Tuesday, January 1, 2013

Luxury Cars End Year With a Sales Bang, Despite Fiscal Cliff

Mercedes-Benz S-Class

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Car sales in the U.S. climbed 9 percent in December, closing what turned out to be the strongest year since 2007. But equally notably, luxury car sales constituted sixteen percent of sales in December, representing a larger portion than in years past.

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A Los Angeles Times article suggests that year-end executive bonuses usually help boost luxury car sales towards the end of the year, but 2012's strong performance comes from buyers who appear "unfazed by the current level of economic uncertainty generated by the fiscal cliff negotiations."

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While high-end manufacturers are duking it out with incentive programs intended to help edge out competitors for the sales crown, an analyst at LMC Automotive also suggests the big picture is looking up, as well. "The only major roadblock ahead for the U.S. market is the fiscal cliff. Assuming that hurdle is cleared, 2013 is one step closer to a stable and sustainable growth rate for autos."

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As for the age-old race for luxury manufacturers, 2012 will be decided by a photo finish for the top two spots: at last count, Mercedes-Benz was winning by a hair with 245,910 vehicles sold so far, and BMW was a close second, with 244,061. Holding a distant third place is former powerhouse Lexus, with 213,559 cars sold so far since the beginning of the year.

Source: http://www.popularmechanics.com/cars/news/auto-blog/luxury-cars-end-year-with-sales-bang-despite-fiscal-cliff?src=rss

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