in office.
PEACE & PROSPERITY FOR ALL!
12-03-2008 @ 10:29AM
Jack said...
The auto industry should be allowed to go bankrupt. They need to restructure and be only produce inexpensive nonpolluting non gas guzzling cars. They are going the way of the dinsaurs. The oil companies should be next in line to go.
12-03-2008 @ 10:37AM
rich guy said...
I loved the comments made by some of reaping our rewards for working hard, I agree and live the dream.
All the others that complaine about the rich is only because you wouldnt be half the people we are if you had our finacial means. With wealth comes great responsibility, somthing you think you understand by watching TV shows like Paris Hiltons BFF show or some of the other lowlife mind bending drivil on TV I truly pity the underacheavers of the world who do nothing to better them selves or their communities.
12-03-2008 @ 10:39AM
rich in spirit said...
We make our country so hard, just like a family, you can look at the good qualities in other families and try to bring these qualities to your own family.
Would you bash your child in public like the congress did our auto companies?
Should we go to country counciling.
12-03-2008 @ 11:10AM
rich in spirit said...
The people in office have to read books on how to hold the country together and do what it takes to receive the best outcome.
I here some parents complain out loud about their children, do they know what they are really doing, is ruining their chances of becoming something great.
12-03-2008 @ 11:27AM
rich in spirit said...
The people in office are responsible for everyone in this country just like a parent is responsible for every family member.
If you get favortism because a child looks like the parent, it usually ruins the whole family. The family is broken and scattered.
Do the CEO of auto act different than any other CEO? AIG CEO Hmmmmmmm
IS FAVORTISM RUINING OUR COUNTRY?
12-03-2008 @ 11:34AM
Dana said...
The auto industry is rittled because of union involvement which pushes the dollars up. Unfortunately many people have their retirements in the unions and pay these people to keep them in jobs. I do not feel it is fair for non union america to pull industry out when the unions are the ones who have pushed expenses up.
If money is loaned/given to the auto industry for bail out; a stipulation is they need to restructure their businesses from within and get rid of the union.
Let the union have to deal like the non union America.
I think it can be done very effectively. It is proven through other profitable industries that unions are a thing of the past and extremely expensive.
Thank you.
12-03-2008 @ 12:01PM
Rita said...
One more example of Bush-no economics. Only the rich survive...and keep on surviving. The "government" will bail out the rich, but refuse to help the working class. When you buy one of these luxury cars, who gets the benefit. Your ego. When American buys American, the middle (working) class benefits...nationwide. Come on folks. Let's put our working class back to work, save our homes, put food back on the table. Why not take the pensions from all the retired government workers, senators, congressmen, etc. etc. They only have to serve for a year and get paid the rest of their lives. And not what the working class gets for a pension after working for 42 years at the same company.
12-03-2008 @ 12:36PM
len lesuer said...
the only legacy bush/cheney will have is...is how they destroyed this country...shame on you both
12-03-2008 @ 2:31PM
Connie said...
Can't wait until that redistribution of wealth kicks in. I might be driving one of these instead of my GrandAm.
12-04-2008 @ 5:45PM
randy said...
susan crouch is your company hiring if so let me know and it sounds great to hear people respond with a positive remark now a days. It brings hope in a day when everyone hears only negative.
12-05-2008 @ 4:54PM
norm said...
just be glad it's not a rerun of the last 8 years. that would be catastrophic indeed!