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2007 sales analysis for the French market

The French market increased it sales by 3.2% for the year 2007 with 2 064 633 sold vehicles compared to 2,00,549 units over the same period in 2006. The performance is slightly worse than 2005 when 2,067,789 were sold. Despite its planned replacement due to appear next year, the Renault Megane model topped the sales chart with 155,336 vehicles.
The Renault Clio ranked second with 145,345 delivered vehicles while the recently launched Twingo took the seventh rank with 52,134 vehicles. Globally Renault’s sales decreased by 6% in 2007 which contrasts with Dacia. Indeed, its Romanian subsidiary recorded a 74.1% increase with 32,635 vehicles compared to 18,742 in 2006. Dacia sold more vehicles than Nissan which recorded a slight increase of 4,2% to 32,263 units.
PSA Peugeot Citroen recorded a 2% increase with 626,798 vehicles compared with 614,728 units over the same period in 2006, but situation differs between its two brands. Citroen recorded a strong 7.5% increase while Peugeot scored a 2% decrease. 2007 was a good year for Citroen whose best model, the C4, ranked fourth with 119,345, a 5.8% increase compared to 2006. Despite ist old age, the C3 performed well by taking the sixth rank with 61,522 units. Peugeot models still topped the chart with the third rank for the 207, 131,623 units and a 6.4% increase. The outgoing 307 took the fifth rank with 65,800 vehicles. Surprisingly, the 407 family ranked eighth with 41,710 vehicles. 2008 will likely be a tougher year for the French saloon as the recently launched Laguna will iikely increase its sales.
Overall, the French car makers had a 51.84% market share in 2007 compared with 53.34% over the same period in 2006. December sales have been difficult for the French brands due to the new CO2 tax that has started this year on January 1st. Indeed, foreign brands, especially premium’s, tried to sell as many cars as possible. In December, Porsche recorded a 319% increase while Land Rover increased is sales by 300%! The first foreign model is the Ford Focus with 40,652 vehicles while Volkswagen sold 39,559 vehicles in 2007.
Volkswagen took the first rank among imported brands with 142,600 units while Ford replaced Opel at the second rank with 103,000 units thanks to a 7.2% increase over the same period in 2006. Opel fell at the fourth rank with 99,732 units behind Toyota which recorded a 6.3% increase to 100,732 vehicles. The Fiat 500 didn’t have an impact on Fiat’s sales as the Italian group sold 53,113 vehicles. The future small Alfa Romeo and Lancia Delta will likely increase the company’s sales in 2008.
Among the premium car makers, Mercedes-Benz took the first rank with 61,632 units. BMW took the second rank with 49,548 vehicles and achieved its 2007 target to overtake Audi. With 48,235 vehicles, the third German brand still recorded a 9.6% increase but could not resist to the 21.8% increase performed by BMW. The next years promise to be better for Ingoldstadt.
Smaller car makers also performed well. Suzuki recorded a 20.8% increase with 30,841 vehicles compared to 25,523 units over the same period in 2006. Honda recorded a 33% increase to 15,631 vehicles.
For 2008, the new CO2 tax will likely penalise premium brands and favours French car makers and Fiat models as smaller models will be less taxed. January sales will give a first glimpse at the trend for this year.
January 6, 2008
Lamborghini built the 3000th Murcielago

Lamborghini has celebrated its 3000th Murcielago. When you know that the supercar costs £192,000, one does call it a big success. The 3000th Murcielago was a pale Telesto grey LP640 heading to the United States.
It took six years to sell the 3000 cars while the previous model, the Diablo, took 11 years to sell 2,903 units. While 2006 was a record year with 2087 delivered cars, 2007 promises to be better with 2,400 vehicles already been sold. But the main question is what will Lamborghini do in the future. Will it expland its range and focus on just two core models, the Gallardo and Murcielago supercars. Expanding the lineup is a difficult exercice as the company can’t sell a smaller model. Indeed, a smaller would likely compete with the Audi R8 sold by its parent company. The company CEO has ruled out the rumoured SUV.
Lamborghini appears to have chosen to focus on expanding its models’ range. The Gallardo will likely be launched with a smaller engine, a V8 instead of a V10 while the car maker has launched an exclusive model, the Reventon derived from the Murcielago.
December 24, 2007
More powerful Range Rover Sport on the horizon
A new Range Rover Sport version has been spotted by spy photographers during testing. According to Car magazine, the engineers were testing a new topping engine 5.0-litre V8 petrol engine.
Secrecy surrounds the exact spec of the engine but the new bigger engine will likely has an output of 450bhp as the current supercharged 4.2-litre V8 delivers 400bhp. It might also be more powerful. Indeed, the ML 63 AMG has an output of 503 bhp while BMW is rumoured to develop a sportier X5 whose current power culminates at 350bhp.
With such a new top of the range engine, Land Rover is trying to meet a demand and follow the German’s power frenzy. Unfortunately, it also becomes harder to comply with the stricter emission regulations. The LRX will likely not be enough of Land Rover continues unveiling bigger engines for its top models.
December 24, 2007
Volvo to reshuffle its range by 2010

