When I look at what the future of automotive taste is, I think China is always the best example. Chinese consumers are excellent students of trends and culture. For years, that meant copying Western ideals of beauty and fashion. Now? It’s us copying them, whether it’s a Labubu or a Lincoln.
The Morning Dump will start in China this morning, where European automakers are failing to sell electric cars and, more importantly, to sell luxury cars. I think this is because what a luxury car was is not what a luxury car is. I think “brand” is a more malleable concept than it was before. It’s a tough lesson for some automakers to learn.
Polestar is one of these automakers that could have thrived in this environment, but it doesn’t seem to be happening based on its most recent sales. Ford has done slightly better than the market this year in North America. That’s premised on selling a lot of F-150s, and that ain’t happening without aluminum.
If you’re in Tennessee, there’s one product that Ford does seem to be able to produce at scale, though it’s maybe not one you’ll want to see in your rearview mirrors.
It’s Not That China Doesn’t Want Luxury Cars, It’s Just Luxury Has Changed
I’m not an expert in Chinese culture or even Chinese cars. I’m just an observer, and what I’ve noticed over the years is that Chinese cars have gone from following to leading when it comes to features and taste.
At first, it was just obvious things. Chinese consumers still bought luxury cars from European brands like Audi and Volkswagen; it’s just that they wanted longer wheelbase versions of everything. One oft-told reason is that government officials got chauffeurs, but couldn’t have a nicer car than their boss. Ergo, your direct report got an A6, you got an A6L, and your boss got an A8 (and their boss got an A8L).
There’s maybe some truth to that, though a bigger reason might be simple economics: It’s more car for not that much more money. Dig down even deeper, and you’ll see that many of the cars that were extended were locally produced, meaning that an A6L built by FAW-VW-Audi under a JV was way cheaper than an imported A8.
Whatever the reason, more Western consumers started getting the longer-wheelbase versions of traditional models as well. It didn’t stop there.
One of our earliest posts was about how the Chinese Explorer’s interior was so much better than the interior on the North American version, and, lo and behold, the American version looks a lot more like the one Chinese consumers had three years ago.
When Tesla debuted, the simple designs absolutely killed companies like Audi and Mercedes, with the Model S quickly becoming the best-selling luxury car in America. For years, European automakers said that their brand image, years of engineering prowess, and special sauce of driving feel made them untouchable. Tesla’s first luxury sedan absolutely whomped them.
Chinese automakers have taken this one step further. It doesn’t seem to matter what the form factor is (sedan, SUV, MPV), the cars that Chinese consumers view as desirable are the ones with the most driver-focused technology. It may not entirely appeal to gearheads, but people want stuff.
If you look at the Xioami Xu7 (a car so good that Ford CEO Jim Farley didn’t want to give his up), the vehicle runs the company’s HyperOS (via Qualcomm’s Snapdragon system-on-chip), which allows the infotainment system to mirror smartphones, tablets, and interface with the company’s smarthome systems. It also has an advanced driver-assistance system that is as good (or better) than anything else out there on the consumer side.
You know who is having a hard time competing with that? Per Bloomberg:
Western manufacturers are losing ground in the world’s biggest car market to homegrown rivals such as BYD and Xiaomi, whose feature-packed EVs are undercutting them on price. Fierce competition in China is squeezing profit margins, while a slowdown in the real estate sector is limiting luxury demand. BMW lowered its earnings forecast earlier this week, citing the China slump and costs related to U.S. tariffs.
Weak demand for luxury EVs is hitting automakers already dealing with muted growth in Europe. All of them have corrected course by cutting costs or shifting funds back into combustion-engine and hybrid models.
I don’t think it’s just a cost thing. European automakers are trying to sell “luxury” with cars that lack the features that the consumer views as luxury. That’s not a recipe for success.
Polestar Sales Were Up 13%, That’s Not Enough
Sam wrote last year that the Polestar 3 “gives the Polestar brand a reason to exist.” I’m less convinced.
