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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 re-illuminates Sport Quattro with Laserlight concept for CES

Automakers typically spend months working on a concept car, then unveil it at a car show and move on to the next. But Audi has demonstrated a propensity at refining the same concepts and bringing them back for more. Just look at how many time Audi iterated its E-Tron concept, and how many diesel R8s it toyed with. It brought the Italdesign Parcour out of retirement and rechristened it the Audi Nanuk, and it's been doing the same with the Quattro concept for the past several years. The German automaker rolled out the first Quattro concept back in 2010, and followed up with the reborn Sport Quattro concept less than a year ago. And now it's preparing to unveil yet another.
Called the Sport Quattro Laserlight concept, this time it's not as radical a departure from the Sport Quattro concept as that was from the first Quattro concept. In fact, there's really only one vital difference. That'd be the laser headlights "that leave all previous systems in the dark," according to the press release below. The system uses matrix LEDs around the outside of the element as low beams, and lasers on the inside for high beams. Measured in mere microns, the laser diodes are significantly smaller than LEDs, while lighting up the road ahead for nearly half a kilometers (1,640 feet), providing twice the lighting range and three times the brightness of LED high beams.
Otherwise the concept car you see here and which Audi will display at the Consumer Electronics Show in Las Vegas next week is essentially the same as the one it showed in Frankfurt this past September. It's got the same measurements, wearing the same CFRP bodywork, with the same interior and the same 700-horsepower hybrid powertrain, only the yellow exterior has been repainted Plasma Red and the black interior redone in a more low-key Slate Grey, as you can see from the high-res image gallery above.

Audi spending an additional $2.5 billion on expansion through 2019

Every year, it seems the Volkswagen Group announces a new and larger spend to push growth and profit, with Audi a regular recipient of the moolah. That's reasonable, seeing as hauls in 40 percent of Group operating profits. In December last year Audi said it would spend an additional 100 million euros ($122M US) per year through 2018 to develop new models and expand production, targeting 60 models by 2020 and luxury sales leadership. This month Audi said it will boost that by another two billion euros ($2.5B US) over the next five years, for a total outlay of 24 billion euros from 2014 to 2019. Something like 70 percent of those billions will be spent on new models, technology like "connectivity and lightweight construction," and factory expansion at its plants in Ingolstadt and Neckarsulm. Most of the ten models that will plump the lineup to 60 cars will mainly be aimed at the C and D segments, as well as crossovers, the brand's burgeoning portfolio of PHEV models, and all-electric cars that will begin staking ground in the segment. The big spend comes at the same time as Audi is working hard to reduce costs by $2.5 billion to maintain profitability, part of a larger push by VW to cut costs by $6.1 billion by 2017. More than a billion euros will go to new factories in Mexico and Brazil. Work begins on the Mexico plant next year, and when it comes on-line in 2016, Audi's Q5 successor will roll out of its warehouse doors; Audi has already announced it will hire 850 more workers next year in Mexico. When that's done, Mexico's production of German luxury cars will only trail that of Germany, China and the US. The company's Brazil plant will produce the A3 and S3 starting next year, and the brand figures luxury car buying there will triple by 2017. News Source: Reuters Earnings/Financials Plants/Manufacturing Audi Volkswagen Luxury Mexico Brazil ulrich hackenberg