Rising luxury car sales may be financially profitable, but as Bloomberg reports they could affect the aura of exclusivity surrounding prestige makes in the long run.
Ask any BMW, Mercedes-Benz or Audi owner and they will probably tell you that driving a vehicle that's unattainable by most is the real appeal. However, the top German manufacturers have started offering cheaper, entry-level models that more customers can afford including the 2 Series, CLA-Class, and A3, respectively. This somewhat dilutes the brand and takes some of the luster off the cars.
It's a trend that will continue in the next few years, mind you. By 2020 Mercedes-Benz will add 11 new models to its lineup, while Audi will expand its portfolio from 52 to 60 models. Maybe they should learn from the mistakes of General Motors, which had to cut or sell a number of divisions including Pontiac and Oldsmobile.
Time will tell if a similar scenario dooms the Germans, too.