Atomic Black

Don't believe anyone who tells you the luxury-car market is dead. Despite the economy's struggle to get moving again, you only have to visit the New York International Auto Show to know there's plenty happening in this segment.

From SUVs and crossovers to wagons and sedans, the auto show played host to numerous luxury models including the U.S. debut of the redesigned 2011 Porsche Cayenne, 2011 BMW 5 Series and 2011 Volvo S60, which were joined by newcomers like the 2011 Acura TSX Sport Wagon and 2011 Lexus CT 200h hybrid.

The features and technology available in these and other luxury models will no doubt drum up interest among people shopping for their first luxury car, but it may well be social considerations that keep current luxury-car owners in the fold.

"It's awfully hard to leave luxury once you're in luxury," said Rebecca Lindland, director of industry research at IHS Global Insight. "You just get used to projecting a certain image and you're used to a certain look in your vehicle, a certain touch and feel.
"If you still have your job and you're OK with your mortgage and you are in premium [cars], it's just a lot easier to stay there … rather than explain to your friends why you're driving non-premium."


Even though the desire to remain in a luxury car may be strong, some automakers believe the definition of luxury is changing, and that spells opportunity.

"Luxury is no longer about being the most expensive, the most popular, the most opulent," said John Mendel, Acura executive vice president of sales, during the introduction of the brand's new TSX Sport Wagon. "It's about smart choices. We're starting to see a whole new attitude as luxury-car buyers are looking to make more intelligent, more relevant purchase decisions.

"At Acura, we've been studiously avoiding excess, refusing to build behemoth vehicles that exceed all practical needs. Because of our intelligent approach, we're now really in the sweet spot of this evolving market."

Audi, for one, has weathered the economic storm exceptionally well; the brand recently recorded its best first-quarter sales ever in the U.S. New models like the A5 coupe and Q5 crossover have helped, and it's also been buoyed by new technology like its TDI diesels.

"We have done quite well in these difficult times," said Loren Angelo, manager of marketing and advertising for Audi. "We're continuously demonstrating how Audi is a brand that is readdressing and redefining what the new luxury marketplace is for consumers" through technology features and engineering.

There's no question other brands have had some trying months. Sales for ultra-luxury purveyor Bentley, which showed its new $280,400 Continental Supersports convertible at the New York auto show, were down 39 percent worldwide last year.

"At the end of the day the biggest problem in this market category is confidence -- and lack of confidence -- and confidence has to come back," said Christophe Georges, Bentley Americas president and COO.

To know when it does, you'll only have to look to the car market.

"As Americans, I think that we tend to want to celebrate we've recovered from this. We've recovered from the worst recession," Lindland said. "We're getting back on our feet again, and cars have always been a way to express emotionally that success that we're feeling."