How do we make the next big thing like its no big deal?
Get innovative. Get NX for product development and
manufacturing.Todays manufacturers face daunting challenges: they
need to develop innovative products faster than ever before, while
meeting higher expectations for quality and process efciency. NX
from Siemens PLM Software can help you overcome all these
challenges. With best-in-class functionality for CAD, CAM and CAE
solutions, NX accelerates your development process, increases
productivity and enhances product quality. The result: delivering
your next big innovation becomes that much easier. Find out more at
www.siemens.com/nx.
Answers for industry. 2011 Siemens Product Lifecycle Management
Software Inc. All rights reserved. Siemens and the Siemens logo are
registered trademarks of Siemens AG. NX is a trademark or
registered trademarks of Siemens Product Lifecycle Management
Software Inc. or its subsidiaries in the United States and in other
countries. All other logos, trademarks, registered trademarks or
service marks used herein are the property of their respective
holders.
>> INSIDE: TALK FROM THE TOPBentley CEO Wolfgang
Duerheimer, Jaguar Land Rover CEO Ralf Speth and Mini boss Kay
Segler
AUTOMOTIVE NEWS EUROPE
LETTER FROM THE EDITOR
Harald Hamprecht
Fire fightersThe hottest fires make the hardest steel, or so the
saying goes. In real life, the economic crisis blazing through
southern Europe is turning profits into ashes. It is estimated that
nearly every European volume manufacturer had an operating loss in
Europe last year. Peugeot, Citroen, Renault, Opel/Vauxhall and Fiat
are doing all they can to try to defy the downturn (page 12)
because no one wants to end up like Saab. To avoid getting into
deeper trouble, those volume brands will need to address four key
weaknesses. 1. Europe-centric: The five brands mentioned above are
too dependent on Europe, where sales are expected to decline for
the fifth consecutive year in 2012 (see chart). 2. Stuck in the
middle: The Asian automakers, especially the Koreans, are attacking
from below while premium manufacturers are pushing more and more
product into the subcompact and compact segments. 3. Overcapacity:
Automakers such as Renault, Peugeot, Fiat and Opel have either
delayed needed restructuring of their manufacturing footprints or
did not cut deep enough in the past. 4. Weak brand portfolio:
European automakers must accept that one can only stretch an
existing brand so far. For example, sister brands Citroen and
Peugeot compete for the same customers and neither has a budget
brand, like Renaults Dacia, nor a premium brand, like Volkswagens
Audi, to generate profits. 2. Ford 4. Peugeot 5. Renault 6. Citroen
7. Audi 8. BMW 9. Fiat 10. Mercedes Total market
is Editor-in-Chief at Automotive News Europe. He can be reached
at [email protected]
EUROPES TOP 10Western European passenger-car sales for top 10
brands
2012* 1. Volkswagen 1,415,041 975,356 971,257 859,356 810,403
675,714 647,652 643,652 628,181 586,298 12,482,075
2011 1,607,582 1,068,282 969,026 899,373 1,019,140 763,110
658,746 619,522 670,199 567,886 13,201,216
% CHG
-12 -9 0 -4 -20 -11 -2 4 -6 3 -5
3. Opel/Vauxhall
SOURCE: IHS AUTOMOTIVE; *FORECAST
THE EXCEPTIONThere is one volume automaker on the European
battlefield that is an exception: Volkswagen. Last year, the
longtime No. 1 automaker in Europe rose to No. 2 from third in
global sales. Its impressive, but dont forget that the company was
in rough waters when Bernd Pischetsrieder took over as group CEO
from Ferdinand Piech in 2002. The companys profits plummeted in
2003 while the fifth-generation Golf disappointed and the Phaeton
flagship flopped in 2004. In 2005, VW was shaken by a sleazy
corruption affair. That same year, Wolfgang Bernhard joined VWs
management board and helped end a dark period when production
efficiency was a foreign concept at the company. By 2007, Martin
Winterkorn took over and now VWs billions in operating profits make
it the envy of the auto industry. But it wont be easy to maintain
the momentum in a declining market, especially with the Golf,
Europes top-selling car for the last four years, undergoing a model
changeover. Another challenge is that the Up minicar is likely to
steal sales away from the Polo subcompact.
pany quickly tumble back to the brink of failure. Besides,
Marchionne has often over-promised and under-delivered. I am still
waiting for the year when Lancia and Alfa Romeo will do as
Marchionne predicted and each sell 300,000 cars a year. Marchionne
is Mr. Big Picture. He says he is searching for a new partner to
join the Fiat-Chrysler alliance so it can better compete against
VW. Marchionne should get his business straightened out before he
tries to create an even bigger conglomerate of struggling volume
manufacturers. Coming back to hot fires and hard steel, my advice
to European volume manufacturers is simple: Use the crisis. Develop
a clear strategy and execute it to perfection. Improve quality and
offer designs that make car buyers wallets jump out of their
pockets. Speed up efforts to improve your cost-competitiveness. If
your plants cannot become more efficient then fight through the
political battles and shut them. Otherwise, massive structural
costs will continue to devour your profits. Cooperate more! This
would be much easier and more successful than organizing
megamergers. In a nutshell, stand out or stand aside. Transform
into the leanest, most innovative manufacturers in the world.
Europes automotive brands have the heritage and people needed to
achieve greatness. Of course, I am well aware that all of this it
is easier said than done. But it is not impossible, as the revival
of British luxury and premium brands shows (page 32). I hope you
enjoy this issue.
FUMBLING FIATAt the other end of the spectrum is Fiat the
biggest loser in 2011 among the major automakers with a European
sales decrease of 17 percent. Fiat is getting stung by Italys sales
slump. Its also hurt by an aging lineup that resulted from CEO
Sergio Marchionnes decision to delay product launches during the
Great Recession. In addition, Fiat is in the middle of the Chrysler
merger, which Marchionne says is only about 20 percent finished. I
am reluctant to praise the CEO too much. The man definitely revived
Fiat. He also saved Chrysler from extinction, but there are others
who once made the same claim Bob Lutz, Dieter Zetsche, Wolfgang
Bernhard only to see the com-
MARCH 2012
AUTOMOTIVE NEWS EUROPE
3
AUTOMOTIVE NEWS EUROPE
INSIDE THIS ISSUE
www.autonewseurope.comJASON STEIN Publisher and Editorial
Director +1 313 446 0376 [email protected] NINA SAUER Associate
Publisher +49 89 381 517 400 [email protected] KEITH CRAIN
Publishing Director PETER BROWN Group Publisher
contentsMARCH 2012 EDITION
22
3 Letter from the Editor
42 Surging Skoda
MARKETS6 Focus on FranceSales will slump, but no need to
panic
Czech brand remains on record-breaking course
44 Module-maniaVW Group pushes production network to new
heights
EDITORIALHARALD HAMPRECHT Editor-in-Chief +49 (0) 173 257 86 88
[email protected] DOUGLAS A. BOLDUC Managing Editor +49 (0) 171
424 6373 [email protected] PAUL McVEIGH Managing Editor +49 (0) 176
7835 3951 [email protected] LUCA CIFERRI Chief Correspondent +39
01196 91970 [email protected] STEVE MASSIE Design Director
[email protected] Bruce Gain (France), Bertrand Gay (France), Nick
Gibbs (UK), Stefan Grundhoff (Germany), Lois Hoyal (Germany), Yang
Jian (China), David Jolley (Germany), Joaquim Oliveira (Portugal),
David Sedgwick (U.S.), Sebastian Viehmann (Germany)
Correspondents
8 Europeans gain in ChinaGermans lead; French, Fiat need to move
faster
SUPPLIERS46 Inside actionSuppliers do more with less to create
cutting-edge interiors
COVER STORY12 Defying the downturnHow Europeans plan to overcome
tough times at home
48 Mobility 3.0New solutions for getting from A to B
50 Brave new worldHollywood fantasy comes closer to reality at
CeBIT
NEW CARS21 Auto arrivalsSee which new models will debut in
2012
52 Car cutawaysWho has parts in the Citroen C4 and Toyota
Yaris?
54 New frontierBrembo wins big by moving beyond supercars
ADVERTISINGEUROPENINA SAUER Director of Sales, Marketing and
Events +49 (0) 89 381 517 400 [email protected] STEFANO DAMIANO
Sales Manager + 31 (0) 299 769 110 [email protected] GEORGIA
CHAPMAN Marketing and Events +49 (0) 176 2076 9139
[email protected]
USARICK GREER Sales Director +1 313 446 6050
[email protected]
A-Z of Geneva auto show debuts 22 Audi to Bertone A3 loses
weight; car legend revived 23 BMW to Ferrari Swoopy 6-series sedan;
599 successor powers up 24 Ford to Mercedes Electrifying sports
car; a cool A class 26 Mini to Peugeot Quirky subcompact; 208
pocket rocket 28 Geneva floor plan 30 Pininfarina to Skoda Zoe
sparks EV market; Toledo lives again 31 Smart to Volvo An
affordable hybrid; downsized Swedish luxury
DATA56 European sales figuresMarket analysis by model for
2011
RETAIL62 Second chanceUsed-car sales rescue automakers, dealers
in hard times
HUMAN RESOURCES64 People on the moveNew faces in key management
positions
KOREAJUNG-WON SUH Sinsegi Media Inc. +82 2 785 8222
[email protected]
OEM32 The British are backJLR, Mini, Rolls-Royce ready for
another strong year
FINAL WORD66 Diversity Inc.Fiat-Chrysler has deep talent pool of
future CEO candidates
CIRCULATIONLAUREN CIALELLA Circulation Manager +1 313 446 0490
[email protected]
34 Bentley charges aheadVW unit wants to more than double sales
by 2017
SUBSCRIPTION SERVICESVertriebsunion Meynen GmbH & Co. KG +49
6123 9238 249 [email protected] Printed in Hanover,
Germany, by BWH GmbHPublished by Crain Communications Inc. 1155
Gratiot Ave. Detroit MI 48207 USA All contents Copyright 2012. No
part of this puiblication may be reproduced, stored in a retrieval
system of transmitted in any form or by any means, electronic or
mechanical, photocopying, recording or otherwise without the
permission of the publisher. All rights reserved. Additional copies
For additional copies +1 313 446 0490 [email protected]
36 Maximizing MiniBMW subsidiary will add models, dealers,
output
37 Rolls keeps rollingCEO predicts strong year for ultraluxury
brand
38 Ready to pounceJaguar Land Rover drives toward big sales
gain
32iStockphoto.com MARCH 2012
39 Looking for a partnerAston Martin needs help to add SUV to
lineup
40 Guide to assembly plantsWho makes what in Europe and
Russia?
