Even the luxury end of the car market has begun to suffer in Europe. Apparently, the 1% have begun to feel the pinch of recession. They must have decided to hold their current cars longer, or go down-market to buy cheaper vehicles. Both Daimler, owner of Mercedes-Benz, and Porsche cut forecasts.
Fortunately, recent car sales data in the U.S. shows each continues to do well in the world's second-largest car market. And the appetite for luxury cars in China, the world's largest market, has been good. Bloomberg reports:
"If a downturn lasts for longer, which this one is, premium is not immune from pricing trends," said Arndt Ellinghorst, a London-based analyst at Credit Suisse Group AG with an outperform recommendation on BMW, Porsche and VW, and a neutral on Daimler. "The pricing environment in Europe is the biggest problem," with incentives spreading from Italy, Spain and France to Germany.
This article originally appeared on Dailyfinance.com.