German luxury brands should rethink strategy as sales peak, analyst warns

German luxury brands should rethink strategy as sales peak, analyst warns

GOTHENBURG, Sweden — For years, Germany's luxury brands — brandishing a combination of prestige, global reach and profitability — have been a model of automotive success and the envy of rivals.

Their heyday may be over, a London-based analyst told the Automotive News Europe Congress.

Sales of premium cars probably have peaked globally, threatening the business model of BMW, Mercedes and Audi, according to Philippe Houchois, managing director of Jefferies.

"The premium business model as we have seen it, of model proliferation and people paying more because of the social status of those cars, is probably reaching a peak," Houchois told the Automotive News Europe Congress.

"We think the German premium business model is at risk" of no longer continuing to grow, Houchois said.

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