Ji-Hwon Choi

Professor Siczek

EAP 15

12 December 2010

German Cars in the U.S. Automotive Market

Introduction

A brand is “a unique design, sign, symbol, words, or a combination of these, employed in creating an image that identifies a product and differentiates it from its competitors.” In our materialistic society, major distinguished brands in every type of products seduce people who desire high qualities. In the automobile industry as well, consumers are blinded by various name brands which are very distinctive: Land Rover, Porsche, Volkswagen, BMW, Toyota, Rolls Royce, Lamborghini, Mercedes, and many more. But of those brand producers, some of the most popular car manufacturers are German. These include: BMW, Porsche, Audi, and Mercedes which are more preferred car makers than the others. “The German luxury vehicles are one step forward in performance, precision, designing, comforts and inventive technological superiority” (“German Car”). Over time, German producers have created brand awareness and images which stand out to be popular. Brand image can be developed through advertising campaigns with a consistent theme, and is authenticated through the consumers' direct experience.” In automobile industry, brands achieve their luxury brand image by the qualities and high-prices of cars. Many people postulate that German automobiles represent high-social status in the U.S. as they reflect the incomes of households; however, the domestic consumers do not necessarily pursue their social status by consuming luxury cars. The reason why people describe the German automobiles to be luxurious is because they are equipped with various features such as ease which cannot be found in other common cars (“German Car”).

Discussion

It is important to note that in German's point of view, buying a luxury car is not as important as buying other luxury goods. In other words, a purchase of an iPod, good brand clothing, and tickets for a holiday to outland have more values than buying luxury cars (“STATUS SYMBOL”). In Germany, where many luxury automobile producers are from, people do not feel a particular need of luxury cars for their social status. A survey result indicates that only 17 percent of German citizens say a luxury car reveals their social class (“STATUS SYMBOL”). Perhaps the most significant reason why the statistical value shows only 17% is because the residents believe their cars are not more than a means of transportation. In another words, the Germans are not necessarily attracted to the utilitarian needs, as the extra features will not influence anything to the change in the German view of luxury cars as just a function of transport. The “BMW SPOKESMAN” further mentions that “The purchase of a Mercedes is now less a prestigious than buying a ticket for the World Cup final”. Although the “BMW SPOKESMAN” states that in Germany, the luxury cars lost the label of the most desirable good to consume, they still possess the domestic consumers' respect which is the base of the German car producers' reputation lying high above those of other rivalries.

On the other hand, it is commonly understood that in the U.S., German luxury cars are ...