AMERICAJR NETWORK :: COACH'S CORNER PRO SHOP :: SAND CREEK RECORDS :: LIFE MADE EASY

:: DETROIT, MICHIGAN USA << >> LIVE STOCK TICKER :: MESSAGE BOARDS ::
 
 
 
 
 
 
 
 

COPYRIGHT

© 2015 AmericaJR.com.
All Rights Reserved.

Unauthorized duplication or use of Text, Photos, Videos, Site Template, Graphics and or Site Design is Prohibited by Federal and International laws. See our Notice/Disclaimer and Privacy Policy.
 

AMERICAJR EMAIL

Email Login
Password
New users
sign up!

Detroit's Only FREE E-mail Provider

 
Find a Job
Keywords:
Location:
Job category:
 

FEATURED

 

FEATURED

Win a Pair of Advanced Screening Passes to see "The Wedding Ringer"

Jan. 14, 2015

CLICK HERE TO ENTER

 

FEATURED

 

SPONSOR

<< News >>

2015 North American International Auto Show

 

 

Evolving luxury vehicle market discussed at 27th SAA Auto Outlook Conference

 

PHOTO BY JASON RZUCIDLO / ©AMERICAJR.com

Speakers during the question-and-answer session at the 2015 SAA Auto Outlook Conference in Detroit.

 

by Gloria Rzucidlo
gloria@americajr.com

 

 

|

DETROIT -- The 2015 Society of Automotive Analysts' (SAA) Auto Outlook Conference was held on Sunday inside the atrium of Cobo Center in Detroit. Jared Rowe, President of AutoTrader.com, announced that he was proud to support this organization.

He discussed luxury car sales and stated that activity intensified in December with shipper interest in these vehicles. "Sixty percent of luxury buyers spent two hours or less in the dealership while five percent of luxury buyers are 45-plus years old," says Rowe.

Andrew Smith, Executive Director of Global Cadillac and Buick Design, discussed how designers approach trends. "Artists are all about self-expression, designers are problem solvers," he explained. "What do these trends mean? Luxury is more accessible to the masses. The designer's role is to create future scenarios. For example, who would have known we would be globally connected 20 years ago? As technology develops to solve one problem, they create other opportunities. Autonomous driving is another example. Autonomous driving will either be loved or hated."

"Ultimately it comes down to passion. Why a Cadillac? It has to be because I fell in love with it," added Smith. This is how a designer thinks. It ties in with the brand promise. Luxury has matured. It is an experience beyond the product. "Cadillac's promise has always been the same: to elevate the experience for the customer."

Ravi Shanker, Executive Director and Lead Auto Analyst from Morgan Stanley, discussed the global automotive overview. He says that the good news is 2015 will be a good year, but the bad news is that we have the lowest growth rate in the last five years. Global car sales growth is slowing. U.S. miles driven and gas prices are positively correlated. U.S. luxury share is on the rise because luxury incentives have outpaced non-luxury. "The overall take is, this is the most exciting time for the automotive industry," says Shanker.

Tom Libby, Manager Loyalty Solutions and Industry Analysis, IHS Automotive, talked about trends in the U.S. new vehicle luxury market. "The luxury share of the industry has been relatively steady. The leaders are BMW, Mercedes-Benz and Lexus. The strivers are Cadillac, Audi, Acura, Infiniti and Lincoln. The remaining brands or the 'niche'brands are Volvo, Land Rover, Porsche, Jaguar, Tesla and Maserati which will make competition more intense," says Libby.

Leasing plays a huge role in the luxury market. There are 44 percent luxury leases compared to 19 percent non-luxury. Although gas continues to decline, it remains the dominant fuel by a wide margin. Electric remains at one percent and hybrid and diesel is going down.

Steve Kraus, Chief Insights Officer, Ipsos MediaCT, talked about marketing to the affluent millennials. "Why do we focus on the affluent market? The affluent income is rising and leads income growth in this economy. Wealth concentration continues to grow," says Kraus. The boomers are satisfied with their careers, however, Gen X and Gen Y are slightly not as satisfied.

