Advertisement
Find a Car
Go!

Modesty Is In; Luxury, Profit Margins Are Out

Follow Richard

Diamond-studded luxury Lamborghini key fob by Amosu

Diamond-studded luxury Lamborghini key fob by Amosu

Enlarge Photo

We've all heard of the Hemline Index, which asserts that women's skirts become more modest in tough economic times. Well, a parallel in the auto industry claims that notions of good taste force a drop in conspicuous consumerism during rough money days. Case in point: in 2005, the luxury car segment made up 21% of the total auto market, but the figure has now slipped to just 15.6%. That's bad news for automakers, since luxe models earn $10,000+ in profits, as opposed to the couple hundred bucks from more modest $20,000 rides. On the other hand, douchey types who dig diamond pavé key fobs probably won't be deterred by good taste. [BusinessInsider]

Posted in:
Advertisement
 
Follow Us

 

Have an opinion?

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
 

Have an opinion? Join the conversation!

Advertisement
Advertisement
Try My Showroom
Save cars, write notes, and comparison shop with hi-res photos.
Add your first car
Take Us With You!
   
Advertisement

 
© 2015 The Car Connection. All Rights Reserved. The Car Connection is published by High Gear Media. Stock photography by izmo, Inc. Send us feedback.
Advertisement