Japanese automakers made major advances in the luxury car market during the 1991 model year, largely at the expense of European carmakers, according to a new study.
"The magnitude of the volume shift from European to Japanese signifies a fundamental change in the competitive conditions that will persist through the 1990s," according to the report by Jacobs Automotive Forecasting of Little Falls, N.J.In 1991, total luxury car sales were 1.28 million, down about 3 percent from the previous year. That compared with roughly a 10 percent decline in the auto industry overall.
Japanese luxury car sales during that time increased 14 percent, while the Big Three saw a 3 percent drop and European automakers suffered a 20 percent decline.
In 1991, the Japanese claimed 27.2 percent of luxury car sales, the Germans had 10.9 percent and the Swedes 7.6 percent. The Big Three continue to dominate the luxury market with 52.5 percent of sales.
"The market share shifted sharply toward the Japanese in the 1991 model year," the Jacobs study says.
The Europeans were hurt by the introduction of Japanese models such as an all-new Acura Legend, as well as the imposition of a 10 percent luxury tax on vehicles that sell for more than $30,000, the study says.
Many Japanese luxury cars sell for less than $30,000, while many of the European automobiles in that class cost more than $50,000.
But the Japanese gain is expected to moderate next year, the study says, because the Japanese will be offering fewer new models for 1992.
Meanwhile, the Europeans have new offerings, including the BMW 325i, the Audi 100, several new Mercedes models, the Porsche 968 (which replaces the 944) and a new Jaguar XJ-S. The report also indicates the Europeans may be helped by their efforts to hold down price increases.
By the end of the 1992 model year, the report predicts, the Japanese share of the U.S. luxury car market will be about 29 percent. The Europeans will lose 2.5 points, resulting in a 17.8 percent market share. The Big Three will have 53.2 percent of the market, an increase of 0.7 points, the study predicts.
Here is the performance of selected luxury car makers during the 1991 model year:
- Infiniti showed a 118 percent increase, but the percentage was inflated because Infiniti didn't begin selling cars until four months into the 1990 model year. Infiniti also added its G20 model in 1991 and steadily gained dealers.
- Buick, bolstered by the introduction of the Park Avenue and Roadmaster, showed a 29 percent increase
- Acura was up 20 percent
- Lexus up 14 percent
- Oldsmobile neither gained nor lost
- BMW down 10 percent
- Mercedes-Benz down 12 percent
- Lincoln down 13 percent
- Cadillac down 15 percent
- Chevrolet down 20 percent
- Jaguar down 39 percent
- Porsche down 41 percent
- Audi down 42 percent