... its the AMG's and SLs that create aura of technological advancement, performance and exclusivity. And generate the most press coverage. These are vehicles people aspire to own.
I don't agree with that. It wasn't that long ago that AMG was an after-market company not even owned by MB, and few knew about them. MB and BMW have prestige, which is why people prefer them today. Buying a car in America has for many years mostly been about prestige. You are what you drive.
30 years ago, MB and BMW were prestigious because of their reliability. This was before electronic ignition, fuel injection, and computer controlled engines and transmissions. It was also when lubricants were vastly inferior than those available today.
The average person under 40 simply does not understand how important reliability was before about 1985. Cars did not usually start the first time one turned on the ignition (and simultaneously pumped the gas pedal). Tune-ups (no longer done) were required every 12K miles to replace
spark plugs and various parts in the mechanical distributor. American cars (and even Rolls Royce) were no match for the German cars in terms of reliability back then.
Then the Japanese came along and challenged the German reliability for a much lower price. In the mid 1980's, an auto magazine testing the Honda Accord, said it was the first car they have ever tested that could idle indefinitely without overheating (something any car can do these days). Honda and Toyota reliability upped the game, and allowed them start Acura and Lexus brands on the reputation of that reliability, but at a much lower price than the Germans.
These days, MB and BMW have very high levels of engineering, but the industry has caught up in terms of reliability (and in many cases surpassed them), especially when cost of repairs are factored in. The whole nature of the auto industry has changed since MB and BMW built their initial reputations. Back 30 years ago, automakers made virtually all their own components (or owned the subsidiaries that made the components). These days, many engines, transmissions, brake systems, etc are made by separate companies (many spun off from the auto-makers) that supply the same or similar components to many automakers. Technology sharing agreements are widespread in the industry. This has completely changed the game in terms of reliability and functionality of vehicles.
For historical reasons that are slow to change, MB and BMW are still considered prestigious, primarily because they cost more than many other cars. Lexus is still living off their fumes of their incredible reliability when first released, that has now been matched by many other automakers.
As younger generations come into the auto market, there is opportunity for brand perceptions to change, and that has helped Hyundai tremendously after their disastrous entry into the US market in the 1980's. Whether Hyundai can go one step further, and challenge the luxury car market remains to be seen, but it is clear that it is not nearly as difficult as it once was to achieve technical parity with the big players in the luxury market. The real problem is perception, which will always be a big part of the luxury car market. But having substantially lower prices for the same luxury doesn't hurt either.
Don't forget that LeBron James called Kia and
he asked them to send him a K900 after driving a courtesy car and really liking it. Not only did they send him one, they signed him to an endorsement deal.
