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Image header Agence Europe
Europe Daily Bulletin No. 10975
Contents Publication in full By article 34 / 35
BUSINESS NEWS NO 84 / (ae) cars

Non-luxury makes pay a heavy toll in crisis - with exception of Volkswagen. - Inovev has carried out a study for French daily newspaper Les Echos, analysing the results of the main European automobile groups over the last ten years. The conclusion is clear - while the European market is finally showing signs of stabilisation, Inovev's results show there is widespread decline in Europe. In 2003, Peugeot Citroën, Renault, Ford, Opel and Fiat - the top six non-luxury makes in Europe, apart from the German leader Volkswagen - still held 50% of the European market (and 60% in 2000) - in other words, 7 million vehicles. For 2013, based on the figures that have already been published for the first nine months of the year, Inovev reports a volume of 4.3 million cars, representing just over a third of total sales of cars in Europe (36.2%). This is a much sharper decline than that recorded by the whole market - which only dropped 16.6% between 2003 and 2013. Symbolically, these non-luxury makes are now achieving volumes comparable with the German premium makes - which was previously unimaginable. Mercedes and BMW overtook Fiat and Citroën in 2012, while in 2003 there was still a difference of 200,000 cars year-on-year. With regard to Audi, it is almost on a par with Fiat this year. Audi is projected to have a market share of 5.71% for 2013 as opposed to 5.99% for Peugeot - although 10 years ago Peugeot was recording double the sales of Audi. Audi is now coming closer to Renault (6.35%) and even Opel (6.76%). French makes have especially taken a toll in the downturn of non-luxury makes. In ten years, sales volumes of Renault in Europe have almost halved -750,000 vehicles fewer. Similarly, Peugeot has lost 40% of its volume (479,000 vehicles) and Citroën 35%. The decline is comparable with Opel (40% of volume) or Fiat. This downturn was accelerated during the crisis from 2008 onwards, but had already been at work since the early 2000s. Apart from Volkswagen - which has been the exception on the European market with results that have been stable, or indeed that have risen over the ten years - car manufacturers have had to face up to increasingly aggressive competition from the three premium German makes: Audi, Mercedes and BMW. French makes have not managed to unseat the big three German makes on the large car market segment, although German makes have achieved good results on the small car sector too - a small car sector which until recently was the preserve of non-luxury makes. The result is that between 2003 and 2013 Audi, Mercedes and BMW have experienced an increase of 9.6% in their sales on a market which is in crisis. At the same time, the supply of non-luxury makes has become fragile. What is more, they have proposed models of higher standing but these are also more expensive and buyers have not been attracted, preferring - if they opt for a more expensive model - to choose the traditional German high end makes or the second hand market (a market which has become very important in Europe). Additionally, non-luxury makes have not been able to stand up to the incursion of low-cost makes from the East (Dacia, Skoda, Hyundai-Kia). On the European market, Volkswagen has been the exception. It is the only manufacturer that has resisted decline over the last ten years - with sales volumes that have made a slight increase over the period (+5%), and with 1.49 million units expected for 2013 (compared with 1.42 million in 2003). This performance has enabled Volkswagen to take a record market share of 12.4%. While Volkswagen has lost a bit of steam in the crisis - with a drop in sales of 6.7% since the start of the year - over the long term it has nevertheless established itself as the uncontested leader in the European market, overtaking Renault by far (which was number one in 2003). The figures speak for themselves - Renault sold 1.5 million units in 2003 and ten years later it is selling only half of this (762,000 units). In 2003, Volkswagen was selling 1.41 million units and made slight progress on this to 1.49 million in 2013. The reasons for Volkswagen's success are that is has an image of quality, unbeatable models (Golf, Polo), a position on the growing SUV (sport utility vehicle) segment, and constant improvement of its range. Finally, Volkswagen's international success has provided solid profits, enabling it to invest in order to develop the Volkswagen make: €50.3 billion for the group between 2013 and 2015. (IL/transl.fl)

 

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ECONOMY - FINANCE - BUSINESS
BUSINESS NEWS NO 84
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