Fun and frivolity are usually the first casualties of a recession, and so are the vehicles that let the good times roll. But don't count them out just yet. Sporty cars are far from resting in peace.
Fast sports cars, cool convertibles and deluxe coupes have traditionally been signature models for luxury brands — and the first choice for affluent buyers who want to park a fun and frivolous second, third or even fourth car in the driveway next to their posh sedan.
Sadly, it looks like those days are over. "Buyers, all buyers, have become much more practical," said Jeff Schuster, an industry forecaster for J.D. Power and Associates. "They look at cars like these and say, 'I just can't swing that right now.'" Consequently, the sporty side of the luxury car market is in a sales free fall.
Filling the Gaps
That practical mindset has luxury brands leaning heavily on smaller cars, hybrids and, especially, crossovers to boost their lagging sporty-car sales. As MSN Autos has documented, the soaring popularity of compact utility vehicles such as the BMW X3, Mercedes GLK and Volvo XC60 have made them the fastest-growing vehicle segment in America. This success has luxury brands preparing a wave of even smaller crossovers, including many that seek to convince consumers that they're both fun to drive and more practical than a sporty car, such as the Land Rover LRX, BMW X1 and Audi Q3. When the X1 arrives, BMW will have a quartet of crossovers for consumers to choose from, including the X3, X5 and X6.
Even high-end luxury brands that don't offer a crossover, such as Jaguar, are feeling the pressure to build one. In fact, Ian Callum, the company's chief designer, recently told us that he's not "philosophically opposed" to adding one to Jag's lineup.
Even Porsche, the "No Substitute" automaker, has begun selling a crossover-like 4-door, the Panamera. With room for four adults, the fastback Panamera gives people who might otherwise buy the 911 sports car a family-friendly alternative. And despite the Panamera's controversial styling, Porsche fans have responded: Fresh out of the box, the Panamera is outselling the 911 in 2010, and its 1,485 sales have doubled those of Porsche's other sports cars combined, the Boxster and Cayman. Only the Cayenne SUV — Porsche's other "practical" model — has squeaked past the Panamera's sales so far this year.
New or Nothing
Another trend that's hurting premium sporty car sales isn't a new one. People with big bucks want to be the "first guy on the block" with a hot new car. But when the buzz fades, fickle buyers move on to the next big thing. But now that there is a smaller group of consumers buying these cars, only the newest and strongest models are finding success. As a result, it is even more critical for luxury carmakers to hit home runs in styling, performance and market appeal right from the get-go.
BMW's 6-Series luxury coupe and convertible, for example, made a big splash when they were introduced back in 2003. But like aging movie stars, the Bimmers now find themselves outshined by a pair of ingenues, the Audi A5 and Mercedes E-Class coupes. BMW 6-Series sales fell by nearly 50 percent in 2009, and 2010 sales have virtually bottomed out. Only 451 Americans chose a 6-Series through March, or just 150 per month on average.
In contrast, Audi's fresher A5 coupe — and its high-performance offshoot, the S5 — have attracted nearly 3,800 buyers in the same time. And nearly 2,200 people have driven home in Mercedes' E-Class coupe in 2010, with Mercedes-Benz about to add an eye-grabbing convertible version that executives expect may outsell the coupe.
Aligning Dreams With Reality
Not surprisingly, the fun, fast cars that are holding their own tend to be middle-class affordable. The Ford Mustang and Chevrolet Camaro muscle cars seat four passengers, and both can be had for well under $30,000 for V6 models.
The Mustang is on track to top 65,000 sales this year. That popularity may only grow when the 2011 Mustang reaches showrooms around August, with a pair of all-new, eagerly awaited engines: a V6 that combines 305 horsepower with an expected 31 mpg highway and a 5-liter V8 with 412 horsepower.
The reborn Camaro, fresh off its high-profile appearances in the "Transformers" films, has burned rubber out of dealerships as well, on pace to top 80,000 sales this year.
Staying the Sporty Course
Despite lagging sales, companies aren't about to stop making the high-profile cars that boost their images and draw people into showrooms for a peek — even if those people end up driving off in a sedan or crossover instead. For luxury brands, sporty halo cars reassure buyers that the automaker is on the leading edge of design and technology. Later this year, Audi will defy the tough market when it introduces the A7, a posh luxury coupe that should start at around $70,000 and compete against cars such as the BMW 6-Series.
"We still see a big opportunity with the A7," says Audi's de Nysschen, noting that Audi still has $10 billion of investment tied up in future cars — enough to provide something for everyone.
Yet between cautious consumers and tough new fuel-economy regulations, some sporty-car makers are also developing more affordable models that are also suited to today's downsized, efficient engines — including 4-cylinder engines that many wealthy buyers would never tolerate in a 6-figure car.
Porsche and Jaguar are both considering new sports cars that would be more affordable than anything in their current lineups. Porsche's "Baby Boxster" would share its platform with the next-generation Audi TT, which will also underpin a sporty convertible from Volkswagen. The Baby Boxster would almost surely be powered by a turbocharged 4-cylinder engine, making it the first 4-cylinder Porsche sold here since the 914 model in the '70s.
J.D. Power's Schuster said that while there will always be a desire for high-priced sports cars, even luxury manufacturers must keep real buyers and their monthly payments in mind: "People tend to get more conservative coming out of a deep recession. We expect to see things recover, but at a slow pace."
The 2010 Porsche 911 remains the quintessential sports car that only gets better with every passing year.
The 2011 Land Rover LRX is a sporty 2-door crossover based on the company's 4-door LR2, and is expected to be the automaker's most efficient vehicle yet. It is also likely to be offered with some sort of hybrid powertrain.
There's plenty of space inside the 2011 BMW X1, yet it is configured to ride lower than other crossovers and, thus, handle better.
The 2010 Panamera fills out Porsche's lineup with a truly spacious 4-door that seats four adults easily and that makes few compromises in terms of power and handling.
Long a favorite in the midsize luxury segment, the Mercedes-Benz E-Class has provided an appealing mix of comfort, performance and safety for decades. The latest model is no exception.
For the 2011 model year, the Ford Mustang gets a sophisticated new 3.7-liter V6 engine that delivers amazing power and efficiency, neither of which could be said about the 2010.
A wide range of powertrains will be offered with the 2011 Audi A7, reportedly including a diesel-electric hybrid and a 600-horsepower V10.
