Extras at Luxury Dealerships May Signal a Market Upturn

Washington DC November 15, 2006; The AIADA newsletter reported that Fletcher Jones Motorcars and Newport Lexus are pouring on the fancy fixtures and service extras as they vie for a larger share of one of the nation's most prosperous luxury-car markets, coastal Orange County, California, reports USA Today.

Auto industry officials are hopeful that these enhancements are a sign that the luxury market is finally looking up. After three years of strong sales, the luxury market has hit a rough patch.

Sales are down 4.1 percent through October compared with the same period last year, which may be attributable to the downturn in the housing market that has led the "well-heeled to feel poorer and retrench."

Experts contend that a stock market resurgence and the fact that baby boomers are entering their peak earning years may revive the segment. "Premium luxury is going to grow faster than mass market in the next few years," predicts Mike Jackson, CEO of Fort Lauderdale-based AutoNation.

Consultant CSM Worldwide says overall luxury sales, which currently account for 13 percent of the total vehicle market today, will increase to 15 percent by 2009 and ratchet up again to 17 percent by 2012.

Automakers are ready to claim their share of this growing, profitable market. Between 2006 and 2012 they plan to role out 129 new or refreshed luxury models... and likely an even greater dealership experience, as well.