Forget Leather and Wood; Automakers Struggling to Redefine Luxury

The Detroit Bureau

Focus shifts to the “total customer experience.”

Leather, wood, a big engine and lots of chrome. Those have been the traditional signatures of a luxury car.

But what happens when you can add those same features to an entry-level sedan?

That’s a question high-line brands have been struggling to deal with as they face increasing competition from more mainstream manufacturers. That new reality is forcing luxury marques to shift focus a bit.

You’ll still find massaging leather seats on a Mercedes-Benz S-Class, open-pore wood on a BMW 7-Series, and a choice of high-performance engines for your next Audi. But you’re likely also to find a variety of new features and services designed, among other things, to simplify and speed up the car buying and service processes.

“Because so many things that used to be considered luxury are now available across the line, the only way to differentiate yourself as a luxury manufacturer is to make the total ownership experience painless and seamless,” said Joe Phillippi, senior analyst with AutoTrends Consulting.

Make no mistake, product still matters, and so do those traditional luxury accoutrements. You’re likely to get a lot nicer leather and wood on an $80,000 car compared to that midsize, mainstream sedan. But high-line manufacturers have come to recognize that affluent buyers want to feel special. They also want more of what’s in shortest supply: time, said Kumar Galhotra, the president of the Lincoln Motor Company.

Ford’s high-line brand has been struggling to regain its once-lofty position in the market by emphasizing what it calls the “Lincoln Way,” the company explains, “making every experience feel warm, human and personally crafted.”

It is offering a concierge, for example, that can handle a variety of services, even helping set up a “date night.” Starting with the launch of the 2017 Lincoln Continental, all new models will get standard pickup and delivery – along with a free loaner – when the car needs to go in for service or repairs.

As Hyundai splits off its most upscale models into the all-new Genesis brand, it will also offer valet pickup and delivery, as well as free scheduled maintenance for three years. And owners will be given a choice of three different ways to schedule an appointment: by calling a dedicated Genesis hotline, through the Connected Services feature built into the vehicle, or by opening up an exclusive Genesis smartphone app.

“Respect and courtesy are the foundation of the Genesis Experience. We will honor our owners’ time through streamlined processes that put their needs first,” said Erwin Raphael, general manager of Genesis in the U.S. market.

High-tech systems allow manufacturers to create a variety of new features and services. That’s changing not only the way owners handle service but how they buy a vehicle in the first place. Mercedes-Benz is launching a new online system that will allow buyers in Germany to complete the order process entirely online.

Read more of the original article in The Detroit Bureau.

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