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Automotive
Forecasting & Planning
Sales Performance & Marketing
Vehicle In Use
Automotive
Associate Director, Industry Analysis and Loyalty Solutions, S&P Global Mobility
For any brand, automotive or non-automotive, greater diversity across its product portfolio reduces risk since dependence on any one product is limited. Given the generally high quality of today's new vehicles, there is not as much risk as there used to be of one product being virtually crippled by a major quality problem, recall or bad publicity.
The seven leading premium marques have varying degrees of product diversification (see table below). Mercedes-Benz appears to have the most diverse set of vehicles, as no Mercedes-Benz model accounts for more than 29% of the brand's total U.S. retail new vehicle registrations (May 2010 CYTD). And each of four Mercedes-Benz models has more than 10% of the make's registrations, something only one other brand (Acura) can claim.
Other premium brands with moderate diversification include Acura, Audi (which is less reliant on the A4/S4 than it used to be), Cadillac and Lexus. Both BMW and Infiniti are heavily reliant on one product, with the 3-Series accounting for almost half of all BMW sales and the Infiniti G claiming almost six of every ten Infiniti deliveries.
It is also noteworthy that the three leading large premium sedans (7-Series, LS and S Class) each account for exactly 6% of their respective brand's portfolios, suggesting the direct competition among them and their ongoing positioning against one another. Lastly, for six of the seven leading luxury market brands, the model with the highest proportion of registrations is a small car or crossover, which one would predict given these models' low prices. However, this is not the case at Mercedes-Benz, where the E-Class out-sells the smaller and less expensive C Class, which underscores the long history - and substantial owner base - of the midsize E in this country.
Posted by Tom Libby, PolkInsight Advisor, Polk (07.28.2010)