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Honda China struggling with high-end Accord because Chinese covet German cars, too

It's not particularly unusual to see cheap cars in China, or those with designs stolen from foreign competitors, but increasingly the best-selling vehicles there would be very recognizable to just about any auto enthusiast. There appears to be one fact of life whether looking at car buyers in Sacramento, Stuttgart or Shanghai: People who can afford to buy premium cars often look first at the Germans.
Honda recently thought that it could challenge this perceived wisdom by including a premium Accord in the ninth-generation sedan's Chinese launch last year. The market-exclusive version was priced against the Audi A4. The venture failed, miserably.
According to Automotive News China, sales for the new Accord in China are down 37 percent through May of this year. Honda's overall sales are actually up by about 11 percent there on the strength of smaller, less profitable models. However, the company is still off its forecast 19-percent rise.

2014 Audi S1 is a little hatch hiding huge power [w/video]

The Audi S1 takes the Four Rings' high performance brand to its smallest model yet. Offered in three- and five-door forms (pictured above), the S1 is a subcompact hot hatch that seems specially suited for Europe's dense cities and tight roads.
The S1 follows the rest of the Audi S vehicle lineup with a very understated design. It maintains the looks of the standard car, but the larger air dam, 17-inch wheels and side sills tells viewers that something mean is lurking under the surface as well. It packs the Volkswagen Group's ubiquitous 2.0 TFSI four-cylinder, tuned here to produce 228 horsepower and 279 pound-feet with a six-speed manual transmission and all-wheel drive, and it is enough to get it to 62 miles per hour in less than six seconds for either body style and to a top speed of 155 mph. Handling is aided by a more sophisticated four-link independent suspension to replace the standard A1's torsion beam setup.
They come in just two colors for now - Vegas Yellow or Sepang Blue - and are hitting European roads later this spring. UK prices start at £24,900 ($41,518) for the three-door and £25,630 ($42,735) for the five-door.

Despite premium carmakers going downmarket, luxury auto sales stick at 10-11%

According to research conducted by global information company IHS Automotive, the leporine birthing of new models by luxury manufacturers over the past six years hasn't increased their market share in the US. Even as car sales reached 15.6 million units, IHS says what's happened instead is that luxury buyers are merely moving from one brand to another, moving from larger luxury vehicles into hot segments like compact luxury crossovers or leaving the market at the same rate as other buyers enter.
Whether broken out by makes or by segment, market share has rollercoastered inside a narrow band from 10.5 to 11.5 percent since "at least" 2008. Closer investigation reveals the shifting boundaries in the aspirational pond, with brands like Mercedes-Benz and Audi gaining territory as Lexus and Lincoln lost it, and Saab and Hummer were buried, dead, under it. One neat note is that Tesla has gone from a share of zip to .12 percent.
The subcompact and compact crossover segments show growth, with those little high-riders jumping from .3 percent to 1.16 percent of overall industry sales. Their rise, though, is concomitant with the decline of four other segments: compact and midsize cars and fullsize cars and SUVs. We think the next few years that will tell if the small-car expansion can overcome the large-car retraction, with a phalanx of smaller offerings like the CLA only recently hitting the market and others like the GLA, Macan and Q1 doing so in the near future.