Cover image: iStockphoto.com/lucaciferri
4
AUTOMOTIVE NEWS EUROPE
YES, PROCESS MANAGEMENT CAN BE THIS SIMPLE.
iii MSXI Track IT
iii MSXI Field Program Management Toolin your retail network. It
maximizes the effects of your programs at minimal cost and allows a
significant reduction in the number of audits and retrainings in
the long run.
MSXI DEALER EXCELLENCE SOLUTIONS ARE ALREADY IN PLACE WITHIN
LEADING AUTOMOTIVE COMPANIES AROUND THE WORLD TO INCREASE THE
EFFICIENCY AND PROFITABILITY OF RETAIL NETWORKS.
As a stand-alone solution or as the corner stone of a broader
program including
In todays market, it is more important than ever before to make
sure your dealerships are operating at peak performance. That is
why we have developed MSXI Track IT, a powerful management tool
that offers you easy, centralized steering of all process
improvement programs and field activities
highly developed MSXI Dealer Excellence Solutions, Track IT can
be implemented locally, regionally or globally.
Contact us today and get on the road to optimal business
performance.
FUELED BY CHALLENGE. POWERING SUCCESS.CONTACT: PHONE +49 (0)221
947 00 102|[email protected]|WWW.MSXI.COM
AUTOMOTIVE NEWS EUROPE
MARKETS
No Gallic panicFrench sales outlook poor for 2012 but not a
crisisBERTRAND [email protected]
RENAULT, PEUGEOT SLIPVW and Nissan gained ground in 2011 while
domestic brands slipped. Frances top 10 based on passenger-car
sales; % change vs. 2010; % market share 1. Renault 2. Peugeot 3.
Citroen 4. VW brand 5. Ford 6. Opel 7. Dacia 8. Nissan 9. Toyota
10. Audi 455,718 369,721 323,068 -9 20.7 -8 16.8 -2 14.7 7.4 5.2
4.3 4.0 3.3 3.1 2.7 100
Peugeot 508 and Renault Laguna account for just 30 percent of
the segment. Most automakers expect slower sales to private buyers
this year, so they are increasing their focus on the company car
market. In 2011, private sales accounted for 61 percent of new-car
volume. Company car sales were 19 percent while
manufacturer/demonstration cars were 11 percent and short-term
rental cars 9 percent. In the mid-sized segment French cars lose
out on fleet sales because of their low residual values, which lead
to a high monthly leasing rate. Companies can lease German luxury
models for the same cost as an executive sedan from a French brand.
For example, the residual values of the Renault Laguna and the
Citroen C5 are 6 to 8 points lower than an Audi A4. Audi estimates
that the total market for premium-car sales will grow by 4,000
units to 207,000 this year. Last year, Audis sales in France grew
16 percent to 58,960, a volume higher than Fiat brands sales, which
declined 21 percent to 57,323, according to the industry
association CCFA. BMW brand sales rose 1 percent to 46,305 while
Mercedes-Benz brand fell 5 percent to 43,547. As a whole, the
French market will continue to suffer this year from the
aftereffect of the 2010 scrappage program, which encouraged private
buyers to renew their cars earlier than planned. The euro zone debt
crisis is also causing a lot of uncertainly. What really worries us
is France, as were very sensitive to the French market, Renault CEO
Carlos Ghosn told a French radio station in January when asked
about Europes debt crisis.
T
he French auto market is forecast to drop by up to 8 percent in
2012. Industry executives are worried about this, but they are not
panicking. Most automakers expect French new-car sales to be about
2 million passenger cars and 400,000 light commercial vehicles in
2012. This number does not show a crisis on the market, says
Bernard Cambier, Renaults sales chief for France. We foresee a
French passenger-car market 8 percent lower than last year, but we
expect that the first quarter will be 17 percent down, he says. The
market ended last year with sales of 2.2 million, a 2 percent
decline from the year before but still an impressive figure because
in 2010 buyers rushed to the dealerships to take advantage of
government-funded scrappage incentives. Industry watchers say
France is a typical mature market without any growth prospects and
its true level without incentives or rebates is 2 million units.
Two significant changes are reshaping the market. 1. Renault and
PSA/Peugeot-Citroen are losing sales to ambitious foreign rivals.
2. The product mix is moving downward. Volkswagen Group, including
its VW, Audi, Skoda and Seat brands, plans to nearly double French
sales to 400,000 by 2018, says Marie-Christine Caubet, head of VW
Group in France. Last year, VW Group sold 294,000 cars and light
commercial vehicles in France with all its brands except Seat
posting double-digit increases. The group will launch 30 new or
updated vehicles in the next 15 months in France. The VW brand aims
for a market share of 8 percent this year, up from 7.4 percent in
2011. Hyundai also has ambitious goals in the French market. The
Korean brand wants to more than double its annual sales to 50,000
by 2015 from about 20,000 last year and to increase its market
share to 5 percent in the long term from nearly 1 percent in 2011.
We want to be the leading brand in customer satisfaction, adds
Patrick Gourvennec, Hyundai Motor France managing director. Last
year, Renault and PSA accounted for a little more than 56 percent
of all cars sold in France, down 5 percent on the year
163,566 12 115,339 94,080 1 -1
88,979 -15 71,763 33 67,305 3
58,960 16 -2
Total market 2,204,065SOURCE: CCFA
before. Renault's market share, excluding Dacia, declined by 1.4
percentage points to a historic low of 20.7 percent. Sales were
negatively affected because its bestselling model, the Clio
subcompact, is nearing the end of its life cycle. The
fourthgeneration Clio launches next year. PSA has a 31.4 percent
market share for its two brands compared with 24.7 percent for
Renault and Dacia. But the market share for PSAs top-selling brand,
Peugeot, fell 1 percentage point in 2011 to 16.8 percent, mainly
because its best seller, the 207 subcompact, is due to be replaced.
The 208 launches in April.
SMALL IS THE NEW BIGSales of minicars (A segment) and
subcompacts (B segment) are growing in France with the two segments
now accounting for just over 50 percent of French new-car sales, up
from 38 percent eight years ago. French brands still dominate
minicar and subcompact sales, but they face a tougher challenges in
the dynamic compact segment (C segment), where cars such as the VW
Golf and Ford Focus are catching up fast on models such as the
Renault Megane and Citroen C4. Compact sales now account for 40
percent of the market, compared with 35 percent eight years ago.
Buyers have deserted French brands in the mid-sized segment (D
segment). Aggregated sales of the Citroen C5,
Carlos Ghosn: Worried about sales in France.
6
AUTOMOTIVE NEWS EUROPE
MARCH 2012
A new global view. Built by you.Coming in March: Automotive News
Europes Global Monthly!
A collection of news, interviews, analysis and data from around
the world, including: Monthly European sales data from JATO More
car cutaways from IHS showing which suppliers are working on the
biggest launches Top-level interviews with Europes leading
automotive executives Big news, analysis and commentary from
Automotive News China and Automotive News North America PLUS: The
ability to add more archived articles and customize a downloadable
PDF AND: All downloadable and readable on your iPad
Automotive News Europes Global Monthly e-Book. Global news. Your
news. The way you want it. Subscribe today: 199 per year!To
subscribe, contact our customer service: Phone: + 49 61 23 92 38
249 Fax: + 49 61 23 92 38 244 Email:
[email protected]
europe.autonews.com/globalmonthly
AUTOMOTIVE NEWS EUROPE
MARKETS
French brands, Fiat need to move faster to grow in the worlds
biggest market
Germans to keep China edgeDAVID SEDGWICK & YANG
[email protected]
CHINAS LEADERS2011 passenger-car sales by brand; % change vs.
2010; market share (includes JV sales) 1. VW 2. Toyota 3. Nissan 4.
Hyundai 5. Buick 6. Honda 7. Chevrolet 8. Chery 9. BYD 10. Kia
1,720,000 883,000 835,217 770,705 645,537 617,764 595,068 556,235
448,500 432,518 +14 +4 +23 +4 +17 -5 +9 +3 -14 +29 13.2 6.8 6.4 5.9
4.9 4.7 4.6 4.3 3.4 3.3REUTERS
I
n China, there was a time when automakers could boost sales
simply by introducing rebadged versions of their obsolescent
platforms. In a market with so much pent-up demand, anything would
sell. Those days are gone.
With sales of 14.5 million cars and light commercial vehicles up
5.1 percent over the previous year China remained the worlds
largest automotive market in 2011, but the growth rate has slowed.
Auto executives no longer are counting on the crazy gains of
earlier years, which culminated with a 33 percent sales increase in
2010. LMC Automotive forecasts Chinas vehicle sales will rise about
9 percent this year, but the disparity between the strong and the
weak brands is widening fast. Fiat and Renault will have to spend
heavily to catch up to the German brands. But Volkswagen, BMW,
Mercedes and Audi also are investing, and most industry analysts
expect theyll stay on top. Heres a company-by-company overview of
the European automakers prospects in China.
OTHER EUROPEANSAudi BMW* Citroen Skoda Mercedes Peugeot Volvo
Land Rover Porsche Renault Jaguar Opel Bentley Fiat Maserati
313,000 232,586 230,634 220,100 193,339 173,803 47,140 36,087
24,340 24,275 5,976 4,864 1,780 1,354 780 +37 +38 +10 +16 +31 +12
+54 +54 +65 +65 +123 +51 NA +200 +100 2.4 1.8 1.8 1.7 1.5 1.3 0.4
0.3 0.2 0.2
THE KINGPINVolkswagen Group China CEO Karl-Thomas Neumann
recently described VWs plan to build a new assembly plant in the
city of Foshan in south Chinas Guangdong province its first in that
region. Honda and Toyota dominate Chinas prosperous southeast, and
Neumann is determined to break their grip. The new plant is part of
VWs plan to spend 14 billion euros to boost production in China to
3 million units a year by 2014, up from 2.2 million units in 2011.
VW is determined to keep growing in China, and the company is
moving into new markets to do so not only in the south, but in
Chinas less developed western region. Volkswagens joint ventures
with Shanghai Automotive Industry Corp. and China FAW Group
currently operate nine assembly plants. In addition to Foshan, VW
will build a plant in the east China city of Yizheng. And VW has
gotten government permission to build two additional plants in the
east China city
**
Growth by VW, Mercedes, Audi and BMW is expected to maintain
Germany as tops in China among Europes automakers.
