I wrote previously about Mercedes foray into the small car market. As strange as that may seem to many Americans, both Mercedes and BMW have long produced smaller and less costly models for the European market. Now, it appears that BMW is considering doing the same: introducing to the North American market a truly compact car, smaller than any BMW that has ever graced our highways and back streets. Is this a good move for the German automaker? Or, will it water down a prestigious brand name?
Part of any automakers marketing strategy is to convince you, the consumer, what their vehicle line is all about. Dodge would like you to believe that they sell sporty cars and rugged trucks; Scion touts their youth oriented vehicles; and both BMW and Mercedes, like Cadillac, sell luxury vehicles. Millions of dollars of advertising is spent per year to reinforce brand image which is supported by consumer surveys of that particular sentiment.
Speaking about Cadillac, in the early 1980s GMs luxury brand briefly marketed a compact car the Cimarron that ultimately bombed, in part, because it strayed far from its big luxury car base. Sure, the car was little more than a rebadged...