2011

Congratulations to the
Automotive Industry’s
Visionary Leaders!
Herbert
Diess
Member of
Joseph the Board of Colin
Bakaj Management Dodge Franz
Martin Jerome Axel Vice President, Laurens of BMW AG, Chief Fehrenbach
Winterkorn Olive Strotbek Powertrain van den Acker Purchasing and Performance Chairman
CEO President CFO Engineering Head of Design Supplier Network Officer Robert Bosch
Volkswagen AG Dacia SA Audi AG Ford Motor Co. Renault SA BMW AG Nissan Motor Co. GmbH

Beda Magnus Pierre Bo Gunnar Henrik Paul

Bolzenius Hellsten Loing Andersson Herrmann Fisker Philpott
Corporate Vice COO Vice President President & Vehicle line Designer & COO
President and Volvo AB of Product CEO director, CEO Kia Motors
President of Strategy & GAZ Group Global Fisker Europe
the Automotive Planning C-segment Automotive
Experience Nissan Platform
Business International SA Ford Motor Co.
Johnson Controls
Inc.

Automotive News Europe, PwC and Siemens are proud
to present the 14th annual Eurostars awards 2011 in
recognition of extraordinary leaders within the auto-
motive industry. Great talent coupled with vision and
commitment is what our Eurostars are made of. These
are the high-fl iers and go-getters at the leading edge
of the automotive business, pointing the way forward
to an even more successful future. The 2011 Eurostars
will be honored during a private, exclusive dinner on
September 12 in Frankfurt, Germany.

www.autonewseurope.com/eurostars
 How do we make the next big
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Thank You and Congratulations
Chairman Award
W i t h t h e Po d i o Fe r r a r i we c e l e b r a te t h e For having known how to
implement in a short time
the management of the new
commitment, the dedication and the providing sector regarding the
aluminium chassis for the GT cars,
enthusiasm of our partners. This year, guaranteeing Ferrari continuity
of business and the development
of chassis for new models.
particular thanks go to AMD, Bosch

Engineering, Delphi, Emitec, IHI, Magneti

Marelli, Mahle , Mar io Ner i, NCO, TRW,
Tu b i s t y l e a n d We b a s to - E d s c h a , w h o
h a v e b e e n n o m i n a t e d a n d t o A d l e r , AV L ,
Ferrari Innovation Award
For having allowed Ferrari to use
the high-end solutions regarding
audio and telematics, personalising
them coherently with the exclusivity
of cars from Ferrari.

Harman and OMR , the four winners of the

P o d i o F e r r a r i 2 0 11 . Ferrari Technology Award

For the decade-long collaboration
and the effort regarding the
We w i s h to t h a n k t h e s e p a r t n e r s a n d a l l
creation of test banks dedicated
to the development of Ferrari
those who, with constant commitment, engines, with particular attention
to the evolution of new norms
regarding Formula1 engines.
work side-by-side with us in the continual

