Automakers Focus on Luxury & Tech

Luxury Automotive Events See Strong Revival

Throughout late summer, collectors of fine automobiles gathered in Monterey, Detroit, and Oxford, England, participating in a longstanding tradition of admiring – and frequently purchasing – both classic and high-end vehicles.

Following a widespread suspension of events in 2020 due to the COVID-19 pandemic, outdoor luxury automotive showcases flourished in 2021. Events like the Goodwood Festival of Speed in July, Monterey Car Week and the Woodward Dream Cruise in August, and the Salon Privé, which concluded on Sunday, displayed not only stunning coupes and hypercars, but a renewed enthusiasm.

Demand and Enthusiasm

Despite concerns surrounding the delta variant, substantial crowds attended these events. Their response to the vehicles on display demonstrated a significant desire for super-luxury automobiles, both from the past and those representing future innovations.

Angus Dykman, an auction specialist with Gooding & Company, noted a “pent-up demand for a live auction.” He observed considerable interest in in-person sales, adding that “business has been booming” and attendees were enthusiastically bidding on a wide range of vehicles.

Porsche 917 cars at the 2021 Pebble Beach Concours d’Elegance in Pebble Beach, California, U.S., on Sunday, Aug. 15, 2021. Credit: Getty images, photographer: David Paul Morris/Bloomberg

Showcasing Future Designs

A key element of these gatherings was the opportunity for both established manufacturers and emerging brands to present their latest vehicle designs to potential customers. Monterey, in particular, remains a crucial venue for luxury automakers to unveil next-generation models.

Rimac and Lucid Group, alongside established names like Bentley, Bugatti, and Mercedes-Benz, all invested in a presence at Monterey. The common thread connecting vintage and contemporary vehicles was their striking designs, intended to attract a new generation of buyers.

Executive Presence and Orders

Collectors were actively placing orders for new production models even before manufacturing commenced, despite ongoing challenges like the microchip shortage and limited vehicle availability. These events also provided a platform for interaction with top-level executives from various brands.

At least a dozen senior executives were present at Pebble Beach, including Jim Farley, CEO of Ford Motor Company; Dimitris Psillakis, President of Mercedes-Benz U.S.; Tobias Moers, CEO of Aston Martin; and Maurizio Reggiani, CTO of Lamborghini.

Attendees view the Bugatti Automobiles SAS Bolide during The Quail, A Motorsports Gathering in Carmel, California, U.S., on Friday, Aug. 13, 2021. Image credit: David Paul Morris/Bloomberg via Getty Images

Aston Martin's Rebirth

Tobias Moers, CEO of Aston Martin, emphasized the importance of these events for the luxury automotive sector. He stated, “It is the place to be when it comes to our luxury automotive business,” noting the opportunity to connect with new customers and leverage the brand’s association with Formula 1.

Aston Martin showcased its future direction with displays including the Aston Martin Formula 1 car, alongside the Valkyrie and Valhalla models. Moers highlighted the company’s resurgence following investment from Lawrence Stroll, stating, “We are back and we are stronger than ever before engaging with the customers.”

He also revealed the recruitment of new department heads from Bentley, Ford, and Porsche, even while much of the U.K. was under restrictions.

Electrification and Global Markets

Moers, formerly of Mercedes-AMG, expressed confidence in Aston Martin’s ability to succeed in the evolving automotive landscape, particularly with the advent of electrification. He believes that new technologies allow for a seamless integration of performance and luxury.

He also underscored the importance of the Chinese market, noting the distinct demographics of luxury car buyers there. “You have 18 to 30s, and then the 60s upwards, and in between is not existing at the moment,” he explained, emphasizing the rapid growth of wealth in China and Asia.

Future Plans and Innovation

Aston Martin’s future strategy centers on electrification, enhancing the in-car user experience, and moving away from reliance on previous-generation Mercedes-Benz technology. The company is developing a new infotainment system with ART, an Italian supplier known for its work with Lamborghini and Apple.

“We create our own environment. Our own ecosystem,” Moers stated, emphasizing the desire for a more engaging and unique user interface.

While focusing on innovation, Aston Martin will continue to utilize Mercedes’ V8 engine technology to improve efficiency as it transitions towards electrification.

