Mid-Level Luxury Performance Sedans

Situation Analysis
By Craig Schlesinger and Jason Wachter

I. The Mid-Level Luxury Performance Sedan Market
Consumer Overview
This market attracts consumers exhilarated by the thrills of driving. They are willing to spend more on their cars to obtain a desired level of performance. Although these drivers are primarily concerned with speed and handling, they are also interested in the luxury components, safety features, and durability of their automobiles. Fuel-efficiency is neither the first nor the last thing on their minds – they are not willing to sacrifice performance for the environment, but they are environmentally conscious enough to stay away from lowmileage sports coupes. These consumers have adventurous aspirations for their driving experience. They want nimble turning capabilities and powerful engines. They are not interested in efficient, basic cars suited for point-to-point driving. Rather, they want fuel-injected speed and sports-tuned suspension designed for what lies between those points. These owners crave vehicles with an attitude to assuage their need for excitement. For some of these mid-size luxury performance owners, driving is a reflection of their day-to-day lives. They tend to be youthful and exuberant, and they invest in these sedans to fit an image and satisfy a craving for performance. They cannot necessarily afford more expensive sports cars, but are willing to pay higher prices to avoid association with lowerlevel automobiles. They are also more interested in performance and handling than space and size. As young adults, they have no need for sports utility vehicles or minivans for family purposes, and their purchasing habits reflect this. 36.2 percent of adults aged 25-34 drove four-door hard-top sedans, while only 26.6 percent and 11.2 percent drove sports utility vehicles (SUVs) or