Trend Growing for European Vehicle Owners to Buy Asian

XeroK00L submitted on 06/12/2007 Official AutoSpies Timestamp: 8:15 PM
from: www.autoremarketing.com

[45] user comments | category: Misc News

Tags: european asian car buy buyer buyers switch trend

european asian car buy buyer buyers switch trend

WESTLAKE VILLAGE, Calif. — The latest report issued by the Power Information Network noted that owners of vehicles from several European nameplates often are trading their units for ones made by Asian nameplates.

Report officials said owners of five European nameplates — Saab, Mini, Volkswagen, Volvo and Audi — trade those vehicles for one made by an Asian OEM at a rate of 40 percent or higher. That rate came from sales figures compiled by the network from the first quarter of this year.

A similar rate of trading was noted for owners of vehicles made by Saturn.

"This implies that while Saturn may be attracting import intenders to the General Motors family; a substantial number of these buyers are then returning to an Asian product," report officials explained.

Other nameplates that the reported noted as having a high trade rate for a unit made by an Asian OEM included Pontiac, Mercury and Chrysler.

PIN officials delved deeper into the trading trend toward Asian nameplates by specifically examining the luxury vehicle category. They highlighted that Toyota was the top brand that BMW owners defect to, followed by Lexus and Honda. They also noted that a portion of Mercedes-Benz owners defect to Toyota and Lexus, as well.

"Porsche is the lone luxury brand whose owners usually stay in the luxury arena. The top four brands Porsche owners defect to are all luxury nameplates," report executives pointed out.

Among domestic luxury vehicles, PIN noted that Cadillac owners often defect only to one other luxury nameplate, while Lincoln owners often switch out to only two other luxury brands. Officials also said Pontiac owners' propensity to trade for another Pontiac is just slightly above the likelihood that they will switch to a Chevrolet. Read Article

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rg12345 - 6/12/2007 8:23:20 PM

-6 Boost

"Porsche is the lone luxury brand whose owners usually stay in the luxury arena. The top four brands Porsche owners defect to are all luxury nameplates," report executives pointed out.

It looks like the company who did the report doesn't care much about Lexus being a luxury car company. Just fine with me.

Still, I don't see BMW fellows driving a Toyoyoyyta, at least not the people I know.

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Bmw8ter - 6/12/2007 10:36:42 PM

-1 Boost

"Soulfull, Amazing, Prestegious, Heritage" go right out the window when it turns out your BMW has more than the average amount of problems, and the dealer oddly enough can't replicate the bigger problems for the next 4 years/40k miles.

In that case, it boils down to the first auto manufacturer that comes to mind when you think of reliability - Toyota. As boring as they are, they're really easy and fairly affordable to maintain.

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w209w114 - 6/13/2007 11:50:58 AMView My AgentSpace

-2 Boost

SoCal,

I support you 100%. If you are going from a sports vehicle to an appliance, then your bank account must no be doing too well. Its not so easy downgrading as it is to upgrade so I doubt the decisions were done willingly.

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rg12345 - 6/12/2007 10:07:54 PM

-3 Boost

From what I understand they said that BMW and others are switching to Toyota, Lexus and Honda. But not Porsche owners, they tend to stay "in the luxury arena." They cleary point out there that Porsche owners only switch to other luxury cars, right? But just a few lines above they say the others are switching to toyoya&Lexus. So what do you understand from there? Cause what I get is that the Lexus is not considered a luxury brand. Obviously.

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Bmw8ter - 6/12/2007 10:52:56 PM

+1 Boost

Lets not read to far in to things RQ12345...last time I checked, Honda's luxury line - Acura, is pretty much called Honda outside of North America. So considering this, if it's called a Honda, or associated with Honda, automatically it's not luxury as well? I'm pretty sure the message wasn't that Lexus is not a luxury brand.

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zorbeeze - 6/13/2007 12:52:02 PM

0 Boost

Acura is not a luxury car company. Acurs is just like Volvo & Saab. It's not to say they have cheap cars, because their cars are great, but they're not luxury.

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Bmw8ter - 6/13/2007 4:35:06 PM

0 Boost

Ok, clearly your argument is subjective.

Whether you want to admit to it or not, Acura is considered a luxury autoline for Honda.

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huu76 - 6/12/2007 10:10:08 PM

+1 Boost

A Porsche is a Porsche is a Porsche. Not the best interiors, but it's still a Porsche (excluding the Cayenne).

Perhaps the Europeans are finally coming around.

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Anti_Bangle - 6/12/2007 11:07:17 PM

+2 Boost

I agree, a Porsche is a Porsche is a Porsche. But definitely not the Cayenne. Cayenne is simply there to make money from the Americans who are obsessed with gas guzzling SUVs.

w209w114 - 6/13/2007 11:53:17 AMView My AgentSpace

-2 Boost

Cayenne is a rebadged Touareg. Porsche is the epitomy of what a sports car should be.

gsh23 - 6/12/2007 10:47:21 PM

-1 Boost

to be honest though, with the exception of the LS and IS, i dont see the big deal with lexus cars. in fact, my next car will probably be german. the loaner es350 on my driveway makes me mad.

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Willis - 6/13/2007 3:22:55 AM

0 Boost

How about the number of people switching from Japanese to European brands?

Fact is that people switch brands all the time. This article makes it sound as if the Japanese have a monopoly on customers, which they clearly don't. They have appealing cars, but there's always people willing to try new things.

A few months ago, a friend of my wife bought a the Volkswagen Jetta and traded in her old Honda Accord. Essentially she went from a midsize mainstreamer to a compact 4-door.