The Volvo-aligned, Geely-owned company has produced some good cars, but it’s not really differentiated enough from the rest of the market in any way that seems to matter. Proof?
Most automakers saw a huge increase in EV sales thanks to the death of the IRA tax credit. Polestar? Not so much:
Polestar (Nasdaq: PSNY) global retail sales amounted to an estimated 14,192 cars in Q3 2025, up 13% versus Q3 2024. For the first nine months of the year, retail sales approximated 44,482 cars, a growth of 36% compared to the same period last year.
Is that enough? That doesn’t seem like enough. By comparison, GM’s Q3 EV sales were up over 100%.
The Aluminum Fire Seems Like It’s Going To Cost Ford A Ton Of Money
Ford pioneered the use of aluminum in trucks. The company took some heat for it, but now everyone seems to be following the F-150’s lead. The problem is that new tariffs on aluminum mean that Ford really needs a domestic source for automotive-grade aluminum, and a fire at the Novelis plant in upstate New York is going to make a dent in the company’s operations.
According to Reuters, that might be a big dent:
A fire at a New York aluminum plant that is expected to affect production of Ford Motor Co.’s F-150 truck for months will sap up to $1 billion from the automaker’s earnings, according to Evercore ISI analysts.
Meanwhile, Ford is pausing production next week of the F-150 Lightning electric pickup in Dearborn, Mich., because of the aluminum plant fire, a union official at the plant said.
A memo shared with workers at the plant, viewed by Reuters, said the Rouge Electric Vehicle Center will be off next week. Nick Kottalis, the UAW chairman of Dearborn Truck, as well as the REVC, confirmed the shutdown was related to the aluminum factory fire. Ford declined to provide specifics on any production adjustments.
A billion? With a “b”? That’s bad timing, given all the tariff disruptions.
Tennessee Has A New Car To Fight Reckless Driving
The Tennessee Highway Patrol has a new tool to ” stop reckless driving, enforce speed laws, and respond when lives are on the line.”
I do like the THP livery, and it looks great here. I’m also a sucker for Mustang police cars.
“This is one reason why we still make 5-liter V8s. To serve and protect,” a Ford spokesperson told me this week.
Obviously, using a Mustang to fight reckless driving is a bit like using kerosene to fight a forest fire. Perhaps it’s like a control burn situation? A control burnout?
What I’m Listening To While Writing TMD
TMD favorite Blondshell did a version of “Arms” with breakout singer Gigi Perez and it’s predictably great.
The Big Question
What’s a luxury car?
Top photo: Xiaomi
The paint colors some of the Chinese cars are being shown in are so much more creative than what we get in the US market. Right up there with Mazda’s beautiful red. I love that Xiaomi’s green.
While the Chinese redefine luxury car, in America, a luxury car is becoming a car.
Luxury is enjoying what you have.. no matter what it cost you. Some of the finest luxuries in life are free, but fleeing. Spend time with your family. That’s a luxury that not everyone gets.
‘Some people think luxury is the opposite of poverty. It is not. It is the opposite of vulgarity.’ – Coco Chanel
To be a true luxury car you need more eagle beak inlays in the dash. Seriously, the term luxury is applied to so many cars it is meaningless. It is almost as overused as the term; tactical. Don’t forget you get an LX emblem on the rear end, so folks behind you in traffic know you have better trim than they do.
To me luxury is the car door’s solid, precise thonk is the last unwanted noise you hear until you arrive at your destination.
My ’17 Accord has that thonk. It was once reserved for a Mercedes sedan. It’s just a solid, non-reverberating sound that says precision. The trunk lid? Not so much, when slammed by someone who doesn’t realize that it doesn’t take that much force or velocity. My guess is that the engineers worked really hard on the doors, and the trunk lid, probably rightfully, was not part of that effort.
