A publication from September 2012 Volume 01 | Issue 07 global

Your source for europe.autonews.com/globalmonthly monthly everything automotive.

Premium brands’ growth reshapes European market

Audi wins big during decade of market share shifts

A publication from © 2012 Crain Communications Inc. All rights reserved. Inc. Communications Crain © 2012 March 2012 Volume 01 | Issue 01 dAtA Which suppliers VW Golf leads global monthly have key parts JATO data shows list of key debuts brought to youwww.jato.com courtesy of in new Mercedes Unit Percent Europe’s winners from Paris auto months change change– months 9 2010 9 +67,087 B class? 2011 6,307 –20% in first 7 months show 73,394 –27,600 –10% 135,284 WESTERN EUROPE SALES BY MODEL,Unit 9 MONTHSPercent 107,684 –13,065 8% months ...... 133,366 change change A1 ...... +4,062 – 9 months 9 2010 –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 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 ...... +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 –28 SPYKER 10,383 +2,048 ...... 22 293 –92% ...... 7,754 – –1% –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 SUBARU +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 +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 SUZUKI –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% Evoque...... –6 Yeti 262,578 –14,223 5,995 10 –7% ...... 286,429 25,336 0% ...... 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% –94,999 Yaris –16,920 ...... 418 ...... 4,663 36,364 –15% OTHER .... 10,003,117 Auris –6,705 – (China automakers) 9,908,118 ...... 19,444 OTHER Corolla 44,265 +13,297 ...... 37,560 – –2% GRAND TOTAL Prius ...... –501 ...... 13,297 –53% Avensis 27,348 –6,009 Excludes models registered as commerical vehicles. Europe sales by model are compiled ...... 26,847 –16% Note: Verso-S 11,376 –5,640 using sales data from the following countries: Austria, Belgium, Denmark, Finland, France, ...... 5,367 –15% Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Verso 35,679 –1,290 ...... 30,039 –52% Sweden and Switzerland. 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 brand...... TOYOTA MOTOR

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www.AneRisingStars.com September 2012 Volume 01 | Issue 07

Inside this issue: Europe goes premium, VW puts new Golf on a diet

Welcome to the seventh issue of the Automotive News Europe Global Monthly. The cover story of this edition focuses on premium automakers' rapid sales growth in Europe over the past decade. This has profoundly changed the rankings for the best-selling brands in the region.

A decade ago, only Mercedes-Benz was among Europe's top 10 brands by unit sales. In the first seven months of this year, all three German premium brands Audi, BMW and Mercedes, made it into the top 10. Audi ranked sixth ahead of and Citroen, while BMW is set to climb to make it to No. 8, data from our partner JATO Dynamics shows. turning the clock back to 1997 when it launched a fourth- When Automotive News Europe began to analyze market generation Golf with a weight started at 1,075kg. segments in 2000, premium automakers had a market share in Europe of 15.8 percent. This year their share has grown to It's no surprise that this lighter new Golf is also the greenest 20.8 percent. to date.

Our cover story says Germany's premium brands are defying From our parent, Automotive News in , we are Europe's economic crisis and increasing their vehicle sales in reminded that four years ago the collapse of Lehman the region by expanding into new segments and attracting Brothers sparked a huge crisis in the U.S. auto market, but customers because of the higher residual values of their cars, quick and radical restructuring resulted in a leaner and which means a lower total cost of ownership, a crucial stronger domestic auto industry. aspect in fleet sales. We also look at the cream of the Europe now seems to be suffering the same illness that premium crop, and Rolls-Royce. affected the U.S. in 2008 and 2009, but there are no signs Ferrari hopes its new F12 Berlinetta, a road car with Formula yet of any serious cure. One power, can take the company to new sales and profit From our sister publication, Automotive News China, we records. learn that the world's biggest auto market also has BMW-owned Rolls-Royce is also firing on all cylinders. CEO problems: domestic automakers there are, in fact, much Torsten Mueller-Oetvoes explains how expansion in Asia and weaker than they appear. Russia, entry into South America and growth in North We hope you enjoy this richly varied issue. America could result in a new all-time sales high for the British superluxury brand.

Moving from premium to volume, we scrutinize the seventh generation of Europe's best-selling car, the Volkswagen Golf.

VW has put its best-selling model on a diet, slashing about 100kg in weight compared with the previous generation, Luca Ciferri, Editor-in-Chief

europe.autonews.com/GlobalMonthly September 2012 COVER STORY Volume 01 | Issue 07

German premium brands squeeze volume rivals in Europe, but will the rise last?

Models such as the Audi A3 (left) and Mercedes A class are helping premium automakers change Europe's hierarchy when it comes to car sales.

Nick Gibbs tremendous potential for growth," market share from their volume rivals Mercedes product manager Gerd Sailer forever, said Ian Fletcher, a senior Germany's premium brands are defying told Automotive News Europe. "The analyst at IHS Automotive. Europe's economic crisis and increasing new compact models will play a major their vehicle sales in the region to such "There is a tipping point," he said Ian part in helping us to achieve our an extent that they are catching -- or Fletcher. "They are going to continue volume objective of 1.6 million vehicles passing -- sales of struggling volume to launch into niches, but will that be by 2015." brands. to the detriment of sales of cars like the Wayne Griffiths, Audi's regional , Audi A3 or BMW 3 series? It's In the first seven months, Audi outsold manager for Europe, said: "We've hard to see they will make as big a step Fiat and Citroen in Europe. already expanded the Audi product as they have in the last five years." Company executives and industry lineup over the last 10 years from 18 So far, that tipping point is not is sight. watchers say premium brands are models to 40 at present." The Through July, Audi ranked sixth in benefiting from expanding into Volkswagen Group subsidiary believes European monthly sales, with BMW segments where they once had no the key to its success is that the new finishing ninth and Mercedes rounding presence, such as compact-sized cars. models are covering all ends of the out the top 10, according to the figures market, ranging from the R8 supercar Buyers are also willing to pay more for from JATO Dynamics. to the Q family of SUVs to the A1 premium cars because they retain their premium subcompact. All three brands have defied a slump value more than cheaper volume that has seen European car sales drop models. "These models are acquiring new to their lowest level in 17 years. customers for Audi on a massive scale," Mercedes believes a key driver in its Griffiths said. Audi has seen its annual sales in Europe future growth is expanding the brand's rise by 28 percent to 718,511 last year compact car lineup to five models from However the German premium from 559,122 in 2002 while BMW two. "The compact segment offers automakers may not be able to win

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recorded a 30 percent rise to 685,457. Europe's top 10 as Ford and Opel/Vauxhall, but IHS Mercedes' sales have fallen 15 percent Automotive's Fletcher said premium Ranking based on Jan.-July sales by to 636,229 over the same period, but sales are growing in a shrinking market brand as mainstream automakers stumble because they make financial sense. worse the company has retained its top 1. VW 1,024,204 "Residuals play an increasingly big part. 10 position. 2. Ford 633,863 People want to know where they are New segments 3. Opel/Vauxhall 547,184 putting their money is a safe bet," he 4. Renault 534,563 said. So how have the premium brands managed to capitalize on a weak 5. Peugeot 510,079 If bought on finance packages, which market? And are the gains made by the 6. Audi 442,201 the majority of the cars in Europe are, three German premium brands the higher residuals can even align 7. Citroen 440,342 sustainable? premium prices to those of mainstream 8. Fiat 407,014 rivals, Fletcher said. "A large part of that is down to their 9. BMW 383,591 willingness to explore new niches; That's particularly attractive for finding out what customers want and 10. Mercedes 363,415 company car drivers as premium fleet having the investment cash to give it to sales are huge. For example in the UK them," Fletcher said. Source: JATO Dynamics last year, 64 percent of new went to the fleet market, the second- The shift into SUVs has paid off, highest percentage figure after General particularly for BMW and Audi. In the Motors' Vauxhall brand and ahead of first seven months of this year, BMW profitability "crushed," according to longtime fleet heavyweight Ford, which achieved figures of 102,389 from its Bernstein analyst Max Warburton. counted on fleets for 60 percent of its four-model X range, which accounted He said BMW and Mercedes reacting to UK sales, according to figures from the for 26 percent of its European sales CO2 legislation by launching small cars Society of Motor Manufacturers and during the period, JATO data shows. was one of the two most important Traders. Audi's three SUV lines accounted for developments in Europe's car market sales of 81,890 or about 19 percent of since the mid-2000s. The figure for Mercedes and BMW was its total in Europe after seven months. 49 percent each. The other was Volkswagen going from Mercedes so far hasn't been able to a premium-priced strategy to being an Not giving up capitalize on the high-growth trend for aggressive price cutter, Warburton said The shift has been tough on companies compact SUVs, but aims to change that at the Automotive News Europe such as Ford. "If you drive the with an SUV version of its forthcoming Congress in June. autostradas or motorways of Europe, A-class compact. The new SUV will join they are full of BMW 3 series," said the already-launched new B-class The A3 compact premium car is Audi's Garel Rhys, president of the Center for compact as well as forthcoming sister second-biggest seller in Europe after Automotive Industry Research in models such as a four-door . the A4 lower premium car while BMW's 1-series compact premium is Cardiff, told Bloomberg earlier Compact winners second only to the 3 series in the this month. "Ten years ago, they would region, according to figures from JATO have been in Ford Mondeos." Mercedes is trying to match the success for the first seven months. The Audi and BMW have has in the Ford is determined to win back many of Mercedes B-class compact is also No. 2 compact market with models such as those customers, said J Mays, the in European sales at the automaker Audi A3 and BMW 1 series. company's global design boss. behind the C class. The success of the A3 and BMW 1 "You've got these luxury brands The list price on each premium series is a big reason why mainstream dipping down into what would be compact car is higher than equivalent manufacturers have seen their considered a mainstream brand's vehicles from the volume brands such territory," Mays told Bloomberg last

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month. "So what do you do? You Stefan Bratzel, director of the Center Renault, Opel, PSA/Peugeot-Citroen make your car better-looking than for Automotive Management at the and Fiat face the same challenge as theirs." University of Applied Sciences in Ford. Bergisch-Gladbach, Germany, doesn't Barb Samardzich, Ford of Europe's vice Citroen has addressed the problem by think so. president of product development, said successfully launching its DS subbrand the company's new-generation mid- "BMW, Mercedes and Audi have the of near-premium cars, which are sized car is the most premium Mondeo advantage of premium images; that's commanding prices from 10 percent to built by Ford. "It raises the bar in its been built over many years," Bratzel 13 percent higher than the models on segment in terms of style, technology told Bloomberg last month. "One new which they are based on. Renault plans and quality," Samardzich said in a model is not enough for Ford to move to add a premium car range under the statement earlier this month. upwards. They'll need many models Initiale Paris subbrand. If successful, and it will take a generation to move Initiale Paris may become a standalone Advantage: Germans up even to where VW is at the premium brand such as at But will a more upscale Mondeo stop moment." Renault's alliance partner Nissan. the loss of sales to premium rivals?

europe.autonews.com/GlobalMonthly September 2012 COVER STORY Volume 01 | Issue 07

Premium brands attack volume automakers at their heart

Audi, BMW boost compact car sales 47% since 2001

With cars such as the new Volvo V40 compact, premium brands are poised to win more sales from volume brands.