search for technological innovation and

Italian Excellence
the pursuit of excellence.
For the excellent mix of flexibility
and innovation, typically italian,
confirmed by the development
Ferrari.com of the invisible bag component.
AUTOMOTIVE NEWS EUROPE LETTER FROM THE EDITOR
PHOENIX IN THE ASHES
hat a summer! A historic downgrade of the United
W States’ credit rating, a worsening of Europe’s debt crisis,
the threat of national bankruptcies, a slowdown of
China’s growth, the rising fear of a global double-dip
recession, falling stock prices and rising raw material costs. The
world’s financial markets are more volatile, uncertain and connected
than ever before.
These are tough times for even the most successful automakers,
and for a struggling brand like Saab the troubles could deliver
a fatal blow.
It has been a brutal year for the Swedish brand.
■ In March, Saab had to halt production after suppliers stopped
delivering goods as they had not been paid. Several starts and stops
followed. From June until August, Saab’s Trollhaettan plant was dor-
mant.
■ In May, a deal with potential Chinese investor Hawtai Motor col-
lapsed. That same month, Saab CEO Jan Ake Jonsson retired after six
years on top. Has Jonsson, at 59, really left only to spend more time
with his family?
■ In July, Jonsson’s successor, Victor Muller, who also heads Saab
owner Swedish Automobiles (formerly Spyker Cars NV), sold 50.1
percent of the Trollhaettan plant to a group of real estate investors to
raise cash. Saab now leases the plant from the investors. Muller also
had to sell shares in the company to help pay suppliers as well as
employees.
■ In August, Saab pulled out of this month’s Frankfurt auto show and
Sweden’s Debt Enforcement Agency froze some Saab accounts
because the company failed to meet a payment deadline.
Survial instincts
Despite the challenges, Saab refuses to quit. The company is used to
near-death experiences. Following chronic financial losses, then-
owner General Motors started winding down Saab early 2010. Muller
gave Saab new life when he closed a last-minute deal to buy the
automaker for $400 million – $74 million in cash and the rest in
deferred shares.
It wasn’t the first time Saab was close to collapse.
When GM acquired half of Saab in 1989 the company was near
bankruptcy. GM was able to push Saab’s sales to a peak of 133,000
units in 2006, but sales have been declining steadily ever since.
In 2010, Saab only sold 31,700 vehicles – globally.
In March, Muller told Automotive News Europe that Saab’s aim was
to sell 80,000 cars in 2011 and 120,000 cars in 2012. These goals will
be “re-evaluated” after Saab resumes production, a spokesman said.
What went wrong?
How did Saab end up in this mess? There are three key reasons.
1. Product: No brand can survive with a portfolio consisting of two
lines. Add to that, the 9-3, launched nine years ago, is long overdue
for an update, as was the 9-5, which was sold for 13 years – two life
cycles – before the new generation arrived last year.
2. Brand: To fix the problem mentioned above, GM launched the
9-2X, a rebadged Subaru Impreza a.k.a. the Saab-aru, and 9-7X, a
rebadged Chevy TrailBlazer. This move upset Saab’s core customers,
who cherish the brand’s quirkiness, and it did not win any new cus-
tomers.
3. Production: Doing business in Sweden is costly. Wages are high.
Taxes are high. Muller said the company’s break-even annual sale
level was 80,000, a number that must make GM executives shake their
heads in disbelief as this is only half as much as in the past.
Today, more and more dealers and customers are losing faith in the
SEPTEMBER 2011
Harald Hamprecht is
Editor-in-Chief at Automotive News
Europe. He can be reached at
hhamprecht@crain.com
SWEDISH DREAMS
Saab’s product plans
9-5 sedan ....debuted June 2010
9-5 wagon .....autumn 2011
9-4X ...............autumn 2011
9-3 .................Oct. 2012
9-1 .................2014 (at earliest)
9-6X ...............no date announced
9-7 .................no date announced
Source: Company
Saab boss Victor Muller
brand. Even Trollhaettan Mayor and former Saab union leader Paul
Akerlund has publicly stated he is making preparations for a shut-
down of the automaker.
That would be a tragedy for Saab’s 3,700-person global work force,
of which 3,500 are based at headquarters in southwestern Sweden.
Saab’s 900 dealers and 800 suppliers also would suffer.
What would make a shutdown even more frustrating to Saab fans is
that the company is not far from reversing its product problem.
The new 9-5 sedan is in its first full year of sales. The 9-5 wagon was
due to be at dealers early this year but that won’t happen until pro-
duction resumes.
Saab would love to start selling the new 9-4X crossover – which is
derived from the Cadillac SRX – in Europe this autumn. The GM-
built car went on sale in the United States in July.
The next-generation 9-3 was supposed to arrive in October 2012
and be underpinned by Saab’s so-called “Phoenix” platform.
Also on Muller’s wish list are the 9-7 flagship, 9-6X large crossover
and 9-1 entry-level car to challenge the Audi A1.
Sweet Swedish dreams! The reality is an ongoing fight for survival.
The company wants to sell a 29.9 percent stake to China’s Zhejiang
Youngman Lotus Automobile Co. for 136 million euros.
Meanwhile, Pang Da Automobile Trade Co. offered to pay 109 mil-
lion euros for a 24 percent stake. The deals are expected to be
approved in October.
Honestly, 245 million euros is a drop in the bucket, especially since
Saab wants to pay back 217 million euros it owes the European
Investment Bank so that it can allow entrepreneur Vladimir Antonov
to invest in the carmaker.
Even with the Russian’s cash, it will be hard for Saab to finance its
expansion plans given that a completely new model line costs roughly
1 billion euros.
Can Saab compete against premium brands just by buying engines
from BMW?
Also, will China sales really save the brand? The Swedes have high
hopes for success in the world’s biggest car market. But the automaker
sold just 257 cars there last year.
So what is next – an amazing rebirth or quick death? I would love to
see the brand rise like a phoenix from the ashes because I like the
automaker, its design philosophy and its passionate people.
But I fear Saab’s obituary is already half written and will read like this:
Saab (1949 – 2011)
Beloved Swedish automaker was the
decade’s first casualty in a market
plagued by chronic overcapacity.
Rest in peace.
ANE EXECUTIVE EDITION 3
AUTOMOTIVE NEWS EUROPE INSIDE THIS ISSUE

www.autonewseurope.com
JASON STEIN
Publisher and Editorial Director
+1 313 446 0376
CONTENTS
E X E C U T I V E E D I T I O N
jstein@crain.com
NINA SAUER 3 Letter from the Editor
Associate Publisher
+49 89 381 517 400
nsauer@crain.com
KEITH CRAIN
Publishing Director