In China, there are more than 120 billionaires and about 670,000
millionaires. Until they are all driving the S class, we still have
things to do.Dieter Zetsche Daimler CEO
Total passenger vehicles: 13,074,298 * Includes Mini,
Rolls-Royce ** Less than 0.1%SOURCES: COMPANIES, LMC AUTOMOTIVE
of Ningbo and in northwest Chinas Xinjiang province. With all
those plants, VW will have established itself in Chinas southeast,
southwest, east, northeast and northwest regions. Only Toyota has a
comparable geographical footprint. VW CEO Martin Winterkorn refers
to China as the automakers second home market. The VW Group, which
includes the Audi, Skoda, Seat, Bentley, Lamborghini and VW brands,
sold 2.25 million vehicles in China
last year almost double its 1.15 million volume in Germany,
which is now its second-largest market. Volkswagen also is
expanding its product lineup. The companys Skoda brand enjoyed a
successful launch in China in 2007, and last year Seat opened 15
dealerships in China. We will concentrate on the 10 to 15 most
important metro areas, Seat CEO James Muir told Automotive News
Europe. Volkswagens luxury brand, Audi, beganCHINA CONTINUED ON
PAGE 10
8
AUTOMOTIVE NEWS EUROPE
MARCH 2012
THE FUTURE OF PERFORMANCE MOTORING COULD BE YOUR FUTUREInfiniti
is changing the shape of performance motoring. Unrestricted by
rules and conventions, our ethos is one of naturally inspired
design graceful strength reflected in our obsession for detail and
lines that flow with harmony to deliver a more connected and
exhilarating drive. Now, as we continue to create ever more
inspirational vehicles and increase our presence in Europe, the
future of performance motoring looks more enticing than ever.
WILL YOU BE PART OF IT?If you share our philosophy and passion
and have the desire, expertise and curiosity to join a company that
refuses to conform you may be interested in positions in the
following functions: - PRODUCT - ADVERTISING/MEDIA - STRATEGY &
BUSINESS PLANNING - COMMUNICATIONS & PR - CUSTOMER QUALITY -
CUSTOMER SERVICE - FLEET - FRANCHISING - SALES
With headquarters in Switzerland, we aim to recruit the right
people in individual countries. To that end, you will need to be
English-speaking with an international profile. Enquiries will be
treated in strictest confidence. Contact us.
WWW.INFINITIEUROPE.COM/CAREERS
AUTOMOTIVE NEWS EUROPE
MARKETS
CHINA CONTINUED FROM PAGE 8
building models in China in 1996, years before BMW and
Mercedes-Benz did so. Audi was Chinas top luxury brand last year
with sales of 313,000 units, up 37 percent over the previous year.
The company wants to expand its product lineup by adding the Audi
A3 and Q3. As Audi expands its lineup, it plans to double its
production capacity in China to 700,000 units by 2015. To sell all
those cars, it is expanding its network of 175 Chinese dealerships
by 50 stores a year. We are currently opening a new dealership
every week. So in three years, we could be at about 500
dealerships, Audi CEO Rupert Stadler said. Stadler predicted that
Chinas luxury segment will continue to outgrow the rest of the
market, but will not maintain the explosive growth rate of recent
years. LMC Automotive has predicted that Chinas luxury market will
expand about 16 percent this year, down from roughly 40 percent in
2011.
ly. This year, the plant will start producing the X1 crossover.
The company also will expand production of its Da Dong assembly
plant, also in Shenyang, to more than 100,000 units a year.
ufacturing plant in Chengdu in the third quarter of 2013 with a
capacity of 150,000 units, and is considering a second Chinese
assembly plant in the north China city of Daqing.
NO MORE TAXISIn China, PSA/Peugeot-Citroen is trying to reinvent
itself. Two decades ago, the French automaker was known mostly for
the red Citroen Fukang taxis that plied Beijings streets. PSA has
updated its lineup, but the automaker sold only 404,437 units last
year, according to LMC Automotive. PSAs market share of 3.1 percent
was a fraction of Volkswagen brands 13.2 percent share. Now, PSA is
counting on Citroens DS model lineup to upgrade its image and
expand sales. In 2010, PSA formed a 5050 joint venture with
Chongqing Changan Automobile to sell the DS line in China. This
year, the partners will introduce the DS3, DS4 and DS5, which will
be sold separately from other PSA models in a network of premium
showrooms. At first, the vehicles will be imported into China. In
2013, the partners will produce the DS5 in the Shenzhen plant,
which will have an initial capacity of 200,000 units. On top of
[the DS5], we want to develop and build a flagship inspired by the
Metropolis concept after 2013, PSA CEO Philippe Varin told
Automotive News Europe. He added that PSA may also team with
Changan to launch a brand focused on entry-level buyers. Theres
more. PSA and its other Chinese joint venture partner, Dongfeng
Motor Group, plan to spend 1.3 billion euros over the next five
years to introduce 12 new models and build a third assembly plant
in Wuhan. Varin said PSA wants to increase its annual capacity in
Wuhan to 750,000 units. PSA is counting on its two joint ventures
to generate a combined market share of 8 percent in China by 2020,
which would be enough to vault it into the countrys top five
automakers based on sales.
STARTING OVERIn China, Fiat Group still is recovering from the
mistakes of the past. Its former joint venture partner, Nanjing
Automobile, got into financial trouble and was acquired in 2007 by
the Shanghai Automotive. Left without a Chinese partner, Fiat was
forced to rely on imports, which drove up the price of its
vehicles, hurting sales. In 2009, Fiat formed a 50-50 joint
venture, Guanqi Fiat, with Guangzhou Automobile Industry Group. The
partners are investing 600 million euros in their joint venture to
build an assembly plant in the southern China city of Changsha.
Initially it will produce 140,000 units annually, rising to 300,000
units annually by 2014. In July, the new plant will start producing
the Dodge Dart, which will be rebadged as a Fiat sedan. Automotive
News Europe has reported that the partnership will export the
Chinese-built vehicles back to Europe. To re-establish the brand,
Fiat also is importing a small number of 500s to China. But Lin
Huaibin, a Shanghai-based analyst for IHS Automotive, is not
optimistic about Fiats prospects. Fiat is a weak brand in the eyes
of Chinese consumers, he said. Also, Fiats locally built compact
car will encounter strong competition, since that segment is very
crowded in China. GMs Germany subsidiary, Opel, also is weak in
China, but there are no plans to change that. Opel sold about 5,000
vehicles in China in 2011 and expects to sell about 5,500 this
year, Kevin Wale, head of GM China operations told Automotive News
Europe. He added that GM has no plans to build Opels in China in
the foreseeable future. The bottom line? Of the European
automakers, only Volkswagen has the financial resources to battle
GM for dominance of Chinas mass market. Likewise, Audi, BMW and
Mercedes are likely to dominate Chinas luxury market for years to
come. While PSA and Fiat are introducing new models and building
new plants, its not clear that either has the financial resources
to mount a serious challenge especially at a time when their
European operations are under siege. For now, at least, the German
automakers have a firm grip on Chinas fast-growing market.
THE CONTENDERSDaimler and BMW are challenging Audis grip on
Chinas luxury market. Last year, Daimlers China sales jumped nearly
31 percent to 193,339 units. Daimler enjoyed strong demand for its
locally built Mercedes C-class sedan and its stretched Mercedes
E-class sedan. Now, Daimler is expanding its lineup. Its joint
venture, Beijing Benz Automotive, launched production of the GLK
crossover in December, part of an ambitious 2 billion euro
expansion project. Daimler also plans to produce three compact car
models in China starting in 2013, build four-cylinder engines and
expand production of its C- and E-class sedans. Over the last few
years, we have been catching up very quickly in China, Daimler CEO
Dieter Zetsche said. In 2015, we expect sales of more than 300,000
units in China, of which two-thirds, or 200,000, will be produced
locally. Zetsche added: We are continually in growth mode. In
China, there are more than 120 billionaires and about 670,000
millionaires. Until they are all driving the S class, we still have
things to do. Last year, overall China sales of the BMW and Mini
brands jumped nearly 38 percent to 232,586 units. China has become
BMWs third-largest market, and the company is investing 1 billion
euros to expand production of its assembly plant in Shenyang to
200,000 units annual-
VOLVO GOES UPSCALELike PSA, Volvo is going upscale. After some
gentle prodding from its new owner, Zhejiang Geely Holding Group,
Volvo will upgrade its model lineup to compete with the German
luxury brands. The company also hopes to sell 200,000 units
annually in China by 2020 up from an expected 48,000 to 49,000 this
year. China is key to Volvos plan to sell 800,000 units globally by
2020, up from 449,255 last year. To do so, it will open a new
man-
Harald Hamprecht contributed
10
AUTOMOTIVE NEWS EUROPE
MARCH 2012
lines love curvesCoatings give a car more than just long-lasting
protection. Brilliant gloss and innovative colors transform
contours into dynamics and design into emotion. Lines and curves
are united and edges and contours are brought to life. When color
and shape come together, and paint evokes passion, its because at
BASF, we create chemistry. www.basf-coatings.com
Coatings Solutions
AUTOMOTIVE NEWS EUROPE
COVER STORY
iStockphoto.com/lucaciferri
BY LUCA CIFERRI
Defying the downturnHow European automakers are bracing
themselves for a tough 2012
E
uropes volume brands know they will face a tough 2012 and many
are already taking action.
PSA/Peugeot Citroen will cut thousands of jobs to reduce costs
by nearly 1 billion euros, Renault will slash dealers in the UK,
Opel will undergo its second cost restructuring in two years, Fiat
will again delay new product launches and Ford will cut production
days at its Belgian car factory. Car manufacturers are making the
moves to protect themselves from a looming recession that will make
reaching European sales and overall profit goals very difficult.
The brands most at risk from the downturn include Renault, Citroen
and Opel, all of which relied on Europe for 52 percent or more of
their total sales last year. The consensus is that European car
sales will fall in 2012. The magnitude of the decline ranges from 7
percent to 2 percent
No one made money in Europe last year.Fiat-Chrysler CEO Sergio
Marchionne
January. We are seeing some countries back in recession and
others hovering around but not quite in recession. Said former
General Motors Europe President Nick Reilly: Peugeot Citroen have
said theyre going to have to lay off a lot of people and just about
everyone is talking about overcapacity and difficulties. Four of
Europes five major markets Italy, France, Spain and the UK are
expected to be hit hard this year. They collectively represented 49
percent of European car sales in 2011. Carmakers have dealt with
downturns before and they usually bounce back quite fast, Reilly
told Automotive News Europe, but I dont think theyll bounce back
very fast this time.
