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Despite premium carmakers going downmarket, luxury auto sales stick at 10-11%

According to research conducted by global information company IHS Automotive, the leporine birthing of new models by luxury manufacturers over the past six years hasn't increased their market share in the US. Even as car sales reached 15.6 million units, IHS says what's happened instead is that luxury buyers are merely moving from one brand to another, moving from larger luxury vehicles into hot segments like compact luxury crossovers or leaving the market at the same rate as other buyers enter.
Whether broken out by makes or by segment, market share has rollercoastered inside a narrow band from 10.5 to 11.5 percent since "at least" 2008. Closer investigation reveals the shifting boundaries in the aspirational pond, with brands like Mercedes-Benz and Audi gaining territory as Lexus and Lincoln lost it, and Saab and Hummer were buried, dead, under it. One neat note is that Tesla has gone from a share of zip to .12 percent.
The subcompact and compact crossover segments show growth, with those little high-riders jumping from .3 percent to 1.16 percent of overall industry sales. Their rise, though, is concomitant with the decline of four other segments: compact and midsize cars and fullsize cars and SUVs. We think the next few years that will tell if the small-car expansion can overcome the large-car retraction, with a phalanx of smaller offerings like the CLA only recently hitting the market and others like the GLA, Macan and Q1 doing so in the near future.

Audi A0 in development based on VW Up!

Bigger, it seems, is no longer better. Volkswagen has made waves with its Up! city car, a plucky three-door that's been a bit of a hit since it burst onto the automotive scene, spawning a number of variants during its short life. And while our European friends have gotten a Cross Up!, a commercial version, an EV model, Seat- and Skoda-badged variants, and a rumored diesel-electric Twin-Up!, the small city car has been lacking in terms of its premium content.
That fact makes this rumor rather tantalizing - Audi might be working on its own version of the front-engined, front-drive city car, to be called the A0. The report comes from AutoExpress, which claims Audi CEO Rupert Stadler wants a premium Up! that features a distinctive interior and exterior treatment.
Changes could include a trapezoidal grille, in addition to premium exterior features like LED lighting and alloy wheels. The cabin would feature leather and likely a version of Audi's MMI infotainment system, while power would come from a 109-horsepower, 1.0-liter engine found in the Up! GT Concept.

Automakers need to stop stalking celebrities

Since the invention of the automobile, cars and stars have gone together like paparazzi and the Kardashians. During this season of starlet-adorned award ceremonies, from the Golden Globes through to the Oscars, you will find a lot of car companies all vying to loan out their vehicles to any celebrity with a recognizable face who happens to be heading to a red-carpet award ceremony. There is, however, none so coordinated, consistent and aggressively playing the Fame Game as our friends at Audi. Since the invention of the automobile, cars and stars have gone together like paparazzi and the Kardashians, so by association getting a celeb behind the wheel of your car brand gives it an instant image boost that must make the car more attractive to buyers. Celebrity tales equals dealership sales. That's the logic, anyway. But surely the millions of dollars spent giving free cars to rich stars is a waste of precious and increasingly smaller marketing budgets. It's time to make the car the star, not the other way around. Lets be clear, we are not talking about the very obvious dropping of famous faces into big budget ads. That has its place in the marketing toolbox, but in a very media savvy world it's clear most of us get that play-for-pay concept. Today, the use of just a famous name in an ad yields very little influence on whether you or I will buy that car. No, this awards-ceremony loaner deal is a subtler, but higher risk, idea that if you see a "star" with "their" car in "real life" then surely that adds to the car's appeal. We, the audience, are expected to start salivating like Pavlovian puppies in our desire to have same car in our own, less red-carpeted driveway. Geoff Day has been called the "Pied Piper" of the auto industry, leading auto journalists on wild rides around the globe in his position as former director of communications for Mercedes-Benz USA. Before that, he worked at DaimlerChrysler UK on its PR efforts, and rubbed elbows with the Queen of England in his role at the Buckingham Palace Press Office. His phone is filled with the numbers of the great, the good and the bad. His head is filled with dirty little secrets hiding in many corners of the auto industry. There is no doubt that the publicity that comes with a well placed story, picture or feature can help raise awareness of a product – Oprah proved that with her "Favorite things" – especially if you are launching a line of wrinkle cream or juice bars.