Trunk lids always seem to be neglected. Both my MBs have the bank vault thing with the doors, but the trunk lids are like soda cans.
I’ve lost track… and the name change. Ha! What MBs do you have? I was a big fan of them from late 60s until recently. I don’t know if it was you who I shared this picture with, but there were TV commercials that showed their cars going around their test track.
mercedes-test-track-high-bank-01-1024.jpg (1024×1030)
Imagine video of this.
That test track shot is so great!
I have a ’88 560SL and a ’78 6.9. They’re fun. Sadly I never drive anymore 🙁
Great, clout chasers can overpay for screens and various endangered animal hide upholstery. Bully for them. Please let me buy a coupe with three pedals and no fucking screens.
A luxury car should be a relaxing experience. Something you take for a drive and come back more refreshed than when you left. For me, that’s the old school land barge.
Luxury is relative. Grass is greener on the other side. Time is a luxury some people have while others don’t.
Our small department just picked up a new GT. I was told that it’s a) less expensive than the cop-spec Explorer (PPV) and b) actually available without having to wait a year to get one. Since the other dozen cars are Durangos, I don’t really have a problem with their choice.
What’s a luxury car?
It must have: A roof you can remove to ride in style, but only after considerable manual labor, to maintain your luxurious physique. A durable, non-reflective dashboard, made of a stylish grey plastic. “Sufficient” horsepower, but no more, so probably under 100 hp. An ominous red brake icon on the dashboard, to luxuriously remind your chauffeur that braking is a good thing to do sometimes. A 3D-printed button labeled “EJECT,” because what greater luxury is there than threatening to do in inconvenient passengers at your leisure? Removing the roof before the threat is optional. It must also have no more than two doors, because more than that means displaying a concern for practicality that only poor people should have to consider. It means a spare tire mounted on the tailgate, preserving maximum storage space, and displaying to the world the fact that you can, in fact, afford a full-size spare. It means being sold with a badge from a brand that 99% of the population is unaware of. It means four-wheel drive, for the luxury of indifference to weather. It means a 5-speed stick-shift, because there is no greater luxury than control. It means a Bluetooth FM adapter to listen to your tunes without any proprietary-system, touchscreen nonsense. It means engineering from the Japanese, branding from the Americans, and assembly from us rugged Canadians.
In other words, luxury is my ’95 Geo Tracker!
You know, I agree in every level, haha
Cop mustangs are such a fucking joke, I see them every now and again in nc and guess what? They’ve done fuck all to stop reckless driving but they sure did cost a lot.
Interesting all I know about cars China and luxury I learned reading Jalopnik and the Autopian. What I thought I learned was such a great market that everyone wanting to sell cars in China had to pair up with a local manufacturer and provide them and the Chinese government all their proprietary information. Then once the local Chinese company learned to duplicate the partner orbar least fake it the foreigners were kicked out. Then the Chinese government stole as much technology as they could. Now we have people saying hey they make the best EV. SO yeah stealing the technology using slave labor to build cars that to date are not tested for safety but built in a country that gets rid of toxic waste by putting it in drywall and toothpaste. I’m thinking we should not celebrate the Dark Empire that makes the Star Wars Empire look like mother Teresa. And have any of these stolen technology cheaply made EVs been given a quality safety check? I get being okay on questionable safety on a occasionally driven 50 year old car but not on a modern vehicle that comes from an evil communist party country
Ford, GM, FCA, BMW, VW…. built 0 EVs in China therefore Chinese could not steal any EV tech.
Chinese didn’t make 3 ton pick up truck, didn’t make 9000lbs SUV that gets stuck in grass from its own weight that cannot be sold
Well I was thinking industrial espionage where they send in undercover spies to work in plants and/or computer hacking.
No need.
China has been the world’s low-cost supplier of gizmos – from bicycles, blenders, refrigerators, washers and dryers, to game systems, televisions, laptops and smartphones – for decades.
