I stole this from another board, but it's ripe for discussion. I doubt many here will disagree with what Forbes has to say.

http://mbnz.org/forums/forums/thread-view.asp?tid=1202220&posts=6&fid=44

"Carmakers are never satisfied with their current positions in the marketplace.

For example, next year BMW will likely bring its smallest car, the 1 Series, to the U.S. And DaimlerChrysler's (nyse: DCX - news - people ) Mercedes-Benz likewise will bring its smallest models here, too--although the carmaker seems in a perpetual state of indecision about which models to bring and when.

But we're not at all indecisive about small, inexpensive BMWs and Benzes. We think it's a silly idea.

Why, for heaven's sake, should the hallmarks of aspirational brands--right up there with Rolex--stoop to Timex status and compete to see who has the cheapest toys? In this country, Mercedes and BMW are icons. Their badges alone mean you've "made it," so there's little point in making these badges more widely available.

In simplest terms, people "graduate" to Mercedes and BMW status. Aspirational brands have status because they aren't easily obtained. They lose this allure when they go on sale at the outlet mall. How exclusive is a Ralph Lauren suit when you can buy it at Marshalls?

Preserving status should be the No. 1 mission for luxury brands."