"The key characteristics of affluent millennials are that they are very mobile and social and hopeful despite economic and trust concerns. They are ambitious with a desire to create a more hopeful future. Millennials have much more online security concerns. They also crave innovation but aren't necessarily "loyal" to brands. Only 18 percent generally buy or lease the same brand," added Kraus.

Brian Bolain, Corporate Marketing Manager Lexus Division, says his premise is: luxury is about the brand. It always has been and always will be. The primary audience of luxury cars are the boomers. Sixty-one percent of people making $250,000/year are not buying luxury cars. Forty-nine percent of millennials plan to live a wealthy lifestyle.

Greg Furman, Founder and President, The Luxury Marketing Council, talked about the phases of luxury and the best marketing practices. "There are 80 million boomers and 86 million millennials, however, only 10 percent of wealth is inherited or celebrity. Ninety percent are working class boomers," says Furman. "The marketing ethic is on the rise," added Furman.

Anders Tylman-Mikiewicz, General Manager Volvo Concept and Monitoring Center, discussed the change in luxury cars. "Cars are driven by people is Volvo's motto and safety technology is on a very clear path to the future. What will Volvo do next? Our strategy makes us more relevant. The guiding principle remains and that is safety," says Tylman-Mikiewicz. "Our customer promise is: we understand you, we protect what's important to you and we make you feel special. It is clear that luxury cars have to look amazing but there has to be more substance--something that matters," he added.

Mark Phelan, Detroit Free Press Auto Critic, and Scott Burgess, Detroit Editor Motor Trend, gave us a preview of what to expect at the North American International Auto Show. Phelan says "this is the happiest place on earth."

"Mercedes got a couple new versions of the GLK250. It is a four-passenger SUV that goes fast. Mercedes is starting the mushrooming of product line like the BMW. Also the Ford F-150 has an incredibly strong story to tell. There will be some loud engine noise at the unveiling during the Ford press conference," he added.

Burgess says that what he finds interesting is that the Infiniti struggled to find its own identity. The luxury market is filled with so many choices. Crossovers are where its at. It is the thing people want the most. Another car to look at is the NSX. Acura still has no identity also. The thing about the F-150 is that Ford never mentioned fuel economy, only the aluminum body. The Raptor has a huge engine.

There was also a panel discussion with a question and answer period.

Paul Wheeler, SAA President, did the welcoming and opening remarks, today's agenda along with discussing the upcoming SAA events.

For more information about the Society of Automotive Analysts or to purchase tickets to their upcoming events, visit www.saaautoleaders.org.

Related Stories: Buick introduces its first convertible in 25 years -- the Cascada at the 2015 NAIAS; PREVIEW: Nearly 50 debuts coming to 2015 NAIAS (Detroit's Auto Show)

 

 

PHOTO BY JEROME RZUCIDLO / ©AMERICAJR.com

Registered guests inside the atrium of Cobo Center

 

PHOTO BY JEROME RZUCIDLO / ©AMERICAJR.com

Andrew Smith, Executive Director of Global Cadillac and Buick Design

 

PHOTO BY JEROME RZUCIDLO / ©AMERICAJR.com

Attendees listening very closely to the presentation

 

PHOTO BY JASON RZUCIDLO / ©AMERICAJR.com

Ravi Shanker, Executive Director and Lead Auto Analyst, Morgan Stanley

 

PHOTO BY JASON RZUCIDLO / ©AMERICAJR.com

Tom Libby, Manager, Loyalty Solutions and Industry Analysis, IHS Automotive

 

PREVIOUS PAGE
::: PAGE ONE :::

 

This page was last updated on Thu, January 15, 2015 3:52 AM

 

 

Bookmark  

 

 

>> Bookmark This Site Now! <<

 

doteasy.com - free web hosting. Free hosting with no banners.

 

BACK TO THE AMERICAJR ONLINE HOMEPAGE

Copyright © 2015 AmericaJR.com. All Rights Reserved.
Unauthorized duplication or use of Text, Photos, Videos, Site Template, Graphics and or Site Design is Prohibited by Federal and International laws. See our Notice/Disclaimer.

AMERICAJR NETWORK :: COACH'S CORNER PRO SHOP :: SAND CREEK RECORDS :: LIFE MADE EASY