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Weekly Recap: Automakers rethink the definition of luxury

Variety is the spice of life, but it's becoming a prerequisite for luxury carmakers in the ultra-competitive US market. The Detroit Auto Show was strong evidence of this reality. It's not enough to offer attractive and well-appointed cars and SUVs anymore. Luxury brands that want to be competitive need to invest in everything from high-powered supercars to clever hybrids. To be relevant, you need to be green and mean – and everything in between. As General Motors product chief Mark Reuss said after the reveal of the 640-horsepower Cadillac CTS-V: "We are not leaving anything on the table." He was speaking for Cadillac, but he might as well have been speaking for the luxury car market. The CTS-V debuted in Detroit about an hour after Lexus surprised showgoers with the reveal of the RC F GT3 race car and then announced ambitious plans to return to competitive racing. That almost overshadowed the fact Lexus had just revealed another potent addition to its growing F line, the 467-hp GS F. View 20 Photos But for luxury brands, it's not just about maximum horsepower for well-heeled enthusiasts or decadent amenities for the Grey Poupon set. Strong competition from all corners has forced automakers to refine and expand their lineups in ways unforeseen even a few years ago. Case in point: Mercedes-Benz finally has an answer to the BMW X6, rolling out the GLE coupe in Detroit. The X6, which blends coupe-like styling cues with some of the functionality of an SUV, debuted in 2008. Back then it was a punchline, but seven years and more than 260,000 sales later, the X6's success has compelled Benz to respond. Mercedes – one of the strongest proponents of diesel technology – also debuted the C350 plug-in hybrid sedan, which promises a range of 20 miles on electricity, though fuel economy figures were not announced. The car pairs Mercedes' well-received 208-hp turbocharged four-cylinder with an electric motor for total output of 275 hp and 443 pound-feet of torque. Meanwhile, Infiniti will add the Q30 hatchback to its lineup by the end of the year, new president Roland Kruger reiterated in Detroit. It's expected to be joined by a crossover variant, and the additions will help strengthen Infiniti in the United States and abroad. "While we're expanding our product line, we're also expanding our market reach," he said. That's something echoed by Jaguar executives, who are preparing to launch the brand's first crossover, the F-Pace, in 2016.

The 2016 Lexus RX is more of everything [w/video]

Both literally and symbolically, the RX is Lexus. The crossover accounts for more than a third of the brand's overall sales. Last year Lexus moved 107,490 RX 350s, almost as much as every BMW SUV combined. The first-generation RX 300 was such a hit it forced other luxury automakers to follow suit. And the outgoing third-gen model epitomizes the current challenge Lexus faces: it's comfortable, but boring – exactly like the reputation the brand wants to shed. The new 2016 Lexus RX, then, is the Lexus weathervane. In short: more style, space, and technology while retaining the plushness that keeps current owners happy. As is current Lexus tradition, the RX gets a massive spindle grille. And while there are more creases and character lines than before, the overall styling is softer than the angular NX. The conservative approach shows that Lexus took a cautious approach to its cash cow, while using lower-volume models like the RC coupe to push boundaries. Still, Lexus has made an honest attempt at sporting up the RX. The RX 350 retains the 3.5-liter V6 but gets a 30-horsepower boost to 300 hp, and the RX 450h now makes 300 ponies as well. In all-wheel-drive guise, both models can be had in F Sport trim, which brings exterior tweaks like 20-inch wheels and a unique instrument cluster. F Sport models also include an active stabilizer system to minimize roll in corners. All RX models also come with dampers and steering that automatically adjust to the driving situation. Inside, the new RX is loaded up with features, like a standard 12.3-inch infotainment screen and an optional color head-up display. A list of electronic safety features is too long to mention, but includes collision mitigation, lane-keeping assist, and automatic high beams. See the press release below for the full rundown, or just trust us when we say you can get the RX with almost every driving aid out there. The rear seats now feature a power-fold feature, and when the seats are up second row passengers are treated to more leg- and knee-room. That extra interior space comes from an overall stretching of the RX. Wheelbase grows 1.9 inches, while length is up almost five inches. What the new RX doesn't yet have, but we're told is on the way, is a third row of seats. The added versatility of a seven-passenger version should broaden the appeal of the RX to a wider audience. Expect to see the RX 350 and RX 450h in showrooms by the end of the year, with the three-row version coming sometime in 2016.

Buyers resent low inventories, prices over MSRP, study says

Vehicle inventory low, vehicle transaction prices high, customers fretting … welcome, J.D. Power, to the era of supply and demand. In a recently published survey from one of the auto industryÂ’s top analytical firms, findings show that customers' satisfaction with vehicle purchases in the United States this year has dipped for the first time in 10 years. The 2022 U.S. Sales Satisfaction Index (SSI) Study found that overall sales satisfaction has dropped to 786 (on a 1,000-point scale) from 789 in 2021. In that year, higher than expected trade-in values softened the effect of new vehicle price increases. But in 2022, on top of trade-in prices shrinking, many dealers elected to charge more than the ManufacturerÂ’s Suggested Retail Price, a factor that did not sit well with buyers. “When dealers charge more than MSRP, particularly with long-term loyal customers, they risk a potential long-term negative effect on customer advocacy and service business," said Chris Sutton, vice president of automotive retail at J.D. Power. Satisfaction among buyers who paid more than sticker price is 757, while satisfaction among those who paid the sticker price or less is 850, the Power report said. The lack of dealership inventory was also a customer irritant, J.D. Power found, a point that automakers and their dealers may want to consider. Many have maintained, or considered maintaining, a smaller inventory in the wake of the pandemic, keeping costs down and driving more customers toward factory orders. Regarding those consumers shopping for electric vehicles, the survey said that more than a third of them “failed to get instruction on EV charging before they left the dealership, which notably affects satisfaction.” Said Sutton, “Salespeople donÂ’t need to show gas-powered vehicle buyers how to fill their tank, but they do need to show EV buyers how to charge their vehicle.” There are positives to the Power conclusions, however, especially for Alfa Romeo dealers. The Italian brand ranked highest in customer satisfaction among premium brands with a score of 833, with Porsche a very close second (831) and Lexus (819) third. Alfa is on something of a roll these days, with its compact Tonale crossover due for release in the spring, and a new sports car in the works. Meanwhile, in PowerÂ’s “mainstream brand”” segment, Buick ranked first with a score of 825, followed by Dodge (816) and Subaru (804), all performing higher than the industry average.