It doesn’t take much brain power to combine all these with the car manufacturing processes they were taught over those same decades to scale up into EV manufacturing – which is actually far easier than ICE manufacturing.
Even Vietnam was able to do this – and while their execution is not that great, they also haven’t been making cars for as long as China – yet they still make halfway decent EVs.
Foreign companies knew what they were getting into, they wanted the profits from China. They can’t pretend to be surprised or upset at what’s happened.
“What’s a luxury car?”
A true luxury car and any other true luxury item will be something expensive, exclusive (not sold in huge numbers, has features that surprise and delight, has quality that is well beyond what is needed and goes way beyond what you merely need.
A true luxury car won’t have glorified vinyl (“Leatherette”). It will have real leather options and high quality cloth options… available in the colour you want.
And for exterior colour… a true luxury offering would have a good variety of actual colours and you should have the option of whatever colour you want for an additional cost.
If the car being sold only comes with a black vinyl interior and a limited selection of white, black, grey and maybe one actual colour, it’s not a true luxury vehicle.
So essentially what I’m saying a lot of self-proclaimed ‘luxury’ cars, products and brands are actually faux-luxury to me because some of the elements like exclusivity and superior quality really aren’t there.
Adding some extra ‘tinsel’ doesn’t make a product a true luxury item.
So all these mass market luxury brands like BMW, Mercedes, Lincoln, Cadillac, Tesla etc are not true luxury brands selling truly luxurious products. They might be ‘premium’, but they’re far too common to meet the definition of real luxury.
Some examples real luxury brands are Rolls Royce, Bentley, Bugatti, Aston Martin, Ferrari, Lamborghini, Pagani and maybe even Porsche.
I think the requirements for luxury are different for everyone, but for me it really comes down to a sense of elevation/isolation from my surroundings. That can be achieved with high-quality materials, sound deadening, a good stereo, and adequate space for all passengers and their things. Mundane tasks are the antithesis of luxury so anything to mask or remove them those negative externalities.
True Luxury is being able to afford the car you own/lease/drive.
I believe a similar question was asked several months ago – and the answer hasn’t changed.
Luxury is Serenity, Refinement, Ease and Effortlessness.
Serenity comes from natural materials in colors and finishes which enhance your personal well-being. Sound systems which are not loud – but instead produce accurate and clean reproduction of recordings and streaming content. It’s silent driving performance. It’s draftless, set-it-and-forget-it, filtered HVAC. It’s knowing that your investment in such a vehicle will be rewarded with a long service life while not feeling outdated in a few years time. It’s also the knowledge that should the worst happen – you’ll be safe.
Refinement is not a touch-screen with multiple sub-menus. It’s smooth steering & braking. It’s the click of a switch – the tactile resistance of a knob – the way a well-damped suspension smooths out the worst road surfaces. It’s the inlay of a veneer set against a smooth leather panel with precise stitching. It’s wool carpets that barely if ever show footprints. It’s a luggage compartment which is as well finished as the passenger compartment so that your luggage will never suffer a scuff. It’s a paint finish which is distinct in color and perfectly glossy, with trim that complements the overall design without being fussy or pretending the car has design details it doesn’t.
Ease and effortlessness manifests in several ways: Years before, big inline 6s, inline 8s, V8s, V12s and even V16s were preferred because they had more than enough power to get you out of trouble, and were smooth performers. Now they’re superseded by EVs because they provide the same benefits with none of the noise and no trips to the prosaic gas station – while requiring fewer visits to the maintenance department. Ease also means you instinctively understand how to use the controls without being forced into reading the operators manual. It means door handles, switches and knobs that work intuitively. It means clearly defined places for your umbrella, phone, briefcase, key fob, coffee or tea cup. A generous luggage compartment. Instruments which tell you what you need to know at a glance. Navigation systems and cruise/driving systems which are perfectly safe and simple to use and monitor. Seats and suspensions which are comfortable without the need for a multitude of adjustments.
