Is Silicon Valley proof of a luxury rebound in the U.S.?

Isaac Mostovicz writes that America's innovation hub could touch of a resurgence in the U.S. luxe industry...


If the statistics found in a Wall Street Journal article published yesterday are to be believed, then Silicon Valley in California may be the signal we’ve been looking for of a return to norms in the American luxe market.

According to the article, there has been a recent spike in the number of luxury and higher-end vehicles sold in the region.

Over the course of 2009, Silicon Valley’s sales of the priciest car brands rose, according to R.L. Polk & Co., which analyzes the auto industry. In November, for instance, 15 Lamborghinis, Bentleys and Maseratis were newly registered in the Bay Area, up from four in January 2009, notes Polk.

While not a bell-weather event, it is encouraging to see American luxe figures doing something other than nosedive.

Vincent Golde, general manager at Qvale Auto Group’s British Motor Car Distributors in San Francisco, also noted the up-tick in sales:

[S]ales of luxury brands improved in the second half of 2009 with his dealership—which handles Lamborghinis, Bentleys and others—particularly experiencing an increase in Bentley sales. Most of the car brands at BMCD start at $180,000 per vehicle.

What could this be attributed to? It’s possible that the region’s Theta personalities are regaining some confidence in the market and are feeling more comfortable spending larger sums of money, as the economy continues to slowly improve.

Mr. Golde said many of the transactions were for used vehicles rather than new cars as customers wanted to “let the [financial] crisis pass a bit.”

I expect that more recent figures will show that the market has continued to improve alongside the economy, which bodes well for the luxe industry across the country and even globally.

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