Nick Gibbs "We expect this segment will continue Volvo's Connor said customers want to grow as customers migrate upwards cars with all the features and With cars such as the Volkswagen Golf, from mainstream competitors as well as functionality of a larger , Ford Focus and Opel/Vauxhall Astra, downsizing from larger C/D segment but in a smaller package with all of the volume brands commanded more than cars," said Nick Connor, managing fuel economy benefits this brings. 90 percent of Europe's compact director of Volvo Car UK. segment in 2001. A decade later, Assault to intensify premium compact cars like the Audi Last year, premium brands boosted Researchers at IHS Automotive say the A3, BMW 1 series, Mercedes A class their share in Europe's compact-car premium automakers' assault on the and the recently launched Volvo V40 market to 15.6 percent from 9.6 segment will only intensify this year are capturing more and more sales in percent in 2001, according to data with the of the new-generation the key segment. from JATO Dynamics. Audi A3, which has just gone on sale, Industry insiders believe the premium or Sales of premium compacts have risen the new BMW 1-series three-door near-premium brands will continue to 47 percent to 563,460 last year from variant, which will shortly join the five- erode volume automakers' dominance 382,471 in 2001. door 1 series in showrooms, and the in Europe's second-largest segment by new Mercedes A class. unit sales after subcompacts.

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"With the launch of these three you're the segment. "VW is the definitive non- Mercedes launched its first-generation going to see a big rise in sales over the premium, premium brand," Fletcher A class in 1997, a year after Audi was next 18 months despite everything said. the first entrant in the premium going on in Europe," said IHS compact segment with the launch of One reason buyers are choosing cars Automotive analyst Ian Fletcher. the A3. But the boxy, van-like A class such as the Audi A3 or BMW 1 series wasn't a hit with buyers so Mercedes The premium automakers will make life over cheaper compact such has restyled the latest A class as a even tougher for volume automakers in as the Focus and Astra is because the sporty car that will better compete with Europe, whose sales are slumping higher purchase price can be offset by the A3 and the 1 series, first launched during the current economic downturn. the higher resale value. in 2004. "The traditional players are between a Customers also are increasingly leasing rock and a hard place. You have the BMW will introduce a number of their cars and the better residual values premium automakers at the top end of compact-sized models off a new front- of premium compact means monthly the segment and low-cost players such wheel-drive platform that it is payments are reduced, sometimes as Dacia underneath," Fletcher said. developing for the BMW brand and down to the equivalent of the Focus, . Volkswagen, Europe's biggest Fletcher said. automaker, dominates the middle of

europe.autonews.com/GlobalMonthly September 2012 COMMENTARY Volume 01 | Issue 07

China's domestic carmakers are much weaker than they appear

SHANGHAI -- "When the water level If you exclude subsidies and joint- drops, the stones are exposed," says a venture profits, most Chinese Chinese saying. These words describe carmakers failed to generate a profit in the dire situation in which domestic the first half of 2012. The exceptions Chinese carmakers find themselves. were and Great Wall Motor, which likely had profitable domestic Benefiting from tax incentives for small operations. In the first six months, vehicles, the domestics, which mainly Geely reported profits of $157.6 build small cars and microvans, million. If you subtract government achieved explosive sales growth in subsidies of $99.9 million, it still earned 2009 and 2010. But now that China's $57.7 million on its own. Meanwhile, auto market has slowed to single-digit Great Wall says it earned $378.3 growth, their weakness has been laid million during the same period. The bare. company did not disclose its The domestics automakers are even government subsidies. weaker than their stagnant sales would Yang Jian is managing editor of Two other Chinese carmakers that suggest. Except for Chery Automobile, Automotive News China. might have profitable automotive every major Chinese auto manufacturer operations are Lifan Industry Group Co. is listed either in Hong Kong or on a and BYD Co. But it's impossible to domestic stock exchange. According to venture with Ford Motor Co. and verify that since the companies did not their financial reports, only FAW Car Mazda Motor Corp. disclosed separate results for their Co. was unprofitable in the first six carmaking units. months, with a loss of 61 million yuan In China, local governments subsidize (about $9.6 million). But if we dig carmakers to generate tax revenue and Chinese carmakers are not very deeper, we discover that most domestic jobs. Subsidies sometimes constitute a profitable because they have steadily automakers would have lost money big chunk of an automaker's profit. For lost market share to global competitors. without government subsidies and example, Zhejiang Geely Holding Group Domestic automakers, which sold 3.2 profits from their international joint received a $99.9 million subsidy in the million vehicles in the first six months, ventures. first half, accounting for 62 percent of saw their share of China's light-vehicle its profit. Likewise, Chinese automakers market plunge 3 percentage points to Take Changan Automobile Co. Its that have joint ventures with global 41.4 percent. Because of their weak financial report says it earned $89.8 brands derive most of their profits from brands, it will be extremely hard for million in the first half of this year. But those partnerships. SAIC Motor Corp. domestic automakers to reverse market that profit was achieved after the was the most profitable domestic share losses. company received a $15.8 million automaker in the first six months but subsidy from the Chongqing nearly all of its $1.70 billion profit was Without government subsidies and government. Changan also received an generated by its joint ventures with profitable foreign partners, Chinese $86.2 million profit from its joint Volkswagen and General Motors. automakers appear doomed to lose money for years to come.

europe.autonews.com/GlobalMonthly September 2012 COMMENTARY Volume 01 | Issue 07

U.S. auto sales: Searching for 'normal'

Sept. 15 is the fourth anniversary of prices, Americans drive less. These investment bank Lehman Brothers' changes suppress auto demand. bankruptcy. For the U.S. auto industry, Four U.S. leading economic indicators that's the day 2008 vehicle sales went closely linked to auto purchases -- from "uh-oh" to "oh, noooo." personal income, housing starts, When Lehman crashed, other lenders consumer confidence and the got panicky and credit dried up for car unemployment rate -- are still lagging. loans. U.S. light vehicle sales, which A fifth, the Dow-Jones 30 Industrial had started the year sluggishly but Index, hit a five-year high Sept. 12. were on pace for a 10th straight year And there's fear. Americans used to above 16 million units, plunged to worry that Europe's sovereign debt monthly losses of a third or more. crisis would spread to the U.S. U.S. auto sales crashed to 10.4 million economy. Now they have a domestic units in 2009. Since autumn that year funk. With Republicans and Democrats volume has been rising fairly steadily. Jesse Snyder is senior writer at hopelessly deadlocked, what are the But even resized and profitable, U.S. Automotive News. odds that Congress can avoid the year- automakers, suppliers and dealers end "Fiscal Cliff?" Without obsess over the pace of sales. Congressional action, on Jan. 1 U.S. tax But in 1999, the U.S. market hit 17 rates will soar and government Every month, all eyes are on the SAAR, million units -- and then stayed above spending will be slashed, a blow the or Seasonally Adjusted Annual sales 16 million for almost a decade. That's Congressional Budget Office says Rate, a projection of annual sales based not normal. Nor are the great collapse, would cause a recession. on an individual month. chaos and volatility since then. With so much gloom, what's keeping Since November 2009, 45 of 46 Difficult to predict auto sales going? Pent-up demand and monthly SAARs have been higher than expanding credit availability. In short, the year before. The industry is headed The last normal American auto sales Americans must replace their old for a third straight year of million-plus were sometime in the previous century. vehicles. And banks are again lending gains. Compared with Europe, that Assumptions are out of date. to those with less-than-perfect credit. sounds great. U.S population is rising, and the "Those who are employed are now Yet the U.S. industry sighed in relief at formation of new households is even able to own or lease a new car," said September's SAAR of 14.5 million, still greater. More Americans work past 65 top forecaster Jeff Schuster of LMC way below the 16.9 million unit and still need cars to commute. That Automotive. average from 1999 to 2007. feeds auto demand. He sees U.S. sales headed to 14.3 Why so nervous? Nobody knows But American attitudes about how million this year and a bit higher next what's normal any more. Consider: many vehicles they need have changed. year. But back to 16 million or above? Auto sales are normally up and down. In real terms, U.S. middle-class income Schuster and other forecasters don't We're either climbing or falling except has shrunk over the past two decades. know when, or even if, that will for the brief pause at a peak or trough. Vehicles last longer. With higher fuel happen.

europe.autonews.com/GlobalMonthly September 2012 COMMENTARY Volume 01 | Issue 07

Suppliers 'running out of excuses' not to go global

Mid-sized European partsmakers need globalization to the side because they to become more global or face being are growing here," Stolz said. overrun or taken over, according to Another big risk Stolz sees facing mid- Oliver Wyman analyst Lars Stolz. sized suppliers is whether or not to "No supplier should fool itself. If it become an expert in e-mobility. wants to be a player in the future it will "The industry is spending billions on need to have a presence in markets the development of electrified such as China and India or have a good drivetrains with no clear idea on when excuse not to be there," Stolz said, there will be a return on the "and many are running out of investment," he said. "OEMs will try to excuses." push much of this cost on to suppliers. Suppliers that can't grow to meet the Suppliers are stuck in the middle global demands of automakers will because they need to invest in e- either lose business to European rivals mobility if they want to stay in the that are willing to open factories in game." emerging markets or they will lose Douglas A. Bolduc is Automotive News He said the dilemma -- particularly for contracts to local companies in India, Europe Managing Editor. mid-sized suppliers -- is deciding where China and Russia that have global to invest. aspirations of their own. downturn. "Now, as their investment "They have to be selective when it "Suppliers in those countries are horizon is nearing its end, there is huge comes to the technologies they invest looking in Europe to establish potential for companies in India and in and the projects they bid on because production and many are looking to China to get a foothold in the the return on their investment is take over or merge with European European supplier industry," Stolz said. unlikely to happen until 2020 as the suppliers," Stolz said. "And whoever the new owner is, they earliest and more than likely it will take A recent example of this is the takeover will want to create a financial benefit until 2025." of German car-lock specialist Kiekert by and increase the value of the business. But the gamble could be very lucrative China's North Lingyun Industrial Group This could mean increasing competition for suppliers that make the right Corp. in many segments of the market." moves. "E-mobility is estimated to Time running out When asked for the most common account for 8 to 10 percent or about reasons given by supplier executives for 100 billion euros of the value creation Stolz estimates that there are about not globalizing, Stolz said it is because in the industry by 2025," Stolz said. 150 automotive suppliers in Europe of lack of staff to manage the "Therefore there is a huge upside to held by private equity firms or similar expansion and the lack of a local getting involved in this part of the investment arms. For the last few years, partner in the new market. business." those companies could not sell their supplier assets because of the "Others say their European business is going well so they push the decision on

europe.autonews.com/GlobalMonthly September 2012 AUTOMAKERS Volume 01 | Issue 07

BMW fwd concept, VW Golf and new Dacias are among key debuts in Paris

Key Paris debuts include (from left) the BMW Concept Activity Tourer, the Peugeot Onyx concept and VW Golf.

