Luxury cars and brand loyalty
Is your dream vehicle an upscale version of what you know, or would you jump to something different?
Your lottery numbers finally came in. Or perhaps that rich aunt from Indiana left you a Picasso. Whatever. All of a sudden you’re flush with cash and have the jones for a new ride.
But here’s the conundrum. You’ve been a diehard GM owner forever. Are you sticking with the General and moving up the ranks (Cadillac Escalade, Corvette) or jumping ship entirely?
How much does brand loyalty come into play when price is no object?
One could argue brand loyalty ain’t what it used to be. Back in the day, as with American politics, you were born into a fraternity and there you stayed. Ford, Chevrolet or Chrysler. The pickup crowd is still fiercely loyal, but car owners not so much.
Time for an unscientific survey:
Exhibit A
My friend and neighbour, Pat Jeffrey, has been a GM guy since he started shaving. His dad was an executive with GMAC for 42 years, so a steady parade of vehicles came through the household; many suffered greatly at the hands of Pat and his brothers. There’s a particularly salacious story involving a ’88 Buick Grand National, some unscheduled landscaping and a failed coverup.
But I digress. Pat now has a Chevrolet minivan, and recently moved up from a Malibu to a Cadillac ATS 2.0 turbo, which he loves.
Not that Pat has any illusions about GM reliability, having lived through the bad old days.
“I did lease the Caddy, so I figured that if there were any issues they could have it back. After a year, it has been the least problematic car I have ever owned. One minor recall and that’s it.”
So what would he do with unlimited funds?
“I would certainly look at some of the other manufacturers: BMW, Mercedes, Lexus. Strangely enough, I think I would find myself migrating back to GM. Must be a familiarity thing. Like wearing your favourite shirt even if it has a hole in it. Escalade, here I come.” Exhibit B
Matt and Christina Lima are serial Volkswagen owners. They have two small children, a 2011Jetta TDI and a 2011Tiguan, which recently replaced Matt’s trusty 2003 Golf TDI that logged 440,000 kilometres. My experience with VW folks marks them a loyal lot. The Limas follow the script pretty closely, with their aspirational choices staying within the expansive Volkswagen corporate banner. With brands such as Audi, Bentley, Lamborghini and Porsche in the roster, the pickings are good.
Christina would take an Audi Q5 TDI crossover and a red Audi R8 V10, thanks. Matt, being a professional musician with the need to carry an upright bass, thinks the upcoming 292-hp all-wheel-drive Golf R would be the ticket.
He’d also bag a new Porsche 911 because . . . well, no explanation necessary.
I stopped by Matt’s house with a 430-hp 2015 911 Carrera 4 GTS ($163,840 as tested), just to stoke the embers. A spin in this very rapid road limpet cemented his convictions.
Nurturing brand loyalty is a crucial part of an automaker’s business model — snag ’em young and keep ’em in the family. Nobody does it quite like Mercedes-Benz, Canada’s bestselling luxury brand.
With the recent introduction of the four-cylinder CLA 250 sedan, the price of admission to Benz-land is $34,600.
From there, it steps up to numerous permutations of the C-Class, EClass, CLS and the flagship S-Class. In Ontario, about 80 per cent of SClass buyers are existing MercedesBenz customers.
For BMW, turning customers into fans is a key focus. They offer programs such as BMW Driving Experience advanced training and the Canada-only M European Tour where certain BMW M purchases include a multi-day European road trip, swanky hotels and some track time. BMW is also very active in social media, being the top-ranked Canadian auto company in that regard.
But it’s not just the Germans who embrace this strategy. Honda drivers are invited to move up to the Acura brand, Toyota will guide their customers toward Lexus and Hyundai has Genesis.
Conversely, a visit to the new Maserati Alfa Romeo of Oakville confirmed my suspicion that brand loyalty is something these folks don’t want to hear about.
Their business model is all about poaching. Sure, they welcome current Maserati owners with open arms, but with the Italian marque (under the Fiat/Chrysler banner) on a mission to go from minuscule niche sales to 50,000 worldwide by the end of this year, it’s all about conquest.
The Quattroporte and Ghibli sedans, both with available all-wheel drive and Ferrari power under their hoods, are driving the brand growth. Sales representative Mark Tucker sees a fair number of former BMW and Jaguar owners driving off in a new Maserati. The Porsche folk are kicking Maser tires, too.
So can we find a discernable trend when it comes to new-found riches and automotive brand loyalty? Tough call. For those already on the lower rungs of a premium brand, loyalty is likely, but for every person who’ll ditch their Ford Edge for a Lincoln MKX, you’ll find one making a beeline for the Range Rover or Porsche store. Peter Bleakney is a regular contributor to Toronto Star Wheels. The vehicle tested was provided by the manufacturer. For more Toronto Star automotive coverage, go to thestar.com/autos. To reach Wheels Editor Norris McDonald: nmcdonald@thestar.ca