Do you work in marketing? That was really well written, but without coming across as pretentious. I feel like I could place myself in such a vehicle.
Thank you – I do not.
But I did work with marketing teams in Private Banking/Wealth Management to review and edit their content for clarity and regulatory purposes for nearly 20 years.
Our clientele were luxury vehicle owners.
I remember seeing some of the complaining about Ford’s use of Aluminum in the F150, and while some of it was valid (much more difficult to repair etc) most of it was THATS WUT THEY MAKE BEER CANS OUTTA. I’m more of a GM truck kinda guy, but I absolutely think aluminum should be used in body panels or wherever possible. Who the hell doesn’t want a truck that doesn’t rust??
“THATS WUT THEY MAKE BEER CANS OUTTA.”
So what you’re saying is Americans are also gonna be paying for for canned beer, eh?
Honestly, the no-rust thing makes me love aluminum so much! It’ll be interesting in a few years here in salt country seeing the contrast between Fords and the competition once they start getting old enough to rust.
The first aluminum F150s are already more than a decade old.
Yep! I don’t feel like I see a ton of rust yet on 10-year old steel trucks, though; I’d say it probably gets worse in the 15-20 year old range
Where are you located? In the rust belt, 10 year old trucks have rust HOLES.
Ontario, Canada, which I always figured was pretty dead center in the rust belt!
I’ve been seeing seriously rusty 9th Gen Rams for a few years now, but they came out in 2009, and I feel like I’ve just seen my very first 3rd Gen Silverados with significant rust, which came out in 2014.
I’ve definitely seen extremely rusty steel 12th Gen F150s, from 2009 to 2014.
So maybe I should shift my number back to 11 years for it to start in the worst cases, but I think most 10-year old trucks I see still look mostly fine
Yeah it’ll be interesting. Though to be quite honest, what usually kills trucks in the rust belt is typically frame rust, rather than body. Frames are steel on the f-series.
Man I’m glad I live in the PNW. My 30 year old Chevrolet is perfect.
Yeah, I think you’re right that frame rust is what actually kills the vehicle, but frames are pretty beefy, so they usually do last longer than the body. It’s just that the body going out doesn’t necessarily impact driveablity very much!
There’s a reason you see trucks around here rolling around with custom flatbeds, or even beds from newer trucks, swapped on
Ford does a pretty good job of rust-proofing their frames. Toyota and gm do not have good reputations when it comes to frame rust.
Duesenbergs had aluminum bodies, and they were such a benchmark for what a luxury car could be they led to the term “that’s a Duesy” (doozy in modern parlance) or similar to indicate something of great substance and value.
Many/most/all? European “luxury” brands also use aluminum bodies. So do airplanes. The “metal can” argument is silly and moreso shows the individual’s lack of knowledge about the various grades and uses of aluminum.
Aside from the obvious, (soft, comfortable seats) luxury is not having to worry about things.
Don’t have to worry about not seeing something behind the car when you’re reversing, there’s a camera.
Don’t have to worry about shifting, the buttery-smooth automatic transmission handles that for you.
Don’t have to worry about turning your lights and wipers on if it rains, that happens automatically.
Don’t have to worry about swerving to avoid potholes, the suspension soaks up enough that you won’t be uncomfortable.
Don’t have to plan ahead when merging onto the freeway, you’ve got enough low-end torque it doesn’t matter.
With this framework self-driving features count as luxury for most people, but driving relaxes me and I’d be worried about letting a computer do it, so it’s the opposite.
And I think this hits the nail on the head in terms of the challenge facing luxury carmakers – because basically all those features can now be found on mainstream vehicles, especially EVs and especially Chinese EVs.
A really good “soak up every bump” suspension tune is probably the last bastion of the luxury car, as that requires not just technology but finesse and experience.