Cars that will be important players in the marketplace will be An important debut for Ford is the mid-sized Mondeo, while among the debuts at the Paris auto show. General Motors Co.'s Opel and Chevrolet brands launch products in growth segments. Opel debuts the Adam minicar These include the Volkswagen Golf, Europe's best-selling car, and Chevrolet showcases the Trax , a sister model to and the Renault Clio, the French automaker's best-selling the U.S. market Buick Encore. European model. French automakers will debut bread-and butter models, such The spotlight will also be on BMW as the company unveils a as the new Logan and Sandero cars from Renault's low-cost concept car based on its new front-wheel-drive platform, Dacia range, alongside glamorous show cars such as the which may eventually underpin up to nine smaller BMW Peugeot Onyx supercar concept. models and the future Mini range.

AUDI follows the recent market launch of the that will be attractive to families who A3 three-door. The A3 is the first need a functional and versatile vehicle Audi will unveil a concept that may Volkswagen Group car underpinned by with lots of room and a high seating preview a small SUV to be called the a new architecture, called MQB that position. The concept is a plug-in Q2. If built, the Q2 would be the will be used on 40 different models by hybrid powered by a 195-hp, 1.5-liter smallest member of Audi's Q family of the Audi, VW, Skoda and Seat brands gasoline engine and an electric motor. SUV/crossovers and a potential rival to by 2018. The fwd platform, known internally as the Mini Countryman. The brand will UKD, will underpin up to nine models also debut the A3 Sportback and a BMW for the BMW and Mini brands. It is a convertible version of the RS 5 Coupe. BMW's Concept Active Tourer previews key part of the automaker's goal of The five-door A3 Sportback is the a car that is likely to go on sale as a boosting annual sales to 2 million by second body style of Europe's top- rival to the Mercedes-Benz B class. 2020 from 1.67 million last year. selling premium compact car, and BMW said the concept shows a vehicle

europe.autonews.com/GlobalMonthly September 2012 AUTOMAKERS Volume 01 | Issue 07

CHEVROLET half, as well as 10 percent of Citroen's gasoline powerplant with 40 percent global sales. With the C-Elysee and the more torque than the engine it replaces C4 L sedans, Citroen aims to boost and a 75-hp, 1.3-liter diesel with sales in high-growth international torque increased by 30 percent. The markets such as the Mediterranean front-wheel-drive Panda also gets two basin, China and Russia. new models - a Natural Power version equipped with 900c TwinAir engine DACIA modified to run on gasoline and methane and the Trekking model with a traction control system. Chevrolet Trax FORD The Chevrolet Trax will be the brand's first entry in the growing subcompact SUV/crossover segment. It is a sister model to the Opel Mokka and Buick Encore. The five- Trax will be offered in Europe with a choice of 1.4- and 1.6-liter turbocharged gasoline (top) and Sandero engines or a 1.7-liter turbocharged New versions of the Logan and diesel. All-wheel drive is an option. The Sandero debut with a fresh Trax launches in Europe early next year. design that parent Renault hopes will It will be sold in 140 countries but not widen the appeal of the cars. They will Ford says the new Mondeo, its the United States. be the first Dacias with the brand's new European flagship, is the most premium CITROEN styling that aims for leaner and crisper version of the midsized car that it has horizontal lines, closer to Scandinavian built to date. It will also be more design. They be offered with engines economical to drive than the outgoing that are more fuel efficient than those model with powertrain choices that on the current cars, including Renault's include the automaker's new new 900cc gasoline engine and a four- downsized 1.0-liter gasoline engine, cylinder 1.2-liter turbocharged gasoline which Ford says is a first in the midsized engine. Renault will apply the styling to segment, and a hybrid variant. The all the models underpinned by its M0 Mondeo is a sister model to the Fusion entry-level platform to create a visual in the United States. In Europe, the Mondeo will have five-door hatchback, Citroen DS3 Cabrio brand identity for Dacia and the M0 program. Renault aims to sell more wagon and sedan versions and a Citroen showcases its upscale DS line than 1 million cars this year based on gasoline-hybrid sedan variant. The with the DS3 Cabrio and will also the low-cost M0 platform, including Mondeo will go on sale next autumn. unveils the C-Elysee and the C4 L models such as the Logan, Sandero, HYUNDAI sedan, two cars that are part of the Duster SUV and Lodgy minivan. brand's international growth strategy. The DS3 Cabrio is based on the DS3 FIAT subcompact launched two years ago. Fiat unveils the new-generation Panda Citroen launched its DS line with the 4x4 with two new engine versions. Fiat DS3 in 2010, followed a year later by says the minicar is the only model in its the DS4 and the DS5 last November. class with a permanent four-wheel The DS line represented 15 percent of drive system. New engines are an Hyundai i30 three-door the brand's sales in Europe in the first 85-hp, 900cc TwinAir turbocharged

europe.autonews.com/GlobalMonthly September 2012 AUTOMAKERS Volume 01 | Issue 07

With the three-door version of the i30 LAND ROVER while the bodywork has sharp, sculpted compact car, Hyundai continues a angles and elegant curves. European product offensive that has MAZDA made larger rivals nervous. The automaker aims to attract more The will debut younger buyers to the brand with the in Paris after the automaker unveiled a i30 three-door. The car has a sportier sedan version at the Moscow auto look than the five-door version with show in August. Both models will offer longer doors, a sharply-raked beltline the automaker's new 2.2-liter and a more angular silhouette. Hyundai Land Rover Range Rover Euro6-compliant , as well expects the three-door to account for as a 2.0-liter gasoline unit, and both 10 percent of 120,000 annual sales of Land Rover has reduced the weight of will go on sale in Europe before the the i30 in Europe. the new Range Rover by up to 420 kgs year-end. The Mazda6 is the compared with the current-generation JAGUAR automaker's second vehicle after the model through heavy use of aluminum CX-5 to have the company's fuel-saving The F-Type two-seater heralds the in the SUV's body shell. The new, Skyactiv fuel-efficient powertrain and brand's return to its sporting tradition fourth-generation Range Rover has an lightweight chassis technologies. after decades spent focusing on luxury all-aluminum monocoque body shell Mazda is planning annual production sedans. The F-Type will launch as a making it 39 percent lighter than the of about 120,000 units of the Mazda6 convertible next spring and a coupe steel body shell used by its predecessor. for global markets at its plant in Hofu, version is expected to follow around 12 Land Rover says the new Range Rover Japan. months later. With the rear-wheel-drive will match the refinement of luxury MERCEDES-BENZ F-Type, Jaguar aims to win new sedans. High-end versions are likely to customers, especially younger buyers. challenge upcoming super luxury SUVs Mercedes-Benz will show a sculpture The car will be the brand's fourth and from Maserati and Bentley. The Range called Aesthetics S that hints at the smallest model, joining the XJ luxury Rover arrives in showrooms toward the styling of the new generation of the sedan, the mid-range XF sports sedan end of next year. brand's flagship S-class sedan. The new and the XK four-seat convertible and LEXUS S class likely will offer more luxury coupe. fittings and technology to fill the gap KIA left by the axing of the automaker's Maybach ultraluxury marque. The CLS Kia hopes an attractive design and Shooting Brake gets its auto show roomy interior will make the slow- debut. The wagon variant of the selling Carens a tougher competitor to brand's coupe-styled, four-door CLS European minivans such as the Renault will be positioned well above the E- Scenic, Ford C-Max and Volkswagen class wagon. Mercedes will also show Touran. The new Carens has a lower Lexus LF-CC its SLS GT supercar with an electric roofline and longer wheelbase to give drivetrain and possibly a diesel engine. the vehicle a sleeker look and more With the LF-CC coupe-cabriolet MINI interior room. The Carens will replace concept, Lexus hopes to draw attention both the outgoing model and the away from its German premium rivals. larger Carnival/Sedona minivan when it The concept further develops the goes on sale across Europe next spring. brand's fresh styling direction called Kia will also debut the three-door Lexus Finessse that was seen on the LF- variant of it latest Cee'd compact car. LC coupe concept at the Detroit auto Called the Pro_Ceed, the car has a show in January. The LF-CC features sportier look than the five-door and the brand's new mesh-patterned grill wagon variants already on sale. Mini Paceman

europe.autonews.com/GlobalMonthly September 2012 AUTOMAKERS Volume 01 | Issue 07

BMW continues to expand the lineup flagging sales. With the Adam, Opel Elysee, is targeted at buyers in global of its UK-based Mini brand with the plans a rival to cars such as the growth markets. Paceman. The two-door is a sportier and Mini. The Adam will have PORSCHE version of the Countryman crossover connectivity features and introduced last year. It will go on sale personalization options aimed at A station wagon variant of the early next year as Mini's seventh model. attracting young, Web-savvy buyers. Panamera sedan will be on display in The Paceman has almost identical front The Adam will be positioned below the Paris as a concept. The wagon was styling to the Countryman but Corsa subcompact in Europe and will conceived after customers indicated overturns a Mini tradition by using sit alongside the Agila small minivan, interest in a more versatile version of horizontal rear lights instead of vertical but will have a premium price the Panamera, one with more luggage lights. compared with these models. The space than today's liftback model. If Adam will be the first Opel to use new NISSAN built, the wagon would form part of a gasoline engines with displacements of second-generation Panamera lineup. 1.0 to 1.4 liters developed by parent Porsche will also unveil the fifth General Motors with Chinese partner generation of the all-wheel-drive 911 SAIC. It will arrive in showrooms in Carrera 4. early 2013. RENAULT PEUGEOT

Nissan Terra

Nissan said its Terra concept car shows that the company is ready to mass- produce fuel cell electric vehicles whenever hydrogen becomes widely Peugeot 2008 available. The Terra is a compact SUV Renault Clio powered by a hydrogen fuel cell Peugeot will unveil the Onyx hybrid Renault will debut three variants of its located under the hood. The concept's supercar, which has a carbon fiber new Clio: a hatchback, a sporty RS front wheels are powered by the body shell and is powered by a 600-hp, version and a wagon. The latest electric drivetrain that is also in the Leaf 3.7-liter V8 engine. Peugeot says the generation of Renault's No. 1 seller in electric car while each rear wheel has Onyx shows what sporty versions of Europe has a fresh design, fuel-efficient an in-wheel electric motor that provides hybrid production models will offer. engines and a range of what the all-wheel-drive when needed. Debuting alongside the Onyx concept automaker says are affordable and will be the 2008 Concept and the OPEL innovative technologies. The Clio will production 301 sedan. The 2008 be the first Renault model to get a new Concept previews the brand's 90-hp, three-cylinder, 900cc upcoming subcompact SUV/crossover. turbocharged gasoline engine that The production model will go on sale delivers the performance of a normally early next year will be built in France, aspirated 1.4-liter powerplant, Brazil and China. The 2008 will according to the automaker. Coupled compete with vehicles such as the Opel with a stop-start system, it has fuel Mokka and in a fast- economy of 4.3 liters per 100km and growing market niche. It will replace CO2 emissions of 99 grams per Opel Adam the 207 station wagon in the brand's kilometer. The Clio's most frugal lineup. The 301 four-door compact Opel/Vauxhall counts on new products engine will be a 90-hp 1.5-liter diesel sedan, a sister model the Citroen C- such as the Adam minicar to boost with fuel economy of 3.2 l/100km and

