A publication from August 2012 Volume 01 | Issue 06 global

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Buried VW uses Europe’s crisis to crush rivals

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Communications Crain © 2012 – narvikk © istockphoto.com photo: background March 2012 Volume 01 | Issue 01 dAtA Fordglobal makes monthly big Which suppliers JATO data shows production push have key broughtparts to youinwww.jato.com courtesy of Europe winners months Unit Percent – months 9 2010 change change in 9 +67,087 the new Audi A3?2011 6,307 –20% in first half 73,394 –27,600 –10% 135,284 WESTERN EUROPE SALES BY MODEL, 9 MONTHS 107,684 –13,065 8% months Unit Percent ...... 133,366 A1 ...... +4,062 – 9 months 9 2010 change change –15% 120,301 51,950 2011 –20,618 3% A3/S3/RS3 +14,255 137,093 ...... 56,012 220 26% +316 A4/S4/RS4 ...... +1,436 116,475 22% 14,475 7% ...... 12,340 +2,088 A6/S6/RS6/Allroad 5,549 +966 12,656 9,386 –9% 6,985 –9% Scenic/Grand Scenic ...... –2,466 A7 ...... 13,435 –5,538 11,474 27,159 15% ...... 14,401 –19% Espace/Grand Espace +1,085 A8/S8 59,925 –253 ...... 24,693 7,057 –45% 54,387 3% Koleos –483 TT ...... 1,318 ...... 8,142 1,075 –10% ...... 1,065 +1,618 23% Kangoo 592 –85,087 A5/S5/RS5 47,585 +1,852 ...... 832,216 –10% 49,203 68% Trafic –96,250 R8 ...... 8,004 +268 ...... 747,129 –4% 9,856 Other ...... 994,894 –48,508 ...... 395 10% 898,644 –1% Q5 663 +45,088 Total Renault brand 1,288,257 –76 ...... 1% ...... –6% Q7 463,338 +13 1,239,749 9,687 –189 ...... 508,426 981 RENAULT ...... 9,611 – Other –25% 3,150 ...... 994 –46 – RENAULT- 2,961 –1,053 Total Audi ...... +179 ...... 1,055 –10% 184 14 –52% 9-3 2 –1,318 – Continental GT/GTC ...138 –28 9-5 ...... 13,892 –2 193 54 10% 12,574 2 –10% Continental Flying Spur +118 ...... 26 –36% Other – –1,320 Mulsanne 1,233 –5 ...... 13,894 –13% 1,351 – Total Saab ...... –876 ...... 14 12,574 6,814 –25% Other ...... 9 +22 Spyker brand –2,629 – –10% ...... 5,938 – Total Bentley –28 SPYKER 10,383 +2,048 ...... 22 293 –92% ...... 7,754 – –1% Bugatti –65 Impreza –50 ...... 265 71 33% ...... 2,048 –71% Aventador +1 9,879 ...... 6 Legacy/Outback 9,829 –2,205 3 –19% ...... 3,110 –12% Gallardo ...... 4 –70 Trezia 905 –3,712 367 2% ...... 30,186 –26% Murcielago +50 Forester –9,240 ...... 297 2,733 –5% ...... 26,474 35,751 –26% Other ...... –79 Other –3,870 2,783 1,574 –3% ...... 26,511 14,669 17% Total Lamborghini –312 +6,546 ...... 1,495 9,301 –9% ...... 10,799 39,466 116% Boxster –436 Alto +669 ...... 8,989 5,072 48% ...... 46,012 577 –31% Cayman +4,052 Splash –4,011 4,636 309% ...... 1,246 –10% 911 ...... 8,384 +182 Swift 12,880 –2,253 ...... 12,436 13% ...... 8,869 59 Kizashi 23,070 Panamera 241 +3,457 20,817 5% ...... 27,123 –13% Jimny ...... +519 Cayenne –4,075 –77% ...... 30,580 31,083 121% SX4 ...... 10,600 –91 Other ...... +6,506 11,119 –9% 27,008 5,392 5% ...... 118 Total Porsche +5,985 Vitara/ 27 –11,731 ...... 11,898 –6% 137,131 –21% Altea 114,589 –3,234 Grand Vitara/XL-7 –3,250 ...... 120,574 –5% ...... 125,400 15,880 29% Alhambra 54,359 –986 Other +682 51,125 –88% ...... 12,630 2,389 –8% Ibiza ...... 18,124 –173 –189 2% 3,071 2,264 –91% ...... 17,138 196 XF ...... –747 Leon 23 +4,023 2,075 822 –16% ...... 9% XJ ...... –3,504 Exeo 223,743 +8,764 75 –67% ...... 227,766 93,051 3% XK ...... 21,355 –2,360 Other +3,066 ...... 17,851 –11% ...... 101,815 16% Other 3,504 –2,410 Total Seat 94,156 +4,731 ...... 1,144 –14% ...... 97,222 12% Total Jaguar 22,351 –1,482 Fabia 29,947 +1,845 ...... 19,941 – ...... 34,678 19% Defender 10,673 +2,426 Octavia 16,004 +5,624 ...... 9,191 – –10% ...... 17,849 –87% Freelander –1,484 Superb 29,215 –179 ...... 2,426 14,420 39% ...... 34,839 205 9% Discovery ...... +1,685 Roomster 26 +23,851 12,936 4,310 –60% ...... –56% Range Rover Evoque ...... –6 Yeti 262,578 –14,223 5,995 10 –7% ...... 286,429 25,336 0% Range Rover Sport...... 4 –3,631 Other +1,129 55,268 –32% ...... 11,113 –2% Range Rover –402 Total Skoda 261,899 –7,572 ...... 51,637 1,278 –17% ...... 263,028 4% Other ...... 876 –54 Fox 367,403 +2,414 318 –71% ...... 359,831 107% Total –716 Polo 62,784 +6,991 ...... 264 1,015 –45% 65,198 40% Indica –1,172 Golf ...... 6,550 ...... 299 2,611 –11% ...... 13,541 +48,415 5% Xenon –8,307 Golf Plus 121,056 +809 ...... 1,439 79,234 –21% 169,471 42% Other ...... –590 Jetta ...... 16,010 +668 70,927 2,765 –40% ...... 16,819 –24% Total Tata brand...... –1,595 Passat 1,604 2,175 4,023 –59% ...... 2,272 –6,653 –1% TATA MOTORS ...... –614 Passat CC 27,677 –83 2,428 1,041 –48% ...... 21,024 32% Cuore/Charade 427 –3,200 Phaeton 10,432 ...... 6,655 –82% ...... 10,349 +21,789 343% Sirion –323 Scirocco 68,935 ...... 3,455 395 –43% 90,724 +26,300 7% Materia 72 –6,322 – Eos ...... 7,674 ...... +5,286 Terios 14,879 +11,058 ...... 33,974 74,469 60% ...... 8,557 – Touran +6,297 Other –37% ...... 79,755 29% ...... 11,058 –43% Sharan 10,580 +9,220 Total Daihatsu –1,897 –3,460 ...... 16,877 5,102 –59% Tiguan 32,148 CT ...... 3,205 8,071 –512 ...... 41,368 –2% 4,611 37% Touareg –705 ...... 870 ...... –44% IS 358 +5,189 Caddy 36,198 ...... 14,043 –46% 35,493 –3,598 9% RX –8,780 ..... 8,095 ...... 19,232 19,081 0% Transporter/Caravelle/ +96,484 Other –156 4,497 8% ...... 10,301 64,398 –15% Multivan/Shuttle/T5 1,138,850 +172,946 Total Lexus –17,304 8% ...... 1,235,334 25% ...... 64,242 113,795 Other ...... 2,117,246 +1,544 IQ +4,909 2,290,192 6,237 –29% ...... 96,491 58,156 –9% Total VW brand...... –171 Aygo –474 7,781 589 –1% ...... 63,065 5,137 –47% VOLKSWAGEN –94,999 Yaris –16,920 ...... 418 ...... 4,663 36,364 –15% OTHER .... 10,003,117 Auris –6,705 – (China automakers) 9,908,118 l are compiled ...... 19,444 OTHER Corolla 44,265 +13,297 ...... and, France, 37,560 – –2% GRAND TOTAL , Spain, Prius ...... –501 ...... 13,297 –53% Avensis 27,348 –6,009 Excludes models registered as commerical vehicles. Europe sales by mode ...... 26,847 –16% Note: Verso-S 11,376 –5,640 using sales data from the following countries: Austria, Belgium, Denmark, Finl ...... 5,367 –15% Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal Verso 35,679 –1,290 ...... 30,039 –52% Sweden and . Urban Cruiser 8,445 –993 ...... 7,155 –11% RAV4 1,907 Source: JATO Dynamics +44(0) 20 8423 7100 (www.jato.com) ...... 914 –46,566 –11% Land Cruiser 425,951 379,385 –47,699 Other ...... 454,873 407,174 this global monthly is property of John doe Total Toyota brand...... TOYOTA MOTOR

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NY-12-0530- Ad v2.indd 1 2/8/2012 5:07:15 PM August 2012 Volume 01 | Issue 06

Inside this issue: VW punishes rivals; Europe recovery might take until 2020

Welcome to the sixth issue of the -- Volvo is considering building a rival to Automotive News Europe Global BMW's Mini and the Audi A1. We have Monthly. This edition's cover story some of the early details. focuses on Volkswagen Group's -- Renault expects to reach a new set of seemingly unstoppable growth, customers through a program that especially in Europe. helps people living below the poverty In the first half, VW Group edged closer line in France gain access to . to accounting for a quarter of Europe's -- New Bosch CEO Volkmar Denner is overall new- sales. As Europe's prescribing a radical change in the largest automaker increases its market culture at the tradition-conscious share in the region, rivals from France company. We look at what's next. and Italy have started to accuse VW of buying share. -- Fiat and have teamed with Continental to launch a new Financial analysts are split on whether infotainment system that customers will this is actually happening. Some say Luca Ciferri is Automotive News Europe be able to update and enhance that VW Group is using huge profits Editor-in-Chief. throughout the life cycle of their cars. earned in China to subsidize big reductions in its starting prices for new -- The takeover of German car-lock cars in Europe. Others say the German From our sister publication, Automotive specialist Kiekert by a China company is automaker is simply adjusting its prices News China, we learn what VW Group the latest in a growing number of to better compete with much higher is doing to remain the unrivaled No. 1 mergers and acquisitions by Asian discounts being offered by rivals, automaker in the world's largest auto companies in Europe. Experts predict particularly the French. What no one market. From our parent, Automotive this is trend will continue. can debate is that VW Group is doing News in Detroit, we look at what VW, -- The sixth-generation VW Golf is something right because its operating Hyundai-Kia and Nissan are doing to nearing the end of its life cycle, but profit grew 6.7 percent to 6.5 billion capitalize on the strength of the hot that has not slowed its sales. The Golf euros ($8 billion) in the first half. U.S. market. was Europe's best-selling car in the first A key to maintaining -- or boosting -- While automakers are doing well selling half, according to data from our profitability at VW is the automaker's cars in the United States, the story is partners at JATO Dynamics. We have a new MQB vehicle architecture. By very different in crisis-hit Europe, where full report on by-model European sales. 2019, analysts expect VW to use MQB one consultancy believes there might We hope you enjoy the issue. to underpin 4.6 million vehicles ranging not be a rebound for new-car sales from the next Polo subcompact to the until 2020. future-generation Passat. It is estimated that MQB could provide VW with a Other stories that you'll find in this cumulative cost savings of 14 billion month's issue include: euros by 2019. Luca Ciferri, Editor-in-Chief

