Automakers offering high-end holiday gifts

updated 5:14 p.m. ET Dec. 20, 2006

NEW YORK - For the corporate executive with some extra holiday cash to spend, Rolls-Royce Motor Cars is offering a limited-edition Phantom exclusively at its Beverly Hills dealership.

The vehicles, of which only six were made, feature mother of pearl inlays, commemorative plaques, chrome 21-inch wheels and a lounge seat DVD system, all for a mere $370,000 each.

Too pricey? Mercedes Benz created the Signature Edition CL600 luxury coupe, which it offered exclusively through Saks Fifth Avenue’s holiday catalog for $160,000 each.

All 20 of the CL600s sold in less than eight minutes on Nov. 14. As of Friday, just three of the six special-edition Phantoms remained.

With financial markets posting record gains in recent months, luxury vehicle manufacturers are hoping that executives will be driven to spend their year-end bonuses on new cars for themselves and their loved ones. At the same time, some automakers have kicked their TV ad campaigns into high gear and boosted their incentive offers, in hopes of drawing shoppers to dealerships.

“We are in a unique position with the stock market being so strong this year,” said Chris Marchand, western regional manager for Rolls-Royce.

“We think it’s a great opportunity with the Beverly Hills edition, and with Rolls-Royce in general, to get people in the dealerships and in a Rolls-Royce. We want to be the luxury vehicle of choice for the people who have the disposable income to spend on something like this.”

One of the special edition Phantoms went to oil and gas exploration executive Hal Taines, who bought it as a present for his wife.

Taines, who owns three other vehicles and bought his first Rolls-Royce in 1971, said he kept stopping by the Beverly Hills dealership to check out the special edition Phantom. He said he was intimidated at first by its large size, but loved the look of the vehicle.

“The hook was when I got in to drive the car,” Taines said. “I couldn’t believe. It drove like any car I’ve ever owned except it has the Rolls-Royce luxury and ride. It was just like riding on glass or on ice. And it does everything but brush your teeth. I wrote a check.”

MORE ON HOLIDAY BONUSES Goldman breaks Wall Street bonus record Holiday bonuses flooding New York City Automakers offering high-end holiday gifts Forbes: Why your bonus is a goose egg   Video: Santa has been good to big bosses   Video: Have exec bonuses gone too far? Vote: How much is your year-end bonus?   Sound off: Do you get an annual bonus?

Taines has only owned the car for about a week, but said he had put 239 miles on the odometer by Saturday. His wife hasn’t gotten a chance to drive it yet.

While it’s difficult tell how many Rolls-Royces sold during the holiday season are for gifts, Marchand said that December sales generally account for about 15 percent to 20 percent of a year’s total sales, compared with 8 percent to 10 percent for each other month.

Paul Taylor, chief economist for the National Automobile Dealers Association, said demand for luxury vehicles this time of year isn’t limited to Rolls-Royces.

“Certainly, the purchase of cars as gifts been a growing phenomenon in recent years,” Taylor said.

In addition, studies have found a direct correlation between the performance of the stock market and sales of luxury cars, potentially making this year’s holiday season a strong one, Taylor said.

MORE FROM AUTOS

Autos Section Front

GM bankruptcy described as unlikely GM may bring new mini car to U.S. Analysts: U.S. carmakers facing cash crunch Honda grows while U.S. auto industry falters Commuters pull over, flock to buses, carpools Squeezing gas for the very last mile GM stock falls to lowest level since 1954 GM bests Toyota in a dismal sales month Automakers call mileage standards aggressive Patriotic? Here’s how to buy American Autos Section Front   Add Autos headlines to your news reader: