Mercedes-Benz E-Class Full-grain leather and burled wood trim create an atmosphere of luxury in the completely redesigned 1996 Mercedes-Benz E-Class. This E320 features automatic climate control, 10-way power adjustable seats and side-impact airbags.
There are currently 46 luxury model lines for sale on the U.S. market-- all pictured and described in CarPoint.	Last year, Americans bought just over 600,000 new luxury cars, accounting for nearly five percent of total new light-vehicle sales. Priced above $34,000, luxury cars represent an ideal of comfort, security, prestige and elegance.      But these days, luxury car sales are sagging as value-conscious consumers discover a growing range of near-luxury vehicles, or find themselves in the driver's seat of a luxurious new sport-utility vehicle.
what's new in luxury cars The new Mercedes-Benz E320 is slightly larger than the previous model, however the price has been dropped nearly six percent. A redesigned E-Class luxury wagon is expected in the fall of 1997. (See Surround Video.)	The coming year ushers in a number of exciting new luxury cars well poised to attract more luxury buyers. Acura, Mercedes-Benz, BMW, and Jaguar all offer completely redesigned vehicles that showcase the luxury and performance of these prestigious marques.      Acura offers a whole new line of cars to replace the Legend and Vigor series. Called the TL, CL, and RL series, these cars offer customers value and luxury at all price points. Mercedes-Benz offers the totally redesigned E-Class, a stylish sedan that brings flowing coupe-like lines to this popular Mercedes-Benz platform. BMW introduces a totally new 5-Series sedan that combines a smooth new exterior with two new power plants. Finally, the totally new Jaguar XK8 coupe, unveiled at the Geneva Auto Show in March, replaces the XJS and will be available in October of 1996. Return to top
the near-luxury segment The Mazda Millenia was originally designed to be one of a new line of luxury cars dubbed Amati--Mazda's planned answer to Acura, Infiniti and Lexus. When the Amati project was canceled, the Millenia was launched as Mazda's own flagship near-luxury sedan.	Born out of fierce competition between U.S., Japanese and European automakers, the near-luxury segment includes a range of vehicles priced around $30,000. The growing number of vehicles in this segment, combined with the aggressive luxury positioning of automakers, has enticed more and more passenger car shoppers to "trade up."      But, by the same token, more value-conscious traditional luxury buyers have also discovered the segment and chosen to "trade down" slightly--avoiding the luxury tax, but still getting many of the benefits of a luxury car. Consequently, luxury car sales were down more than 12 percent last year, while near-luxury sales rose over six percent, according to J.D. Power and Associates.      European manufacturers in particular have been forced to reconfigure their lineups to be more competitive at lower price points. For example, BMW has shifted some of its manufacturing capacity to the United States to capitalize on lower costs and to strengthen its competitive position in its 3-Series model line. Mercedes-Benz also plans to start building in the U.S.--a luxury sport utility, in fact--but tackled the value-oriented near-luxury segment head-on just over two years ago with the launch of its C-Class line. (A list of popular near-luxury cars appears in CarPoint's passenger cars article.) Return to top
showcasing advanced technology Luxury cars provide excellent showcases for new technology. Acura's new flagship, the 3.5RL, features a satellite navigation system that provides exact location information, as well as guidance to get from one location to another.	Just as some automakers use sports cars to showcase their most advanced technologies, others use the luxury class to develop the best they have to offer. In the luxury car market, it is often features that dictate a purchase more so than price. Technologies such as semi-active suspension, 5-speed automatic transmissions, traction control and dual-zone temperature control are all technologies first developed for luxury cars where, as a rule, state-of-the-art safety, comfort, and convenience are expected. This pursuit of luxury car perfection eventually ends up benefiting all vehicle categories, as these technologies trickle down to other categories over time. Return to top
luxury cars and performance Performance is key in luxury cars. This 4.0-liter 32-valve 4-cam aluminum V8 engine--used in both the Lexus LS400 and SC400--generates 260 horsepower and 270 lb-ft of torque.	Modern luxury cars are not only more comfortable and luxurious than their predecessors, they're also more powerful and responsive. Today's upper-end luxury cars seamlessly integrate comfort and performance by mating ultra-smooth multi-valve V8 and V12 power plants to computer-controlled transmissions and suspensions. These advanced engine and drivetrain configurations help provide even the heaviest, most feature-laden luxury cars with the power and handling necessary to ensure a comfortable, secure ride. Return to top