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VW's European dominance overpowers rivals

VW likely may be a big winner from Europe's economic crisis. Picture shows a VW Beetle and an Up minicar in a delivery tower at the company's headquarter in Wolfsburg. (Photo: Reuters)

Nick Gibbs and EFTA countries, up from 18.6 Analysts believe VW is so dominant in percent in 2004. VW brand on its own Europe that it can buck the cyclical Volkswagen Group has become so commands a 12.7 percent share. nature of the industry. "The debate dominant in Europe that rivals are now turns to which non-German OEM being left behind. Since 2004 PSA/Peugeot-Citroen, will fail first ... and when," said Max Europe's second-biggest automaker, One industry observer believes the Warburton, a London-based analyst at has seen its share fall to 12.0 percent German automaker's success threatens Bernstein Research. from 13.8 percent. the future of some of its struggling Road to success competitors. "The debate now turns to VW's dominance is unlikely to be which non-German OEM will fail first ... threatened even as Europe's economic A number of moves helped VW achieve and when," said Max Warburton, a woes lead to plunging car sales in the today's dominance in Europe. London-based analyst at Bernstein region. New models such as the "In 2003-04, VW had seen its U.S. Research. recently launched Audi A3 and the profits wiped out by the devaluation of upcoming new-generation VW Golf will VW Group, including brands such as the dollar. It was losing money and out provide a big tailwind. Audi, Seat and Skoda, now commands of cash and needed a new strategy," a market share of 24 percent in the EU Warburton said. The company chose to

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turn its focus to Europe with a new "We believe that big profits from parts have not been to the detriment of price-cutting strategy designed to take sales, royalty payments and exports to pricing, the investment bank said in a share. VW took the Golf, Passat and China are effectively subsidizing VW's note to investors. "Indeed VW's Polo down-market to chase share European price-cutting strategy," average discounts are currently 6 points gains. Warburton said in presentation at the below the mass market average of 21 Automotive News Europe Congress in percent. The most active discounters "VW is offering European consumers Monaco in July. are PSA and , which shouldn't VW vehicles at identical or lower prices come as a great surprise given the than less desirable brands," Warburton Getting stronger losses they have experienced over the said. "There was little the French and VW Group has raced ahead of rivals in past 12 month," the investors' note Italians could do in response except cut European market share said. prices too." % % Industry benchmark The strategy was accompanied by cost- H2 2004 cutting actions led by Wolfgang If VW is losing money in Europe, VW Group 24.1 18.6 Bernhard, the former Chrysler chief analysts believe it is losing it at a much PSA/Peugeot- operating officer and current Mercedes- 12.0 13.8 slower rate than PSA, Ford or Opel, Benz production head, during his short Citroen each of which is predicted to post tenure as VW brand CEO from 2005 to Renault Group 8.5 10.2 losses of a billion euros or more in 2007. GM 8.3 10.7 Europe this year. VW also no longer has the "natural Ford 7.7 8.5 "VW has gained more from volume brake" of a rising Deutsche mark to than it has lost from price," said Fiat Group 6.6 7.4 slow its export success. The weak euro Warburton. "The overall business is is now helping the automaker's larger, with better cash flow." exports. Source: ACEA (EU and EFTA VW's financial strength also means it Warburton, Fiat CEO Sergio can get access to money for investment Marchionne and PSA boss Philippe "Volkswagen products may be more or cheap customer loans at a much Varin believe VW is using its cash attractive, the brand better managed, reduced rate compared with strength -- including high profits from the quality stronger and the technology automakers such as PSA, whose China -- to buy market share, a claim superior but the most important financial arm was downgraded by VW strongly refutes. weapon has been price ... VW is using credit ratings agency Moody's in July. VW's global income is huge. The price to draw blood," he said. "The banks see them as the copper- group's worldwide operating profit for VW denies that it is buying share. plated benchmark of the industry and the first half of 2012 was 6.5 billion "Despite a challenging environment, are throwing money at them. By euros ($8 billion), up 6.7 percent from Volkswagen has not changed its pricing contrast PSA are getting hammered, the year before. Of that, Audi strategy and we are not chasing market and this has a knock-on effect for accounted for 2.9 billion euros, share," a spokesman said. finance," said IHS Automotive senior Volkswagen 2.2 billion euros and Skoda analyst Ian Fletcher. 412 million euros. The only VW's success in Europe is a result of unsuccessful automotive division was "our multi-brand strategy, an Not perfect Seat, which lost 42 million euros. attractive, eco-friendly model range, VW is also good at reducing costs. our sales capabilities and our flexibility Credit Suisse estimates that the VW does not publish regional figures in production," the spokesman said. company will realize 14 billion euros of but Bernstein Research estimates 60 cumulated cost savings from its new percent of VW's profit comes from Barclays Research supports VW's MQB (a German acronym that in China, its biggest market. comment and says the company is not the biggest discounter in Europe. The English means Modular Transverse automaker's recent market share gains Toolkit) architecture by 2019. The front-

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wheel-drive platform debuted on the increasingly compete directly with VW "unsophisticated" on the road, new Audi A3 and will underpin more models instead of concentrating on according to the UK's Autocar than 40 models and 4.6 million vehicles selling inexpensive, entry-level cars. magazine. including the new Golf, as well as the Winterkorn was furious when the VW will the big winner from Europe's next Polo subcompact, Passat mid-sized Skoda Superb large family car won a economic crisis, said Ferdinand car, Tiguan medium SUV and comparison test against VW's Passat in Dudenhoeffer, director of the Center equivalent models for Skoda and Seat. the influential German automotive for Automotive Research at the magazine Auto Bild, a report in VW's business model is not quite University of Duisburg-Essen in German weekly magazine Der Spiegel perfect. Germany. said. Chairman Ferdinand Piech and CEO Rivals PSA and Fiat have been hit hard VW has a tough task managing its Martin Winterkorn still have not fixed by plunging sales in their traditionally mass-market brands, according to IHS Seat, the group's Spanish unit, which strong southern European markets, Automotive's Fletcher, who said Skoda has amassed losses of about 1 billion which have suffered most from the is still nudging into VW brand territory euros ($1.24 billion) since 2008 and has downturn. VW is benefitting from a by producing affordable, good-quality made a profit in only one of the last 10 still-strong home market in Germany cars with an increasingly desirable years. and the weak euro. The automaker also brand image. VW's leadership has told now owns Porsche Holding, Europe's Also, the success of the Czech-based Skoda to use lower quality biggest dealer group, and the company Skoda division threatens the core VW components, Fletcher said. is investing in new products while brand. Crisis winner competitors such as Fiat are cutting In 2010, Skoda's then-CEO Reinhold back. For example, the new Skoda Rapid Jung was replaced by former VW China compact hatchback, which will debut "VW is beating its European rivals in chief Winfried Vahland despite the at the Paris auto show in September many ways," Dudenhoeffer said. "I Czech brand's success during Jung's and share the MQB platform with the wouldn't exclude VW coming out of leadership. German media reports said VW Golf, uses a simple twist-beam rear the crisis with a commanding 30 Piech and Winterkorn were angry that suspension, which makes the car feel percent market share." Jung had allowed Skoda models to

europe.autonews.com/GlobalMonthly August 2012 COVER STORY Volume 01 | Issue 06

Prolific VW platform is key in race to global No. 1

With VW's MQB architecture, only the engine position and distance between the front axle and pedal box are fixed. Virtually all other dimensions are variable.

Luca Ciferri "VW's MQB toolkit may be the single speech to shareholders at VW's annual biggest cost-saving initiative ever meeting on March 12. Before the end of the decade, mounted by any automaker," Pearson Volkswagen Group will benefit from VW is likely to use the cost savings to wrote. massive savings from its new MQB offer aggressive pricing on new cars, architecture, giving the company VW Group CEO Martin Winterkorn said which would put added pressure on another weapon in its bid to become the automaker will need to recoup the rivals, industry watchers say. the world's largest automaker. substantial development and startup More than 40 vehicles costs for the architecture, but in the The economies of scale from making mid to long term, MQB "will deliver The MQB platform will underpin more more than 4.6 million vehicles based on substantial savings in unit costs, one- than 40 models including the recently one architecture will result in 14 billion time expenses and the production of launched Audi A3 and the seventh- euros of cumulated cost savings for VW our vehicles." generation VW Golf, which will make Group by 2019, Stuart Pearson, an its public debut at the Paris auto show auto analyst at Morgan Stanley in Production time will be cut by about 30 next month before going on sale in London, wrote in a recent report. percent, Winterkorn added during a Europe in early 2013.

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IHS Global Insight predicts that by 2017 VW will start using MQB for a new body, the so-called "top-hat," can MQB will become the world's most generation of the Lavida sedan for change. prolific platform with 30 different China. In a February presentation of MQB, VW models and 4 million units built a year. New kind of platform showed that only the engine position In 2010, Toyota's MC platform was the and distance between the front axle world's largest with a volume of 2.9 Under development since 2007, MQB is and pedal box are fixed. Virtually all million compact models such as the an acronym for the platform's German other dimensions are variable. Corolla, Auris and RAV4, according to name: Modularer Querbaukasten. In data from PricewaterhouseCoopers. English, VW Group calls MQB the Any powertrain modular transverse matrix or modular By 2018, VW Group aims to be the VW says investments for models based transverse toolkit. world's largest automaker with sales of on MQB will be 20 percent lower than more than 10 million cars. MQB follows the successful, lower- that required for traditional volume MLB platform, which mainly architectures, while a high The new Golf will be the top MQB underpins Audi models with a communalization of parts and model with an estimated annual longitudinally mounted engine. manufacturing plants will slash time to volume of 900,000 units in 2015, IHS market by 30 percent. In addition, VW figures show. MQB and MLB are not platforms in the MQB will help reduce purchasing costs traditional sense of the term: for MQB will also underpin the next- by 20 percent. example, neither has a standard generation VW Passat mid-sized sedan, chassis. Instead, a set of standardized Another key advantage of MQB is that as well as medium SUVs such as the modules are used that can be it was designed to work with any type VW Tiguan and Audi Q3 replacements. combined in a variety of ways. of powertrain, from traditional gasoline The next Seat Leon, which also debut and diesel engines to plug-in hybrids at next month's Paris show, is the first The crucial difference with MQB is that and full-electric. car by the VW's Spanish subsidiary to it allows the length, width and use MQB. Skoda will start using MQB wheelbase of a vehicle to vary. In a "This flexibility," Morgan Stanley's next year to underpin the new Octavia traditional platform, these dimensions Pearson said, "is key in our view to compact. Near the end of the decade are fixed and only the shape of the future-proofing the architecture."