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CO2 emissions of 83g/km. The Clio be Cross offers a preview of the which up seven and competes offered only as a five-door and will replacement for the SX4, the with vehicles such as the Ford C-Max. arrive in dealerships shortly after its automaker's second best-seller in VOLKSWAGEN Paris debut. Europe. SEAT/ SKODA TOYOTA

VW Golf

Volkswagen has given the Golf an Seat Leon extensive upgrade to help the model Skoda and Seat debut sister models Toyota Auris remain Europe's top-selling car. The aimed at budget-conscious buyers: the latest Golf has a sleeker design and is Toyota will unveil hatchback and station Skoda Rapid and the Seat Toledo. The more fuel efficient, roomier and better wagon variants of the automaker's cars will be built at Skoda's factory in equipped than the current car. New latest Auris compact car. Both variants Mlada Boleslav, near Prague. The safety and assistance systems include a will be offered with gasoline-electric Toledo revives a model that Seat multi-collision braking system that hybrid powertrains, alongside gasoline stopped making in 2009 because of automatically brakes the car to a stop and diesel versions. Toyota expects a slow sales. Both cars have sedan body when it is involved in a crash to help third of Auris sales to be hybrid styles with large trunks and wide- avoid a second impact with oncoming versions, another third to be gasoline opening rear hatches for easy loading. traffic. Also offered is proactive variants and a third to be diesels. The The Toledo will be launched initially in accident protection (Pre-Safe), adaptive current Auris was criticized for its bland Spain and Portugal in mid-November. cruise control that includes an styling and the company says it has Sales will follow soon after in other emergency braking function designed given the new version a sharper, more European markets. Skoda's Rapid will to operate at city speeds to avoid low- distinctive styling reflecting the new go on sale in Europe in October. The speed impacts, lane-keeping assistant, face of Toyota. The hatchback will car will slot between the Fabia driver-fatigue detection, traffic-sign arrive in showrooms early next year subcompact and the larger Octavia. A recognition, the latest generation of with the wagon launching in the crucial Paris debut for Seat is the latest automatic parking systems and second half. Toyota stopped selling a Leon. Like the new Volkswagen Golf, automated light functions. VW CEO compact wagon when the Corolla was the Leon is underpinned by VW Martin Winterkorn says the seventh- replaced in Europe by the Auris in Group's new mqb architecture. The generation model is "the best and the 2006. The company said that wagons Leon is slightly shorter than the Toledo greenest Golf ever." The new Golf will now make up 25 percent of compact but will cost about 2,000 euros more go on sale in Europe in November and car sales in Europe. Toyota says the new because it is more upscale. will arrive in showrooms in the United Auris will be key to its European States in 2014. SUZUKI growth ambitions. The automaker aims to boost its European sales above the Compiled by Paul McVeigh with Suzuki will unveil the S-Cross concept 1-million mark within two to three contributions from Luca Ciferri, Wim for a compact crossover. The years, up from a forecast 835,000 this Oude Weernink, Nick Gibbs, Bertrand automaker did not disclose before the year. Toyota will also show in Paris a Gay, Bruce Gain, David Jolly and show whether the concept previews a revamped version of its Verso minivan, Douglas A. Bolduc production car but sources say the S-

europe.autonews.com/GlobalMonthly September 2012 AUTOMAKERS Volume 01 | Issue 07

More delays hobble Alfa's U.S. return

The Alfa Romeo 4C, shown here as a concept, most likely will debut at the Detroit auto show in January and could be shipped to U.S. dealers in early 2014. It has a lightweight body of carbon fiber-reinforced plastic.

Luca Ciferri at the earliest. It now appears that Alfa will not return to the United States until early 2014. TURIN -- The timing of Alfa Romeo's return to the United States is up in the air again. The 4C production model most likely will debut at the Detroit auto show in January, but it is unclear when it will go on sale On Oct. 30, Fiat- CEO Sergio Marchionne is in Europe. Early this month, Marchionne told Fiat's U.S. scheduled to unveil a new timetable for Alfa Romeo's dealers they will get the 4C in the first quarter of 2014. A upcoming models and international expansion plans. large crossover or SUV might arrive sometimes in 2014. U.S. Meanwhile, the Italian press continues to speculate that Fiat dealers will get the Giulia by the end of 2014, Marchionne S.p.A. will sell Alfa to Volkswagen Group. said while showing them a styling model of a sedan version Two years ago, Ferdinand Piech, chairman of VW's of the car in Las Vegas on Sept. 10. supervisory board, said that the German automaker was Marchionne's original plan called for North America to interested in Alfa, but he was in no hurry to strike the deal. account for 85,000 of Alfa's 500,000 sales by 2014. In Fiat has reiterated that Alfa is not for sale, and in May the September 2011, the global target was lowered to 400,000 Italian company signed a memorandum of understanding units, partly because of delays in the redesign of the Giulia with Mazda Motor Corp. to jointly develop and produce a sedan and of larger vehicles, and partly due to the shrinking new Alfa roadster. the European market. Last year Alfa sold 132,000 vehicles A year ago, Marchionne promised that Alfa Romeo would globally, up 18 percent from 2010, but in the first half of return to the United States late this year with a few units of 2012 sales declined 31 percent to 54,100 units. Technically, the 4C limited-edition coupe. Alfa's full return was slated for Alfa is already in the United States; it sold a few limited- mid-2013 with a compact crossover. A crucial mid-sized edition 8C models at Maserati dealerships. sedan, the Giulia, would have followed by the end of 2013

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Here is Alfa's current plan, subject to changes that by Europe. They will replace the slow-selling, Europe-only Marchionne is expected to announce next month. 159 sedan and Sportwagon models, which Alfa discontinued in May 2011. The two Giulias, which are based on Fiat's Subcompact: Alfa canceled plans for a U.S.-bound five- CUSW platform that debuted on the Dodge Dart, will have door variant of the Europe-only three-door MiTo. The transverse engines and offer front-wheel drive or all-wheel redesigned MiTo will be a sibling of the next-generation Fiat drive. The two models will share their underpinnings with a Punto. Due to the worsening Italian and European market, redesigned Chrysler 200. The Giulias are expected to use a Marchionne put on hold the Punto redesign project and, nine-speed automatic that Chrysler will build consequently, its Alfa derivative. under license from German transmission specialist ZF 4C: The first units could be shipped to U.S. dealers in early Friedrichshafen. Power will be supplied by 3.2- and 3.6-liter 2014. The 4C is a baby 8C, with a lightweight body of versions of Chrysler Pentastar V-6 engine equipped with carbon fiber-reinforced plastic and a 250-hp, 1.75-liter Fiat's MultiAir variable valve timing. gasoline engine with turbocharging and direct injection. The Roadster: The two-seat roadster is now due in 2015 small production coupe -- just a few thousand units a year -- instead of next year. In May, Fiat and Mazda said they would most likely will use a new, Fiat-developed seven-speed dual- co-develop roadsters. Alfa will launch its model in global clutch transmission. Alfa is studying a roadster variant of the markets, including Europe and the United States, starting in 4C coupe, the 4C Spider, with an easy-to-remove carbon 2015. The car will be built at Mazda's factory in Hiroshima, fiber-reinforced plastic roof. Production plans and timing Japan. The Alfa model will be a variant of the redesigned have not been announced. rear-drive MX-5 Miata. Alfa is expected to use a 200-hp Giulietta: Alfa shelved plans to take the compact version of the 1.75-liter direct-injection turbocharged engine hatchback to North America when it is refreshed in 2014. to debut with the 4C. Investments to make the Giulietta U.S.-compliant were Compact crossover: This is another model shelved by considered too high to recover in the remaining life cycle of a Alfa. It originally was scheduled to go into production by year model that originally launched in Europe in July 2010. The end in Fiat's Mirafiori plant in Turin. Mirafiori is scheduled to United States could get the compact when the Giulietta is assemble, starting in late 2013, only smaller crossovers for redesigned near the end of the decade. A compact wagon the Fiat and Jeep brands. variant was approved last year but canceled early this year as the economy worsened in Europe. Mid-sized SUV: Alfa is working on a sibling to the Jeep Liberty when the Liberty is redesigned in 2013. The Alfa Giulia: In the past 30 months, Marchionne repeatedly variant is to go on sale in 2014. According to the latest plan, approved, then killed, several styling proposals for the mid- it will be built alongside the redesigned Liberty by Chrysler in sized Giulia sedan. In the latest Alfa product plan, unveiled its Toledo, Ohio, plant. by Alfa Romeo CEO Harald Wester in September 2011, both the Giulia sedan and wagon are due in 2014.The Giulia Large sedan: Alfa's plan called for a rear-wheel-drive sedan and wagon are scheduled to be built in the United large sedan to debut in 2014, but this model appears to have States and exported to Europe. Sales of the sedan are been canceled. expected to start in late 2014 in the United States followed

europe.autonews.com/GlobalMonthly September 2012 AUTOMAKERS Volume 01 | Issue 07

New Ferrari puts F1 power in a road car

Ferrari says it has sold out its first year of production of the 740-hp F12 Berlinetta. Deliveries of the 274,400-euro supercar started this month.

Luca Ciferri Last year was Ferrari best ever with 7,195 supercar sales and a 321 million euro operating profit, equivalent to a 14 MARANELLO, Italy -- Ferrari's latest supercar gives customers percent operating margin. as much power as a Formula One driver. In the first half, Ferrari increased sales 7 percent to 3,664 "The F12 Berlinetta delivers 740 hp," Ferrari Chairman Luca units, of which more than a quarter of the cars were sold in Cordero di Montezemolo told Automotive News Europe, the United States. A better mix -- sales of more expensive "and today's Formula One cars have between 740 hp and V-12 models were up by 66 percent in the half -- boosted the 750 hp. Thus we are offering F1 power in a road car." company's operating profit 13 percent to 152 million euros, That kind of power combined with an 800-unit-per-year equivalent a 13 percent operating margin. production run has caused a wait time of nine months to a Demand for the F12 two-seat coupe, a car Montezemolo year for the F12, which costs 274,000 in Italy or about 371 calls "the quintessential Ferrari" is an indication that the euros for per horsepower. global appetite for exotic cars remains strong despite the Ferrari started European deliveries of the F12 this month, sovereign debt crisis in Europe, fears of a possible new completing a three-year renewal of Ferrari's lineup that is recession in the United States and China's slowing gross paying high dividends. domestic product growth.

"From the latest data I've seen, we are on track to make this Rolls-Royce CEO Torsten Mueller-Oetvoes also has predicted year another record year," Montezemolo said in an interview that the 108-year-old British superluxury brand will set a new last month. sales record in 2012, topping the 3,538 vehicles it delivered in 2011.

