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Terril Yue Jones
Los Angeles Times
Published Jul 13, 2002
The stakes in the global car market are about to go way upscale.
The "ultraluxury" market is expected to reach more than $2.5 billion annually in a couple of years.
For the well-heeled consumer who wants a luxury car far beyond the best that the Mercedes-Benz or BMW brands offer, soon there will be several from which to choose, most in the rarefied $300,000 to $900,000 range. The new entries are from Rolls-Royce, Bentley, Bugatti -- all now German-owned -- and DaimlerChrysler, which is reintroducing a marque that's been off the market for 60 years: the Maybach.
With the Maybach going on sale in Europe this fall and the United States next spring, and the first new Rolls-Royce developed under BMW ownership due around January, sales of the pricey ultraluxury vehicles are expected to be 8,500 to 10,000 units worldwide.
Boomers aging
"The economic circumstances of the moment are probably less than optimal for these types of vehicles, but very suitable for the market prospect over the next five to 10 years," said Susan Jacobs, president of Jacobs Associates, an automotive consultancy that tracks the luxury car market. "The baby boomers are aging beyond 50 years old, and people are still sitting on a huge wealth cushion, even though it's smaller."
The Maybach will come in two versions: the 57 (for 5.7 meters, or 133 inches), and the extended-wheelbase 62 (6.2 meters, 151 inches), which will have rear seats that recline like first-class airline seats.
It features a standard built-in refrigerator, DVD screens behind the front headrests, and a choice of wood paneling: burled walnut, cherry or amboyna, from the Philippines. Later it will get polished granite, probably from Italy or Spain.
The 62, designed to be a chauffeured limousine, also has the option of "electro-transparent glass" in the roof, where an electric current can turn the roof from transparent to opaque and stages in between, depending on how much light the rear occupant wants.
The consumer demand is there for the Maybach, which will start just below $300,000, says Maybach Brand Manager Wayne Killen. "Half of the world's billionaires live in the U.S.," he said. "There are 2.5 million people in this country with investable assets of $1 million, or 35 percent of the world's share. We also have 35 percent of the world's ultra-high wealth people, who have investable assets of more than $30 million. That's why the majority of Rolls-Royces and Bentleys are sold in the U.S."
BMW, owner of the Rolls-Royce brand since Jan. 1, promises similar plush luxury in its Rolls at a similar price, although the company is tight-lipped over details because of the agreement with Volkswagen AG that transfers ownership of the brand name to BMW next year.
Bentley's new $150,000 two-door, code-named the GT Coupe, is coming to market next fall, and Bugatti is developing an even more expensive chariot for next year, the Veyron, whose price estimate ranges from $700,000 to 900,000.
Growing luxury sector
So many plush vehicles coming to market is a testament to the confidence auto manufacturers have in the growing luxury sector. "It shows that the manufacturers read the market the same way: that the population of people who can afford this type of vehicle is growing," said John Crawford, a U.S. spokesman for Bentley.
The GT Coupe has the powerful curves of Bentleys past and a mesh grille like the Bentleys that raced in Le Mans 70 years ago. The engine will push the GT Coupe from 0 to 60 mph in under five seconds and have a top speed above 180 miles per hour. Both the Bentley vehicle and its engine will be built at the Rolls-Bentley factory in Crewe, England.
Few details are available about the Rolls-Royce, but BMW executives promise it will stay true to its British heritage, complete with imposing grille, and not be a superluxury BMW. The Rolls will be built at a new factory in England.
The Rolls is expected to have a "halo effect" on BMW's mainstay brand, as the Maybach should for Mercedes and Bentley and Bugatti for VW and its Audi division. They are expected to generate showroom traffic and media buzz that will rub off on the less-costly brands.
The Bugatti EB 16-4 Veyron, as it's formally known, will have plenty of halo to spread around. The sleek, racecarlike Veyron will have a 16-cylinder engine with 1,001 horsepower and a top speed of 254 mph.
But whether they will make any money is another question.
"It will give them a point of differentiation because the mainstream luxury market is getting pretty crowded," Jacobs says. "But as for making a profit, it depends how much of a boom economy materializes as we go forward."
I read it in my paper, but the link to the story is here: http://www.startribune.com/stories/432/3047799.html
Boy, I really hope we get some of those cars in GTN! Especially the Bugatti EB 16-4 Veyron! With 1001HP and254mph, how can they not include AT LEAST that one? Plus, it would get more cars from Germany and England!