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VW's U.S. expansion central to goal of being global No. 1

Christina Rogers Chattanooga, Tennessee, last year and has enough land to build a second, mirror-image facility on the Volkswagen aims to be the best-selling global automaker by other half of the site. Audi's decision in April not to 2018 and a central part of its plan to get there is the goal of build its new factory there is telling: that empty boosting core-brand sales in the United States. land could be reserved for VW. By 2018, the brand aims to sell 800,000 vehicles a year in • Add a third-row SUV and develop more cars the U.S. market, a level never attained in VW's 57 years of tailored to U.S. buyers. Already, three models have selling vehicles in the country. The brand sold 324,402 units had U.S. makeovers: the U.S.-built Passat and two in the United States last year. models built in Mexico, the Jetta and Beetle. Other models could follow. The goal, set in 2008, is an important element in VW • Increase per-store sales and add stores, especially in Group's bid to overtake and Toyota to the central states where VW isn't heavily become the biggest global automaker by 2018. represented. But what, exactly, will it take to get there? VW Group of • VW has about 600 dealerships nationwide, far America CEO Jonathan Browning and other executives have fewer than larger competitors have. talked in general terms about improvements needed for • Improve quality and reliability scores. The brand, VW's product lineup, vehicle quality, North American while getting high marks on looks and appeal, has manufacturing capacity and dealerships. long sagged in these areas. VW has stepped up efforts to tackle its quality problems, but progress Today VW's North American production and dealer network has been slow. In June, its ranking in the J.D. Power are sized for much smaller volumes. The brand hasn't sold and Associates Initial Quality Study slipped a notch, more than 500,000 vehicles a year since 1971. to a tie for No. 29 out of 34. VW dominates in other regions of the world where it sells Larger lineup, bigger vehicles cars, but in the United States it was only the No. 10 seller this year through July. The VW brand has made major strides toward its sales goal. It posted double-digit U.S. gains in 2010 and 2011, thanks in Browning has stressed that the goal isn't only about volume; large part to the success of the redesigned Passat and Jetta. it's also about profitable, sustainable growth. VW also wants to lead the industry in quality, customer service and many Through July this year, VW brand's U.S. sales have climbed other areas. 34 percent to 245,739 vehicles.

But the company will need a major makeover of U.S. "There is certainly some confidence there," said Jeff operations to transform the brand into one that's fit to rival Schuster, senior vice president of forecasting firm LMC the top sellers Ford, , Toyota, Honda and Nissan. Automotive in suburban Detroit. "There is an early indication that what they're doing is working." Based on comments from VW executives, dealers and industry analysts, VW will need to: But he added: "There is a lot in between this initial success and the target" in 2018. • Assemble more of its U.S.-sold vehicles in North America than it does now. As a move in that "Their competitors are aware of it, and they have their direction, VW opened a $1 billion plant in targets, too," Schuster said.

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VW's product lineup remains a major Rainer Michel, VW of America's vice hurdle. The portfolio needs more president for product strategy, told competitive offerings in two crucial U.S. Automotive News, a sister publication segments, crossovers and SUVs. And of Automotive News Europe, last unlike other big-volume sellers, such as month that the Tiguan, a model that Toyota, Nissan, Ford and Chevrolet, VW competes in what has been a fast- doesn't sell a full-sized pickup or sedan growing market for compact SUVs, will in the United States. play a much more important role in the future. "VW doesn't have the breadth of product right now to hit 800,000, and Introducing an Americanized version of they haven't provided a road map of the Tiguan is a top priority, Michel said. how they're going to get there," said Right now, the Germany-built Tiguan, Dave Sullivan, an Ann Arbor, Michigan, which starts at $23,660, including analyst with research company shipping, is slightly more expensive AutoPacific Inc. than its chief competitors, the Honda Euro pushes prices up CR-V ($23,325, including shipping) and Toyota RAV4 ($23,460, including VW's premium pricing also limits U.S. shipping), and offers less legroom and sales. cargo room. VW's Jonathan Browning: The goal isn't only about volume. It's also about The company builds about 30 percent VW sees room for a small SUV below profitable, sustainable growth. of its U.S.-sold vehicles in Europe. With the Tiguan that would be built locally import costs and the euro's strength and tailored to the United States, against the dollar, that makes it difficult read and visible at all times, Browning Michel said. for VW to compete aggressively on said. The company also changed the price. Also important to VW's U.S. target is a seat adjusters to better conform to third-row SUV to compete with models American expectations. It also creates inconsistencies in VW's such as the and Honda lineup. For instance, the Golf, a The company is counting on a new Pilot, which dominate the popular mid- compact hatchback built in Germany, highly flexible platform debuting this sized SUV market. This is a model starts at $18,765, including shipping, year, the MQB, to help produce more Browning has called for repeatedly. about $1,350 higher than VW's U.S.-targeted vehicles. The platform will comparably-sized Jetta sedan, which is "We have quite a lot of nameplates in allow VW to develop cars faster and built in Mexico. the market today for our total volume," cheaper, making them easier to tweak Browning said. "But we don't have for specific regions. The Jetta and the redesigned Passat, enough depth in key segments." which is built in the United States, have More built in the U.S. sold well, but other vehicles in the VW Aside from the Jetta, few other VW The capacity to build cars in North lineup are priced more like VW's luxury models have broken through the America will be crucial. sibling, Audi, than like the brand's 50,000-a-year-mark in sales. To change mainstream competitors. that, Browning said VW is paying closer By 2018, VW aims to assemble at least attention to U.S. buyers' wants and 70 percent of its U.S.-sold cars in North "They need to address the pricing needs and is designing vehicles to America -- about 560,000 vehicles a issues, and that's going to be difficult better suit them. year -- a goal that will require it to when the [nameplates] they haven't expand manufacturing operations addressed are coming from Europe," For instance, when VW realized U.S. drastically, especially in Chattanooga. said AutoPacific's Sullivan. drivers use air conditioning differently from Europeans, it changed the VW's plant in Puebla, Mexico, where it VW executives admit the U.S. portfolio faceplate so the controls are easier to builds the Jetta and Beetle, has reached is a work in progress.

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full capacity, VW officials say. Puebla year capable of building 300,000 Brand executives know they need to produced 510,104 vehicles in 2011. engines a year. make some big gains in this area, and About 40 percent of the vehicles made quickly. "They're still relying heavily on engines annually in Puebla go to the United and transmissions from Europe," Last year VW began sending surveys to States. Sullivan said. "They need to break free all buyers of new VWs to get feedback, In Chattanooga, VW in July added 800 from that. But it's a chicken or the egg. Marc Trahan, VW of America's quality hourly workers, longer shifts and Do you put the plant here and assume chief, told Automotive News. Saturday production so the plant is you get the volume or the other way The survey questions, which are sent running two 10-hour shifts six days a around?" out two to six weeks after the week, instead of two eight-hour shifts VW also must fix its quality problem. purchase, are based on questions five days a week. The change will Quality and reliability usually trail only included in Power's Initial Quality enable the plant to increase its annual price as criteria consumers use to Study, said Trahan, who was recruited capacity to 180,000 in the second half choose a vehicle. from Audi in 2011 to take charge of of 2013. VW's quality problem. VW has performed poorly for years in VW can further boost capacity to industry reviews, such as J.D. Power's "We get data on a monthly basis that 250,000 vehicles a year there by quality and dependability surveys and we channel back to the factory," he increasing line speed and throughput in testing by Consumer Reports. said. the paint and body shops, Browning said, although it hasn't made any The brand never has ranked above the VW also has stepped up collaboration decisions on that yet. industry average on J.D. Power's Initial with J.D. Power, involving the research Quality Study, said Dave Sargent, J.D. group further upstream in product But the existing factory occupies only Power's automotive vice president. development, which has helped VW half the site's land; there's still enough reduce defects on the factory floor, room for a mirror-image plant. So VW On Consumer Reports' 2012 report Trahan said. As a result, VW and its could build as many as 500,000 card, which measures reliability and on- dealers say warranty-repair hours are vehicles a year there, Browning said. road performance, VW ranked No. 9 down. out of 13 major automakers. "If Chattanooga were expanded to the Trahan said the goal is to be in J.D. numbers we're talking about, you If VW is to hit its sales goal, said David Power's top five for IQS. wouldn't do that with a single Champion, director of automobile product," Browning told reporters in testing for Consumer Reports, "They've While quality remains a nagging May. "We'd be adding a second line." got to be in the top five." problem, VW has done well in other areas, such as J.D. Power's Automotive As VW approaches its sales target, look The brand's reputation has suffered Performance, Execution and Layout for it to consider another assembly repeated dings on a range of issues: (APEAL) Study, which polls consumers plant, said Ron Harbour, an analyst at major engine and transmission on looks, driving performance and consulting firm Oliver Wyman. "I problems, along with less catastrophic appeal. Last year, VW ranked highest of guarantee they have plans for that," he issues such as oil leaks, electrical any nonpremium brand. said. "It's just a matter of when they glitches, power window malfunctions push the button." and interior trim falling off, Champion J.D. Power's Sargent says VW needs to said. strike a balance, improving quality and Engine plant in Mexico appeal to U.S. buyers while retaining its What's more, most major problems Other manufacturing operations could German character. Said Sargent: "They typically start at the four- to six-year follow, such as a stamping or don't want to be a Japanese or mark, after the vehicle has come off transmission plant, industry experts say. domestic with a VW badge." warranty coverage, Champion said. Already, VW has committed to opening That's also about the time people start an engine factory in Silao, Mexico, next thinking about buying another car.

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How Volkswagen Group dominates the world's largest auto market

SHANGHAI -- It is always amazing to Technology isn't VW's only strong suit. see an elephant, the world's largest The company also has aggressively land animal, start to run at full speed. expanded production.

It's a bit like watching Volkswagen in By building vehicles in China, an China. automaker can avoid a 25 percent import tariff, and also can modify their In the first six months of the year, VW products to satisfy the tastes of local Group's sales rose 18 percent to 1.3 customers. million vehicles, a much faster growth rate than the industry's 7 percent Volkswagen was the first international increase. automaker to build a luxury model, the stretched Audi A6, in China. In a soft market, Volkswagen increased its share of China's passenger vehicle Currently four Audis are produced in market to 20.3 percent in the first half China: the A6, the stretched A4 and of this year, from 17.6 percent last A8, and the Q5. These vehicles year. Yang Jian is managing editor of generate more than 80 percent of Automotive News China. Audi's China sales. How did the German auto giant achieve such rapid sales growth? Well, Led by strong sales of its locally built two factors helped. One is advanced To be sure, VW is not immune from models, Audi's China sales surged powertrain technology. technology mishaps. Last year, VW 38percent year-on-year to 193,900 units. In 2009, VW introduced turbocharged owners began complaining about their stratified injection engines and direct- dual-clutch transmissions, citing China now is the largest global market shift gearboxes, also known as dual- abnormal noise and vibration, as well for the Volkswagen, Audi and Skoda clutch gearboxes. as difficulty in shifting gears. brands. To realize its goal to become the world's largest automaker, VW is These fuel-efficient powertrains have To reassure consumers, VW introduced building four new assembly plants in provided a major marketing boost for a ten-year warranty on vehicles China. the mid-sized VW Passat and Magotan. equipped with dual-clutch In the first six months of 2012, the transmissions. The company also shook The company seems certain to Passat's sales increased tenfold while up management -- a strong indication dominate China for years to come, Magotan deliveries more than doubled. of the importance of technology to VW leaving its competitors behind in the China. world's largest auto market.