The Convergence of Power, Emotion, and Technology in Automotive Design

A prominent trend surfaced amongst automotive leaders at Pebble Beach: a shift towards novel powertrain solutions to meet regulatory demands. This transition is being carefully balanced with the need to preserve the emotional connection drivers have with their vehicles and to appeal to a broader audience through cutting-edge in-car technology.

Collaboration and Resource Dependence

Independent, ultra-luxury vehicle manufacturers are increasingly reliant on the financial backing and technological resources of larger automotive groups. These groups provide essential components like engines and electronic platforms, which in turn depend on a highly skilled workforce for their development.

Consequently, these smaller brands must strive for distinctiveness to differentiate themselves from their parent companies.

The Importance of the Electronic Platform

Lamborghini’s Chief Technology Officer, Reggiani, emphasized the critical role of the electronic platform. “This platform represents a significant investment and is largely unseen, yet it functions as the car’s central nervous system.”

Leveraging resources from the Volkswagen Group allows Lamborghini to maximize component sharing, particularly in areas where differentiation isn’t readily apparent.

Synergy Within the Volkswagen Group

Lamborghini benefits from its position within the Volkswagen Group, alongside brands such as Bugatti, Bentley, Audi, and Porsche. This structure facilitates collaboration and resource allocation.

Embracing Innovation: The Amazon Alexa Partnership

Lamborghini proactively pursued a partnership with Amazon Alexa, becoming the first automotive brand to do so. This initiative proved successful, demonstrating customer receptiveness to integrated voice assistant technology.

Reggiani envisions a future where sound plays a crucial role in enhancing the user experience. “Sound can act as a filter for voice recognition. Consider a scenario where a vehicle malfunction triggers a warning light, prompting the driver to ask Alexa for guidance on necessary actions – stopping the car or contacting roadside assistance.”

The company is actively collecting data to refine sound design and voice interaction capabilities, paving the way for advanced artificial intelligence integration.

Design as a Core Differentiator

For Lamborghini’s clientele, technological advancements must be seamlessly integrated into visually appealing designs that remain contemporary. “Design is the primary motivator for purchasing a Lamborghini,” Reggiani stated.

Modern automotive design is evolving beyond mere aesthetics, becoming a holistic integration of engineering and form. Every component must serve a functional purpose.

“Aerodynamics and cooling systems are prime examples. With the introduction of Plug-in Hybrid Electric Vehicles (PHEVs), cooling requirements will become increasingly complex, and battery management will demand sophisticated solutions. Design must meet these demands while maintaining a visually striking aesthetic.”

The Evolution of Automotive Technology and Design

Classic automobiles showcased at Monterey Car Week served as a potent illustration of how aerodynamics and weight distribution have consistently been fundamental to automotive design and the advancement of the industry, especially in motorsports applications.

However, contemporary technology and design prioritize speed, electrification, ADAS (Advanced Driver-Assistance Systems), and connectivity, all integrated into a system characterized by both elegance and enduring appeal. As Reggiani noted, maintaining emotional resonance is a critical necessity.

Navigating the Future of Automotive Innovation

Effectively designing for the future necessitates clear communication regarding the direction of automotive development. Luxury vehicle manufacturers face a significant challenge in keeping pace with the rapid rate of change in today’s world.

The challenge is substantial. Despite its absence from the event, Tesla strategically scheduled its announcements concerning artificial intelligence to coincide with Monterey Car Week, and remains the benchmark company in the realm of electrification that others strive to surpass.

Experiencing Automotive History

Participating in the driving of meticulously maintained vintage cars, available in limited numbers and commanding multi-million dollar valuations, can be a uniquely captivating experience. A drive in a 1957 Mercedes-Benz 300 SL, a beautifully crafted manual transmission roadster, along the Pacific coastline provided a brief insight into this exclusive sphere.

Access to this world is often financially restrictive, a factor amplified by current global circumstances.

From Heritage Events to Future-Focused Shows

Events such as Goodwood, Woodward, and Salon Prive, which recently concluded, also held considerable appeal. With these prestigious outdoor gatherings now completed, the automotive sector is currently concentrating its attention on exhibitions dedicated exclusively to the future of mobility.

The IAA Mobility show, currently underway in Munich, offers a more engaging and interactive experience than traditional auto shows, as manufacturers attempt to revitalize this format.

The extensive collection of electric vehicles and concept cars on display underscores the fact that the pace of innovation is a factor that financial resources alone cannot determine.