Los Angeles Times
Published Jul 13, 2002
The stakes in the global car market are about to go way upscale.
The "ultraluxury" market is expected to reach more than $2.5 billion annually in a couple of years.
For the well-heeled consumer who wants a luxury car far beyond the best that the Mercedes-Benz or BMW brands offer, soon there will be several from which to choose, most in the rarefied $300,000 to $900,000 range. The new entries are from Rolls-Royce, Bentley, Bugatti -- all now German-owned -- and DaimlerChrysler, which is reintroducing a marque that's been off the market for 60 years: the Maybach.
With the Maybach going on sale in Europe this fall and the United States next spring, and the first new Rolls-Royce developed under BMW ownership due around January, sales of the pricey ultraluxury vehicles are expected to be 8,500 to 10,000 units worldwide.
Boomers aging
"The economic circumstances of the moment are probably less than optimal for these types of vehicles, but very suitable for the market prospect over the next five to 10 years," said Susan Jacobs, president of Jacobs Associates, an automotive consultancy that tracks the luxury car market. "The baby boomers are aging beyond 50 years old, and people are still sitting on a huge wealth cushion, even though it's smaller."
The Maybach will come in two versions: the 57 (for 5.7 meters, or 133 inches), and the extended-wheelbase 62 (6.2 meters, 151 inches), which will have rear seats that recline like first-class airline seats.
It features a standard built-in refrigerator, DVD screens behind the front headrests, and a choice of wood paneling: burled walnut, cherry or amboyna, from the Philippines. Later it will get polished granite, probably from Italy or Spain.
The 62, designed to be a chauffeured limousine, also has the option of "electro-transparent glass" in the roof, where an electric current can turn the roof from transparent to opaque and stages in between, depending on how much light the rear occupant wants.
The consumer demand is there for the Maybach, which will start just below $300,000, says Maybach Brand Manager Wayne Killen. "Half of the world's billionaires live in the U.S.," he said. "There are 2.5 million people in this country with investable assets of $1 million, or 35 percent of the world's share. We also have 35 percent of the world's ultra-high wealth people, who have investable assets of more than $30 million. That's why the majority of Rolls-Royces and Bentleys are sold in the U.S."
BMW, owner of the Rolls-Royce brand since Jan. 1, promises similar plush luxury in its Rolls at a similar price, although the company is tight-lipped over details because of the agreement with Volkswagen AG that transfers ownership of the brand name to BMW next year.
Bentley's new $150,000 two-door, code-named the GT Coupe, is coming to market next fall, and Bugatti is developing an even more expensive chariot for next year, the Veyron, whose price estimate ranges from $700,000 to 900,000.
Growing luxury sector
So many plush vehicles coming to market is a testament to the confidence auto manufacturers have in the growing luxury sector. "It shows that the manufacturers read the market the same way: that the population of people who can afford this type of vehicle is growing," said John Crawford, a U.S. spokesman for Bentley.
The GT Coupe has the powerful curves of Bentleys past and a mesh grille like the Bentleys that raced in Le Mans 70 years ago. The engine will push the GT Coupe from 0 to 60 mph in under five seconds and have a top speed above 180 miles per hour. Both the Bentley vehicle and its engine will be built at the Rolls-Bentley factory in Crewe, England.
Few details are available about the Rolls-Royce, but BMW executives promise it will stay true to its British heritage, complete with imposing grille, and not be a superluxury BMW. The Rolls will be built at a new factory in England.
The Rolls is expected to have a "halo effect" on BMW's mainstay brand, as the Maybach should for Mercedes and Bentley and Bugatti for VW and its Audi division. They are expected to generate showroom traffic and media buzz that will rub off on the less-costly brands.
The Bugatti EB 16-4 Veyron, as it's formally known, will have plenty of halo to spread around. The sleek, racecarlike Veyron will have a 16-cylinder engine with 1,001 horsepower and a top speed of 254 mph.
But whether they will make any money is another question.
"It will give them a point of differentiation because the mainstream luxury market is getting pretty crowded," Jacobs says. "But as for making a profit, it depends how much of a boom economy materializes as we go forward."
I read it in my paper, but the link to the story is here: http://www.startribune.com/stories/432/3047799.html
Boy, I really hope we get some of those cars in GTN! Especially the Bugatti EB 16-4 Veyron! With 1001HP and254mph, how can they not include AT LEAST that one? Plus, it would get more cars from Germany and England!