The industry also is keeping a close eye on Brussels as European
Union leaders seek to stabilize the euro (see box, page 16). The
future of the currency has been questioned because the financial
markets have lost confidence in the ability of some key EU member
states to fix their debt problems. European new-car sales also are
being affected by falling consumer confidence, rising unemployment
and tightening bank lending. Europe is a very challenging business
environment at the moment and may stay challenging for some time,
Ford Chief Financial Officer Lewis Booth told reporters in late
NO CASH FOR INCENTIVESAs seen during the last global economic
downturn, drastic times require quick andEUROPE CONTINUED ON PAGE
13
12
AUTOMOTIVE NEWS EUROPE
MARCH 2012
AUTOMOTIVE NEWS EUROPE
COVER STORY
EUROPE CONTINUED FROM PAGE 12
EUROPE-CENTRICWith Europe at risk of a recession in 2012,
automakers heavily reliant on the region could be in store for
tough year (2011 passenger-car sales below)EUROPE WORLD EUR. %
SHARE
decisive actions, including production stoppages or slowdowns,
staff cuts, retail network restructuring and new-product freezes.
In 2009 and 2010, many European countries protected their
struggling national automakers by offering billions of euros in
cash incentives to get people to trade in their old cars for newer,
smaller, more environmentally friendly models. Volume brands were
the biggest beneficiaries of government-funded subsidies of up to
5,000 euros. The incentives were a blessing to automakers that did
not move fast enough to balance their factories' output with
demand, leaving them stuck with a huge inventory of vehicles, many
of which they needed to deeply discount to move out of the
showrooms. Today, however, many of the governments that offered
incentives in 2009 and 2010 are in financial trouble. Austerity
means the capacity to help the industry will be greatly diminished.
Government funding for carmakers effectively bailed out the
industry in 2009, Michael Tyndall, an auto analyst at Barclays
Capital in London, said in a report. Said Jason Wakelam, leader of
Pricewaterhouse-Coopers' UK Automotive Transaction Services: The
key question for 2012 is to what extent the calls for consolidation
in the sector will be realized.
Opel/Vauxhall Citroen Renault brand Peugeot Fiat brand VW brand
Ford
989,261 770,726 1,004,920 911,703 682,140 1,684,150
1,077,759
1,132,000 1,243,000 1,918,212 1,888,200 1,485,000 5,090,000
*
87 62 52 48 46 33 *
* Ford declined to provide a breakdown of global car
salesSOURCES: ACEA, COMPANIES
ing, with little improvement in 2013, Tyndall said in a report.
The analyst said that VWs capacity usage rate is about 85 percent
to 90 percent while Renault and Opel are closer to 60 percent and
Fiat Auto is below 50 percent. Adam Jonas, an auto analyst at
Morgan Stanley, said that Fiat, Opel, PSA and Renault would have to
cut a combined 1.5 million units in capacity in the next two years
to become profitable.
HOW DID WE GET HERE?Industry watchers say that one reason
Europe-centric automakers are at risk is because most did not adapt
their production footprint to the lower demand during the last
downturn. Analysts estimate that Europe has 2 million to 5 million
units of overcapacity. In 2007, about 16 million cars were sold in
Europe while the 2012 total is likely to be below 13 million. The
capacity issue [in Europe] was not addressed during the past
recession, Ford of Europe CEO Stephen Odell told Automotive News
Europe. I cant change other peoples capacity. I can only make sure
I build the vehicles I have demand for. Since 2009, only two
automaker plants have closed (Opels Antwerp, Belgium, factory and
Fiats plant in Termini Imerese, Italy) while another is dormant
(Saabs plant in Trollhaetten, Sweden) and two are set to stop
production soon (Volvos plant in Uddevalla, Sweden in 2013;
Mitsubishis factory in Born, Netherlands in 2012). Europe continues
to have more capacity than demand, and the problem is expected to
worsen. PwC figures show that by 2015 Europes 112 plants will have
an installed capacity of 22.8 million units, up from 21.1 million
from 113 plants in 2009 and almost half a million units more than
the 22.4 million capacity from 117 plants in 2007. The utilization
rate in 2015 is expected to be 82.4 percent compared with 80.9
percent in 2009 and 84 percent in 2007, according to PwC. An
automaker typically needs at least 80 percent utilization for a
plant to be profitable. Barclays Tyndall doesnt expect the average
utilization rate at Europes car plants to come close to that number
this year or next. At a 70 percent utilization rate on average in
2012, we expect the mass EU market to remain loss-mak-
OLD PROBLEMFiat-Chrysler CEO Sergio Marchionne has warned about
the dangers of overcapacity for years. He spent much of 2010 and
2011 fighting Italian unions to create a more profitable system for
making cars. A key move was the November closure of Fiats plant in
Termini Imerese, where the company says it costs an additional
1,000 euros per unit to produce cars because of the high logistics
cost associated with manufacturing on the island of Sicily. Opel,
Fiat and PSA are considering more tough measures to cut capacity,
including factory closures. Other European car plants at risk of
closure include PSA's factories in Aulnay, near Paris, and
Valenciennes, northern France; Fiat's Mirafiori plant in Turin;
Opels German factory in Bochum and Ellesmere Port, England; and
Mitsubishi's Dutch plant. Said Barclays Tyndall: For the likes of
Fiat and Peugeot the misery in Europe continues to mount up. The
solution as we see it is to reduce labor costs and capacity, but
the social and political resistance to this has been substantial.
Italy is scheduled to hold its general election in March 2013, but
voting could be pushed forward to this summer because of the
countrys political instability. Its unlikely that any restructuring
announcements affecting France will come until after the countrys
general election this spring. Its also unlikely the French state
will sit back quietly if Renault or PSA attempt to close factories
in France, despite French auto plants having the auto sectors
third-highest labor costs afterEUROPE CONTINUED ON PAGE 14
REUTERS
Despite Opels closure of its plant in Antwerp, Belgium, analysts
estimate that carmakers still have up to 5 million units of
overcapacity in Europe.
MARCH 2012
AUTOMOTIVE NEWS EUROPE
13
AUTOMOTIVE NEWS EUROPE
COVER STORY
EUROPE CONTINUED FROM PAGE 13
Germany and Belgium, according to data from the German auto
industry association (VDA). A condition the French government
placed on PSA and Renault when it gave each a 3 billion euro loan
in 2009 was that they keep their local plants open. European
governments and automakers maintain close ties because the industry
is such a major employer. In Germany, one out of every five jobs is
connected to the auto industry, in France, its one in 10. About 12
million families depend on automotive employment, with 2.3 million
direct jobs, according to industry association ACEA.
How bad will it be?Estimates vary on how bad European car sales
will be in 2012, but what is not being debated is that overall
volume will decline for the fifth consecutive year. Europes car
dealers association (CECRA) sees passenger-car sales falling 7
percent to about 12.6 million. PricewaterhouseCoopers predicts a 5
percent drop, taking Europes new-car volume to a little less than
12.9 million units. Barclays Capital sees sales falling to 12.75
million. RenaultNissan CEO Carlos Ghosn is more optimistic. He
expects European volume down only 2 percent to 3 percent due to
aggressive pricing on new cars. Regardless of the depth of the
drop, Europe is at risk of being down by more than 3 million units
compared with a peak of 16 million units sold in 2007.
GLOOMY OUTLOOKSA number of those jobs are at risk as companies
try to cope with lower sales volumes. We anticipate that the
steepest declines will be in France, Italy and the UK, said Falk
Frey, a senior vice president at Moody's rating agency. Automakers
in these countries will suffer most from the austerity measures
initiated by their governments, as well as a continued challenging
economic environment and the subsequent expected fall in consumer
spending. The French auto market is forecast to drop by up to 8
percent to about 2 million passenger cars and 400,000 light
commercial vehicles in 2012. Its a decline that many expected
because scrapping incentives pulled forward car sales in the first
quarter of 2011. This number does not show a crisis on the market,
Bernard Cambier, Renaults sales chief for France, said in an
interview. Cambier also expects first-quarter French sales to be
down 17 percent (see story, page 6). Renault CEO Carlos Ghosn told
French radio in January that the decline in France would be tough
for everyone, not just for his brand, which has a 24.7 percent
market share. Italian new-car sales are forecast to decline 9
percent to 1.6 million in 2012, according to the foreign automakers
association, UNRAE. The last time Italian sales were below 1.65
million was 1984. The gloomy 2012 forecast follows an 11 percent
decline last year to 1.75 million, which is a dramatic change from
the peak of 2.5 million new cars sold in Italy in 2007. With its
nearly 30 percent market share in Italy, Fiat stands to be hit the
hardest by the countrys sales slump. In the UK, where 2012 sales
are forecast to slip 6 percent to 1.83 million, automakers already
are trying to protect themselves. Renault, Peugeot, Nissan,
Mitsubishi and Subaru are cutting unprofitable model lines. Peugeot
has stopped UK sales of the 4007 medium SUV; Nissan dropped the
Murano large SUV; Mitusbishi halted sales of the Lancer compact;
and Subaru stopped selling the Impreza compact. Renault will stop
taking orders for five models the Espace large minivan, Modus small
minivan, Laguna mid-sized car, Wind roadster and Kangoo van and cut
its UK dealer network from 200 to 140 by 2013 to try to help its
money-losing UK operations become profitable.
the quality and reliability of today's cars is superior to past
models. In 2010, the average age of a car in Germany and France was
8.5 years, up from 7 years in 2000, according to Morgan Stanley.
Unlike in the U.S., the average of the car park in most European
countries is not old enough for pent-up replacement demand to
offset the potential drop in sales caused by declining consumer
confidence, Morgan Stanley analyst Laura Lembke said. She said that
the average age of U.S. cars 9.5 years at the end of 2010
contributed to the countrys 10 percent increase in 2011 new-car
sales to 12.8 million units. Another challenge facing volume brands
is that premium automakers are entering their turf. BMWs Mini range
and the 1 series, Audis A1 and A3 and Mercedes-Benz's new B class
and forthcoming A class are targeting buyers who might have picked
an Opel, Peugeot or Renault model in the past. The numbers speak
for themselves. In 2011, premium and nearpremium brands increased
European new-car sales 6.5 percent compared with a 2.8 percent
decline for volume brands, according to ACEA. As a whole, the
market declined 1.4 percent to about 13.6 million units. Volkswagen
Group was able to buck this trend. Its three volume brands VW,
Skoda and Seat all increased European sales last year. Much of the
reason for this is that 2011 sales in Germany rose 8.8 percent to
3.2 million. The VW brand alone has a 21.6 percent share in
Germany.
