High-end takes hit, globally

Meanwhile, Germany-based Porsche said on Monday that first half deliveries plummeted 27% to 34,266, and Italy-based Ferrari said it expects 2009 sales to fall "slightly" after 2008's mild 2% gain, when it sold 6,587 cars, Bloomberg News reported.

Historically, luxury car manufacturers have fared better in recessions than general market car makers, because the bulk of their customer base is comprised of rich and upper-income adults - - who are frequently cash buyers - - who typically cope better with economic downturns.

However, while high-end car makers are not likely to experience the downturn (and devastation) that has racked general market manufacturers, economists say the ultra high end may see larger sales pull-backs than they typically would because the the recent global economic expansion created many new millionaires, and 'suddenly rich' clients, some of whom may not have budgeted as well as old-money buyers.

Auto Sector / Economic Analysis: It looks like it's going to be a rough year for the 2009 Rolls-Royce Phantom, which lists for $380,000.

I don't know about you, but for that kind of money -- roughly $400,000 -- I want 2 bedrooms, 2 bathrooms, and a garage.

(And I still think the 2005-2006 BMW 750 Li, $40,000-50,000, represents a much better value than the stratosphere car manufacturers.)

From a macroeconomic standpoint, investors should interpret the dip in high-end auto sales as another indicator of the breadth of the recession. It also suggests that business managers and executives, who comprise many of these high-end buyers, are likely to maintain a cautious stance toward hiring and potential new projects through at least mid-2009.