fuel prices vs. vehicle rollout

[B-Line]

I can't help but think, the price increase in fuel is going to have a tremendous effect on the luxury and sports car market.
- I'm pretty sure, though don't know the numbers, this is happening already.

So my question is, will BMW rollout the "is" model of the X5?
Will Porsche rollout a faster Cayenne?
Will Audi still rollout the Q5?

What about the new 7 series? At 13mpg, might buyers opt for the Lexus hybrid instead?

What do you think? Have we seen an end to manufacturers releasing BIG ENGINE *new vehicles ?

What's going to happen with the car market other than the increase in sale of hybrids?

[The Cleaner]

V8 power for the sake of saying you have V8 power is over. BMW has a very strong line of inline 6 engines so they can easily transition more production to those. Even the 3.0 Turbo gets great mileage for a 300HP engine. I get about 20MPG in mixed driving (driving hard) and as high as 28 if I am trying to conserve. Freeway regularly goes over 30mpg.

I never quite understood how the V8 engine got so popular in the states, They are almost always overkill for the intended use. I guess cheap gas made buying the most HP acceptable.

[E61Silver]

I think that cars and engines take years to design and produce.

The fact that the E70 is bigger and gets inferior gas millage is great example of production not being in line with current demand.

[Eric5273]

I think the trend will be to move towards smaller luxury vehicles.

Up until now, the nicer and more expensive vehilces were always the larger ones. The X5 is not only bigger than the X3, it also offers more features, is more luxurious, etc. Same with the 3 series, compared to the 5-series, compared to the 7-series.

I just got rid of my X5 yesterday and I have a Mini Cooper on order. Last month, after the price of gas went up about 50 cents in a one week period, I decided I needed to get rid of the X5 and get something smaller and more fuel efficient. So I went looking around. Most of the cars that are small and get good mileage, are also very cheap-looking (inside and out), have no features, and drive like crap. But the Mini seems to be the exception. The Mini I ordered has all the same features and conveniences as my X5 did, plus it is very luxurious looking, and fun to drive. Yet it is small and gets 37 mpg. I hear the new Smart Car is another example of this. It's a tiny car, but has Mercedes-type luxury features. I would expect this trend to continue with other brands as well.

As for Mini, I would guess BMW is probably making more money right now from Mini sales than from anything else. The local Mini dealer has been crowded every time I have been in there -- even on weekday mornings. I pass by there every day on my way to work, and it seems like they have new cars in the showroom almost every day. On the other hand, right next door to them is a Hummer dealer, and that place looks like they are ready to die. My Mini salesperson told me that she heard the Hummer dealer sold only 5 new cars last month.

[Wagner]

Problem lies in R&D and market analysis. You have to start R&D and production of a possible new ride 4-6 years in advance of release. Had any auto maker known in 2001/2 that oil would go nuts, the US would go into a recession and the dollar would fall to the bottom of the oil barrel...I guarantee...the rides offered today and tomorrow would be substantially different. This is the perfect time for innovation in a car company to gain them market share. For the life of me I don't know why smaller companies like the Kia's and Hyundais aren't making a huge run at this. When you hear that a company like Toyota is taking a hit because of the current market, that is your "moment".

[Eric5273]

Originally Posted by Wagner

Problem lies in R&D and market analysis. You have to start R&D and production of a possible new ride 4-6 years in advance of release. Had any auto maker known in 2001/2 that oil would go nuts, the US would go into a recession and the dollar would fall to the bottom of the oil barrel...I guarantee...the rides offered today and tomorrow would be substantially different. This is the perfect time for innovation in a car company to gain them market share. For the life of me I don't know why smaller companies like the Kia's and Hyundais aren't making a huge run at this. When you hear that a company like Toyota is taking a hit because of the current market, that is your "moment".

Interesting that GM had the EV1 back in 1996, and they canned it and even spent big bucks to buy back all the cars they had sold and then push them all into the trash compactor. Ever wonder why they did that?

Ever watch this movie?

http://www.youtube.com/watch?v=nsJAlrYjGz8

Obviously this was not a "business decision" and certainly had outside influence. Can you imagine where GM would be today if they had continued with this? From what I have read, the new "Volt" that is coming in 2010 is no better than the EV1 was 14 years earlier.

Then you have stuff like this:

NY Times: White House Joins Fight Against Electric Cars

[nupe10123]

The entire auto industry is taking a hit partly because the cost of gas, but more impactfully because of the housing market and economic concerns.

Toyota several years ago (10+?) had the forsight to invest in Hybrid technology and are now reaping the benefits of that. Thr prius can't be manufactured quickly enough to sell - which is 'hurting' thier sales and actually causeing consumers to buy Honda Civics.

I would argues that wealthier indivuduals still are not influenced by the cost of gas and will buy whatever car they deem most luxury/fun/reliable or whatever they care most about. Some will start to look at the Lexus Hybrib line-up from the like the LS600h or GS450H, so that they get all the luxyury (with good power) and get the mental feel good of having a hybrid.

Going green will be in style for a while not only because the cost of gas but also because the environmental concerns and some new found 'cool factor'. It's a shame that the big have the long-term focus that Toyota did to improve efficentcy and technology, now they are playing catch-up. However, I think some new tech (hydrogen or whatever) will be developed and we'll see the tides turn again.

[Thunder22]

Not all V8's are gas guzzler's, my Vette gets between 30-36 MPG on the highway.

[Lambeau]

Originally Posted by gresch

Not all V8's are gas guzzler's, my Vette gets between 30-36 MPG on the highway.

I used to have a 90 vette with the 6 speed. I removed the cat, installed a performance exhaust and a better induction system and consitently got 36 MPG. If I remember right it would turn just 1600 RPM at 65 mph. If I could get a different set of gears in my X and drop the rpms to the same as above I'm betting I could get 30 mpg in my X. Because of the need for performance BMW has the gears in the X set for acceleration vs. mileage. Is anyone aware of different gears available for the rear and front differentials? I now have 295/45/20 tires on my X and it dropped my RPMs but it still turns too many R's in 6th gear. I would put on yet taller tires but I've run out of room in the front wheel wells when I turn.

[E61Silver]

The Vete is a smaller low profile car that does not have drag of the X.