Bloomberg reports: Rolls-Royce, Ferrari Suffer as Slump Reaches New Rich.
Rolls-Royce, Lamborghini and rival luxury carmakers that just five months ago said they’d buck the recession are finding they’re not immune.
The new millionaires of Asia and the Middle East have curbed spending, executives from companies including Rolls and Ferrari said in interviews at the Geneva Motor Show this week, torpedoing a market they’d counted on to spur growth after the banking crisis eroded orders in Europe and the U.S.
“Conventional wisdom has it that premium manufacturers do better in a downturn because people with more money can weather the storm,” said Michael Tyndall, an automotive specialist with Nomura in London. “This time it’s different.”
Errr... that's not conventional wisdom.
That would be that luxury goods do really badly in a downturn for obvious reasons. Especially mass luxury like the car makers or jewelry or "upscale" candy.
And, of course, the justification: "This time it's different."
The most expensive words in the English language!
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