January 2003 - Nr. 1
German Carmakers Unveil New Models, SUVs in Motor City
TWIG - At the Detroit Motor Show this week, German automakers from Volkswagen to Porsche are demonstrating their plans to conquer the sport utility vehicle (SUV) sector and are predicting a big year for the new Mini and the VW Beetle convertible. As DW World reports, most of the large German carmakers say the optimism on display in Motor City is more than just show - it can be expressed in raw sales. BMW, for example, sold more than 144,000 of its new Mini Coopers worldwide, including 25,000 in the U.S. alone last year - a sales record for the Munich-based company. Organizers of the Detroit show named the new Mini "Car of the Year." Mercedes and Audi also posted impressive sales gains in 2002.
Top executives in the German auto industry are betting on strong gains again in 2003, even as the American market shrinks. "It doesn’t help any of us to sit around and just forecast crises," said DaimlerChrysler board member Jürgen Hubbert. "We have to live with the situation as it is. And last year we set the example, showing that you can find success with the right products." Under the Mercedes brand, DaimlerChrysler is unveiling a four-wheel drive model in its C Class as well as an E Class station wagon and a new SL 600, which Hubbert hopes will fuel Mercedes sales in North America.
The market could prove more daunting for other German manufacturers like Volkswagen and Porsche. Last year, VW sales in the U.S. sank 5%, to 340,000 cars. Porsche sales fell 7%, to 22,500 cars. Despite a difficult overall economic environment in the U.S. in 2002, the auto industry delivered its third-best year ever, with sales of more than 16 million cars. But the price for those sales was high, with companies offering big rebates and interest-free financing. Most German companies sought to avoid deals that would jeopardize bottom lines without, for the most part, much reason for regret.
"It demonstrates that manufacturers with a clear profile - and I don’t just mean BMW, but European premium manufacturers in general - can become considerably more successful than interchangeable brands," said Helmut Panke, chairman of BMW. Panke said he believes German carmakers are relatively immune to hiccups in the U.S. economy. He says the market for high-end cars is less susceptible to fluctuations in the market.
Volkswagen, which covers a broader price spectrum, is seeking to regain lost ground this year with its new Touareg luxury SUV. Initially, two versions will be sold, one with a V6 engine starting at US$34,900 and a second with a V8 engine starting at US$40,700. Until now, the company has not sold any models in this crucial U.S. market segment, which accounts for more than half of the cars now sold in the U.S. VW is also unveiling its new Beetle convertible in Detroit. More than 400,000 new Beetles, introduced in 1998, have been sold in the United States, and the company is hoping for even greater success with its long-awaited convertible follow-up.
Stuttgart-based Porsche is pursuing a similar strategy with its new Cayenne SUV, which it hopes will attract fans of the Porsche brand who aren’t looking to buy a sports car. The powerful Cayenne accelerates to 62 miles per hour in just seven seconds and carries a starting price tag of US$55,000. Volkswagen subsidiary Audi is also jumping into the fray with the prototype Pikes Peak Quattro SUV, which will compete against the offerings of Porsche as well as its parent company. The car packs in an impressive 500 horsepower engine, a souped-up V8 the company says is capable of accelerating to 60 miles per hour in just under five seconds.
In another significant market development, VW, Mercedes and DaimlerChrysler are all planning to unveil models next year that consume diesel fuel rather than regular gasoline. Last year, American carmaker Ford said it was considering sales of diesel models to reduce gasoline consumption in the U.S. But it still appears to be a limited development, since a sparse number of diesel-fueled cars have been sold in the U.S. in recent decades and the technology remains relatively underdeveloped there. However, if companies succeed in developing diesel motors with modern fuel injection for the U.S. market, automakers based in Germany, where diesel-fueled cars are common, could have a clear competitive advantage.