The current Volvo range is a mess but it’s hard to blame the company as it tries to satisfy its two biggest markets without having the money to build a range similar to German carmaker’s. The Swedish has decided to take the bull by the horns and plans a reshuffle by 2010.
Historically, the current likely started with the revolutionary 850. Launched in 1991, the Saloon was too large to compete with BMW 3-series and Ford Mondeo but was also too short compared to Mercedes 200/300 or Audi 100. The launch of the S80 complicated the perception of the range by the public. With dimensions targeted for the US market , the car was bigger than a BMW 5-series while offering a engine range similar to the 850/S70’s. In 2000 with the launch of the S60 replacing the outgoing 850/S70, Volvo just wanted to surf on the success generated by the 850 and unfortunately got itself into a corner which is unsustainable nowadays.
The reshuffle is vital for the company it it wants to increase its global sales. The first victim will be the future V60 estate which has been cancelled in order to avoid taking sales from the successful V70 model. But the 60 range will get a SUV. Dubbed XC60, it will be unveiled at next March’s Geneva motor show. The next-generation S60 will replace the current S40 and S60 to become one model set to be positioned as a rival for the Mercedes C-Class and Audi A4. Concerning the V50 estate, it will likely disappear as Volvo plans to fill the S40 segment with the future V30, a five door C30, and the XC30. By 2010, Volvo will have then solved the current mess for the low range.
However, questions are being raised over the S80, V70 and the C70. What will they become? Compared to German competitors they appear a bit weak on paper, but could find its salvation in stricter emission regulations. Perhaps German manufacturers will be obliged to stop the power race and start selling smaller cars. In this case, the Swedish brand has a playing card. The C70 is another consequence of the former 850 model. What will Volvo do? Will the next-generation C70 be cancelled or move upmarket to compete with the 3-Series and CLK?
December 24, 2007
The future Lancia Delta will hit showrooms in June 2008

The eagerly-awaited Lancia Delta will hit the showrooms in June 2008 and will be Fiat’s serious attempt to spearhead a revival of the Italian brand. But one does not expect Lancia to come back to sports soon as it will focus on luxurious models.

The compact car’s design will be close to the Delta HPE concept car unveiled at the last Paris Auto Show in September 2006. The concept car itself took its inspiration from the concept embodied in the Lancia Beta HPE during the second half of the Seventies to offer an up-to-date take on the idea of a sporty yet practical saloon. The production version will keep the concept’s dimensions. At 4500 mm long and with a 2700 mm wheelbase the future Delta will be the biggest car on its segment.

The company has hesitated on the name between Delta and Beta for a long time, but a recent newsletter sent by Lancia France to potential customers confirmed that the company chose Delta. Sharing the platform with the current Fiat Bravo and future Alfa Romeo 149, the Dalta will also share powertrains with power ranging from 118bhp to 200bhp.
The compact will be quite conservative but will come equipped with a unique roof whose details remain unknown and will feature a dual colour pain scheme. The car will be officially unveiled at Geneva.
December 24, 2007
BMW to eliminate 8,000 jobs and put pressure on suppliers

With the goal to increase its profit margin to between 8% and 10% by 2012, BMW double its efforts to move up from a current level of 5.5%. First it put pressure on suppliers and secondly plans a big layoff.
BMW has decided to cut cost and will de so by pressuring its suppliers. This is a surprising move for them as the company has always been known for its commitment to quality over price and favouring long-term contracts.
But the most astonishing news is the company’s plan to eliminate 8,000 jobs, that’s to say about 8% of its global workforce that currently stands at 108,000 employees.
Is BMW in trouble? No, the company still makes profit, but the 2007 figures won’t be as good as the previous year. Indeed BMW suffers from higher cost in product development. The Volkswagen plan and Audi will to sell 1.5 million vehicles by 2015 oblige competitors to expand their own range. Added to new stricter regulations that target premium car makers, BMW is facing higher costs than expected to develop new models. This strategic move could also go further and includes for the first time a collaboration with another car maker. BMW has already been co-operated with Peugeot for the MINI engine range but a collaboration with BMW models can’t be excluded in the future.
December 24, 2007
Dodge has unveiled Journey crossover specifications

The new Journey is Chrysler’s serious attempt to enter the crossover segment in the US and in the Europe where it will go on sale next year. Unfortunately, the crossover segment is still in its infancy so it will also compete with the small SUVs such as the Volkswagen Tiguan or the Mitsubishi Outlander with which it shares its underpinnings.

Indeed, the Journey model uses the global D platform co-developed by Chrysler and Mitsubishi. This platform is also used for Mitsu Lancer, Chrysler Sebring, Dodge Avenger, Caliber, Jeep Compass et Patriot. If it alo shares powertrains and suspension, it has unique exterior and interior styling on the other hand. It features the corporate grille and the bold design shared by other company’s models.

