>> As automakers roll out their monthly domestic sales figures Wednesday, the strength of luxury or the lack thereof will be in the spotlight. Sales at the high end of the market are lagging this year says Reuters transportation editor Joe White.>> So even though the stock market is near a record level which is usually great for luxury vehicle sales.
A lot of the big luxury car brands are having a down year. And part of the explanation for that is that they've just go the wrong vehicles and the wrong products in their show rooms. People who are buying luxury brands want luxury SUVs.>> Traditional luxury car companies slow to catch up to the insatiable demand for luxury SUVs.
Historically sedans made up two out of every three luxury auto sales. But that's now flipped to where SUV's are making up nearly two thirds of all luxury sales. The BMW's, Mercedes, Lexus's, Cadillacs, and Audi's of the world can't change up the production line fast enough to keep up.
And there's another thing they're not doing fast enough, building a tech savvy car that can match up to Tesla.>> They're still playing catch up particularly in the area of connectivity and what you see in your dashboard, how much information, music, news, all that kinda thing you can get in your dashboard.
They need to catch up with Tesla, they're working on it, they're not there yet.>> That's prompting some luxury drivers who want to stick with their current brand, to wait longer to upgrade. Hoping a newer model will one day look more like a Tesla. In the mean time luxury car sales are slowing and inventories are building.
Bad for auto makers, good for drivers. Expect major discounts heading into the holidays as luxury car makers try to lure customers back and prevent the year from going bust.