While autos around the world are coming back in a strong way, German companies, and German luxury companies more specifically, are bouncing back in a strong way. The main factors in this rebound, aside from the general auto recovery, are expanded access to credit, and strong demand from the emerging markets; particularly China.
Chinese demand for premium cars is growing at a rate of two times that of the regular market, and the dip in the Euro courtesy of the Greek debt crisis has made the German premium manufacturers more competitive globally.
Last year there was much concern as to whether the luxury sector would recover at all from the recession, as the tenants of that segment seemed so at odds with what consumers demanded; namely environmental-friendliness and affordability.
That apparently is not the case however, as all three German luxury makers have had to increase their 2010 forecasts early in the year, and have all seen rising stock prices.
– By: Stephen Calogera
Source: Detroit News