VW PROFITABLE OR NOT?While VW Groups volume brands reported
increased European sales in 2011, some question whether this
resulted in a profit. No one made money in Europe last year,
Fiat-Chysler CEO Sergio Marchionne said during an interview in
January, adding that if someone said its brand did make a profit,
he is just lying. Marchionne was so blunt because he feels that
sales incentives offered last year were so high that it would have
been impossible for any volume brand to have made money in Europe,
but more on that later. When it comes to Marchionnes assessment
about profitability, some disagree. VW is the only volume brand
thatEUROPE CONTINUED ON PAGE 16
BETTER QUALITY, NEW RIVALSWhile many macroeconomic factors are
affecting car sales, there is another reason why Europeans are not
buying as often as they used to:Renault will stop sales of the Wind
(shown) and four other models in the UK.
14
AUTOMOTIVE NEWS EUROPE
MARCH 2012
U.S. Rear Camera Regulations are Coming
Instant Compliancewith the Fastest, Brightest, Most-Effective
Rear Camera Displays
Gentex mirror-integrated solutions illuminate instantly to
reveal displays as bright as 4,000 cd/m2 more than 300% brighter
than any in-dash display!
And, independent studies* reveal that mirror displays can be
substantially more eective than other display locations at helping
the driver detect and avoid backover accidents.* Llaneras, Robert
E., Neurauter, M. Lucas & Green, Charles A. Factors Moderating
the Eectiveness of Rear Vision Systems, 2011-01-0549, SAE
International, 2011. The Cameron Gulbransen Kids Transportation
Safety Act is pending U.S. regulation requiring all new vehicles,
10,000 lbs or less, to include a backup camera video system.
Dont Wait! Incorporate mirror displays as part of your
KTSA-compliant product mix.
www.gentex.com/ktsa
AUTOMOTIVE NEWS EUROPE
COVER STORY
Euro scenariosDespite questions about the future of the euro,
Audi CEO Rupert Stadler believes strongly that the 10-year-old
currency must survive. We need a strong European economic region if
we are to be competitive from a global perspective. There is no
alternative to the euro, the CEO said in a statement recently.
Others are not so sure whether the euro will be around to celebrate
its 15th birthday. I think short term the euro will survive, Ford
of Europe CEO Stephen Odell said, but, honestly, I do not know what
could happen in 5 to 10 years. How much of an effect could Europes
sovereign debt crisis and the possible collapse of the euro have on
new-car sales? Analysts at PricewaterhouseCoopers see four possible
scenarios. 1. Monetary expansion 13.5 million sales The European
Central Bank gets approval to inject significant liquidity into
vulnerable economies and banks. Recession is avoided; interest
rates are kept low in the short term; inflation rises while the
euro depreciates. 2. Greek exit 12.7 million sales Greece leaves
the euro. The 16 remaining eurozone members seek to protect the
currency through tough fiscal discipline and other measure to boost
investor confidence, but the area still suffers a recession that
lasts up to two years. 3. New currency bloc 12.4 million sales A
Franco-German acknowledgement that the existing eurozone is
unsustainable leads to the creation of a new, smaller and more
tightly regulated currency bloc. The new bloc benefits from a boom
in domestic demand. Economies that are excluded suffer a sharp
currency depreciation and severe economic contraction. 4. Defaults
11.9 million sales A program of voluntary defaults is agreed on for
the most indebted countries, which triggers a contractionary debt
spiral and a prolonged recession, lasting between two and three
years, and which results in a cumulative loss in gross domestic
product of about 5 percent.
Ford will cut production days at its factory in Genk, Belgium,
where it builds the Mondeo (shown), S-Max and Galaxy.EUROPE
CONTINUED FROM PAGE 14
makes meaningful profits in Europe, a result which is a function
of scale, a modest price premium and a sales mix that favors
Germany, arguably the strongest economy in Europe, and the compact
segment with the Golf and mid-sized cars with the Passat, Barclays
Tyndall said in a report. Whether Tyndall or Marchionne is correct
cant be proved because VW, like most automakers, does not provide
detailed financial results for Europe or any of its sales regions.
Another advantage that VW has is that it depended least of all the
European automakers on Europe just a third of its global sales come
from the region (see box, page 13). Arguably, the risks at VW are
diminished by its diversification. It is Europes largest carmaker,
but relies on Europe the least for sales, Tyndall said. This
diversity helped VW's rise to No. 2 in global sales. The result has
been huge profits, which are reinvested into product. Ford is the
only automaker to report detailed financial results for Europe. In
its Europe region, which includes Russia and Turkey, Ford increased
2011 unit sales 1.8 percent to 1.6 million units, but it swung into
a $27 million pre-tax operating loss from a $182 million profit the
year before. Ford is cutting production days at its plant in Genk,
Belgium, because of anticipated lower new-car sales in Europe. The
factory makes the Galaxy and S-Max large minivans and the midsized
Mondeo. While GM does not provide detailed financial results per
brand, it is estimated that Opel/Vauxhall has lost more than $13
billion since 1999. Fiat executives, meanwhile, admit that the
automaker has been losing money in Europe for years, but the
company had declined to provide detailed figures until recently.
Fiats European auto unit lost 500 million euros in 2011, Marchionne
said during a conference call in January.
There is no alternative to the euro."Audi CEO Rupert Stadler
UNSOLVED ISSUESEuropes volume automakers must take on some blame
for the struggles they face now. Here is a breakdown of some of the
problems. PSA has been slow to expand its presence outside Europe
and now faces high investments costs in places such as China and
Russia at the same time its core European market is declining. To
cope with this, the automaker said in late 2011 it would need to
cut 6,000 jobs in Europe, which would help reduce costs by 800
million euros. PSA blames the Europes difficult economic
environment for its decision in
January to pull Peugeot brand from the Le Mans endurance racing
series. The automaker said it wants to concentrate resources on
sales performance in 2012. Morgan Stanley analyst Stuart Pearson
thinks the move makes sense. Product momentum is slowing at PSA,
with the Peugeot 208 the only major launch in 2012, whereas
competitors are accelerating in the Band C-segments, Pearson said.
Fiat is still trying to rebound from a big lack of new product. To
cope with the last downturn, Fiat delayed a number of key
models,EUROPE CONTINUED ON PAGE 18
16
AUTOMOTIVE NEWS EUROPE
MARCH 2012
AUTOMOTIVE NEWS EUROPE
COVER STORY
EUROPE CONTINUED FROM PAGE 16
leaving it vulnerable as its aging models were forced to compete
with all-new cars from rivals. Fiat will continue to suffering from
the decision as the debuts of the next-generation Punto subcompact
and Bravo compact have been pushed back to early 2014 from
mid-2013. As production rates fall, Fiat will need to focus on cash
preservation rather than investment, Pearson said. He thinks that
Fiat has the liquidity and flexibility to survive another EU
recession, but at the cost of a weaker product and technology
portfolio. Fiat also has been hit hard by its late entry into
fast-growing markets such as China, Russia and India. Opel spent
years producing poor products and GMs decision to sell and then to
retain the company dented the brands image, particularly in its
home German market. It also has not expanded outside of Europe.
Opel hopes that its new restructuring program will boost sales, cut
costs and end its chronic financial losses. Opel, which cut 5,800
jobs in Europe last year, plans to axe several hundred product
engineering posts at its headquarters in Ruesselsheim. In addition,
Opel has halted plans to debut a new coupe in 2013. The automaker
also is negotiating to have production of Chevrolets moved to it
European plants from South Korea and aims to increase sales outside
of Europe to 100,000 from 20,000 last year. For years, Renault
models were criticized for their poor quality and reliability. New
Renault Chief Operating Officer Carlos Tavares says that while
quality has improved in the last seven years, it is likely to take
a longer to change customer perception. One way he wants to improve
Renaults financial performance is by closing the price gap it has
with key competitors. He said that Renaults are currently priced 2
percent below Citroens, 5 percent less than Peugeots and 10 percent
less than VW brand models. Renault also is hurt by its heavy
reliance on Europe, which accounts for 52 percent of its sales, and
its failure to set up manufacturing in China.
Analysts estimate that net pricing the vehicle transaction price
after incentives are deducted decreased 1 percent last year and
could decrease even more this year. Said Ford CFO Booth: Incentive
spending is increasing in Europe and this is not healthy for the
business. There were already signs in January that the price war
was escalating. To lure minicar buyers in France, Chevrolet reduced
the price of the Spark minicar by 3,000 euros to 5,900 euros.
Citroen responded by slashing 2,360 euros from the C1s price,
pushing it down to 6,990 euros. To stay competitive, VW had to
offer a 1,400 euro discount on its new Up minicar, pushing the
price down to 7,990 euros. In Italy, Chevrolets decision to reduce
the Sparks price by 2,225 euros to 6,950 euros caused a chain
reaction that resulted in Citroen slashing the C1s price by 2,300
euros and Fiat cutting the price of the previous-generation Panda
by 2,600 euros. Not everyone is complaining about the price war. We
believe the difficult situation will offer us an opportunity to
expand our market share in Europe, Hyundai Chief Financial Officer
Lee Won-hee said during an recent earnings conference. Hyundai
outperformed the European market last year, with its sales up 12
percent to 398,129 units, and plans the brand to grow another 15
percent in 2012 to 465,000 vehicles.
TIGHTENING CREDITThe price of a new car becomes irrelevant if
the buyer cant find a way to pay for it and getting a loan will be
tougher this year. Morgan Stanley expects EU banks to cut lending
by up to 2.5 trillion euros over the next 12-18 months. It is part
of the fallout from recapitalizations resulting from the sovereign
debt crisis. Morgan Stanley estimates that about 75 percent of all
car sales in Europe involve some form of financing. Morgan Stanleys
Lembke estimates that up to 35 percent of sales are handled by
automakers finance arms and that third parties, mostly banks, take
on 35 percent to 40 percent of the business. She said that the
automaker that want to expand their finance divisions now will need
a strong balance sheet, lots of liquidity and good access to credit
markets. Only German automakers have enough liquidity to expand
their financial arms, she said. This expansion is already
happening. BMWs recently acquired Dutch lender INGs leasing
business and VW announced recently itEUROPE CONTINUED ON PAGE
20
PRICE WARWinning the new-car pricing battle is never easy and it
became harder in Europe last year. Declining sales forced
automakers to use profit-diminishing incentives to lure buyers.