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Fast facts

The F12, which replaces the 599 GTB Fiorano coupe, accelerates from 0 to 100kph in 3.1 seconds. It completed a lap of Ferrari's Fiorano test track in 1 minute and 23 seconds -- a record for one of the company's road cars -- Ferrari said. The F12 was 3.5 seconds quicker than the 599 and also 2 seconds faster than the all-carbon-fiber, limited-edition Enzo supercar.

"To make the F12 faster, we reduced the vehicle dimensions, creating a more compact and efficient package, with a significant weight reduction and a lower center of gravity," said Franco Cimatti, head of vehicle concepts.

The F12 is 50mm shorter and 20mm narrower than the 599. The new car weighs 1575kg, which is 50kg less than the 599.

The F12 is powered by a new 6.3-liter gasoline direct- injection V-12 engine. Compared with the 599, CO2 emissions were reduced 15 percent, from 490 grams per kilometer to 350g/km, while horsepower increased 19 percent.

The F12 was styled by Italy's and Ferrari's design department, led by Flavio Manzoni. Other innovations

The F12 features Ferrari's Aero Bridge, which uses the engine hood to generate down force by channeling air away from The F12 completed a lap of Ferrari's Fiorano test track in 1 the upper part of the car to its flanks, where it interacts with minute and 23 seconds -- a record for one of the company's the wake from the wheel wells to decrease drag. road cars, Ferrari said.

Another advancement used to reduce drag is the so-called Active Brake Cooling, which opens vanes to the brake "One out of every five owners of our V-12 models uses is on cooling ducts at high operating temperatures. a daily basis," Rachetti said. Ferrari expects about two-thirds of F12 buyers to already The F12's name is derived from its aluminum spaceframe own a Ferrari. chassis and body shell, which is made with 12 alloys, some of Paolo Rachetti, Ferrari's head of product marketing, also which are being used for the first time in an automobile, the expects the F12 that are sold to be more than show pieces. company said.

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Mulally details Ford's European product blitz highlighted by SUVs, Mustang

With the additions of models such as the Edge and EcoSport (shown), Ford says SUVs will account for 10 percent of its total European sales by 2016.

Luca Ciferri In July, the U.S. automaker said it To counter slumping sales, Ford of expected to lose more than $1 billion in Europe will launch two new SUV/ AMSTERDAM -- Earlier this month, Ford Europe this year. But Mulally said Ford crossovers plus the Mustang sports car. Motor Co. CEO Alan Mulally flew to will turn around its European Europe to send a clear message to the Ford will introduce the EcoSport -- a operations with new products just as it region's dealers and work force: Ford is Fiesta-based crossover already on sale did in the United States. here to stay. in India -- in Europe late next year. The Ford of Europe CEO Stephen Odell EcoSport joins a growing market During a Sept. 6 event in Amsterdam, predicted that the total European car segment in which rival General Motors Mulally unveiled 15 new models that and light commercial vehicle market, plans to introduce the Opel/Vauxhall Ford will introduce in Europe over the including Russia, would grow 20 Mokka and Chevrolet Trax. next five years. percent in the next five years to 23 Odell declined to say where Ford will Despite Europe's growing economic million vehicles. build the European EcoSport. The crisis, he was upbeat about the region's "While others ... are cutting product company has previously announced long-term growth prospects. "Even investments, we at Ford are plans to produce it in Brazil, India, with the near-term business accelerating the introduction of new China and Thailand. environment, Europe presents a products, leveraging our One Ford significant opportunity for profitable Europe also will get the Edge, a larger global strengths," Odell said. growth," he said. premium SUV sold in the United States. A redesigned version, due in the United

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States late next year, could come to Product blitz Europe in 2014. Ford of Europe plans to introduce the "The expanding European SUV market following models: is a unique opportunity for Ford and 2012: B-Max, Kuga, Fiesta face-lift lands right in our sweet spot," said Jim 2013: Fiesta ST, Focus electric, Farley, Ford's global marketing and Mondeo, Transit, Transit Connect, sales chief. "No other company can Mondeo gasoline hybrid, EcoSport touch Ford's expertise, global portfolio and credibility when it comes to SUVs." 2014: C-Max Energi plug-in gasoline hybrid; Transit Courier; Mustang; The EcoSport and Edge will join Ford's Edge crossover lineup alongside the Kuga, Europe's No. 2-selling compact SUV Sources: Ford, Automotive News Europe after the Volkswagen Tiguan. The second-generation Kuga goes on sale in November. Ford plans a green lineup for Europe. CEO Alan Mulally said Ford will turn Ford forecasts that the European SUV Next summer, the company will around its European business with new market will increase 34 percent through introduce a battery-powered Focus, products just as it did in the United 2017. plus a hybrid Mondeo and a plug-in States. Over the next six years, the automaker hybrid, C-Max Energi, in 2014. expects to sell more than 1 million Ford also plans to market the next- SUVs in Europe. By 2016, SUVs will generation Mustang sport coupe and Despite all the product news, Mulally account for 10 percent of all Fords sold roadster in Europe. Currently, private had nothing new to say about Ford of in the region. retailers import the car into Europe Europe's biggest headache: excess Product offensive from the United States. production capacity.

Over the next five years, Ford plans to The next-generation Mustang is due in Ford's new European products -- the have 15 global vehicles on sale in the United States in 2014. That EcoSport, Edge and Mustang -- likely Europe. The product offensive will introduction will mark the 50th will not be built in the region. anniversary of the legendary pony car, include a face-lifted Fiesta subcompact Ford currently uses just 63 percent of its the brainchild of a brash young Ford and a range-topping sporty Fiesta ST. European plant capacity, according to executive, Lee Iacocca. And Ford will redesign the Mondeo Morgan Stanley. Analysts say assembly mid-sized car, a version of the U.S. Ford of Europe's cash cows, its plants must operate at or above 80 market Fusion. The new Mondeo will commercial vans, will be redesigned percent of capacity to be profitable. too. The Transit, Transit Custom, Transit have three body styles: a sedan, five- "Europe had a lot of issues in the past Connect and Transit Courier -- plus a door hatchback and a station wagon. and people did a lot of things to family of new Tourneo people carriers - To improve fuel economy, it will be subsidize the industry," Mulally said. - will get makeovers over the next two offered with Ford's downsized 1.0-liter "But you've got to [adjust production years. gasoline engine. capacity] to the real demand so you can When it goes on sale next autumn, the profitably grow. People are realizing we Mondeo will also have diesel engines all need to deal with that reality." and all-wheel-drive variants. -- Bloomberg contributed

europe.autonews.com/GlobalMonthly September 2012 AUTOMAKERS Volume 01 | Issue 07

How VW put the new Golf on a diet

VW says that the weight of the seventh-generation Golf (blue car) matches that of the fourth-generation model launched in 1997 (from right, fourth car).

Luca Ciferri The VW brand is just the latest entrant The new generation of the Golf, in the auto industry's race to reduce Europe's best selling model, goes on BERLIN -- Volkswagen Group put the new vehicle weight to help cut fuel sale in October starting at 16,975 euros seventh-generation Golf compact on a consumption at a time of growing fuel in Germany for a 1.2-liter gasoline- serious diet to reduce emissions by 14 prices. powered TSI Trendline model. VW said percent compared with the current this is the same price as a comparably model. For example, VW subsidiary Audi cut equipped current model. 80kg from the A3 premium compact Europe's largest automaker cut 100kg model, while PSA/Peugeot-Citroen The latest Golf is the first VW-brand from the Golf's weight to meet tougher slashed 110kg from the 208 compact. model to use the group's new Modular emission rules in Europe and around Land Rover cut the new Range Rover Transverse Toolkit. This architecture will the world. weight by a 420kg, mainly by designing underpin 40 different models within "With this car we have been able to an aluminum unibody. the Audi, VW, Skoda and Seat brands reverse the upward spiral in weight," by 2018. For the Golf, VW said it managed to said VW CEO Martin Winterkorn when avoid using expensive materials that While VW offered a detailed the car was unveiled Sept. 4 in Berlin. would have increased the vehicle's cost. explanation of its 100kg weight Despite the weight reduction, the reduction, the company did not "Eliminating up to 100kg without vehicle is "safer, more comfortable and announce the new car's overall weight. making the vehicle more expensive by more spacious than its predecessor," The company said only that the the use of alternative materials is a he added. seventh-generation Golf weighs about master technical achievement in the as much as the fourth-generation VW cut the vehicle's weight even compact class," said Ulrich version, which debuted in 1997 with its though the new Golf is 56mm longer Hackenberg, VW's product weight starting at 1,075kg. and 13mm wider than the model it development chief. replaces. For the new Golf, VW said it:

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• Designed gasoline and diesel engines The company used high-strength steel grams per kilometer (equivalent to fuel that were 40kg lighter and tailored blanks to cut 23kg from economy of 4.9 liters per 100km), the body-in-white. High-strength steel while the diesels start at 99g/km (3.8 • Eliminated 37kg from the vehicle's accounts for 80 percent in the new car, l/100km). The greenest Golf is the "superstructure," which includes the up from 66 percent in the last- BlueMotion diesel version, which emits body-in-white and some interior generation Golf. 85.9g/km, equivalent to 3.2 l/100km. components VW also reduced the weight of the In Europe, the Golf fleet's CO2 • Trimmed 26kg from the running gear Golf's superstructure by using lighter emissions will be reduced by 13.9 • Shaved 6kg from the electrical system. seat structures, a new air conditioning percent, Hackenberg said. system and a new dashboard cross VW said the total weight reduction VW's chief engineer was so proud of member. added up to a theoretical maximum of his new "baby" that he personally 109kg. But due to the vehicle's mix of Thanks to less weight and more- drove a new Golf onto the stage during options, the maximum weight efficient engines, CO2 emissions of the the preview at the New National reduction in practice is 100 kg. new Golf's gasoline models start at 115 Gallery in Berlin.

europe.autonews.com/GlobalMonthly September 2012 AUTOMAKERS Volume 01 | Issue 07

Rolls-Royce CEO expects another record sales year

Rolls-Royce CEO Torsten Mueller-Oetvoes says typical Rolls-Royce customers are the most demanding he has experienced.