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U.S. leaders lose share to VW, Kia, others

July U.S. auto sales look like a simple Toyota and Honda a stranglehold on story: Toyota and Honda recapture U.S. sales. Now market share is up for market share that they lost to General grabs." Motors and Ford a year ago when their The shake-up isn't limited to the past post-earthquake stocks were depleted. two years. Since 2008, GM, Ford, In a July market up 9 percent, American Toyota and Honda auto groups have Honda Motor Co. sales jumped 45 lost 7.3 share points altogether, falling percent and Toyota Motor Sales 26 from 65 percent to 57.7 percent of the percent while GM volume fell 6 percent market. Go back a decade, the loss is and Ford Motor Co. 4 percent. 10.2 share points.

But that masks a longer trend in the And nobody is growing faster than U.S. light-vehicle sales arena: those Volkswagen Group of America. same four heavyweights are losing their Since setting a decade-long drive stranglehold on car shoppers. Jesse Snyder is senior writer at toward 1 million U.S. sales VW and Since July 2010, GM, Ford and Japan's Automotive News. Audi vehicles by 2018, the German Big 2 have lost a combined 4.6 points automaker has opened a U.S. plant, of market share. Except for scraps, that expanded its Mexican plant and picked lost share was snapped up by the next "In an open marketplace -- and the a Mexican site for a future Audi plant. four auto groups in line: Chrysler, U.S. is the world's most transparent Not only has the group's U.S. market Hyundai-Kia, Nissan and Volkswagen. market -- the tendency is to have more share jumped to 3.8 percent so far this corporations compete more closely over year from 2.6 percent in 2008, its What's going on? time," Jonathan Browning, CEO of seven-month volume already exceeds Consumers are doing what executives Volkswagen Group of America, said. the 2008 calendar year total. and analysts have long anticipated: "That's the underlying shift in the U.S. Browning said opening a second North buying more brands because they have auto market. It will continue to look American plant in Tennessee and more attractive choices and near- more and more like other world expanding its Mexican factory have universal quality. markets." been key. As an import, the 2010 Jetta As the smaller rivals expand capacity or IHS Automotive analyst Rebecca sold in a single upscale trim level with build new North American assembly Lindland said Internet research and about a $3,000 price spread. Now built plants, they reduce importing and social media give consumers more in Mexico, it sells across a $13,000 currency costs. credible independent sources of price range, matching its mid-sized information on a wider range of sedan competitors. Better information vehicles, so they are willing to consider "Our locally built product strategy And there is one more advantage for more brands. translates into greater consideration," smaller brands: the Internet-enabled "The baby boomers for decades were Browning said. "It's sourcing, design, boom in consumers conducting pre- blindly loyal to Toyota and Honda, " product specifications and consistent purchase research of multiple vehicles. Lindland said. "Combined with Detroit pricing, so a vehicle competes across loyalists, that gave Chevrolet, Ford, the heart of its segment."

europe.autonews.com/GlobalMonthly August 2012 AUTOMAKERS Volume 01 | Issue 06

Europe's auto industry won't see full recovery until 2020, study says

Paul McVeigh market is showing clear signs of a slowdown," Poskitt said in a statement. The European auto market won't return to pre-crisis levels until the end Fiat CEO said he of the decade, according to a study. foresees the European market remaining weak for years. "I do not The euro crisis and high unemployment expected sales to recover for the next will continue to affect consumer 24 to 36 months," he said on the confidence for years to come, business sidelines of a press event for the Fiat consultants AlixPartners forecast in 500L small last month. their latest Global Automotive Outlook. John Fleming, Ford's global Western Europe will see demand for manufacturing boss and the CEO of new cars and light commercial vehicles from 2005 to 2009, also fall by about 1 million next year to 13.5 doesn't see an immediate end to the million, which is 3.3 million units below crisis. "We can't see the total European the sales level seen before the financial industry improving," he said at the CAR crisis hit in 2007, according to the Management Briefing Seminars earlier consultants. "Industry sales are unlikely this month. "The issues are more to reach 16 million units again before structural than tactical." 2020," the study says. Next year will be the worst year for breakeven points of 75 to 80 percent AlixPartners joins a growing number of European car sales since 1993, utilization, AlixPartners said. analysts and industry executives who according to Ferdinand Dudenhoeffer, say Europe won't see a recovery in the Volkswagen, BMW, Daimler and director of the Center for Automotive midterm. Hyundai-Kia are the only companies Research at the University of Duisburg- with European plants operating at LMC Automotive said the July Essen in Germany. "The crisis in Europe levels high enough to be profitable. annualized selling rate for the western is not over, it's just beginning," he said Meanwhile, Toyota has the lowest European car market of 11 million units in his latest industry study. capacity use in Europe at 63 percent, highlights the "desperate" situation Excess capacity just below Fiat's 65 percent figure. faced by the car industry. Falling sales will add more urgency to The excess capacity is forcing With carmakers pushing sales through the need for car plants to be closed, automakers to push their vehicles onto tactics such as price discounting and said Stefano Aversa, AlixPartners' the market with heavy price discounts. self-registrations, the true depth of the London-based co-president. Volume In Germany, Europe's biggest market, problem is not fully represented, said automakers won't become profitable discounts are an average of 2,400 Jonathon Poskitt, head of European until they adapt production to meet euros per vehicle, Aversa said. sales forecasting at LMC. "The risk of falling demand, he said. the euro-zone crisis worsening European volume manufacturers such threatens any meaningful recovery in About 40 percent of Europe's car as Renault, PSA/Peugeot-Citroen and the near-term, and even the German plants are running below their financial Fiat face added pressure because the German premium brands are attacking

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them from above while value brands New Europe orders and those companies that such as Hyundai, Kia and Dacia are don'âEUR™t have international scale The crisis will fundamentally change grabbing sales with much-improved will be hard hit as automakers scale Europe's automotive landscape, products, according to AlixPartners. It's back local production, he said. GermanyâEUR™s Dudenhoeffer said. In unclear whether the strategy of volume southern European markets worst hit The auto industry in northern Europe brands to "fight upwards" by by the region's economic downturn, will emerge stronger while southern launching upscale cars such as such as Spain, Italy and France, up to Europe will be less important, Citroen's DS line is paying off or 25 percent of mid-sized suppliers may Dudenhoeffer said. whether volume players need to move collapse. They don't have the financial down-market, according to the study. strength to survive a prolonged drop in

europe.autonews.com/GlobalMonthly August 2012 AUTOMAKERS Volume 01 | Issue 06

Volvo mulls adding Mini fighter, smaller engine

Volvo may add a model below the new V40 compact (shown), which went on sale in Europe last month.

Luca Ciferri customers no longer define luxury competes against the Audi A3 and based on the size of the car or number BMW 1 series. The V40 just debuted Volvo is considering adding a rival to of cylinders, there are other attributes last month, so Jacoby is not in a rush to BMW's Mini and the Audi A1. If that which will come into play," he said. launch a model below the newcomer. happens, the Swedish automaker would need a partner to share the Led by the A1 and new-generation "My priority is to bring the Scalable costs, as well as a smaller engine, Ypsilon, sales in Europe's entry- Platform Architecture online and to which would probably be made in premium segment increase 19 percent renew Volvo's core ranges, the 60, the cooperation with parent Zhejiang Geely to 332,262 units last year, according to 80/90 and the SUVs," Jacoby said. of China, Volvo CEO Jacoby told data from market researchers JATO "When I have managed this, I will look Automotive News Europe in an Dynamics. Sales in the segment have to diversification, going into niches, interview. slowed with the six-month total volume doing sporty versions and also looking down 7 percent to 167,653. (See box) to smaller cars." The Volvo boss said premium-car buyers are willing to spend extra even The smallest model in Volvo's range is for subcompact-sized cars. "Premium the compact-sized V40, which

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The V40 is based on C1 compact Slowing sales platform from Ford, which sold Volvo The top 5 entry-premium cars in Europe to Geely for about $1.5 billion in 2010. based on H1 2012 sales; % change from Jacoby said that Volvo could use this H1 2011 Ford architecture also in the future, but 1. Mini* 56,708 -6 he is talking with other automakers to 2. Audi A1 52,649 -4 share underpinnings for the next 3. Lancia/Chrysler generation V40. He declined to 34,272 +20 elaborate further. Ypsilon 4. MiTo 15,391 -38 Smaller engines needed Volvo CEO Stefan Jacoby said the automaker is losing sales in Europe 5. Lancia Musa 8,516 -28 If it adds an entry-premium model, because the market is shrinking and in Volvo will need engines below its new Segment Total 167,653 -7 the U.S. because it is not participating in 1.6- and 2.0-liter gasoline and diesel a discounting war. units. Those powerplants are part of *Includes all variants except Countryman the new Volvo Environmental Source: JATO Dynamics Architecture (VEA) engine family, which "We could buy small engines from along with the new company platform somebody else or we could come Flat 2011 are the two key pillars in Volvo's aim to together on this with Geely," Jacoby Volvo, which aims to almost double increase economies of scale and meet said. If that happens, the engines sales to 800,000 units in 2020 from tougher emissions rules in Europe, the would be sourced in China for Chinese 449,255 last year, expects this year's United States and China. and European production, he said. new-car volume to be flat. The first VEA engine will debut next In late June, Volvo started construction Jacoby said he expects to sell at least year, possibly on a revised S60-V60 of an engine plant in the north China one more car than last year, but that range. city of Zhangjiakou. The factory, which the growth won't be significant. "We are looking for alternatives for a is set to start production in 2014, is "We lose in Europe because the market small engine family, gasoline units that part of the company's effort to boost is shrinking and in the United States would start from 900ccs and go up to annual vehicle sales in China to because we are not participating in the 1.6 liters and diesels at 1.5- or 1.6 200,000 from 47,150 in 2011. Volvo incentive war. Good sales in China liters," Jacoby said. also plans to open two vehicle assembly plants in China. A factory in the help, but there is also the model The VEA engine family includes three- southwest China city of Chengdu is changeovers," he said. cylinder 1.5-liter gasoline and diesel expected to be opened in 2013. The With the launch of the V40, Volvo is units, but they will be too expensive for other plant, to come later, will be in the phasing out its C30, V50 and S40 small cars. northeast city of Daqing. models.

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Ford starts production of four new models in Russia with more planned

The Ford Sollers assembles (from left) the , Kuga, Explorer, Galaxy and S-Max in Yelabuga, Russia.

