The Homa Files

Excerpted from BusinessWeek, “A Tough Auto Market? Not If You’re a Maserati Exec”, by Dan Strumpf, November 21, 2008

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With the U.S. all but certainly in a recession and many skittish consumers hesitant to buy even a Honda Accord, it would seem the last thing anyone would need is a $400,000 Rolls-Royce Phantom.

But sales of many high-end luxury cars are bucking the trend of plummeting car sales, as ultra-luxury cars are often highly resistant to economic downturns.

“You’re dealing with the ultra rich who, even if they take a hit, a car purchase for them is a very, very fractional piece of their net worth. Whether they’re paying $50,000 for a car or $200,000 or $300,000 for a car, it really makes no difference in their net worth.”

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Sales at many cream-of-the-crop carmakers are bearing that out, and are either flat or down modestly. Some, like Rolls-Royce, have actually increased.

Ferrari’s U.S. sales, for example, are down just 3 percent for the first 10 months of the year, compared with an industrywide slump of 14 percent, according to sales figures compiled by Autodata. Maserati sales are up 10 percent, while sales at Rolls-Royce are up a whopping 32 percent.

Edit by DAF

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Full article:
http://www.businessweek.com/ap/financialnews/D94JAGOO0.htm

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