All good points, except that Ford owns Jaguar. :-) they sold it (and Land Rover) to Tata nearly nine years ago. http://tata.com/article/inside/y7LY!$$$$!HD0TiM=/TLYVr3YPkMU=

But your allusion to luxury brands is interesting. Look at the German marques Audi, BMW and Mercedes-Benz: throughout the 1980s and much of the 90s, their smallest (and cheapest) vehicles were mid-size sedans: the Audi 80/A4, the BMW 3-Series, the Mercedes 190/C-class.

But the nomenclature augured what happened later: the affordable Mercedes A-class first, followed by the BMW 1-Series and the Audis A3 and A1.

I don’t think that entirely counters Kwak’s argument (there are many people globally who cannot afford a car at all, even if they were willing to allocate all of their income or wealth to its purchase), but it goes some way!

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Accidental behavioural economist in search of wisdom. Uses insights from (behavioural) economics in organization development. On Twitter as @koenfucius

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