Nick Gibbs performing market, posting a 14 the head of joint venture company Ford percent rise in sales to 1,413,769 units Sollers, said in a statement. Ford and its Russian partner, Sollers, for the first half of this year, according have begun local production of the The vehicles will be built from kits in to figures from the Association of Kuga and Explorer SUVs, as well as the the Ford Sollers factory in Yelabuga, European Businesses in Russia. By S-Max and Galaxy , to sell Russia, which is about 1,000km east of comparison, new-car sales in France within the country. Moscow. The facility also produces the were down 14 percent to 1,048,982 in Ford Transit from kits. Ford and Sollers That brings the number of Ford model the first half, according to industry formed their a 50-50 joint venture in lines made in Russia to seven, including association ACEA. 2011. the Focus compact, Mondeo mid-sized With first-half vehicle sales of 63,350, car and Transit light van. Ford production in post-Soviet Russia an 18 percent rise on the first six started in 2002 in Vsevolozhsk, near St. According to the automaker, more months of 2011, Ford ranked as Petersburg. The factory makes the models are planned as it works to Russia's ninth-largest automaker. That Focus and Mondeo and overall expand sales in a market that Ford of placed Ford ahead of Opel but behind production surpassed 500,000 vehicles Europe CEO Stephen Odell has said , Renault, Chevrolet, Kia, Hyundai, in January. could become the largest in Europe. Volkswagen, Nissan and Toyota. Ford Sollers has said that it will start Analysts also predict Russia will soon be No import duty building engines and operate a a bigger car market than current No. 1 By locating production in Russia, Ford stamping facility in Russia, but hasn't Germany. The country is on pace to will avoid the 25 percent import duty given a start date. Those additions are pass France to become Europe's for the new models. "We know there is expected to increase the local content second-largest new-car market this a great level of demand for Ford SUVs above the 60 percent needed to avoid year. Russia is also the region's best- in the Russian market," Adil Shirinov,

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import duty on parts brought into the Sollers also builds trucks for Isuzu and significantly increase the number of Fiat country. vehicles for the domestic brand UAZ, models produced was terminated in both built in Ulyanovsk, 900km east of 2011 when Sollers formed the A third Ford Sollers plant, which is Moscow. Over on Russia's far-eastern partnership with Ford. about 40km east of Yelabuga, is being coast in Vladivostok, Sollers builds SUVs readied. A Sollers spokesman told When the agreement was signed, Ford for SsangYong and will starting Automotive News Europe: of Europe CEO Odell said. "Russia is building the CX-5 and "Naberezhnye Chelny is currently expected to become the largest vehicle Mazda6 sedan later this year. passing through the modernization market in Europe by the middle of this process. After that we will launch new Sollers also used to build the Ducato decade, so it's important for us to be Ford products that we will announce commercial van for Fiat at the Yelabuga prepared to grow in the market." later." plant, but a 2010 agreement to

europe.autonews.com/GlobalMonthly August 2012 AUTOMAKERS Volume 01 | Issue 06

Renault expects boost from low-income mobility program

Rita Forbes this would increase the company's prospective customer base." Renault believes its image and brand value will get a boost from a new Renault's Martin said that many people program that aims to help people living in France are unable to find below the poverty line in France to gain employment or to keep their current access to cars and other mobility job because they have no way of options. getting from their home to their workplace. "This project was built to Renault Vice President of Corporate find affordable, sustainable and Social Responsibility Claire Martin said innovative solutions," she said. the program will help the automaker win future customers. "When you have Renault is partnering with Voiture & supported someone when he or she Co., an established non-governmental was in a very difficult situation, they organization that provides services such will remember this," Martin told as low-cost car and bicycle rentals, help Automotive News Europe. "You can in getting a driver's license, and car- expect that the people you have helped Claire Martin, Renault's head of sharing programs. will be pretty loyal to the brand." corporate social responsibility, believes the automaker's mobility program will Participating Renault garages also will Renault is the first automaker in France result in very loyal customers. offer car repairs and maintenance at to offer such a program, but analysts reduced prices, and an investment believe it won't have the market niche company, MOBILIZ Invest, has an initial to itself for long. About 8 million people live below the budget of 5 million euros to fund the poverty line in France, so Renault is development of new mobility solutions. "There is a strong likelihood that others reaching out to a segment of the will follow suit," said Shwetha population where the need is huge. Although MOBILIZ is a non-profit Surender of consultancy Frost & venture, Martin said it will bring value Sullivan. "This is a trend that we're "By providing mobility services, Renault to the company. Benefits will include witnessing: an expansion of service will play an instrumental role in helping innovation, experimentation with new offerings. And one automaker does people migrate to higher income business models, and higher levels of invariably follow the other." segments," Surender said. "With time, employee motivation.

europe.autonews.com/GlobalMonthly August 2012 AUTOMAKERS Volume 01 | Issue 06

Peugeot applies design talents to planes, watches and more

Peugeot's new design lab will draw on the company's creative talent to style new products such as powerboats.

Bruce Gain Loughnane, a 34-year-old Irishman who design consultancy," Livingstone said. joined PSA in 1999, will report to Gilles "Porsche similarly has been successful." The Peugeot unit of PSA/Peugeot- Vidal, who has served as Peugeot's Citroen is joining automakers such as Daimler with its Mercedes Style division director of style since 2010. BMW, Porsche, Mercedes-Benz and is another major automaker to enter Lotus by creating a business unit that Sam Livingstone, director of the UK- the sector recently. Lotus also has offers design services for non- based Car Design Research, said the maintained a successful design automotive products. profit potential of the design business is business, though most of its clients are impossible to quantify but the in the automotive sector. The Peugeot Design Lab will borrow enhanced image that Peugeot would the talents of the French brand's design With a modest investment, the Peugeot enjoy is "unarguably beneficial," studios in Paris, Shanghai and Sao Design Lab will help the automaker to Livingstone said. Paolo as it draws up blueprints for a create upscale products for itself and wide range on non-automotive new BMW Design Works is the competing other customers, said Ian Fletcher, an products. This includes sailboat, business unit with the highest profile in analyst for IHS Global Insight. motorboat, watch and bicycle designs, the sector, with Porsche's design Said Fletcher: "I can't imagine that they a Peugeot spokesman told Automotive services not far behind, he said. can really lose from it because the unit News Europe. BMW Design Works "is the most won't be an expensive endeavor." Peugeot appointed Cathal Loughnane consistently successful example of an as the unit's manager. auto brand delivering on multi-channel

europe.autonews.com/GlobalMonthly August 2012 COMMENTARY Volume 01 | Issue 06

Soccer could be a winning game for Chevrolet

In Europe, Chevrolet is playing smart by Hyundai quit the World Rally pulling out of motorsports in favor of Championship in 2003. "To be involved marketing deals with two of the and not have products that match the world's top soccer teams, Manchester message is a disconnect," Hall says. United FC and Liverpool FC. He cites Toyota as an example of this The U.S. brand primarily sells Korean- kind of disconnect. The Japanese built, value-for-money cars in Europe automaker invested huge sums in its and is following regional rivals Hyundai Formula One team but ended and Kia in this shift in marketing focus. production of its Celica and MR2 mass- market sports cars. Chevrolet has said it will continue its soccer sponsorships despite the Chevrolet had a similar problem. Other departure of former marketing boss than the halo U.S. sports cars the Joel Ewanick. Some reports said Camaro and Corvette, the brand had Ewanick was removed from his job for no performance versions of cars in its Nick Gibbs is UK correspondent for failing to adequately appraise the Automotive News Europe. European range, including the Cruze. financial details of a $559 million Soccer doesn't make the same sponsorship deal with Manchester emotional connection with cars as United. Eric Neve, Chevrolet Europe motorsport motorsports, but the game connects It makes good sense for the brand to manager, told me the shift is to raise Hyundai and Kia with global superstars be associated with two top soccer clubs the brand's visibility. and boosts the brands' visibility to its in a region where soccer reigns Soccer has worked well for Hyundai blue-collar customer base. supreme. and Kia, which are official automotive Like Hyundai and Kia, Chevrolet needs Chevrolet said earlier this month that it partners of the World Cup and to boost its profile in Europe. The brand is quitting the World Touring Car European Championships in a link that had a 1.6 percent market share in the Championship, a racing series it joined goes back to 1999. EU in the first six months, compared in 2005 and has dominated for the last Mark Hall, Hyundai Europe's marketing with Hyundai's 3.3 percent share and three years with the Cruze sedan. boss, says the sport is part of "the Kia's 2.5 percent share, according to Earlier this year, it pulled out of the fabric of society" in Europe. Soccer industry association ACEA. British equivalent. conveys dynamism, he said.

europe.autonews.com/GlobalMonthly August 2012 SUPPLIERS Volume 01 | Issue 06

New Bosch CEO leads culture change at world's biggest supplier

Matthias Krust company's board of management since 2006. STUTTGART -- New Bosch CEO Volkmar Denner is prescribing a radical change Denner's predecessor, Franz in the culture of the tradition-conscious Fehrenbach, is taking over as Bosch's company. A long history and a supervisory board chairman from the dominant market position are not retiring Hermann Scholl. guarantees future success, Denner Fehrenbach, 62, served as Bosch CEO warned employees in a letter before from 2003 until last month. starting his new position at the 126-year-old parts supplier on July 1. Denner and Fehrenbach are assuming their new responsibilities during tough Instead of implementing specifications, times. Earlier this year, Bosch expected he wants to 'develop surprising its overall sales to grow 3 percent to 5 solutions' more often and to do so by percent this year. having more 'open, critical discussions.' Now the company fears that overall Bosch should bring out products that sales at Bosch's automotive, industrial meet needs that consumers didn't and consumer goods divisions will be realize they had, Denner said. In his flat this year. Bosch CEO Volkmar Denner wants to view it is no longer enough for launch products that meet needs that customers to be satisfied. They must be In 2011, Bosch's total sales rose 9 consumers didn't realize they had. thrilled. percent to 51.5 billion euros. The automotive division accounted for 30.4 Denner was head of Bosch's billion euros of that total. The record sales result helped Bosch automotive electronics division from maintain its place as world No. 1 on the 2003 until his promotion. It was the first time Bosch exceeded 30 Automotive News Europe list of the top billion euros in automotive sales during The 55-year-old German, who has a 100 global suppliers. a calendar year. doctorate in physics, joined Bosch in Douglas A. Bolduc contributed 1986 and has been part of the

europe.autonews.com/GlobalMonthly August 2012 AUTOMAKERS Volume 01 | Issue 06

Fiat-Chrysler team up with Continental on updateable infotainment system

The will be the first Fiat-Chrysler vehicle to get a Continental-developed communications and entertainment system that offers everything from a basic radio to smartphone app synchronization.

