Will U.S. Luxury Car Sales Continue to Rise?

Photo courtesy of That Hartford Guy, Flickr

Photo courtesy of That Hartford Guy, Flickr

There has been a steep increase in luxury car sales in the U.S. as the economy has begun to improve and financing has become more generous. Although Mercedes will likely be the best-selling luxury car brand of 2013, Cadillac has also had a stellar year.

Theresa Chambers of TLC Consulting is an automotive sales management expert.  She shares her opinion on the future for luxury automotive brands in the U.S., particularly in 2014. “Recent increases in luxury brand automotive sales have been driven by a number of factors that are unlikely to disappear entirely,” says Chambers. “That being said, the scale of the increase is unlikely to be sustainable in the long term and will level off.”

Chambers discusses the reasons behind high sales in 2013. “Sales of leading luxury brands, such as BMW, Mercedes-Benz, and Porsche, have been driven by a number of factors,” explains Chambers. “There has been an increase in availability due to increases in production and weak sales in Europe. Strong manufacturer incentives are in place which were unheard of 5-8 years ago. Porsche’s increased numbers are supported by increased production (and weak European demand) of the Cayenne. Moving into the next few years all three have or are about to add new models which will keep interest piqued, and support improved sales numbers.”

In terms of the Cadillac’s future, Chambers says, “Cadillac struggles with an identity crisis. They are trying to reinvent themselves but have yet to reach the key target audiences or hold value over the longer term.”

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