Profitability on making cars has gone from poor to utterly dismal,
with vicious pricing, said Max Warburton, an auto analyst at
Bernstein Research in London.
ROUGH ROAD AHEADEuropes passenger-car sales are forecast to
rebound starting in 2014; sales in thousands (000) 2007 France
Germany Italy Spain UK Other 2,065 3,147 2,493 1,615 2,404 3,075
2008 2,050 3,090 2,162 1,161 2,132 2,966 13,561 1,179 14,717 2009
2,302 3,807 2,157 953 1,995 2,454 13,667 858 14,526 2010 2,252
2,916 1,960 982 2,031 2,836 12,982 804 13,786 2011 2,204 3,174
1,748 808 1,941 2,938 12,813 761 13,574 2012E 2,028 3,078 1,654 760
1,825 2,738 12,083 669 12,753 2013E 1,987 3,125 1,696 767 1,770
2,793 12,138 649 12,787 2014E 2,033 3,274 1,755 800 1,923 2,919
12,704 682 13,385 2015E 2,070 3,378 1,834 838 2,076 3,042 13,240
716 13,955
W. Europe 14,798 New EU Total 1,162 15,960
SOURCE: BARCLAYS CAPITAL
18
AUTOMOTIVE NEWS EUROPE
MARCH 2012
AUTOMOTIVE NEWS EUROPE
COVER STORY
Peugeot hopes the arrival of the new 208 will give it a sales
boost in Europe.
EUROPE CONTINUED FROM PAGE 18
will increase financial backing for its vehicles in Europe by a
third. The automaker will finance or lease 40 percent of new VW
Group models sold in Europe within four years compared with 30
percent in 2011, Frank Witter, the head of the manufacturer's
financial unit, told Bloomberg in January. We can increase the
penetration in the European markets, Witter said. In Germany, 54
percent of all Volkswagen group cars are financed or leased through
us.
segments where profits are razor thin. Bernstein Research
analyst Warburton likes with the idea, but sees obstacles. There
are so many obstacles to full-blown mergers that the only way to
save capital may be to share platforms, products and plants, he
said. However, it doesn't really solve the capacity issue and OEM
executives will be scared that it will jeopardize brands. Warburton
believes automakers are most likely to continue cooperating on
minicars successful examples of this trend include the PSA/ Toyota
joint venture in Kolin, Czech Republic, to make the Citroen C1,
Peugeot 107 and Toyota Aygo and Fiats deal to use its 500 platform
as the basis to produce the Ford Ka. The question is whether the
downturn will force automakers to deepen their relationships will
rivals.
WILL THINGS GET BETTER?Forecasts show that it will take years
before automakers will see rising demand within Europe. Barclays
does not see a year-on-year increase until 2014, when new-car sales
are expected to rise to 13.38 million. That total, however would be
about 220,000 units below 2011s volume and 2.6 million under the
2007 peak. With demand muted, governmentfunded incentives unlikely
and shutting plants probably out of the question, volume automakers
will need to look at other options.
Rumors about a possible alliance between Fiat and PSA have been
floating around since late 2008. Marchionne said his company was
not Ford of Europe CEO Stephen Odell talking to PSA, but he did say
it is open to add a third partner to the alliance to share
investments and increase scale. PSA said it would be open to a
tie-up with another large One possibility is to export more from
Europe to increase plant utiEuropean carmaker, but that conditions
were not yet right for such lization. German premium brands Audi,
BMW and Mercedes have an alliance. PSAs new brand boss, Frederic
Saint-Geours, was been so successful at this that each had to ask
employees to quoted in media reports in January as saying that the
French shorten their Christmas holiday breaks to meet rising global
automaker was completely open to an alliance that boosts perdemand.
What keeps volume brands from doing this are import formance while
preserving its independence, but added that PSA duties ranging from
25 percent to 35 percent, which would make would need to find the
right partner. their cars too expensive to compete against domestic
brands. For mass OEMs, shipping cars from Europe to emerging
markets is not, in general, a profitable solution, Barclays Tyndall
said. Another way volume brands can boost capacity at European
plants is to take on work from factories outside of Europe. Opel
wants sister brand Chevrolet to transfer some production from South
Korea to Europe. Some industry watchers dont like that idea. Making
Chevrolets in Germany is not the way to go, Morgan Stanleys Jonas
said. Such an arrangement appears to skirt the issue of excess
capacity in the region and is a climb-down from what we had
believed GM was prepared to do to achieve sustainable profitability
for GM Europe. Another option is to set up new joint ventures to
build passenger cars, which would reduce product investment costs
and increase economies of scale. Fiats Marchionne is not only
looking for ways to leverage brands within his alliance. He also
has called for more cooperation between volume automakers on
minicars and subcompacts, two
The capacity issue [in Europe] was not addressed during the past
recession.
PRODUCT STILL KING?If product is still king, many European
volume brands may defy the market downturn this year by launching
new generations of their core models. In late January, Fiat began
selling the new Panda. Fiat hopes the Panda will remain Europes
best-selling minicar, a title the car has held since 2004. At the
upcoming Geneva auto show, Peugeot will unveil its new 208
subcompact, which replaces the companys best seller, the 207, which
in 2007 was also Europes No. 1 seller overall. At the Paris auto
show in September, VW will unveil the seventh generation of its
Golf compact. The Golf has been Europes No. 1 selling model for
four consecutive years and seven times since 2000, according to
data from JATO Dynamics. Said Fords Odell: At the end of the day,
people with the best product are the ones to win in the market.
Bertrand Gay and Nick Gibbs contributed
20
AUTOMOTIVE NEWS EUROPE
MARCH 2012
AUTOMOTIVE NEWS EUROPE
NEW CARS
Class of 2012Automakers line up exciting new productsKey
launches in segments from luxury cars to minicars make 2012 an
exciting year for new products. Below we list whats coming to
showrooms throughout the year. Launch dates are for Germany unless
stated otherwise.
April:Porsche Boxster
MARCH BMW X6 face-lift Fiat Panda Hyundai i30 5 door Kia Optima
Lexus GS Mercedes SL Porsche 911 Cabrio Seat Ibiza face-lift Subaru
XV
AUGUST Audi A3 Hyundai Santa Fe replacement Mercedes G class
face-lift VW Beetle Cabrio
SEPTEMBER BMW 1-series 3 door BMW 3-series wagon BMW M6 Coupe
Ford B-Max Ford Focus Electric Kia Ceed wagon Kia Sorento face-lift
Kia Optima hybrid Mercedes CLS Shooting Brake Opel Astra 5 door
face-lift Opel Astra sedan
APRIL Citroen C4 Aircross Hyundai Genesis Coupe face-lift Mazda
CX-5 Opel Combo Peugeot 208 Peugeot 4008 Porsche Boxster
COMPUTER-RENDERING: CHRISTIAN SCHULTE
Key battlesThe seventh-generation Volkswagen Golf (shown)
arrives with a sportier look later this year, but Europes
best-selling car faces increased competition from a fresh Hyundai
i30 and a new Kia Ceed. The latest Audi A3 goes on sale in June but
its lead in the entrypremium segment will be challenged by a
new-look Mercedes A class with coupe styling and a fresh BMW 1
series. Among subcompacts, 2012 is the year of the French with the
debut of the Peugeot 208. Toyota expands its hybrid offerings while
Renault and Ford launch EVs.
MAY Audi A6 Allroad Audi A6 hybrid Dacia Lodgy Hyundai i20
face-lift Porsche Boxster Seat Mii Toyota Prius Plus Toyota Yaris
hybrid VW Up 5 door
OCTOBERBMW 3-series hybrid Fiat 500L 5-seat (Italy) Honda CR-V
Mercedes A class Mercedes GL Mitsubishi Colt replacement Renault
Zoe Skoda Rapid Subaru BRZ Toyota GT-86 Volvo V60 plug-in
hybrid
JUNE Audi A8 hybrid BMW 6-series Gran Coupe BMW 7-series
face-lift Kia Cee'd 5 door Mercedes E300 Bluetec hybrid Mercedes
GLK face-lift Renault Megane face-lift Skoda Citigo
NOVEMBER Audi R8 E-tron Honda CR-V Mazda6 Opel Mokka Renault
Clio
DECEMBER Fiat 500L seven-seat (Italy) Hyundai i30 3 door Opel
Junior Seat Leon Skoda Rapid VW Golf
June:BMW 6-Series Gran Coupe
JULY BMW 5-series hybrid Chevrolet Malibu Ford Kuga Hyundai i30
station wagon Lancia Flavia convertible Opel Astra OPC Toyota Prius
plug-in hybrid Volvo V40
November:Opel Mokka
MARCH 2012
AUTOMOTIVE NEWS EUROPE
21
AUTOMOTIVE NEWS EUROPE
NEW CARS
>
MORE ON THE WEB: For the latest show news, go to our Geneva page
at www.autonewseurope.com
Downsized dynamicGeneva show debuts showcase how automakers are
using downsizing to their advantage
&
V
olume automakers and luxury brands will use the Geneva auto show
to debut downsized cars that in many cases are lighter and use less
fuel but still pack power and emotional appeal. This corresponds
with a trend in which car buyers are opting for less expensive,
more fuel-efficient models as economic hard times hit consumer
spending. In the entry-premium segment, the new Audi A3 will meet a
tougher challenge from a
Mercedes A class that ditches its boxy design for a sporty look.
Both cars debut in Geneva and both will battle the BMW 1 series,
which gets refreshed later this year. In Europes biggest segment
subcompacts Peugeot will unveil the 208, a car that weighs less and
is shorter than the 207 it replaces. Ford and Fiat will debut their
latest entries in Europe's expanding small minivan segment. The two
automakers take different
approaches to win customers. The Ford BMax has a pillarless
design and rear sliding doors to make access to the cars cabin much
easier for the target group of young families while Fiat hopes to
harness the appeal of the 500 minicar with a larger fiveand
seven-seat version of the retro-styled city car called the 500L. VW
Group accelerates its aim of boosting its presence in the minicar
segment, an area where the company has not yet been successful.
Three of its brands, VW, Skoda and Seat, debut five-door versions
of the groups new entry-level family.