Robert White Fiat-Chrysler expects all models across with sales forecast to rise to 18 billion the Fiat range and some from the euros in 2018 from an estimated 14 Fiat has teamed with Continental to Chrysler range to be equipped with the billion euros this year, according to launch a new infotainment system that system, which offers everything from a consultancy Frost and Sullivan. customers will be able to update and basic analogue radio to navigation, enhance throughout the life cycle of Recognizing trends in the infotainment text-to-speech and voice-recognition their cars. The Continental-developed market has given other automakers a capabilities, smartphone app device will debut in Europe next month boost. More than 4 million Ford cars synchronization and access to digital in the new Fiat 500L before being around the world have been equipped radio stations. rolled out in more Fiat and Chrysler with the U.S. automaker's Sync Group models starting in 2013. Infotainment is one of the fastest communications and entertainment. growing sectors of the auto industry Sync was launched in North America in

europe.autonews.com/GlobalMonthly August 2012 AUTOMAKERS Volume 01 | Issue 06

2007 and last year arrived in Europe, "The divide between the car and the its U.S. debut in Fiat-Chrysler models where Ford expects 3.5 million vehicles personal world of the driver is getting next year. to have the system by 2015. In Europe, shorter and shorter. What is "We are acting as a system integrator; Sync is available in the Ford B-Max and happening, because of the explosion of bringing all the parts together," Kieran Focus ST and will be added to the smartphones and apps, is that bringing O'Sullivan, head of Continental's Transit before the end of the year. smartphone and Internet content into infotainment and connectivity unit, said the car is now possible," Chandrasekar Also last year in Europe, Toyota in a phone interview. "We partner with said in a phone interview. debuted its Touch and Go infotainment TomTom on the navigation, with system, which allows for smartphone Continental started production of the Microsoft on the operating system and applications with Internet connections Fiat infotainment system at its plant in we work on the production in different to be used on a dashboard console. So Brandys, Czech Republic, last month. parts of the world to support Fiat and far, Toyota has equipped more than The system will be shipped to Fiat's Chrysler as well." 180,000 vehicles with Touch and Go in factory in Kragujevac, Serbia, for Continental says that the highlight of Europe. The system is available in the installation in the 500L, which is a the system is its digital radio, which Yaris, Avensis, RAV4 and eight other longer version of Fiat's retro-styled 500 features updateable software. "New models. minicar. The 500L will have a European services can be easily integrated into starting price of about 15,500 euros The 500L's system will also include the device when the software is being and will replace the current Idea and integration capabilities with updated," O'Sullivan said. "This allows Multipla models in Fiat's lineup. smartphone apps, something that is a vehicle manufacturers to offer top-class must, said Praveen Chandrasekar, the Continental's factory in Nogales, infotainment throughout the vehicle's program manager of telematics and Mexico, also will make the entire life cycle." infotainment at Frost and Sullivan. infotainment system, which will make

europe.autonews.com/GlobalMonthly August 2012 SUPPLIERS Volume 01 | Issue 06

Chinese takeover of German lock maker Kiekert signals trend, analysts say

In 2011, Kiekert reported sales of more than 500 million euros. Customers include BMW, Rolls-Royce and Mercedes-Benz.

Geoff Poulton boosting Asian influence on the global head of the China arm at international market, Lars Stolz, a partner in law firm Baker and McKenzie, which The takeover of German car-lock consulting firm Oliver Wyman's acted as advisor to Kiekert for the sale. specialist Kiekert by China's Hebei automotive practice, said in an e-mail "It also highlights the growing Lingyun Industrial Group Corp. is the reply to questions. acceptance of Chinese investors within latest in a growing number of mergers Germany," Gilles said. and acquisitions by Asian companies in The Kiekert deal, for which no purchase Europe. price was disclosed, sees Lingyun take a Busy buyers 55 percent stake in lock maker, with Experts predict this is trend will The Kiekert sale is the fifth purchase of two other Chinese companies taking continue, leading to a significant a German automotive supplier by a the remaining share. number of key European automotive Chinese company within the last 18 suppliers owned by Asian companies. "This agreement again shows that months, following deals involving German medium-sized businesses have control system manufacturer Preh and This would significantly change the become a target for Chinese light metal casting product firm KSM European supplier industry landscape, acquisitions abroad," Thomas Gilles, Castings.

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Stolz said that he wouldn't be surprised "Lingyun was able to acquire a global Asian influence to see more European suppliers try to market leader with strong innovation Recently purchased European suppliers; make themselves attractive to potential and technology capabilities," Stolz said. their new Chinese owners/majority buyers from Asia, Russia and Brazil. "Kiekert already has established client owners; acquisition prices relations to many automakers, and has In 2011, Kiekert sold 41 million latch immediate access to the European and Saargummi; Chongqing Light Industry systems and reported revenue of more North American markets." and Textile; 130 million euros than 500 million euros. Customers Preh; Ningbo Joyson Investment; not include BMW, Rolls-Royce and Potential benefits for the German disclosed Mercedes-Benz. company include greater access to the growing Chinese market for lock KSM Castings; CITIC; 300 million euros Metal and plastic systems and a more favorable position components Kiekert; Hebei Lingyun Industrial Group; to supply Chinese automakers. "Kiekert not disclosed The company expects the deal to lead may also be able to access Lingyun's to "considerable" latch system growth strong operations base and potentially several factors, he said. The in the Asian region. Hebei-based that of its parent company, the development of European markets and Lingyun manufactures and sells both industrial conglomerate Norinco," Stolz the effects on the global automotive metal and plastic components for the said. industry as well as the availability of automobile industry. Last year, it had While the trend of Asian companies financing for investors all play a part. sales of more than 700 million euros. investing in Europe looks set to continue, the extent depends on

europe.autonews.com/GlobalMonthly August 2012 SUPPLIERS Volume 01 | Issue 06

Metaldyne, Preh help speed up shifting in the new Audi A3

James Clark Metaldyne supplies the differential southern Germany. Output is expected gears for the dual-clutch transmission to peak in 2014 at a little more than The new Audi A3 is available with while Preh provides steering wheel- 215,000 units, according to IHS either a five-speed manual or seven- mounted gear-shift paddles to the car. Automotive forecasts. speed S tronic dual-clutch transmission. Audi started production of the A3 in Audi says the dual-clutch transmission June at its factory in Ingolstadt, can change gears in 0.2 of a second.

europe.autonews.com/GlobalMonthly August 2012 DATA Volume 01 | Issue 06

Sales of Europe's best-selling cars fall faster than market in first half

The VW Golf retained its top spot in the first half of 2012, despite a 6% decline in European sales.

Nick Gibbs & Douglas A. Bolduc placed Opel/Vauxhall Astra hit hardest Europe's top 10-selling models with a 21 percent decline. (See chart) Demand for Europe's market-leading January-June; % change from 2011 cars slumped by 11 percent in the first At the top, VW sold 244,092 Golfs in units % six months of the year, more than the the first half, which helped VW remain sold change overall market decline of 7 percent. the overall No. 1 in Europe ahead of 1. VW Golf 244,092 -6 Ford and Opel/Vauxhall. Eight of the top 10 cars posted a 2. Ford Fiesta 181,143 -13 decline, according to figures from The top-selling Golf extended its lead 3. VW Polo 169,994 -13 market researchers JATO Dynamics, over its closest competitor, the Ford 4. Opel/Vauxhall with the top-ranking Volkswagen Golf Fiesta, to nearly 63,000 after six 156,313 -12 Corsa the least badly hit of those losing sales, months from about 51,000 through falling 6 percent. May and more than 40,000 through 5. 147,791 -10 April. 6. Opel/Vauxhall In the top 10, only the seventh-placed 140,429 -21 Nissan Qashqai SUV and the 10th- European sales for the first six months Astra ranked BMW 3 series posted sales totaled 7.1 million, with only the UK 7. Renault Clio 135,572 -19 gains, the latter increasing 5 percent on and Germany posting a rise among the 8. Nissan 118,328 +1 the launch of the new model. The 3 big five markets. France, Spain and Italy Qashqai series' rise pushed the VW Passat out of all saw a decline. 9. Renault the top 10. Meanwhile, the Renault 114,532 -15 Full tables for European sales by model Megane Megane moved up to ninth from 10th for June and the first six months are through May despite a 15 percent 10. BMW 3 series 93,903 +5 published in PDF form at the back of decline in its sales in the first half. this month's Automotive News Europe JATO Dynamics Seven models saw demand decrease by Global Monthly. more than 10 percent, with the sixth-