Rolls-Royce set a record with 3,538 Have you seen warning signs that Will the United States return to No. 1 in vehicle sales in 2011 and now CEO automakers are headed for trouble? 2012? Torsten Mueller-Oetvoes has his sights We are certainly not immune to a crisis I would not be surprised to see the U.S. set even higher. Despite the volatile and we have felt the ripple effects of as No. 1 this year. It depends on how economic situation, especially in the crisis in southern Europe across the stable the U.S. market is and what Europe, Mueller-Oetvoes believes Rolls- globe. However, we are still optimistic, happens regarding governmental Royce's expansion in Asia and Russia, in the United States, where consumer change in China. In 2011, this race entry into South America and growth in confidence remains strong. The Middle went down to wire. So far we have North America could result in a new all- East also is also performing well this seen encouraging growth compared time sales high for the 108-year-old year. I am confident that Rolls-Royce with the same period last year. British superluxury brand. Mueller- will enjoy another record year. Oetvoes talked about the BMW Group Are you under pressure to increase subsidiary's future with Automotive Last year, China became Roll-Royce's sales? News Europe Managing Editor Douglas biggest market, passing your longtime We are not measured by BMW on A. Bolduc. No. 1 sales market, the United States. volume, we are measured by EBIT. Of

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course, you have to sell cars to earn One of the most important changes is high resale value. We would never money. The most important point is in the updated electronics, including modify the car in such a way that that we are highly profitable and the best MMI [man-machine interface] would damage the residuals. deliver a sizeable contribution to BMW. system in the world. We re-engineered Is Bentley a competitor? the Phantom so that it retains its Are you aiming to boost annual sales to reputation as the best car in the world; Comparing us to Bentley is like 10,000? the best you can buy for money. comparing a BMW 3 series to a 7 There will be no explosive growth series. We are in a completely different taking us to 10,000 units a year. Our price range. Bentley mostly sells customers are ultra-high-net-worth Continentals, which cost well below people. This segment of the population 200,000 euros. The Ghost starts at is expected to grow 5 percent to 10 250,000 euros and the Phantom at percent annually. We need to stay in around 400,000 euros. Yes, historically that growth area and achieve one-digit the brands competed, but to say that is percentage growth. This area is highly still the case is a mistake. I don't want exclusive and seeing a Rolls-Royce on to take anything away from Bentley. the road is always an event or an They are doing good business and we occasion. When you see it, you stand are doing good business. There is room still. We are a tiny, but a very precious in the market for both of us. drop in the ocean of overall automotive When we look back at the revised sales. Phantom in 10 years, what will people Who is your target customer? say set it apart from the cars that it came before it? There is no typical Rolls-Royce What were customers telling you that customer. But they are always the most they wanted changed? The LED lights in the front are the most demanding customers I have ever We had intense discussions about what dramatic change that epitomizes the experienced. We have to be prepared we should change. The clear message significant enhancements to drivetrain, to exceed their highest expectations. was that we should not change the electronics and driver aids. This new 'No' is not a word that figures in their exterior of the car. Our customers front face has caused people to say: vocabulary. They are obviously quite believe it is so beautiful and that we 'You guys have brought Phantom up to rich and they want individualized should not spoil it. We were told we a new level of contemporary products. They are often individuals should update the technology and the excellence.' It has put the Phantom who own their own enterprises and connectivity, which we did. The LED back on track. This updating of the want to reward themselves because headlights provide a change to the brand started with the Ghost and has they are really proud what they have exterior without spoiling the now reached the Phantom. The order achieved. Each car is such a precious appearance of the Phantom. Another books are already starting to fill up piece of craftsmanship. It is such a reason for this [keeping the exterior ahead of its worldwide market debut pleasure and that is something our essential the same] is economical. We this month. customers love. promise to keep the resale value of the What makes the revised Phantom cars high. We know that 75 percent of different from the previous version? the Rolls-Royce models built are still on the road. Customers are interested in

europe.autonews.com/GlobalMonthly September 2012 AUTOMAKERS Volume 01 | Issue 07

Land Rover mulls SUV below Evoque

Land Rover has sold more than 90,000 Range Rover Evoques worldwide since the compact-sized SUV debuted last year.

Nick Gibbs Fiat, Suzuki, Toyota offer subcompact- A big challenge would be matching the sized SUVs in Europe. safety and off-road capability offered LONDON -- Land Rover could add a by the rest of the Land Rover range. luxury SUV below the compact-sized Since launching the Evoque last year, Evoque, the brand's design director Land Rover has sold more than 90,000 "You might argue that the confidence said. of the three- and five-door SUVs, of being cocooned would start to be according to data from Land Rover pushed," he said. "Certainly, I think we can go smaller," owner Tata Motors. Seven-month Gerry McGovern said when asked Even if it could meet customer European sales of the SUV (32,392) about future plans for the premium expectations with the subcompact- nearly exceeded combined sales for the Range Rover line. "In a world focusing sized SUV, Land Rover currently faces a rest of the Land Rover lineup (33,397), on sustainability you could argue that big workload as it races to replace according to data from JATO Dynamics. smaller and lighter is the way to go." outdated models in its range. The top McGovern said a smaller Range Rover priority now is the flagship Range Range Rover is not the only brand could still be seen as premium. "Some Rover, which will be revealed at the considering a subcompact premium of the most expensive, most luxurious Paris auto show in September before SUV. Audi design boss Stefan Sielaff products in the world are incredibly going on sale early next year. has floated the idea of a Q1 SUV, small. Look at jewelry," he told which would fit in below the compact- Automotive News Europe. sized Q3. Only volume brands such as

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"We're in the process creating a whole 2014-2015, following the new Range new generation of products," Rover Sport expected in 2014. McGovern said. Land Rover is also understood to be The designer said the firm was taking a working on stretched versions of all "holistic" approach to the brand to three models in the Range Rover lineup make sure the range, currently to increase the appeal in chauffeur- comprised of six models, didn't overlap. friendly markets such as China.

Describing the brand's marketing A convertible version of the Evoque strategy, he said: "We have three pillars seen in concept form at the Geneva in our range: Range Rover is the pillar auto show this year is still being about luxury, Discovery is the pillar considered. "As a product, we think it's about versatility, and the next- a desirable proposition that would help generation Defender is the pillar all build the brand further," McGovern about multi-purpose." said. Gerry McGovern believes small doesn't The new version of the utilitarian mean less premium: "Some of the most Defender is likely to arrive in expensive, luxurious products are incredibly small. Look at jewelry."

europe.autonews.com/GlobalMonthly September 2012 CAR CUTAWAY Volume 01 | Issue 07

Magna plays key role in new Mercedes B class

James Clark structure stampings, trims, common-rail diesel. BorgWarner wheelhouse liners, carpets and floor supplies the high temperature sensor Magna International provides a number trims, side door latches, rocker panels and glow plug control module for the of key components in the new and various acoustic parts. engine while Getrag provides steering Mercedes-Benz B class, including the gears. premium compact's front and rear The B class has Mercedes' new third- bumpers, radiator grilles, body generation 1.8-liter four-cylinder

europe.autonews.com/GlobalMonthly September 2012 DATA Volume 01 | Issue 07

Nissan Qashqai wins by not losing in European sales race

The continued to be a bright spot among cars in Europe's top 10.

Douglas A. Bolduc nearly more than 73,300 units through Europe's 2012 top sellers after 7 July. At the end of the first quarter the The Nissan Qashqai was the only model months; % chg Jan.-July 2011 Golf's lead was 30,000 units. The among those in Europe's top 10 sellers 1. VW Golf 277,752 -7.0 Golf's advantage over the Fiesta grew through July to avoid a sales decline to more than 62,900 in after six 2. Ford Fiesta 204,508 -12.0 compared with the same period last months. VW will debut its seventh- 3. VW Polo 195,075 -14.0 year. Nissan sold 136,162 Qashqais in generation Golf at the Paris auto show Europe in the first seven months of the 4. Opel/Vauxhall this month. 175,326 -19.0 year, up from the 135,724 units it sold Corsa during the same period in 2011, The Golf was one of three models VW 5. Ford Focus 165,846 -13.0 according to market researchers JATO had in the top 10. The others were the 6. Opel/Vauxhall Dynamics. Polo (ranked 3rd) and the Passat 156,374 -19.0 Astra (ranked 10th). Sales of all the other cars in Europe's 7. Renault Clio 153,095 -19.0 top 10 fell during the period. Eight out The Passat returned to the top 10 8. Nissan Qashqai 136,162 +0.3 of the 10 models had double-digit despite having demand decline 11 drops in demand compared with the percent to 130,302 compared with the 9. Renault Megane 131,089 -15.0 first seven months of 2011. (See chart) first seven months of 2011. 10. VW Passat 130,302 -11.0

Despite nearing the end of its life cycle, See the back of the Automotive News the Volkswagen Golf continued to Europe Global Monthly for the JATO Dynamics dominate European sales during the complete by-model European sales quarter. VW's compact car outsold the results for the first quarter. Ford Fiesta, Europe's No. 2 seller, by

