Tuesday, July 29, 2014

Question Of The Day: Who Will Win The Luxury Compact Crossover Sales Race?

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With pricing for the Audi Q3 and Mercedes-Benz GLA announced, the fight for the luxury compact crossover sales crown is officially on. It's going to be the most important battle of the year for the luxury car market.

Crossovers are, without a doubt, the hottest sales segment right now, and one of the most profitable segments for OEMs. Take some normal car underpinnings, add a bit of cladding, a higher ride height and a two-box body and all of a sudden, you can charge a hefty premium over what you'd normally have to sell a sedan for. And what better way to lower your CAFE rating than to sell a ton of "light trucks" that get the kind of fuel economy that you'd normally find in a compact or mid-size car? These little trucklets/wagonlets are going to float the ability of the German brands to keep making AMG, M and RS cars by keeping things kosher with the Feds. Remember that when you bemoan the lack of wagons on sale today.

Audi's Q3 starts at $33,325, versus $29,900 for an A3, though the Q3, unlike the A3, does come standard with AWD. A Mercedes-Benz GLA starts at $32,225 for a front-drive model versus $29,900 for a front-drive CLA. The one wildcard is the BMW X1, which is both rear-wheel drive and $30,900, making it the cheapest BMW in the entire model range.

I'm going to put my money on the Q3 taking the crown, just because Audi is very much the brand of the moment. This segment is a fickle, fashion-driven one, and products live and die by how cool they are. The Audi A3 quickly toppled the Mercedes-Benz CLA from the small sedan sales charts, and this won't be any different.



from The Truth About Cars http://ift.tt/Jh8LjA

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