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June June 6 mos. 6 mos. June June 6 mos. 6 mos. 2012 2011 2012 2011 2012 2011 2012 2011 V8/V12 Vantage ...... 69 101 414 517 458 Italia ...... 150 139 974 854 DBS ...... 13 27 133 214 California ...... 70 122 360 623 Rapide ...... 29 57 151 338 FF ...... 47 – 338 – Other ...... 56 58 340 262 599 GTB Fiorano...... 3 29 54 231 ...... 167 243 1,038 1,331 Other ...... 16 9 58 56 Niva/Taiga...... 189 192 1,031 1,500 Total ...... 286 299 1,784 1,764 Other ...... 27 20 146 267 500 ...... 14,614 17,538 80,074 91,375 Total Lada...... 216 212 1,177 1,767 Panda ...... 18,834 17,495 103,590 109,507 AVTOVAZ ...... 216 212 1,177 1,767 Punto...... 13,798 22,948 83,090 129,304 1 series ...... 16,465 16,780 80,048 73,828 Albea ...... 21 678 1,009 5,155 3 series ...... 21,302 17,567 93,903 89,285 Linea ...... 3,739 4,088 16,418 17,115 5 series ...... 10,383 12,614 64,285 77,842 7 series ...... 392 908 3,867 5,046 Bravo...... 1,433 2,903 10,710 20,001 Z4...... 883 996 4,970 5,693 Sedici...... 1,022 2,167 4,433 8,882 6 series ...... 836 371 4,508 2,171 Freemont...... 2,759 1,117 13,735 1,626 X1 ...... 5,253 7,526 33,628 41,553 Fiorino/Qubo ...... 1,600 2,112 9,356 11,500 X3 ...... 7,704 5,654 39,404 27,424 Doblo ...... 883 2,213 5,421 10,131 X5 ...... 2,185 2,498 11,502 13,542 Ducato...... 2,371 2,165 14,165 12,868 X6 ...... 1,551 1,435 6,486 7,413 Idea ...... 253 208 2,383 3,745 Other ...... 29 102 334 414 Other ...... 443 865 1,702 4,169 Total BMW brand ...... 66,983 66,451 342,935 344,211 Total Fiat brand...... 61,770 76,497 346,086 425,378 Mini...... 12,525 13,110 56,990 60,461 Ypsilon ...... 5,165 6,000 33,270 28,516 Countryman ...... 5,705 4,846 28,013 25,751 Musa ...... 1,242 1,457 8,504 11,845 Total Mini ...... 18,230 17,956 85,003 86,212 Delta ...... 1,794 1,763 8,249 11,949 Phantom...... 2 15 57 81 Flavia ...... 253 – 330 – Ghost ...... 42 34 187 205 Thema ...... 138 – 874 – Other ...... – – 2 3 Voyager ...... 701 – 2,931 – Total Rolls-Royce ...... 44 49 246 289 Other ...... – 9 10 157 BMW AG ...... 85,257 84,456 428,184 430,712 Total Lancia ...... 9,293 9,229 54,168 52,467 Maybach ...... 6 2 21 22 GranTurismo...... 53 92 297 521 A class ...... 4,320 7,336 35,705 28,940 GranCabrio...... 45 57 219 285 B class ...... 12,674 6,571 61,938 45,374 Quattroporte ...... 15 27 79 168 C class ...... 17,237 19,584 88,805 85,339 Other ...... 4 1 15 12 E class ...... 10,341 12,612 57,113 70,210 Total ...... 117 177 610 986 S class...... 750 943 4,330 5,899 Other...... 44 60 359 366 CLS ...... 1,172 1,771 6,679 9,293 FIAT S.P.A...... 80,532 99,118 457,442 559,727 CLC ...... – 41 8 2,099 FIAT-CHYRSLER ...... 84,063 102,179 475,391 575,716 SLK ...... 1,940 2,025 10,726 8,009 Ka ...... 5,032 6,588 35,205 41,936 SL ...... 458 103 2,049 741 Fiesta...... 28,579 35,357 181,143 207,571 SLS AMG ...... 98 118 821 1,139 R class ...... 288 417 1,385 2,195 Focus...... 24,145 35,516 147,791 164,944 GLK ...... 3,086 2,944 14,165 16,911 Fusion ...... 1,093 1,551 7,040 9,869 Vito/Viano ...... 2,935 3,174 14,572 15,558 Mondeo...... 7,186 7,197 41,184 47,037 Sprinter...... 542 423 2,642 2,691 C-Max/Grand C-Max ...... 11,194 10,676 64,539 68,289 M class ...... 3,565 1,494 16,858 9,960 S-Max ...... 3,862 4,501 24,510 26,254 G class ...... 200 177 918 996 Galaxy ...... 2,727 2,469 14,596 14,374 GL ...... 138 286 757 1,252 Kuga ...... 5,170 6,383 33,797 38,778 Other ...... 156 205 862 1,221 Transit/Tourneo ...... 1,643 1,425 8,739 8,548 Total Mercedes-Benz ...... 59,900 60,224 320,333 307,827 Other ...... 432 254 1,243 1,676 ForTwo ...... 6,733 7,856 39,466 44,107 Total Ford brand ...... 91,063 111,917 559,787 629,276 Other ...... 1 2 2 30 Lincoln...... 2 – 6 6 Total Smart ...... 6,734 7,858 39,468 44,137 ...... – – 1 3 DAIMLER AG ...... 66,640 68,084 359,822 351,986 FORD MOTOR ...... 91,065 111,917 559,794 629,285 DR1 ...... 46 142 91 1,390 Geely...... 81 69 467 309 DR5 ...... 24 59 217 413 C30 ...... 2,132 1,449 6,629 8,696 Other ...... 4 67 124 162 V40 ...... 446 – 448 2 DR MOTOR COMPANY ...... 74 268 432 1,965 S40...... 746 1,012 5,655 5,890 Ypsilon ...... 176 – 1,009 – V50 ...... 2,820 3,375 21,918 22,852 Delta...... 88 – 324 – S60 ...... 1,861 2,512 9,988 14,005 300C ...... 62 37 124 407 V60 ...... 4,974 4,345 24,090 22,908 Grand Voyager/Town & Country...... 59 385 339 2,653 V70/XC70 ...... 4,054 4,237 24,582 24,841 Other ...... 26 16 98 108 S80...... 434 605 2,669 3,002 Total Chrysler brand ...... 411 438 1,894 3,168 C70 ...... 445 446 1,923 2,478 Caliber ...... 2 59 22 716 XC60...... 4,225 5,122 25,974 28,582 Journey...... 3 76 31 775 XC90 ...... 929 1,511 5,225 7,344 Other ...... 319 32 672 227 Other ...... 42 71 193 230 Total ...... 324 167 725 1,718 Compass...... 957 719 5,446 2,318 Total Volvo ...... 23,108 24,685 129,294 140,830 Patriot...... 16 134 97 2,126 GEELY GROUP ...... 23,189 24,754 129,761 141,139 Wrangler ...... 783 703 4,142 3,626 ...... 2 – 5 5 Cherokee/Liberty...... 49 164 358 1,180 ...... 56 49 271 311 Grand Cherokee ...... 988 734 5,261 1,828 Matiz/Spark ...... 6,102 7,584 31,355 38,005 Other ...... 3 2 24 25 Aveo ...... 6,456 3,534 33,246 21,456 Total ...... 2,796 2,456 15,328 11,103 Cruze...... 3,567 3,332 20,524 18,621 Other...... – – 2 – Captiva ...... 2,443 2,454 13,447 11,403 CHRYSLER GROUP ...... 3,531 3,061 17,949 15,989 Orlando ...... 2,419 1,760 13,946 9,970 MiTo ...... 2,498 4,335 15,513 24,762 Camaro ...... 446 45 1,306 216 Giulietta...... 6,161 7,204 36,419 46,542 Other ...... 106 144 356 2,070 159...... 340 1,154 2,378 6,124 Total Chevrolet ...... 21,539 18,853 114,180 101,741 Other ...... 23 163 125 1,338 GMC ...... 1 1 8 4 Total Alfa Romeo ...... 9,022 12,856 54,435 78,766 ...... 1 4 11 38 August 2012 Volume 01 ❙ Issue 06

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June June 6 mos. 6 mos. June June 6 mos. 6 mos. 2012 2011 2012 2011 2012 2011 2012 2011 Agila ...... 3,139 2,159 14,126 14,260 C-Zero ...... 338 162 935 963 Corsa...... 31,313 34,499 156,313 177,232 C1 ...... 6,470 7,242 37,156 45,712 Astra/Astra Classic ...... 25,645 34,063 140,429 178,306 C3 ...... 17,640 16,827 91,813 104,560 Insignia ...... 10,295 15,174 57,532 76,303 DS3 ...... 5,986 7,193 35,346 40,554 Meriva ...... 8,765 13,824 46,026 77,789 C4 ...... 10,006 10,751 57,011 66,043 Zafira...... 11,601 7,151 54,286 40,800 DS4 ...... 2,999 3,260 17,515 5,571 Antara ...... 1,911 1,050 8,887 3,700 C5 ...... 3,951 6,105 23,485 36,851 Vivaro...... 889 640 4,070 3,573 DS5 ...... 2,339 133 11,743 247 Ampera ...... 576 27 2,861 27 C4 Aircross ...... 647 – 3,153 – Other ...... 475 96 2,809 1,092 C-Crosser ...... 322 278 1,375 2,178 Total Opel/Vauxhall ...... 94,609 108,683 487,339 573,082 Nemo ...... 470 613 2,451 4,785 Other...... – – – 5 Berlingo...... 4,482 4,519 24,760 25,403 GENERAL MOTORS ...... 116,208 127,590 601,814 675,186 C3 Picasso ...... 5,675 6,839 30,515 38,996 Steed ...... 51 44 282 298 Xsara Picasso ...... 11 448 32 4,619 Hover ...... – 118 7 681 C4 Picasso/Grand C4 Picasso ...... 9,530 10,565 46,255 61,079 Other ...... – – 3 1 C8 ...... 619 772 2,426 3,260 GREAT WALL ...... 51 162 292 980 Other ...... 859 595 3,743 3,629 Jazz ...... 4,620 3,646 26,830 29,185 Total Citroen ...... 72,344 76,302 389,714 444,450 Civic ...... 6,005 4,329 27,349 26,358 iOn ...... 131 228 852 967 Insight ...... 281 465 2,249 3,452 107 ...... 6,164 8,707 40,673 49,467 Accord ...... 584 957 4,924 7,471 206 ...... 3,598 6,510 24,837 54,566 CR-Z ...... 3,519 2,721 17,091 19,138 207 ...... 8,457 24,039 90,651 142,503 CR-V...... 181 401 1,399 2,243 208 ...... 18,314 – 41,542 – Other ...... 17 62 57 714 308 ...... 12,004 16,205 73,997 88,560 HONDA MOTOR ...... 15,207 12,581 79,899 88,561 407...... 30 148 193 4,446 i10...... 6,743 7,893 36,687 39,583 508 ...... 9,741 10,305 50,587 40,237 i20...... 9,884 7,354 44,842 40,605 RCZ ...... 870 1,549 5,859 9,627 i30...... 10,816 10,020 52,834 57,778 3008 ...... 9,375 11,095 55,748 64,716 i40...... 2,962 74 16,845 89 4008...... 393 – 1,120 – H-1/Starex/Satellite ...... 539 344 2,019 1,502 5008 ...... 6,362 7,140 32,208 39,475 Accent...... 1,131 2,272 6,314 11,613 807...... 603 758 2,930 3,652 Elantra...... 1,078 335 3,085 342 4007...... 134 371 918 2,036 ix20 ...... 4,519 4,783 24,816 25,972 Bipper...... 496 692 2,904 4,667 ix35 ...... 9,216 5,523 51,350 39,801 Partner/Ranch ...... 3,473 3,347 18,467 19,458 Expert...... 656 679 2,721 3,116 Genesis...... 161 220 768 1,008 Other ...... 168 119 783 916 Santa Fe ...... 689 1,248 5,224 6,505 Total Peugeot ...... 80,969 91,892 446,990 528,409 Veloster ...... 722 19 4,008 35 Other...... – – – 1 Other ...... 69 193 634 3,477 PSA...... 153,313 168,194 836,704 972,860 Total Hyundai brand...... 48,529 40,278 249,426 228,310 M ...... 41 47 374 311 Picanto ...... 5,296 5,218 32,587 24,096 EX...... 27 34 211 303 Rio...... 6,687 1,796 40,663 9,382 FX...... 122 143 1,064 1,265 Cee'd...... 7,097 6,372 36,709 36,382 Other ...... 20 38 147 217 Optima ...... 370 2 2,229 5 Total Infiniti ...... 210 262 1,796 2,096 Venga ...... 2,702 4,193 16,424 24,834 Pixo ...... 934 1,369 5,194 8,388 Soul ...... 455 1,125 3,464 6,810 Micra...... 5,719 6,900 34,384 39,830 Sportage ...... 7,971 5,852 45,092 32,281 Juke...... 11,113 9,236 57,247 54,930 Sorento ...... 1,007 1,364 5,960 7,203 Leaf ...... 404 116 2,351 579 Other ...... 102 482 784 2,602 Qashqai ...... 22,485 19,449 118,328 117,486 Total Kia ...... 31,687 26,404 183,912 143,595 370Z...... 107 119 648 951 HYUNDAI-KIA ...... 80,216 66,682 433,338 371,905 Note ...... 3,154 2,878 17,161 19,016 Mahindra ...... 14 43 91 307 X-Trail...... 670 545 4,733 4,794 Korando ...... 336 401 2,464 2,100 Pathfinder...... 284 277 1,601 2,298 Actyon ...... – 36 6 180 Murano ...... 145 236 994 1,832 Kyron ...... 2 100 163 639 NV200/Evalia ...... 725 431 3,453 2,009 Rexton ...... 38 67 237 314 Other ...... 315 543 1,776 3,682 Rodius/Stavic...... 49 65 299 410 Total Nissan...... 46,055 42,099 247,870 255,795 Total Ssangyong ...... 425 669 3,169 3,643 NISSAN ...... 46,265 42,361 249,666 257,891 MAHINDRA & MAHINDRA...... 439 712 3,260 3,950 Duster ...... 11,428 12,564 62,131 73,974 MX-5 ...... 807 1,208 4,205 5,351 Sandero...... 8,156 5,722 42,133 37,611 Mazda2 ...... 2,839 3,366 18,142 20,493 Logan ...... 4,717 4,957 23,077 21,404 Mazda3 ...... 2,203 3,436 15,280 19,614 Lodgy ...... 3,125 – 5,536 – Mazda5 ...... 1,044 1,700 7,663 11,011 Other ...... – 3 2 13 Mazda6 ...... 1,879 2,755 10,511 16,799 Total Dacia...... 27,426 23,246 132,879 133,002 CX-5 ...... 4,157 – 11,826 – Twingo ...... 9,769 9,761 55,064 69,635 CX-7...... 415 918 2,945 6,238 Clio ...... 24,121 27,697 135,572 167,581 Other ...... 10 54 94 680 Symbol/Thalia ...... 2,146 4,123 15,126 22,721 MAZDA ...... 13,354 13,437 70,666 80,186 Megane...... 24,329 23,685 114,532 134,628 i ...... 175 96 896 1,749 Fluence ...... 3,383 4,556 19,303 23,291 Colt ...... 1,635 2,229 10,434 15,309 Laguna ...... 3,706 5,331 17,829 29,273 Lancer...... 483 1,145 3,670 8,474 Latitude ...... 463 1,053 2,839 6,263 ASX ...... 2,519 4,011 19,823 26,625 Wind ...... 152 820 1,211 4,464 Outlander ...... 1,013 1,500 6,851 9,741 Modus/Grand Modus...... 3,085 4,372 17,965 27,068 Pajero/Montero/Shogun ...... 370 471 2,454 3,705 Scenic/Grand Scenic...... 16,932 15,159 75,380 84,812 Other ...... 33 113 350 944 Espace/Grand Espace ...... 1,684 2,238 7,280 9,348 MITSUBISHI ...... 6,228 9,565 44,478 66,547 Koleos ...... 1,665 1,433 8,584 8,650 Elise ...... 19 31 96 201 Kangoo ...... 3,268 3,501 17,030 19,855 Evora ...... 7 25 97 213 Trafic ...... 1,478 1,503 6,611 6,555 Other ...... 4 6 11 80 Other ...... 157 125 1,002 459 Total Lotus ...... 30 62 204 494 Total Renault brand ...... 96,338 105,357 495,328 614,603 Proton ...... 58 111 813 740 RENAULT SA...... 123,764 128,603 628,207 747,605 PROTON ...... 88 173 1,017 1,234 RENAULT-NISSAN ...... 170,029 170,964 877,873 1,005,496 August 2012 Volume 01 ❙ Issue 06