AudiLighter A3 gets high-tech to fend off Mercedes A classAudi's
key launch is the A3 but the A6 Allroad and A1 Quattro will also
make their public debuts in Geneva. The new A3 is sleeker and
lighter than the previous-generation model and it is the first Audi
to have the brands new infotainment platform. Features include a
plug-in module that enables hardware to be easily updated, a new
MMI control panel with a handwriting recognition system that allows
users to enter characters by finger movement and an optional 7-inch
screen with 3-D graphics. Audi counts on the high-tech features,
along with a better quality interior and a more fuel-efficient
engine range, to help the A3 keep its lead in Europes entry-premium
segment against the new Mercedes A class, which also debuts in
Geneva, and a redesigned BMW 1 series that arrives later this year.
The A3 will be offered in three-, five-door, sedan and convertible
variants. The U.S. market only gets the sedan. The A3 is the first
of about 40 vehicles to use parent VW Groups new MQB modular
platform that will also underpin the new VW Golf. The
third-generation A6 Allroad that debuts in Geneva has fuel economy
improvements of up to 20 percent and is also 70kg lighter than the
current model. The A1 Quattro adds a high-performance variant to
the three-door hatchback and fivedoor Sportback in Audis
entry-level range, which is aimed at younger buyers. Audi will also
show a convertible version of the RS5, a high-performance version
of the A5 with the same 4.2-liter V-8 engine as the RS5 coupe.
BertoneOne of Stile Bertones most famous cars, the legendary
1970 Lancia Stratos Zero, inspired a concept for a high-performance
coupe that will be unveiled in Geneva to mark the Italian design
houses centenary. The midengine concept is called Nuccio after
Giuseppe Nuccio Bertone, who transformed the little-known family
business into an Italian design icon during his 60-year leadership
of the company. He died in 1997 at 83. Bertone design director Mike
Robinson took inspiration from the Lancia Stratos Zero concept to
create the Nuccio, which has innovations such as a tensile steel
roof that offers high structural resistance at a low weight.
Bertone Nuccio
Legendary Lancia Stratos Zero inspires futuristic conceptThe
rakish, 42-year-old Stratos Zero is still modern today in terms of
design, but its only 830mm tall, making it almost impossible for a
big man like Robinson to drive it. The Nuccio has a height of
1220mm. We decided to take one of the most spectacular concept cars
in the history of the company and in the history of the automobile
for that matter and create a futuristic interpretation of it,
Robinson said. Previous attempts to make a modern interpretation of
the Stratos Zero fell short of auto enthusiasts expectations.
Robinson said. The problem with reinterpreting masterpieces is
simple: If you come too close to the original, you've created zero
added value, Robinson said. If you stray too far from the original,
it ends up having nothing to do with the masterpiece.
Audi A6 Allroad
22
AUTOMOTIVE NEWS EUROPE
MARCH 2012
AUTOMOTIVE NEWS EUROPE
NEW CARS
BMWSleek but practical sedan targets Mercedes CLSWith the
6-series Gran Coupe, BMW enters the fast-growing niche for
coupestyled four-door sedans. The Gran Coupe will rival the
Mercedes-Benz CLS, Audi A7, Porsche Panamera and Aston Martin
Rapide. BMW hopes the Gran Coupes sporty styling combined with
practicality will win buyers. The car is 113mm longer than the
6-series coupe and has 4+1 seating with fold-down rear seats that
boost cargo space to 1,265 liters from 460 liters. The
BMW 6-series Gran Coupe6-series Gran Coupe will start at almost
80,000 euros in Germany when it goes on sale shortly after its
Geneva debut. The car will have the same engines and driver
assistance systems and mobility services offered on the 6-series
coupe and convertible versions and will be built alongside them as
well as the 5- and 7-series models in BMW's factory in Dingolfing,
Germany. BMW will also debut a 381-hp, 3.0-liter, sixcylinder super
diesel with triple turbocharging that will be offered in the 5
series, X5 and X6 under the new M Performance label. The X6 also
gets exterior styling changes and optional adaptive LED headlamps,
which BMW says are a first in its segment.
ChevroletChevrolet will unveil a Cruze station wagon, a variant
that the automaker hopes will boost the brands fleet sales in
Europe, where wagons are popular company cars. The wagon will also
get a 1.7-liter diesel engine with CO2 emissions below 119g/km. The
powerplant also will be offered in the Cruze hatchback and sedan
models in Europe. The wagon features a redesigned front end that
will be rolled out across Cruze range. With sales of 48,564, the
Cruze was Chevrolets No. 3 seller in Europe last year after the
Spark and Aveo, according to JATO Dynamics.
CitroenThe C4 Aircross will give Citroen a compact SUV rival to
the VW Tiguan, Hyundai ix35 and Ford Kuga. Like its sibling, the
Peugeot 4008, the five-seat C4 Aircross is based on the Mitsubishi
ASX. The C4 Aircross will be available with two- or four-wheel
drive in some markets when it goes on sale in Europe this
summer.
Citroen C4 Aircross
Dacia
FerrariThe Geneva debut of the 599 GTB Fiorano replacement will
complete Ferrari's frenetic product renewal that helped the
supercar brand to sell a record 7,195 cars last year. The twoseat
coupe will have a 6.3-liter gasoline direct-injection V-12 engine
with performance upgraded to 700 hp from 620 hp in the 599 it
replaces. The supercar also gets a seven-speed dualclutch
transmission to replace the 599s six-speed automated manual
gearbox. The new model will be lighter to improve acceleration and
reduce fuel consumption. It will cost slightly more than the 599
GTB F1, which in Italy starts at 260,000 euros. European deliveries
begin in June and U.S. shipments by year end.
Dacias first minivan, the Lodgy, will be a low-priced competitor
in Europes medium minivan segment, which is led by parent Renaults
Scenic and Grand Scenic models. The Lodgy will be available as a
five- or seven-seat vehicle when it goes on sale later this year,
joining the Logan sedan,
Sandero hatchback and Duster SUV in Dacias expanding range. The
name Lodgy is based on the English word lodge to convey the
minivans ability to comfortably accommodate a family and its
luggage. Dacia hopes the Lodgys low price and three-year warranty
will attract budgetconscious families.
Fiat
The high-roofed 500L expands the retro-styled 500 range to four
models. It will replace the Idea and Multipla models in Fiats
lineup and will rival cars such as the Ford B-Max and Mini
Countryman. Fiat said the 500L will be a distinctive alternative to
cars with traditional designs in the minicar and subcompact
segments. It has front-end styling inspired by the 500 hatchback
but is taller, wider and longer and sits on a widened version of
Fiats small vehicle architecture used by the Punto subcompact.
Engines include Fiat's TwinAir turbocharged two-cylinder, 85-hp,
900cc gasoline unit, a 1.4liter gasoline engine with either 77 hp
or 105 hp, and a 1-3-liter diesel with 75 hp or 95 hp. The 500L
will be offered as a fiveand seven-seat model in Europe but as a
five-seater only in the United States. European sales begin in the
fourth quarter. U.S. exports begin early next year. Fiat relaunched
the retro-styled 500 in 2007 with the 500 hatchback. A year later,
the automaker added the Abarth performance version, followed by the
500C convertible in 2009.
Fiat 500L
MARCH 2012
AUTOMOTIVE NEWS EUROPE
23
AUTOMOTIVE NEWS EUROPE
NEW CARS
FordB-Max targets young families with fresh pillarless
designFord is replacing its slow-selling Fusion small minivan in
Europe with the innovative B-Max, which has a pillarless design
combined with rear sliding doors to make access to the cars cabin
much easier for the target group of young families. The design may
help Ford win new customers in a hard-fought segment led in Europe
by the Opel/Vauxhall Meriva, which was the first model to bring
rear-hinged doors to the segment. The B-Max is the first car to be
built at Fords new Craiova plant in southwestern Romania. European
sales start in September. Ford will not sell the model in the
United States, where it says the minivan would be too expensive for
its target buyers. The BMax will be offered with Fords new frugal
three-cylinder 1.0-liter Ecoboost turbocharged gasoline engine,
which debuted in the new Focus. Prices, specification and the full
engine lineup will be announced at the Geneva show. Ford will also
show the new Kuga medium
Ford B-MaxSUV. The model is similar to the U.S.-market Escape
and improvements compared with the current Kuga include increased
cargo space and more high-tech equipment, including remote trunk
opening achieved by the driver making a kicking motion under the
rear bumper.
HondaHonda will show a near-production concept of the European
CR-V, which is due to arrive in dealerships toward the end of the
year. The SUV is largely similar to the new CR-V that went on sale
in the United States in December but Honda says it has changed the
models ride and handling, and given it a better quality interior to
cater to European tastes. The CR-V will be offered in Europe with
Honda's new 1.6-liter diesel that also will be sold with the Civic
compact and Jazz subcompact. Currently, Honda offers Europeans only
a 2.2-liter diesel that is too large in a segment where most buyers
want smaller diesels.
Kia Ceed
Kia
HyundaiHyundai will preview the next phase of its fluidic
sculpture styling with the i-oniq concept car designed at the
companys European r&d center in Ruesselsheim, Germany.
Kia has given the Ceed compact hatchback a new look and
better-quality interior designed to take the car upscale. The
secondgeneration Cee'd combines the styling typically found on a
sporty coupe with the space and functionality of a five-door
hatchback, Kia says. The five-door Ceed will go on sale in Europe
in June as a rival to cars such as the Volkswagen Golf,
Opel/Vauxhall Astra and Ford Focus. A Ceed station wagon will
arrive in showrooms in September followed by a three-door hatchback
early in 2013. A higher performance version is also being planned.
The new Ceed family will continue to be built at the automakers
Zilina, Slovakia, factory alongside the Sportage SUV and Venga
compact minivan.
InfinitiInfiniti will unveil the Emerg-E concept for a
lightweight plug-in hybrid sports car powered by an electric motor
and a range-extending gasoline engine mounted in the middle of the
vehicle to optimize handling and weight distribution. The concept
will also reveal the brands new styling direction.
Mercedes-BenzMercedes-Benz has given the new A class a sporty
styling to win more young buyers to the brand, ditching the boxy
shape of the previous-generation car. The automakers design boss,
Gorden Wagener, calls the redesigned car the coolest Mercedes in a
long time and the company hopes the A class will be a stronger
rival to the Audi A3 and BMW 1 series in the entry-premium segment.
