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Car Makers Shift Marketing Strategy For Luxury Models

August 7, 2008 11:46 a.m. EST

Vittorio Hernandez - AHN News Writer

Detroit, MI (AHN) - High fuel cost has forced even owners of luxury cars to switch to regular gas from premium fuel. Acknowledging the shift in consumer preferences, Ford Motor and General Motors have encouraged their dealers and sales staff to emphasize that engines of their latest models could use regular-grade or high-octane fuel.

Car manufacturers previously pushed premium fuel for almost 62 percent of their new models on the market, up from 42 percent in 2002, said Kelley Blue Book.

However, Ford is quietly boosting the ability of its 2009 Lincoln MKS to run on regular gas. The same marketing strategy is being used by GM for its Cadillac CTS model.

According to Stephen Russ, technical leader in Ford's powertrain operations, the engines of MKS and Edge were designed to detect if premium or regular gas was used. This new technology will be available in future models.

Since gas prices hit $4 a gallon, demand for premium fuel fell by 52 percent in May compared to 10 years ago, the U.S. Energy Information Administration said.

Weak sales caused by soaring gas prices and the economic slowdown led to losses or lesser profits for car makers and suppliers. Bloomberg said 2008 appears to be the weakest sales year for the U.S. automobile industry since 1993.

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