Luxury Toy Cars to Help Brand the Big Ones
Audi, Mercedes-Benz, and BMW are competing with posh push cars for kids that target Europe's next generation of drivers
Inrecent years, Germany's Big Three automakers have been locked in a tight race for dominance of the luxury car market. Now the rivalry between BMW, Mercedes-Benz, and Volkwagen's Audi has expanded to include a holiday season battle for playground prestige with new push cars and snow sleds that target the next generation of drivers. Audi set the standard for luxury kid toys with a limited edition pedal-powered version of the Auto Union Type C, which it showed at the Nuremberg toy fair in February. The scale model of the 1930s racer, designed for kids up to 135 centimeters (4 ft. 5 in.) tall, has an aluminum frame, hydraulic brakes, seven speeds, leather-clad steering wheel, and oak dashboard. The car retails for €9,700 ($13,300), making it Audi's most expensive kid toy; only 100 of the 500-unit run remain unsold.
BMW is firing back in time for Christmas with new BMW- and Mini-branded sleds for €79 apiece. Daimler's Mercedes is countering with a version of the gull-wing SLS supercar for toddlers, due in April for €90 each. The carmakers are quick to explain that there's more to gain by promoting kid-focused merchandise than simply making a few euros. "Merchandising is important not because you can make huge money with it, but because it's another means of positioning your brand," says Peter Schwarzenbauer, Audi's sales chief. "We're thinking about more products that are not directly related to our cars but set design standards in other areas," such as a €12,900 tabletop soccer game.
Audi also has a line of teddy bears, including one decked out in a motor-racing suit for €47, and a modern pedal-powered alternative to the exclusive Type C. The red plastic racer for €299 features an adjustable rollover bar, hand brake, over-sized tires with Audi-style rims, and padded seats.
Luxury carmakers go to great lengths to add details that ensure their toys stand out. BMW's Snow Racer sled has replaceable metal runners, a suspension-system in the red steering ski, and a horn to warn inattentive passersby. In April, Mercedes will roll out the foot-powered SLS Bobby-Benz, featuring headlights, grill, and rear end similar to those of the company's $183,000 SLS sportscar. The toy SLS features quiet-running tires, an Ackermann steering system with tight cornering for living-room maneuverability, and a steering wheel that absorbs impact to prevent injury in the event of a collision. "All the products have to live up to Mercedes' standards for quality and safety—especially our toys, which are all-time favorites with the next generation of Mercedes-Benz customers," says Christian Boucke, head of Mercedes-Benz Accessories. The 10-year-old unit offers 15,000 products, including $24 silver Christmas ornaments, a $139 tote bag made from seatbelts, and a retractable pet leash for $15.50.
http://www.businessweek.com/magazine/content/10_49/b4206026221978.htm