Automotive companies in the battle for customers in a crisis
To get out of the strange times it has fallen into, the automotive sector needs an unusual approach. This is manifested in the policy of any manufacturer that tries to increase its sales in every possible way, even if it means extreme measures. So, for example, we’ve come to the point where we think it’s perfectly normal for a premium brand like Jaguar to constantly push prices down, while a mainstream brand like Volkswagen wants to get a piece of the «big» pie by developing luxury limousines.
British company Jaguar, known for its exclusive sedans and two-seater sports coupes, is currently considering a base sedan in the luxury segment, according to Reuters sources cited by Business Time. The information has not yet been confirmed, but this means that we can expect a competitor from one of the models from Audi, BMW and Mercedes, combining enough luxury with an affordable price. The release of the new model is expected in 2015, writes in its edition of Reuters.
The situation is similar with Land Rover, which, like Jaguar, belongs to the Indian concern Tata Motors. The British Jeep manufacturer is increasingly focusing on compact dimensions. After a lot of groping, the specialists launched the Evoque image, and Freelander traditionally celebrates good achievements in the market.
«It makes sense to use Land Rover’s positive momentum to develop Jaguar’s lineup,» Christoph Sturmer, an analyst at IHS Automotive, told Reuters. “Jaguar is less than half as powerful as Land Rover, so something has to happen. Moreover, investors like to enter more mass segments.”
The exact opposite is happening in the ranks of Volkswagen, which is doing its best to enter the luxury segment. In 2000, the company hit the market with its decision to introduce the Phaeton luxury limousine. At the time, everyone thought it was very odd for a brand whose name meant «people’s car» to produce a premium model that cost a whopping $80,000 in the US at the time. The Germans never managed to introduce their model overseas, and six years after its premiere, it was withdrawn from there. However, information has now surfaced that the next generation Phaeton will be returning to the United States, where it will play a key role in the company’s efforts to boost sales.
“A big brand like Volkswagen needs a top model in the luxury segment. «We’ve seen what happens to brands that don’t offer it,» Winterkorn told Bloomberg. However, experts believe that selling a limousine along with mass models such as Polo and Golf is a serious problem.
Similar problems are faced by premium brands that are trying to attract smaller and less affluent customers. Mercedes, for example, is having a hard time promoting a basic CLA that should both impress young people and keep traditional buyers from wondering why they have to pay so much, given that their favorite brand offers quality models.
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