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What Defines Luxury Cars Today? Driving the 800HP Mercedes-AMG GT 63 S E Performance

Bloomberg PodcastsDecember 5, 202545 min247 views
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The Evolving Definition of Luxury

  • πŸ’‘ Luxury is an ephemeral quality, no longer defined by a single factor like performance or price, as evidenced by $114,000 Ford pickups and $40,000 Mercedes.
  • 🎯 A key aspect of modern luxury is buying into a family of like-minded individuals, where personal tastes are communicated and shared.
  • πŸ”‘ While material quality like real leather and wood remains a layer of luxury, it's not the sole determinant, as seen in high-performance cars like Koenigsegg.
  • πŸš€ Innovation plays a crucial role, enabling cars to be deeply meaningful and highly customized or bespoke to the buyer's specifications.
  • ⚠️ Reliability is debated; while historically a hallmark, some new luxury cars may be engineered for shorter lifespans, impacting the long-term luxury experience.

Toyota's GR GT3 and the Return of Internal Combustion

  • πŸš— Toyota's Gazoo Racing unit is developing the GR GT3, a street-going version of their GT3 racing car, expected around 2027.
  • πŸ’¨ The car features a long hood, a rear cockpit, and a twin-turbo V8, with proportions reminiscent of the AMG GT and SLS.
  • πŸ“ˆ Toyota's financial success with fuel-efficient vehicles like the Prius has allowed them to invest in high-performance internal combustion engines, potentially offering 641 horsepower.
  • πŸ“‰ The easing of US fuel and emissions goals provides a temporary reprieve for American automakers, saving billions in carbon credits, though future regulatory shifts remain a concern.

Electric Vehicles and Market Challenges

  • πŸ”Œ Electric vehicles (EVs) are not a failure of marketing but face challenges related to cost, infrastructure, and consumer convenience.
  • ⛰️ There's a growing interest in large, off-road capable EVs, such as the rumored Audi SUV built on the Scout platform, which could appeal to American consumers.
  • πŸ’° The high cost of EVs, like the electric G-Wagen ($170,000+), is a significant barrier, whereas more affordable options like the Scout ($60-65k) may find better market traction.
  • πŸ“‰ The disappearance of federal incentives and rebates will further test the market's ability to support expensive EVs.

The Astonishing Price of Porsches

  • πŸ’° Porsche vehicles are exceptionally expensive, both new and used, with used prices sometimes exceeding new ones.
  • βš™οΈ Manual transmissions are becoming rare, available only on specific models like the Carrera T, despite their potential for higher resale value.
  • πŸ“Š The average price of a new car in America has surpassed $50,000, driven by luxury vehicles and EVs.
  • πŸ’Έ Porsche's cost-cutting measures, such as reducing manual transmission options and removing physical gauges, are seen as attempts to manage expenses on high-priced vehicles.

Driving the Mercedes-AMG GT 63 S E Performance

  • πŸ’¨ The Mercedes-AMG GT 63 S E Performance is the quickest Mercedes available, boasting 850 combined horsepower and 1,047 pound-feet of torque from its V8 hybrid powertrain.
  • 🌟 Despite its weight (over 4,500 lbs), the car offers a luxurious and elegant interior, feeling like a super luxury vehicle.
  • πŸ›£οΈ Its proportions differ from a 911, with a longer nose and a wider stance, offering a distinct driving experience.
  • 🎨 Unique paint colors, like the $6,500 desert sand option, can significantly differentiate a vehicle and add to its perceived luxury, though they are polarizing.
  • πŸ“ The car offers ample headroom, even with a panoramic roof, providing a comfortable experience, especially for taller drivers.
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Luxury CarsMercedes-BenzAMG GTPorsche 911Toyota GR GT3Electric VehiclesHybrid PowertrainsInternal Combustion EnginesCar PricingAutomotive DesignBespoke VehiclesVehicle ReliabilityCar ColorsManual TransmissionsPerformance Cars
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