Featuring a longer wheelbase than the Avenger saloon at 2890 mm, the Journey is roomy enough for five people and can offer two more seats as an option. The second row can move forward and rearward a total of 4.7 inches to give more leg room or provide more cargo room behind the seats. The second row also integrates integrated child booster seats and features a 60/40 fold-flat capacity. The front passenger seat can old flat as a option. The available third-row seat can be set up easily with the turn of a single lever on the side of the seat back, the seat cushions easily fold upward and the seat slides forward. It comes with 50/50-split-folding seats.

The interior styling can’t be mistaken for a European interior. Indeed, the Journey features a symmetrical dashboard, large buttons and poor quality at first glance. The Journey features varied storage facilities. Located in the floor behind the front-row seats are two standard in-floor storage bins that are designed to hold 12 cans. On five-passenger models, a tri-fold load floor is located behind the second-row seat and provides a hidden storage compartment for added utility while a rear in-floor hidden storage bin located behind the available third-row seat is standard on 5+2-passenger vehicles.

The Journey comes with a choice of three petrol engines on the American market. The entry level is powered by a 170bhp 2.4 litre 4 cylinder unit, followed by a 183bhp 2.7-litre V6 engine while the top of the range gets a 232bhp 3.5-litre V6 engine. In Europe the main engine will likely be the 138bhp 2.0-litre TDI provided by Volkswagen and already featured in the Avenger saloon. The 2.4-litre and 2.7-litre units are hooked up to a four speed automatic gearbox as standard while the 3.5-litre is coupled with a six speed automatic gearbox. In Europe, we will get a new dual-clutch transmission developed in partnership with Getrag. This is the first time such a transmission has been offered on a Dodge vehicle. , the new transaxle is equipped with two independent lay-shaft style gear sets with separate clutches, that use manual transaxle-based components.

On the American market, the entry-level SE starts at $19,985/£10,070, with the up-level SXT stickering for $22,985/£11,580. The all-wheel drive architecture increases the SXT’s price to $25,530/£12,870. The range-topping R/T has a price tag of $26,545/£13,380 for the front-wheel drive and $28,295/£14,260 for the four-wheel drive.
December 24, 2007
Pininfarina to build electric cars for Bollore

The troubled Pininfarina has signed a €150 million/£108 million contract with the French company Bollore to develop and build the future electric the French company plans to launch in the future.
Pininfarina will start building the car by 2009 and plans to produce 15,000 cars annually. At this early stage, exact spec remain a secret although the main car’s characteristics are already known. The Bollore car will be a four-seater which will use lithium-metal-polymer battery packs developed by the company. It is expected to have an autonomy of 155 miles. The batteries will a lifespan of 125,000 miles and will take 5 hours to charge fully. It will also offer a 5-minutes charge mode which will allow a 16 mile autonomy.
Bolloré had unveiled the Bolloré Blue Car prototype (pictured) at the 2006 Geneva Motor Show.
Secrecy surrounds the price tag although Bollore will rent the car for £340 per month. The company plans to release the car in Europe, US and Japan.
December 23, 2007
Toyota has built its first Camry in Russia

Toyota has held a ceremony for the first Camry built at Toyota Motor Manufacturing Russia in St. Petersburg. It is the first step of an ambitious plan from Toyota to conquer the booming Russian market.
With around 185 cars for 1,000 people, the Russian is quickli catching up with European countries where the corresponding figure is between 400 and 600, and Toyota is determined to have a share of the large pie. The plant is starting at 20,000 units a year and is intended to reach 50,000 vehicles within two years. But Toyota also plans a second plant if there a strong demand for its models. This second plant would have a 300,000 vehicles production capacity.
Toyota is joining the list of foreign automakers to build cars in Russia. Hyundai will also build a factory there by 2009. On of the fastest growing market in the world, Russia is also a minefield for foreign car makers. First, there is a lack of highly-skilled personnel and like in China, authorities might favour protectionism to promote domestic car makers.
December 23, 2007
No markup for American dealers on the GT-R

With only 1,500 GT-R reserved for the American market every year and the frenzy that hits the Japanese market, some dealers planned to markup the GT-R as high as $15,000 per vehicle but Nissan has taken steps to ensure that doesn’t happen in order to offer a first class service to potential Porsche customers.
Indeed, each dealer which wants to sell the GT-R will have to be certified by the company. The certification will be based on the level of customer service and the implicit agreement not to markup the GT-R. Also all customer enquiries or complaints about the supercar won’t be routed to dealerships as usual but to Nissan regional vice presidents to make sure that customers won’t be tricked in any way by a dealer. One can sat that Nissan trusts its dealerships.
Will those measures be enough to prevent speculation? Nothing is sure as the Japanese market went frenzy despite having a bigger allowance and and being smaller than the US. And what will happen to Europe? Will we see the return of grey import like in the ’90s?
December 23, 2007