I do wonder if we’re going to start seeing more “natural” materials in high-end interiors to improve differentiation. I’m thinking real wood panelling, ultra-plush cowhide, perhaps brushed aluminium appointments over dark plastic. It’s probably already happening at the very very top-end.
I agree–and I wonder if that too will come out of China. So much of the Western luxury market has followed BMW and MBZ down the road of performance-trim-everything-carbon-no-sidewall-harsh-ride.
Is that seen as desirable in China? I’d guess less than in the West, since the history of Chinese carmaking isn’t nearly as integrated with motorsport as ours, at least not yet.
(Cyan Racing Link & Co aside)
I just don’t consider most BMWs, Lexus, etc. as luxury cars but as premium cars.
Now a 7 Series or S Class I’d say is luxury. And anything with a RR or Bentley badge.
I consider the German “luxury” brands to be more like “executive” brands. They appeal to businesspeople who want a fast cocoon to get them from one meeting to the next.
For luxury I think of brands like Jaguar, Land Rover (moreso the Range Rover sub-brand), Bentley, Rolls-Royce, Lincoln (yes, really, the new ones are and have been impressive), arguably Lexus, etc., and probably Volvo. They coddle the occupants and tend to be more sumptuous and comfort-focused, even to the point of isolation. They’re sensory deprivation chambers on wheels for folks who can afford to ignore the world around them.
The rest I’d probably lump into “premium” space. Acura, Infiniti, Cadillac, Buick I guess (though they and gmc are not much more than a higher trim-level of the equivalent chevy, similar to Cadillac but with even less differentiation as caddy has some unique models not shared with its brethren brands), Rivian (who have genuinely nice interiors), and probably Tesla.
One thing I haven’t seen mentioned is that a luxury car includes a luxury dealership experience. I don’t need my ass kissed, but I would like my time and myself to be treated with a basic level of respect. Quality snacks and drinks are appreciated too.
All the fancy tech features in the world aren’t going to lure me back into a fucking Kia dealership.
One aspect of the traditional true luxury buying experience ALSO includes the brand or company refusing to sell their product to anyone they perceive as ‘riff raff’… because they don’t want their products being seen in public in the hands of riff raff.
Three examples of this…
Tony Crooks and Bristol cars. Back in the day, you couldn’t just walk into Bristol’s one and only sales office and EXPECT Tony to sell you a car. Nah… you had to look wealthy, BE wealthy and play really nice with Tony.Ferrari… They’ll sell you a car… but only a regular car. If you want one of their special cars, you have to own a few of their regular cars first. Oh and if own a Lambo, GTFO. And if you modified a Ferrari in a way they didn’t like (like painting it pink), GTFO.Bugatti… Exclusive because they’re very expensive. And back in the days when Mr Bugatti was running it, if you wanted a Bugatti Royale, you had to be actual Royalty… and sometimes, not even then
This is an under-appreciated strength of Tesla. I bought my Model 3 online – select color, wheels, range, click “buy”. Upload image of my drivers license and insurance. Get an email “bring check for $45,000 to Tesla store on this date, personal checks ok.”. Go to swanky Tesla store, drink good coffee, get a tour/demo of my car, a supercharger demonstration, drive home.
This was a thousand miles from my experience buying a Subaru a few months earlier, with a trip to the bank for a cashiers check, haggling over the price, last minute surprise “fees” and “options”, endless waiting in the fluorescent-lit showroom, then the high pressure meeting to try to sell me an extended warranty.
“control burn situation” is no longer used. One cannot “control” fire. The preferred term is prescribed fire. Sorry to ruin your pun.
Also, the chinese having learned/stolen everything they can from western automotive companies to achieve dominance, was the obvious end state that anyone with more than two brain cells to rub together could have deduced. Hope they invested all that prior chinese profit to fund their future existence!
Ironically, it is illegal for foreign persons or entities to own actual direct shares of Chinese companies.
Why anyone, knowing this, still plays by China’s rules is, as you suggest, mind boggling.