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 HyperOSÂ (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
“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.
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?
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.
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
“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!