Because European buyers are downsizing in increasing numbers, even
in the premium segment, the new A class will be a key car for
Mercedes in its bid to retake the luxury car lead from BMW. It is
based on the new Mercedes Frontwheel Architecture (MFA) that also
underpins the new B class, which was unveiled at the 2011 Frankfurt
auto show and retains its minivan-like design. Mercedes will launch
other small cars on the platform including the CLC sedan and GLC
SUV. The A class will launch in Europe in October as a five-door
model. A three-door variant arrives in 2013.
JaguarJaguar will unveil a station wagon version of the XF
called the XF Sportbrake. The car will compete against models such
as the Audi A6 Avant, BMW 5 series Touring and Mercedes E-class
wagon.
24
AUTOMOTIVE NEWS EUROPE
MARCH 2012
TURNING HEADS
Theres color, and then theres color that stops you in your
tracks. We engineer the second kind.For our partners in the
automotive industry, PPG color helps make vehicles move. Automakers
rely on our pearl, opalescent, and other special effects pigments
and lustrous, on-trend palettes to create brand identity and add
real value to vehicles. They also count on our consistency across
surfaces and from plant to plant. We understand their cost drivers,
so weve streamlined the traditional new car paint process to
eliminate steps and layers using eco-friendly waterborne and powder
coatings systems. Renishers live by our waterborne refinish
coatings and our ability to color-match with precision every time.
At PPG, we even help increase vehicle fuel efciency and lower
emissions by providing lightweight ber glass for composite parts,
and silicas that reduce the rolling resistance of tires. From
automotive to aerospace, consumer products, building materials and
industrial applications, were bringing innovation to the surface.
Visit ppg.com to learn more.
Bringing innovation to the surface.PAINTS - COATINGS - OPTICAL
PRODUCTS - SILICAS - CHEMICALS - GLASS - FIBER GLASS
Bringing innovation to the surface. is a trademark of PPG
Industries Ohio, Inc.
AUTOMOTIVE NEWS EUROPE
NEW CARS
Mini
Mini will unveil the Clubvan concept, which previews a delivery
van that may join the BMW brands expanding lineup. The Clubvan is
based on the Clubman station wagon. A production version would be
aimed at companies such as courier and home delivery services
looking for a trendy van to improve their image. Mini boss Kay
Segler has said he wants to expand the brand's lineup by the end of
the decade to 10 by adding four variants (see story, page 36). Mini
Clubvan
MitsubishiMitsubishi will unveil the new Outlander with a design
that reflects the automaker's shift to a friendlier look. The SUV
will also highlight the brands increasing emphasis on more
environmentally friendly technologies. The new Outlander is set to
launch in Europe in November. The SUV will be available as a
plug-in hybrid in Europe in 2013. Mitsubishi has said it wants
electric and plug-in hybrid vehicles to account for 20 percent of
its sales by 2020.
Nissan
Concept previews fresh approach for subcompactsWith the Qashqai
and Juke, Nissan introduced quirky design to SUV-styled crossovers.
Now the automaker plans to do the same with the replacement for its
dulllooking Note minivan. The Invitation concept previews the Notes
successor and brings fresh style, innovation and excitement to the
mainstream market, Nissan said. The production version of the
Invitation will launch in Europe next year. Nissan said the new car
will be more of a rival
to traditional hatchbacks in the subcompact segment. The
Invitation is designed to achieve high fuel economy along with
dynamic performance, as well as provide plenty of interior room.
The concept also showcases Nissans latest thinking in terms of
lightweight construction and advanced engine design. The Invitation
is one of two global concept debuts for Nissan at the Geneva show.
Details of the second concept will be disclosed at the show, Nissan
said. Reports say the second concept could preview the next
Qashqai.
Nissan Invitation
OpelWith the Mokka, Opel will be the first German automaker to
launch a contender in the growing small SUV segment. The Mokka will
go on sale in Europe at the end of the year and compete against
vehicles such as the Dacia Duster, Suzuki SX4 and Fiat Sedici. Opel
says the Mokka will introduce class-leading technologies to the
segment. The car will be offered with driver assistance systems
based on the Opel Eye front-camera system, which has functions
including lane-departure warning and traffic sign recognition, as
well as a rearview camera. The five-seat, 4280mm long Mokka shares
its platform with the U.S.-market Buick Encore. The Mokka will be
offered with front- or all-wheel drive, a choice of two gasoline
engines or a diesel. Also debuting is the Astra OPC, the most
powerful Astra variant with a 280hp, 2.0-liter gasoline engine and
a top speed of 250kph. Vauxhalls version is called the Astra VXR.
Opel will also show the RAD e study for an electric bicycle
designed to tap into a growing niche and also serve as a reminder
of the brands early history as a cycle manufacturer during its
150th anniversary year.
Peugeot
Peugeot says it carried out its most ambitious specification
overhaul ever to develop the 208, which replaces the brands best
seller, the 207. The new subcompact is 110kg lighter on average
compared with the 207. It is also 70mm shorter and 10mm lower to
the ground but has 50mm more legroom for rear passengers and 15
liters more trunk space at 285 liters. The interior is also
upgraded with an instrument panel and large touchscreen display
positioned around a small steering wheel. The changes are designed
to make the car more driver-focused. The 208 will be offered with
new 1.0and 1.2-liter three-cylinder gasoline engines. The 1.0-liter
unit has CO2 emissions of 99g/km and fuel economy of 4.3l/100km.
There are five diesel engines options, including four with
stop-start technology, offerPeugeot 208 ing CO2 emissions ranging
from 87g/km (3.4 l/100 km) to 99g/km. On average, the 208 range has
CO2 emissions 34g/km lower than the 207. The 208 will have three-
and five-door versions and will be launched in Europe starting in
April. Two concepts based on the 208 will also be shown: The 208 XY
Concept showcases a car for urban professionals looking for
refinement and distinctive values while the 208 GTI Concept aims to
revive the sporty performance of the 205 GTI from the 1980s.
Peugeot will also show the 4008 compact SUV. The car is a sister
model to the Citroen C4 Aircross that also debuts in Geneva.
26
AUTOMOTIVE NEWS EUROPE
MARCH 2012
AUTOMOTIVE NEWS EUROPE
NEW CARS
GENEVA 2012Finding your way around the show
GRAPHIC: GENEVA PALEXPO
28
AUTOMOTIVE NEWS EUROPE
MARCH 2012
AUTOMOTIVE NEWS EUROPE
NEW CARS
PininfarinaPininfarina will unveil the Cambiano, a four-seat
plug-in hybrid with a diesel-powered range-extender. The
5000mm-long coupe concept has an electric motor for each wheel,
each delivering 60kW (80 hp) with peak power of 150kW (201 hp) for
short periods. A small turbine fueled by diesel recharges the
batteries or drives the wheels. The drivetrain offers supercar
performance with CO2 emissions of just 45g/km. The Cambiano has a
top speed of 250kph with short-time peaks at 275kph, acceleration
from 0 to 100kph in 4.2 seconds. Pininfarina says the car has an
800km range including 205km in pure electric mode. The Cambiano has
a single long door on the drivers side and two doors on the
passenger side, including a rear-hinged rear door. It has no
B-pillar.
Pininfarina Cambiano
PorscheThe third-generation Boxster is lighter and more fuel
efficient than the car it replaces. It also has a more cab-forward
stance with the windscreen shifting forward, as well as heavily
sculptured flanks, which now feature longer doors and larger
wheelarches. The mid-engine roadster gets a lightweight aluminum
body and two heavily upgraded versions of the carmakers
horizontally opposed six-cylinder engines, which now have direct
injection, slight gains in power and new fuel-saving features. A
longer wheelbase and wider tracks provide the basis for a roomier
interior that takes its cues from that of the new 911. The Boxster
will go on sale April 14. Prices in Germany start at 48,291
euros.
Renault Megane
RenaultZoe accelerates EV ambitionsRenault is betting heavily
that electric cars will take off in a big way and the Geneva debuts
of the Zoe subcompact and Twizy two-seater production models mark
the latest phase in the automakers ambitious plans for
battery-powered mobility. The five-seat Zoe will become Renault's
volume EV with
SkodaAfter launching the three-door Citigo in the Czech Republic
late last year, Skoda will debut the five-door version in Geneva
ahead of its market launch in May. The Citigo is Skodas sixth model
and its first minicar. Its priced below the VW Up, its sister
model, but offers the same three-cylinder, 1.0-liter gasoline
engine, along with optional high-tech features such as a removable
navigation and infotainment system and VWs low-speed collision
avoidance system. In keeping with its Simply Clever marketing
slogan, Skoda has given the Citigo some small but useful features
such as a bag hook on the glove compartment, a photo and document
holder and a range of net holders. The car is the first Skoda to
have a side airbag that protects the heads of the driver and the
front seat passenger. It's also the brand's first production car to
have Skodas new logo on the front.
annual sales expected to be about 150,000. The Zoe joins the
electric versions of the Fluence sedan and Kangoo car-derived van
that are already on sale. The scooter-style Twizy aims to fill a
niche for a small vehicle that will provide mobility in crowded
cities. Renault will also show a face-lifted Megane compact with
more fuel-efficient engines. Renault says the Megane's updated
1.5-liter diesel is 15 percent more efficient with fuel-consumption
of 3.5l/100km and CO2 emissions of 90g/km.
SeatA Toledo concept, the Mii five-door minicar and a facelifted
Ibiza are Seats Geneva debuts. The models are part of the brand's
product offensive to increase annual sales to 800,000 by 2018 from
350,000 in 2011. The Toledo will be Seat Ibiza shown as a five-door
sedan concept previewing a production version that will three-door
on the market. Seat says revive a model that Seat stopped sellthe
Miis angular front end gives it a ing in 2009. Reports say the
Toledo sporty look that distinguishes the car was jointly developed
with Skoda from its siblings, the VW Up and Skoda and is Seats
version of the Skoda Citigo. The Ibiza gets a mid-life face-lift
MissionL concept sedan, which aimed at further boosting the car's
was unveiled at the 2011 popularity with young buyers. It has a
Frankfurt auto show. fresh front end that has a larger trapezoidal
grille as its centerpiece. Seat The Mii will be shown in Geneva as
says the styling will appear on future a five-door model that will
join the models.
Skoda Citigo
30
AUTOMOTIVE NEWS EUROPE
MARCH 2012
AUTOMOTIVE NEWS EUROPE
NEW CARS
By Paul McVeigh with contributions from Douglas A. Bolduc, Luca
Ciferri, Bertran