europe.autonews.com/GlobalMonthly September 2012 Volume 01 ❙ Issue 07

brought to you courtesy of EUROPE SALES BY MODEL, JULY & 7 MONTHS www.jato.com

July July 7 mos. 7 mos. July July 7 mos. 7 mos. 2012 2011 2012 2011 2012 2011 2012 2011 V8/V12 Vantage ...... 65 76 479 592 MiTo ...... 1,834 2,997 17,351 27,743 DBS ...... 21 25 154 239 Giulietta...... 5,045 6,387 41,478 52,897 Rapide ...... 19 32 170 370 159...... 239 850 2,619 6,972 Other ...... 49 91 389 353 Other ...... 8 79 133 1,417 ...... 154 224 1,192 1,554 Total Alfa Romeo ...... 7,126 10,313 61,581 89,029 458 Italia ...... 154 148 1,131 1,001 Niva/Taiga...... 139 162 1,170 1,660 California ...... 70 84 430 704 Other ...... 24 29 170 296 FF ...... 28 20 366 20 Total Lada...... 163 191 1,340 1,956 599 GTB Fiorano...... 5 30 59 261 AVTOVAZ ...... 163 191 1,340 1,956 Other ...... 10 5 68 61 1 series ...... 10,381 7,859 90,436 81,664 Total Ferrari ...... 267 287 2,054 2,047 3 series ...... 11,702 13,289 105,599 102,478 500 ...... 11,969 12,180 92,072 103,392 5 series ...... 8,968 10,936 73,256 88,683 Panda ...... 13,826 12,592 117,470 121,914 7 series ...... 496 654 4,363 5,685 Punto...... 11,000 17,947 94,084 147,115 Z4...... 550 774 5,521 6,465 Albea ...... 2 371 1,011 5,522 6 series ...... 782 286 5,293 2,454 Linea ...... 2,870 2,901 19,288 19,908 X1 ...... 3,490 6,715 37,121 48,157 Bravo...... 1,523 2,222 12,233 22,179 X3 ...... 4,938 5,243 44,344 32,589 Sedici ...... 699 970 5,134 9,844 X5 ...... 1,705 2,141 13,210 15,506 Freemont...... 2,601 2,334 16,338 3,960 X6 ...... 1,227 1,254 7,714 8,536 Fiorino/Qubo ...... 1,622 1,664 10,978 13,164 Other ...... 9 96 343 510 Doblo ...... 802 1,316 6,224 11,382 Ducato...... 2,045 1,796 16,207 14,662 Total BMW brand ...... 44,248 49,247 387,200 392,727 Idea ...... 145 118 2,528 3,863 Mini...... 7,249 7,914 64,242 68,307 Other ...... 427 485 2,131 4,646 Countryman ...... 4,054 4,294 32,072 30,060 Total Fiat brand...... 49,531 56,896 395,698 481,551 Total Mini ...... 11,303 12,208 96,314 98,367 Ypsilon ...... 4,068 6,573 37,335 35,088 Phantom...... 6 12 63 93 Musa ...... 1,122 967 9,627 12,812 Ghost ...... 21 28 208 233 Delta...... 945 1,410 9,194 13,353 Other ...... 1 – 3 3 Flavia ...... 66 – 396 – Total Rolls-Royce ...... 28 40 274 329 Thema ...... 107 – 981 – BMW AG ...... 55,579 61,495 483,788 491,423 Voyager ...... 461 – 3,392 – Maybach ...... 4 2 26 24 Other ...... – 6 10 163 A class ...... 1,280 10,169 36,977 39,063 Total ...... 6,769 8,956 60,935 61,416 B class ...... 10,879 3,680 72,815 49,044 GranTurismo...... 49 101 346 618 C class ...... 13,070 16,026 101,880 101,217 GranCabrio...... 36 67 255 351 E class ...... 7,513 10,341 64,631 80,477 Quattroporte ...... 2 23 81 186 S class...... 514 738 4,844 6,610 Other ...... 1 5 16 17 CLS...... 869 1,512 7,547 10,761 Total Maserati ...... 88 196 698 1,172 Other...... 69 60 428 426 CLC ...... 2 27 10 2,126 FIAT S.P.A...... 63,850 76,708 521,394 635,641 SLK ...... 1,449 1,733 12,176 9,730 FIAT-CHYRSLER ...... 66,569 79,534 542,074 654,450 SL ...... 479 104 2,528 845 Ka ...... 4,782 5,039 39,964 46,961 SLS AMG ...... 75 89 897 1,227 Fiesta...... 23,392 26,399 204,508 233,385 R class ...... 201 357 1,586 2,550 Focus...... 18,060 26,880 165,846 191,196 GLK ...... 2,780 2,180 16,945 18,999 Fusion...... 373 1,742 7,413 11,476 Vito/Viano ...... 2,297 2,810 16,836 18,309 Mondeo...... 5,364 6,117 46,545 52,947 Sprinter...... 670 436 3,312 3,122 C-Max/Grand C-Max ...... 9,589 8,684 74,123 76,897 M class ...... 3,598 1,068 20,459 10,886 S-Max ...... 3,077 3,604 27,586 29,842 G class ...... 170 154 1,086 1,144 Galaxy ...... 2,091 2,319 16,689 16,690 GL ...... 91 252 848 1,495 Kuga ...... 4,446 4,242 38,278 42,876 Other ...... 150 167 1,012 1,383 Transit/Tourneo ...... 1,488 1,320 10,227 9,865 Total Mercedes-Benz ...... 46,087 51,843 366,389 358,988 Other ...... 361 221 1,627 1,896 ForTwo ...... 5,643 6,554 45,110 50,659 Total Ford brand ...... 73,023 86,567 632,806 714,031 Other ...... – – 2 30 Lincoln...... – 1 6 7 Mercury...... – – 1 3 Total Smart ...... 5,643 6,554 45,112 50,689 FORD MOTOR ...... 73,023 86,568 632,813 714,041 DAIMLER AG ...... 51,734 58,399 411,527 409,701 Geely...... 109 120 576 427 DR1 ...... 21 167 112 1,557 C30 ...... 615 995 7,238 9,687 DR5 ...... 26 48 243 461 V40 ...... 1,140 – 1,588 2 Other ...... 4 41 128 203 S40...... 380 760 6,035 6,599 DR MOTOR COMPANY ...... 51 256 483 2,221 V50 ...... 1,379 3,304 23,299 26,148 Ypsilon ...... 132 – 1,141 – S60 ...... 1,116 1,707 11,105 15,691 Delta...... 238 – 562 – V60 ...... 2,891 3,477 26,977 26,380 300C ...... 30 14 155 420 V70/XC70 ...... 3,104 3,721 27,687 28,559 Grand Voyager/Town & Country...... 36 206 376 2,859 S80...... 295 371 2,963 3,368 Other ...... 7 19 105 127 C70 ...... 273 452 2,196 2,927 Total Chrysler brand ...... 443 239 2,339 3,406 XC60...... 3,165 4,371 29,141 32,869 Caliber ...... 1 37 23 753 XC90 ...... 764 1,080 5,991 8,410 Journey...... 5 44 36 819 Other ...... 24 30 217 260 Other ...... 45 37 717 261 Total Volvo ...... 15,146 20,268 144,437 160,900 Total Dodge ...... 51 118 776 1,833 GEELY GROUP ...... 15,255 20,388 145,013 161,327 Buick ...... – – 5 4 Compass...... 644 842 6,089 3,160 Cadillac ...... 26 47 297 356 Patriot...... 2 86 99 2,212 Matiz/Spark ...... 2,983 4,920 34,327 42,737 Wrangler ...... 646 715 4,792 4,339 Aveo ...... 4,104 3,799 37,354 24,534 Cherokee/Liberty...... 36 140 394 1,320 Cruze...... 2,604 2,815 23,128 21,171 Grand Cherokee ...... 896 681 6,165 2,509 Captiva ...... 1,785 1,958 15,235 13,359 Other ...... 1 5 24 30 Orlando ...... 1,834 2,160 15,783 12,103 Total Jeep ...... 2,225 2,469 17,563 13,570 Camaro ...... 276 40 1,586 256 Other...... – – 2 – Other ...... 269 110 625 2,174 CHRYSLER GROUP ...... 2,719 2,826 20,680 18,809 Total Chevrolet ...... 13,855 15,802 128,038 116,334 September 2012 Volume 01 ❙ Issue 07

brought to you courtesy of EUROPE SALES BY MODEL, JULY & 7 MONTHS www.jato.com

July July 7 mos. 7 mos. July July 7 mos. 7 mos. 2012 2011 2012 2011 2012 2011 2012 2011 GMC ...... 2 8 10 12 Elise ...... 54 28 150 228 Hummer ...... 1 7 12 45 Evora ...... 20 63 118 276 Agila ...... 1,223 1,675 15,345 15,935 Other ...... 2 8 13 88 Corsa...... 19,000 22,215 175,326 198,907 Total Lotus ...... 76 99 281 592 Astra/Astra Classic ...... 20,176 25,298 160,611 202,659 Proton ...... 53 105 866 845 Insignia ...... 7,992 10,929 65,522 86,914 PROTON ...... 129 204 1,147 1,437 Meriva ...... 5,773 9,039 51,805 86,784 C-Zero ...... 602 137 1,537 1,099 Zafira...... 8,714 5,778 63,009 46,552 C1 ...... 4,213 6,214 41,321 51,845 Antara ...... 1,263 1,077 10,150 4,766 C3 ...... 12,020 12,577 103,795 117,082 Vivaro...... 665 593 4,737 4,162 DS3 ...... 5,045 5,675 40,384 46,225 Ampera ...... 390 26 3,250 53 C4 ...... 8,864 8,595 65,872 74,556 Other ...... 504 100 3,315 1,187 DS4 ...... 2,637 2,861 20,154 8,427 Total Opel/Vauxhall ...... 65,700 76,730 553,070 647,919 C5 ...... 2,877 4,444 26,361 41,256 Other...... – – – 5 DS5 ...... 2,110 104 13,853 351 GENERAL MOTORS ...... 79,584 92,594 681,432 764,675 C4 Aircross ...... 890 – 4,045 – Steed ...... 33 55 315 353 C-Crosser ...... 219 335 1,594 2,505 Hover ...... – 89 7 768 Nemo ...... 301 429 2,752 5,214 Other ...... – – 3 1 Berlingo...... 3,525 3,811 28,290 29,179 GREAT WALL ...... 33 144 325 1,122 C3 Picasso ...... 3,809 4,611 34,328 43,590 Jazz ...... 3,839 2,771 30,671 31,925 Xsara Picasso ...... 4 347 36 4,961 Civic ...... 4,734 3,276 32,083 29,552 C4 Picasso/Grand C4 Picasso ...... 6,741 8,230 52,999 69,296 Insight ...... 165 339 2,414 3,788 C8 ...... 321 611 2,747 3,871 Accord ...... 532 729 5,455 8,113 Other ...... 675 537 4,419 4,165 Total Citroen ...... 54,853 59,518 444,487 503,622 CR-Z ...... 2,764 2,341 19,858 21,400 iOn ...... 201 144 1,053 1,111 CR-V...... 136 305 1,535 2,546 107 ...... 4,662 6,213 45,328 55,618 Other ...... 1 45 57 758 206 ...... 3,579 5,658 28,418 60,078 HONDA MOTOR ...... 12,171 9,806 92,073 98,082 207 ...... 5,171 18,744 95,822 161,136 i10...... 5,200 5,086 41,862 44,608 208 ...... 18,060 – 59,607 – i20...... 6,601 5,847 51,430 46,277 308 ...... 8,650 12,598 82,643 100,986 i30...... 7,712 8,323 60,551 65,720 407...... 5 129 198 4,566 i40...... 2,281 353 19,123 442 508 ...... 6,482 8,136 57,093 48,309 H-1/Starex/Satellite ...... 244 233 2,263 1,735 RCZ ...... 718 1,092 6,577 10,714 Accent...... 1,011 1,501 7,325 13,111 3008 ...... 7,141 9,139 62,901 73,811 Elantra ...... 589 548 3,674 890 4008...... 342 – 1,465 – ix20 ...... 3,510 4,128 28,326 30,082 5008 ...... 4,243 6,853 36,455 46,324 ix35 ...... 7,446 3,331 58,819 42,884 807...... 315 594 3,247 4,246 Genesis...... 37 106 805 1,112 4007...... 75 249 993 2,280 Santa Fe ...... 573 1,268 5,797 7,689 Bipper...... 390 621 3,294 5,289 Veloster ...... 283 536 4,290 571 Partner/Ranch ...... 2,593 2,850 21,062 22,270 Other ...... 70 185 705 3,651 Expert...... 434 356 3,155 3,472 Total Hyundai brand...... 35,557 31,445 284,970 258,772 Other ...... 178 89 961 1,003 Picanto ...... 4,436 4,126 37,022 28,218 Total Peugeot ...... 63,239 73,465 510,272 601,213 Rio...... 6,001 1,485 46,666 10,867 Other...... – 1 – 2 Cee'd...... 6,968 5,953 43,679 42,258 PSA...... 118,092 132,984 954,759 1,104,837 Optima ...... 325 1 2,554 6 M ...... 40 55 414 365 Venga ...... 2,613 3,516 19,039 28,335 EX...... 30 35 241 338 Soul ...... 458 830 3,923 7,635 FX...... 102 112 1,166 1,370 Sportage ...... 7,866 6,620 52,966 38,809 Other ...... 17 32 164 249 Sorento...... 826 1,064 6,792 8,250 Total Infiniti ...... 189 234 1,985 2,322 Other ...... 94 517 879 3,117 Pixo ...... 586 937 5,779 9,325 Total Kia ...... 29,587 24,112 213,520 167,495 Micra...... 4,031 4,929 38,415 44,756 HYUNDAI-KIA ...... 65,144 55,557 498,490 426,267 Juke...... 8,396 8,016 65,647 62,745 Mahindra ...... 12 152 103 459 Leaf ...... 337 157 2,688 736 Korando ...... 399 519 2,863 2,619 Qashqai ...... 17,830 18,503 136,162 135,724 Actyon ...... 10 16 16 196 370Z...... 82 95 731 1,046 Kyron ...... 7 93 170 732 Note ...... 2,477 2,496 19,637 21,457 Rexton ...... 24 53 262 367 X-Trail...... 558 770 5,291 5,514 Rodius/Stavic...... 47 73 346 483 Pathfinder...... 214 358 1,815 2,645 Other ...... – 1 – 1 Murano ...... 118 220 1,112 2,043 Total Ssangyong ...... 487 755 3,657 4,398 NV200/Evalia ...... 558 473 4,011 2,482 MAHINDRA & MAHINDRA...... 499 907 3,760 4,857 Other ...... 214 416 1,990 4,095 MX-5 ...... 650 545 4,856 5,896 Total Nissan...... 35,401 37,370 283,278 292,568 Mazda2 ...... 2,058 2,510 20,197 22,976 NISSAN ...... 35,590 37,604 285,263 294,890 Mazda3 ...... 1,464 2,152 16,748 21,654 Duster ...... 9,807 10,783 71,953 83,285 Mazda5 ...... 682 1,228 8,347 12,237 Sandero...... 7,029 4,696 49,165 41,722 Mazda6 ...... 1,259 1,819 11,769 18,559 Logan ...... 3,274 2,716 26,354 17,535 CX-5 ...... 2,562 – 14,393 – Lodgy ...... 3,663 – 9,200 – CX-7...... 231 651 3,176 6,838 Other ...... 1 1 3 13 Other ...... 5 56 99 734 Total Dacia...... 23,774 18,196 156,675 142,555 MAZDA ...... 8,911 8,961 79,585 88,894 Twingo ...... 6,232 8,719 61,300 78,272 i ...... 206 47 1,102 1,795 Clio ...... 17,519 22,261 153,095 189,488 Colt ...... 1,411 2,123 11,852 17,391 Symbol/Thalia ...... 1,353 3,621 16,479 25,518 Lancer...... 382 937 4,059 9,300 Megane...... 16,747 19,729 131,089 153,992 ASX ...... 2,319 4,109 22,143 30,591 Fluence ...... 2,774 2,903 22,077 25,619 Outlander ...... 851 1,385 7,700 11,074 Laguna ...... 2,257 3,669 20,087 32,890 Pajero/Montero/Shogun ...... 288 567 2,743 4,266 Latitude ...... 334 914 3,173 7,123 Other ...... 47 189 397 1,133 Wind ...... 104 586 1,315 5,050 MITSUBISHI ...... 5,504 9,357 49,996 75,550 Modus/Grand Modus...... 1,943 2,923 19,911 29,991 September 2012 Volume 01 ❙ Issue 07

