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Despite premium carmakers going downmarket, luxury auto sales stick at 10-11%

According to research conducted by global information company IHS Automotive, the leporine birthing of new models by luxury manufacturers over the past six years hasn't increased their market share in the US. Even as car sales reached 15.6 million units, IHS says what's happened instead is that luxury buyers are merely moving from one brand to another, moving from larger luxury vehicles into hot segments like compact luxury crossovers or leaving the market at the same rate as other buyers enter.
Whether broken out by makes or by segment, market share has rollercoastered inside a narrow band from 10.5 to 11.5 percent since "at least" 2008. Closer investigation reveals the shifting boundaries in the aspirational pond, with brands like Mercedes-Benz and Audi gaining territory as Lexus and Lincoln lost it, and Saab and Hummer were buried, dead, under it. One neat note is that Tesla has gone from a share of zip to .12 percent.
The subcompact and compact crossover segments show growth, with those little high-riders jumping from .3 percent to 1.16 percent of overall industry sales. Their rise, though, is concomitant with the decline of four other segments: compact and midsize cars and fullsize cars and SUVs. We think the next few years that will tell if the small-car expansion can overcome the large-car retraction, with a phalanx of smaller offerings like the CLA only recently hitting the market and others like the GLA, Macan and Q1 doing so in the near future.

2018 Audi A8 caught without camo

The last time we saw the redesigned Audi A8, it was still wearing a bit of camo. Today, though, our spies have caught the luxury sedan naked but for a few small pieces of tape. Its wider single-frame grille is more imposing, the profile looks slightly sleeker, and its lighting elements are updated. It looks to be more of an evolutionary rather than a revolutionary update, but it's attractive nonetheless. The biggest changes, though, aren't seen on the outside. The 2018 Audi A8 will feature semi-autonomous technology, which will allow the car to drive itself at speeds up to 37 miles per hour, depending on the conditions. Its body will also feature construction that combines a number of materials, including steel, aluminum, magnesium, and carbon fiber. It should help make the car about 24 percent stiffer, but it will also add a few pounds to the package. The new A8 is scheduled to be unveiled on July 11. We can likely expect a plug-in hybrid version to follow soon after. Related Video:

Production 4.0: Audi plans for the smart factory

Automotive production is becoming more integrated and at the same time has to be more intelligent and more efficient. Flexible production of customized vehicles is one of the big challenges for the future, especially for a premium carmaker like Audi. How will the "Vorsprung durch Technik" brand meet its aim of offering premium quality with added custom flexibility? The company sees the "smart factory" as the key. Whether it's body-color moldings or light-alloy wheels in a special size, almost every car is ordered with some kind of customization, and the demands are increasing. This requires of course already a lot of flexibility. While the variety of models and quality demands are increasing, automotive manufacturers such as Audi are eager to make production sustainable. In an Audi interview, innovation management members Alois Brandt and Henning Loser talk about "production 4.0" and the upcoming "smart factory." How will Audi manage the production site with its very high standards of quality, efficiency, and environmental acceptability? Will the so-called "smart factory," which should be the intelligent factory of the future, only employ robots? Alois Brandt: "With a deep look into the production, I am convinced that our employees and not machines are the relevant working forces behind the Audi brand. Machines can be bought anywhere." Increasing digitalization is paving the way for the smart factory – the intelligent, digitally connected production facility. New high-tech solutions in manufacturing should further increase the high level of quality, while at the same time the assembly work should be easier and result in better ergonomics. Can you give us a clearer imagination of the "smart factory"? Alois Brandt: "There are a lot of ideas. But the big question at the moment is: Which one is really needed and leads into the right direction?" Can you tell us a little bit more about "production 4.0"? Alois Brandt: "The assembly line as we know it in the present will no longer play the same role. If it makes sense, it will be terminated and replaced by – let's call it – a virtual assembly line. The production will be more modular than before and the car will be directed to a production point – a so-called 'island of competence' – where it is needed." Henning Loser: "If the vehicle is to be assembled to the customer's wishes, it is obvious that efficient programming of robots and coordinating with the human workers is needed.