I also find it "funny" how a BMW customer would switch to Toyota. Um, no. Probably Lexus, but not Toyota.

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Rupert - 6/13/2007 11:56:52 AMView My AgentSpace

-1 Boost

The Land Cruiser is popular in Europe?
I really doubt that, I hardly ever see them here in England.
The switch is probably a combo of people switching from BMWs to more family orientated vehicles (like minivans or SUVs) and those people who can't afford to keep leasing their 3 series'.

Htay7500 - 6/13/2007 2:20:24 PM

+2 Boost

land cruisers are awsome.

Rupert - 6/14/2007 11:05:49 AMView My AgentSpace

+1 Boost

Last time I checked the Rav 4 was the best selling SUV in Europe.

w209w114 - 6/13/2007 11:59:16 AMView My AgentSpace

0 Boost

Its a poorly written article my friend. Anyone who is a smart reader can see that.

My question is what happened to all the lexus fans? Im beginning to miss HOUSTONCUTIEs all caps responses.

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w209w114 - 6/13/2007 12:03:49 PMView My AgentSpace

+1 Boost

I wasnt specifying any particular brands, more like people moving from german luxury to asian mainstream. BUT yes, I GUESS Lexus could apply.

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mini22 - 6/13/2007 11:57:34 AM

+1 Boost

I admit I owned a few Jap cars. But I miss the character of a Euro car. This is why I switched out of a Mazda RX8 for a Mini Cooper S. I'm not saying that I don't like Jap cars just not very many.The Z and Infinit products are nice.I cannot stand Toyota and Lexus.Subaru is not too bad although I don't like the restyle of the Imprezza.

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w209w114 - 6/13/2007 12:01:03 PMView My AgentSpace

+1 Boost

Funny, Im sure there are 10000000000X more people dying to get out of their Japanese car into a German vehicle. BUT we never hear about those do we?

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markusck - 6/13/2007 1:15:33 PM

+1 Boost

That wouldnt be newsworthy would it?

Neverfollow - 6/13/2007 12:07:26 PM

-1 Boost

Just as many asian car buyers are moving up to European brands as the other way around. In fact, there is also a growing trend that shows Asian people are buying more and more European brands, particularly Audi.

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matt635 - 6/13/2007 12:21:53 PM

0 Boost

Well, trend or not, I'd never trade in either of my Bimmers for anything (except other bimmers) and certainly not a Toyota!!!!!!

Toyota are cheap when compared to BMW, people who buy into BMW's later in life when the financial situation is at it's best thats one thing, I'm in my mid-twenties and If/when kids come along I can imagine the first thing to go would be my old 6 series, and I'd probably have to get something cheaper to run than a 3 series to afford all the extra expense... of course, I'd rather not have kids than have to get rid od my bimmers :)

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Neverfollow - 6/14/2007 11:47:39 AM

+2 Boost

Spoken like a true BMW "its all about me" man.

alfistiDK - 6/14/2007 2:23:58 PM

0 Boost

Someone kill this toyotaman before i do it....

gsh23 - 6/13/2007 12:50:23 PM

+1 Boost

so the asians are moving into euro cars and the white people are moving into asian cars. aint nothing wrong with that!

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Htay7500 - 6/13/2007 2:25:47 PM

+2 Boost

im asian but we dont tend to move to beemers unless its for fun. my dad loves BMW for tht matter but he'd hold on to his accord because its the best money can do for him. my dads friends own a last gen BMW 3 series where i and my dad took it for a spin and it was awesome. but like I said, we tend to keep our hondas which is the least we can afford.

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Will_ - 6/13/2007 5:06:32 PM

+4 Boost

Once you realize that the majority of Europeans riding around in vehicles from their region of the world are actually driving economy cars, the more this starts to make sense.

And realizing that, let's just be honest here: Toyota and Honda make better economy cars than Mercedes and BMW. And why wouldn't they? Toyota and Honda's main specialty is is affordable economy cars with low maintenance costs and great overall reliability. I'd 100% take a Yaris and Corolla over an A-Class or 1-Series.

I think this article is alarming. It shows that the said "toughest, most discerning" auto buyers are favoring affordability and reliability (all the things the Euro-lovers on this site despise) over other aspects...

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Rupert - 6/13/2007 6:57:27 PMView My AgentSpace

+1 Boost

Will - I may be wrong but I think this article is about people who own European cars, not Europeans who own cars.
The study is from California...and it does mention Pontiac.

Will_ - 6/13/2007 7:19:54 PM

+1 Boost

Well then, that changes things a bit... ;)

XYZZ - 6/14/2007 7:16:10 AM

+1 Boost

...

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XYZZ - 6/19/2007 7:44:33 AM

+1 Boost

"Report officials said owners of five European nameplates — Saab, Mini, Volkswagen, Volvo and Audi — trade those vehicles for one made by an Asian OEM at a rate of 40 percent or higher. That rate came from sales figures compiled by the network from the first quarter of this year."

forty percent! so almost HALF switch over to an asian nameplate.

guess after actually LIVING with the REALITY of high maintenance costs, frequent visits to the shop, and the vapidness of "magic feel," they come to their senses and realize cars are primarily meant to take them wherever they want to go, EVERY TIME.

as bmw is one of the most over-hyped, after owners get the shock or REAL LIFE high maintenance costs, they become MORE INCLINED to gravitate to the brand with the best rep for RELIABILITY and low costs of ownership.

makes perfect sense to me.

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