brought to you courtesy of EUROPE SALES BY MODEL, JULY & 7 MONTHS www.jato.com

July July 7 mos. 7 mos. July July 7 mos. 7 mos. 2012 2011 2012 2011 2012 2011 2012 2011 Scenic/Grand Scenic...... 11,490 12,910 87,060 97,699 A1 ...... 8,895 6,770 61,726 61,597 Espace/Grand Espace ...... 1,130 1,502 8,411 10,846 A3/S3/RS3 ...... 10,580 12,603 83,217 88,719 Koleos ...... 1,101 1,344 9,686 9,965 A4/S4/RS4 ...... 13,375 11,855 85,399 97,134 Kangoo ...... 2,399 2,035 19,427 21,855 A6/S6/RS6/allroad ...... 8,368 7,888 65,524 46,060 Trafic ...... 998 1,118 7,612 7,615 A7/S7 ...... 916 1,564 7,653 11,996 Other ...... 137 89 1,139 534 A8/S8 ...... 617 581 4,448 5,920 Total Renault brand ...... 66,518 84,323 561,861 696,457 TT ...... 1,125 1,278 9,108 11,901 RENAULT SA...... 90,292 102,519 718,536 839,012 A5/S5/RS5 ...... 4,965 5,659 43,486 45,463 R8...... 79 101 731 930 RENAULT-NISSAN ...... 125,882 140,123 1,003,799 1,133,902 Q3...... 6,765 180 43,015 337 Impreza ...... 172 419 1,819 5,105 Q5...... 3,263 4,905 31,847 40,678 XV ...... 1,681 – 7,263 – Q7...... 1,057 1,001 7,028 8,527 Legacy/Outback ...... 698 694 5,947 7,781 Other ...... 26 30 284 218 Trezia ...... 180 132 1,325 1,477 Total Audi ...... 60,031 54,415 443,466 419,480 Forester ...... 560 763 7,521 9,236 Continental GT/GTC ...... 193 130 1,147 823 Other ...... 96 53 293 946 Continental Flying Spur...... 8 19 126 110 SUBARU ...... 3,387 2,061 24,168 24,545 Mulsanne ...... 13 21 109 160 Alto ...... 1,948 2,051 15,109 22,002 Other ...... 1 5 20 21 Splash ...... 1,095 896 10,585 9,556 Total Bentley ...... 215 175 1,402 1,114 Swift ...... 4,073 4,199 37,165 37,767 Bugatti ...... – 2 6 8 Kizashi ...... 65 95 778 1,066 Gallardo ...... 21 41 179 246 Jimny ...... 719 672 7,514 8,139 Aventador...... 16 3 162 11 SX4 ...... 1,716 2,331 18,122 20,489 Murcielago ...... – 1 11 4 Vitara/Grand Vitara/XL-7...... 746 1,127 7,611 9,810 Other ...... 1 1 5 2 Other ...... 2 3 33 50 Total Lamborghini ...... 38 46 357 263 Boxster ...... 654 435 2,363 2,348 SUZUKI...... 10,364 11,374 96,917 108,879 Cayman ...... 57 168 728 1,198 9-3 ...... 81 448 872 9,097 911 ...... 1,057 1,163 8,463 7,531 9-5 ...... 22 133 231 2,842 Panamera ...... 578 663 5,188 3,676 Other ...... – – 5 2 Cayenne ...... 1,812 1,446 12,793 10,242 Total Saab...... 103 581 1,108 11,941 Other ...... 26 8 164 118 SWEDISH AUTOMOBILE ...... 103 581 1,108 11,941 Total Porsche...... 4,184 3,883 29,699 25,113 XF ...... 1,222 1,172 11,597 9,035 Altea ...... 2,337 3,508 19,189 23,753 XJ ...... 128 234 1,389 2,532 Alhambra...... 1,627 1,677 11,838 9,649 XK ...... 137 150 1,101 1,531 Mii...... 2,399 – 6,745 – Other ...... 10 5 86 59 Ibiza...... 9,507 14,217 80,059 103,726 Total Jaguar...... 1,497 1,561 14,173 13,157 Leon ...... 5,107 6,691 36,410 43,969 Defender ...... 62 148 575 1,000 Exeo ...... 879 2,183 7,956 14,079 Freelander ...... 1,124 1,753 11,106 17,140 Other ...... 21 4 48 36 Discovery ...... 759 800 7,834 7,885 Total Seat ...... 21,877 28,280 162,245 195,212 ...... 4,700 97 32,392 198 Citigo ...... 3,222 – 8,027 – Range Rover Sport...... 1,146 1,285 9,969 11,162 Fabia ...... 8,792 12,642 93,062 101,992 Octavia ...... 13,036 14,522 115,028 109,307 Range Rover ...... 413 454 3,823 4,975 Superb...... 3,500 4,221 33,185 34,664 Other ...... 3 7 90 67 Roomster...... 2,217 2,426 19,822 17,527 Total Land Rover...... 8,207 4,544 65,789 42,427 Yeti ...... 4,469 4,250 38,190 32,524 Indica ...... 100 278 550 1,357 Other ...... 13 53 284 387 Xenon...... 13 42 112 236 Total Skoda ...... 35,249 38,114 307,598 296,401 Other ...... 5 127 33 510 Up ...... 10,327 12 59,328 42 Total Tata brand ...... 118 447 695 2,103 Fox ...... 9 966 551 9,019 TATA MOTORS ...... 9,822 6,552 80,657 57,687 Polo...... 25,085 31,304 195,075 226,648 Cuore/Charade ...... 123 269 793 1,871 Golf...... 33,640 39,049 277,752 297,131 Sirion ...... 66 237 628 2,079 Golf Plus ...... 5,679 6,615 43,018 51,990 Materia...... – 48 71 370 Jetta ...... 2,237 3,408 20,423 19,500 Terios ...... 107 258 1,408 3,411 Passat ...... 16,567 20,410 130,302 145,875 Other ...... – 5 9 60 CC...... 2,409 1,951 15,114 15,070 Total Daihatsu ...... 296 817 2,909 7,791 Phaeton ...... 156 228 1,374 1,851 CT ...... 910 1,060 10,520 8,204 Beetle ...... 2,652 15 12,866 16 IS ...... 204 225 1,596 2,706 Scirocco...... 1,511 2,442 11,081 17,749 GS ...... 271 21 1,187 230 Eos ...... 528 965 4,758 8,804 Touran...... 9,170 10,114 67,196 76,073 RX ...... 561 298 4,295 3,884 Sharan...... 3,525 3,897 24,470 28,300 Other ...... 4 15 75 141 Tiguan ...... 14,015 6,514 96,988 68,958 Total Lexus ...... 1,950 1,619 17,673 15,165 Touareg...... 1,853 2,627 13,142 14,322 iQ ...... 571 672 6,216 8,430 Caddy ...... 4,692 5,107 32,859 33,898 Aygo ...... 5,259 5,773 43,316 49,789 Transporter/Caravelle/Multivan/ Yaris ...... 14,347 10,243 108,127 87,092 Shuttle/T5 ...... 4,427 4,321 31,909 30,800 Auris ...... 6,171 6,980 48,007 58,748 Other ...... 291 464 2,188 3,246 Corolla...... 1,308 1,713 9,807 16,004 Total VW brand...... 138,773 140,409 1,040,394 1,049,292 Prius ...... 1,947 1,384 13,552 15,650 Other...... 4 8 41 46 Prius+ ...... 874 – 1,640 – VOLKSWAGEN...... 260,371 265,332 1,985,208 1,986,929 Avensis ...... 4,276 4,557 38,719 35,249 OTHER...... 855 1,036 7,808 6,620 Verso-S ...... 1,031 945 12,893 9,644 OTHER (China automakers) ...... 66 212 1,212 1,859 Verso...... 2,705 3,149 20,806 23,603 GRAND TOTAL ...... 1,008,072 1,086,027 8,136,345 8,699,215 Urban Cruiser ...... 245 354 2,190 4,340 RAV4...... 2,461 2,355 22,070 25,586 Note: Excludes models registered as commercial vehicles. Europe sales by model are Land Cruiser ...... 619 550 5,842 6,505 compiled using sales data from the following countries: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Great Britain, Greece, Hungary, GT 86 ...... 511 – 1,303 – Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Other ...... 56 76 601 863 Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland and Turkey. Total Toyota brand...... 42,381 38,751 335,089 341,503 TOYOTA MOTOR...... 44,627 41,187 355,671 364,459 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. 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