brought to you courtesy of EUROPE SALES BY MODEL, JUNE & 6 MONTHS www.jato.com

June June 6 mos. 6 mos. June June 6 mos. 6 mos. 2012 2011 2012 2011 2012 2011 2012 2011 Impreza ...... 246 381 1,646 4,691 A5/S5/RS5 ...... 6,905 7,365 38,543 39,866 XV ...... 1,396 – 5,573 – R8...... 120 180 652 829 Legacy/Outback ...... 765 801 5,244 7,107 Q3...... 6,320 56 36,243 157 Trezia ...... 122 160 1,144 1,354 Q5...... 4,586 6,048 28,583 35,863 Forester ...... 807 883 6,959 8,532 Q7...... 1,170 1,224 5,971 7,560 Other ...... 65 69 197 897 Other ...... 37 37 257 188 SUBARU ...... 3,401 2,294 20,763 22,581 Total Audi ...... 71,210 65,288 383,467 365,668 Alto ...... 2,518 2,401 13,159 20,056 Continental GT/GTC ...... 177 135 953 694 Splash ...... 1,596 1,489 9,484 8,680 Continental Flying Spur...... 15 20 118 91 Swift ...... 5,789 5,874 33,078 33,663 Mulsanne ...... 14 27 96 139 Kizashi ...... 72 105 713 974 Other ...... 3 2 18 16 Jimny...... 1,036 979 6,797 7,494 Total Bentley ...... 209 184 1,185 940 SX4 ...... 2,810 2,628 16,349 18,345 Bugatti ...... 1 1 6 6 Vitara/Grand Vitara/XL-7 ...... 1,187 1,217 6,861 8,693 Gallardo ...... 21 32 155 205 Other ...... 6 9 30 47 Aventador...... 27 3 146 8 SUZUKI...... 15,014 14,702 86,471 97,952 Murcielago ...... 2 – 10 3 9-3 ...... 157 721 791 8,654 Other ...... 3 – 4 1 9-5 ...... 36 165 209 2,714 Total Lamborghini ...... 53 35 315 217 Other ...... 2 – 5 2 Boxster ...... 706 405 1,708 1,916 Total Saab...... 195 886 1,005 11,370 Cayman ...... 75 162 671 1,030 SWEDISH AUTOMOBILE ...... 195 886 1,005 11,370 911 ...... 1,041 1,073 7,405 6,371 XF ...... 1,770 1,441 10,375 7,867 Panamera ...... 619 568 4,604 3,020 XJ ...... 213 336 1,260 2,304 Cayenne ...... 1,966 1,550 10,972 8,834 XK ...... 161 248 962 1,382 Other ...... 33 10 138 110 Other ...... 14 15 76 55 Total Porsche...... 4,440 3,768 25,498 21,281 Total Jaguar...... 2,158 2,040 12,673 11,608 Altea ...... 2,757 3,495 16,850 20,277 Defender ...... 66 173 513 852 Alhambra...... 1,850 1,308 10,210 7,973 Freelander ...... 1,644 1,605 9,982 15,444 Mii...... 1,578 – 4,344 – Discovery ...... 916 951 7,075 7,103 Ibiza...... 12,269 14,681 70,543 89,750 Range Rover Evoque ...... 4,524 101 27,685 101 Leon ...... 6,179 8,063 31,297 37,472 Range Rover Sport...... 1,273 1,550 8,824 9,924 Exeo ...... 977 1,824 7,076 11,929 Range Rover ...... 483 690 3,410 4,545 Other ...... 7 5 26 32 Other ...... 18 9 87 60 Total Seat ...... 25,617 29,376 140,346 167,433 Total Land Rover...... 8,924 5,079 57,576 38,029 Citigo ...... 2,154 – 4,805 – Indica ...... 131 196 450 1,079 Fabia ...... 14,499 15,420 84,268 89,962 Xenon...... 12 32 99 194 Octavia ...... 18,464 18,106 101,980 97,037 Other ...... 3 59 28 383 Superb...... 5,090 5,157 29,683 30,701 Total Tata brand ...... 146 287 577 1,656 Roomster...... 3,849 2,904 17,604 15,131 TATA MOTORS ...... 11,228 7,406 70,826 51,293 Cuore/Charade ...... 111 247 670 1,602 Yeti ...... 6,124 5,131 33,720 28,298 Sirion ...... 203 309 561 1,842 Other ...... 74 33 300 334 Materia...... 54 53 70 322 Total Skoda ...... 50,254 46,751 272,360 261,463 Terios ...... 250 498 1,300 3,153 Up ...... 11,533 10 49,003 30 Other ...... 3 7 9 55 Fox ...... 11 1,840 542 8,053 Total Daihatsu ...... 621 1,114 2,610 6,974 Polo...... 29,328 33,106 169,994 195,807 CT ...... 1,206 930 9,612 7,154 Golf...... 40,685 42,049 244,092 259,253 IS ...... 173 388 1,392 2,483 Golf Plus ...... 6,571 7,028 37,339 45,415 GS ...... 470 18 916 209 Jetta ...... 2,846 3,168 18,186 16,564 RX ...... 779 386 3,734 3,604 Passat ...... 20,601 21,465 113,800 126,015 Other ...... 9 16 71 128 CC...... 3,053 2,479 12,740 13,260 Total Lexus ...... 2,637 1,738 15,725 13,578 Phaeton ...... 180 206 1,218 1,624 iQ ...... 951 713 5,643 7,760 Beetle ...... 2,689 – 10,214 1 Aygo ...... 6,976 6,905 38,053 44,239 Scirocco...... 1,724 2,671 9,572 15,338 Yaris ...... 16,595 12,922 93,774 77,117 Eos ...... 762 1,081 4,229 7,839 Auris ...... 7,040 7,007 41,835 51,938 Touran...... 10,323 11,069 58,029 65,980 Corolla...... 1,258 1,886 8,499 14,328 Sharan...... 4,149 4,150 20,943 24,414 Prius ...... 2,106 1,493 11,604 14,275 Tiguan ...... 13,897 9,387 82,956 62,707 Prius+ ...... 602 – 761 – Touareg...... 2,075 1,890 11,289 11,845 Avensis ...... 5,048 4,340 34,439 30,827 Caddy ...... 5,346 5,525 28,161 28,871 Verso-S ...... 1,454 959 11,859 8,699 Transporter/Caravelle/ Verso...... 2,971 3,136 18,100 20,455 Multivan/Shuttle/T5 ...... 5,012 4,526 27,440 26,569 Urban Cruiser ...... 242 460 1,945 3,989 Other ...... 346 352 1,934 2,794 RAV4...... 2,769 1,944 19,609 23,290 Total VW brand...... 161,131 152,002 901,681 912,379 Land Cruiser ...... 792 484 5,216 6,011 Other...... 9 11 37 38 GT 86 ...... 733 – 789 – VOLKSWAGEN...... 312,924 297,416 1,724,895 1,729,425 Other ...... 133 115 545 789 OTHER ...... 1,082 995 6,949 5,585 Total Toyota brand...... 49,670 42,364 292,671 303,717 OTHER (China automakers) ...... 84 314 1,146 1,648 TOYOTA MOTOR...... 52,928 45,216 311,006 324,269 GRAND TOTAL ...... 1,302,660 1,331,402 7,128,001 7,644,929 A1 ...... 10,476 9,798 52,825 54,867 A3/S3/RS3 ...... 12,704 14,235 72,639 76,184 Note: Excludes models registered as commercial vehicles. Europe sales by model are A4/S4/RS4 ...... 15,600 14,850 72,057 85,448 compiled using sales data from the following countries: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Great Britain, Greece, Hungary, A6/S6/RS6/allroad ...... 9,928 7,159 57,151 38,243 Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, A7/S7 ...... 1,108 1,769 6,736 10,475 Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland and Turkey. A8/S8 ...... 696 799 3,831 5,365 TT ...... 1,560 1,768 7,979 10,623 Source: JATO Dynamics +44(0) 20 8423 7100 (www.jato.com) Event-Driven Learning Market and vehicle intelligence delivered direct to the hands of your dealership sales people Today’s automotive market is constantly changing, Event-Driven Learning is an innovative new solution that resulting in an increasingly complex, competitive provides timely, relevant and up-to-date market and landscape. This, together with a more knowledgeable, vehicle information, within a competitive context, directly sophisticated and demanding consumer, is placing ever to the hands of dealership sales people. Event-Driven more demands on dealership sales people to keep ahead. Learning allows rapid communication and retention of key information that can be used immediately to deliver a In response, JATO has developed Event-Driven Learning highly informed customer experience.

JATO SOLUTIONS JATO Key Features and Benefits

Improving competitiveness through an enhanced ability to respond to vehicle changes and market dynamics

Allowing dealership sales people to quickly absorb, retain and immediately use key information in the sales process

Shifting the power of knowledge back from the consumer into the hands of the dealer

Enabling learning reinforcement and usefulness of the information to be evaluated

Presenting information with local market and vehicle context, in local language and customised for individual brands Event-Driven Learning builds on JATO’s unrivalled global, quality and For more information please contact: timely automotive [email protected] intelligence. +44 (0)20 8423 7100 www.eventdrivenlearning.com

For more information on all JATO solutions please contact: [email protected] +44(0)20 8423 7100 www.jato.com

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