Are Luxury Car Sales in Deep Trouble?

Just as the auto industry struggles to remain afloat, soEscalade Hybrid indicates that auto makers have
do the segments it's made up of. And luxury car salesdifferent expectations. And it seems that they might
are no exception. Since, luxury automobiles are facedbe right because the high-end products are directed
with a double whammy of being high priced and beingtowards a different target audience altogether. The
gas-guzzling, are we to see their sales go from bad totarget segment for luxury vehicles shouldn't have
worse?problems with affordability per se, including paying for
Automobile and auto part sales have generally beenhigh gas prices, while the need to acquire high-end
affected negatively, owing to high gas prices andproducts persists.
economic downturn, with auto stocks showing spikesThe factor, aside from the gas-guzzling ability that
only sporadically, as crude prices lower a bit. Now,could affect the purchase of bigger automobiles is the
when it comes to the sales of Luxury cars and trucksperception that these vehicles are less environment
they've taken a hit of 11% year-to-date (YTD), whilefriendly. Now while demand might exist, whether the
the auto sales throughout the US have been down bybig autos sell well or not seems to depend on a lot
18%.more than their uniqueness. But auto makers seem to
Based on the figures above, it appears that luxuryhave an answer to even this conundrum by producing
sales are much better than the rest of the industry andhybrids, which have a better standing when it comes
since they only account for for just about 10% of theto eco-friendliness. The Cadillac Escalade hybrid
industry's sales, they won't have much of an impact.seems to be proof enough, and perhaps other car
The margins however, on all products within themakers like Toyota or Ford would follow suit if the
segment are large, and which is what makes itexperiment goes off well.
valuable.On the whole some rough weather does loom large
At the same time, given the shift from gas-guzzlingover the luxury car segment, but given the efforts
automobiles towards smaller ones, it appears that noauto industry is ready to put in, luxury sales could sail
one would go for them, but the recent announcementthrough the storm, quite well.
by the General Motors Corp of an SUV, Cadillac