PETER BROWN
6 Letter from the Publisher

MARKETS
7 Decade of dominance
34
Group Publisher
VDA boss bullish on German automakers’ future
EDITORIAL 8 Market meltdown
HARALD HAMPRECHT
Editor-in-Chief Portugal, Spain, Italy, UK, Ireland, face tough times
+49 (0) 173 257 86 88
hhamprecht@crain.com 14 Share shift
DOUGLAS A. BOLDUC VW Group stretches lead in Europe
Managing Editor
+49 (0) 171 424 6373
dbolduc@crain.com COVER STORY
PAUL McVEIGH
Managing Editor 18 Clash of the titans Frankfurt show debuts
+49 (0) 176 7835 3951 German premium brands intensify
pmcveigh@crain.com
battle for world No. 1
include the Ford Evos concept.
LUCA CIFERRI
Chief Correspondent 24 Dr. Z’s attack plan
+39 01196 91970 82 Conti’s challenges
lciferri@crain.com Daimler CEO Zetsche wants
Mercedes back on top CEO Degenhart sees profits from safety solutions
STEVE MASSIE
Design Director 84 Suppler innovations
smassie@crain.com 26 Gaining ground Zetsche
Audi CEO Stadler takes aim at Mercedes Behr, TRW, others showcase green tech at Frankfurt
Bruce Gain (France), Bertrand Gay
(France), Nick Gibbs (UK), Stefan 28 Defending the crown
Grundhoff (Germany), Jim Henry HUMAN RESOURCES
(U.S.) David Jolley (Germany), BMW CFO Eichiner foresees big profits
Susanne Kilimann (Germany), Rick
Kranz (U.S.), Joaquim Oliveira 86 People on the move
(Portugal), Juergen Pander
(Germany), David Sedgwick (U.S.)
NEW CARS New faces in key management positions
Correspondents 88 Meet the Eurostars
30 Product fireworks
ADVERTISING The must-see debuts at the Frankfurt auto show 15 auto execs who exceeded expectations
EUROPE
NINA SAUER 44 Dealership delight DESIGN
Director of Sales, Marketing and Events Ferrari, Fiat, Hyundai, Kia, BMW launch new models
+49 (0) 89 381 517 400
nsauer@crain.com 99 French face-lift
GEORGIA CHAPMAN OEM Renault, PSA revamp design to boost global appeal
Marketing and Events
+49 (0) 176 2076 9139
53 Leaner, greener, more high-tech 100 So far, so good
gchapman@crain.com
Go inside the factory of the future Design legend Giugiaro talks about life as part of VW
USA
RICK GREER 57 Double test DATA
Sales Director
+1 313 446 6050 Ford of Europe boss Odell faces two big tasks
rgreer@crain.com 101 Little cars, big battle
58 Ahead of plan
KOREA VW Up poised to shake up minicar segment
How Opel CEO Stracke is turning things around
JUNG-WON SUH
Sinsegi Media Inc. 62 Russian revolution 102 SUVs, premium cars rise
+82 2 785 8222
sinsegi-2@sinsegimedia.info Renault gives new life to country’s national champ Market analysis by segment, first half sales

CIRCULATION 64 Management makeover

LAUREN CIALELLA
Circulation Manager
+1 313 446 0490
lcialella@crain.com
Printed in Hanover, Germany, by
BWH GmbH
Published by
Crain Communications Inc.
1155 Gratiot Ave. ❙ Detroit MI 48207. USA
All contents Copyright 2011. No part of this
puiblication may be reproduced, stored in a
retrieval system of transmitted in any form or
by any means, electronic or mechanical,
photocopying, recording or otherwise
without the permission of the publisher.
All rights reserved.
Additional copies
For additional copies, please contact
Lauren Cialella, Circulation Manager
+1 313 446 0490 lcialella@crain.com
Can Marchionne’s new team fix Fiat’s flaws in Europe?
ANNIVERSARY
66 The ‘other’ Carlos 106 Chevy’s centennial
Renault COO Tavares must rebuild customer trust Europe boss Wayne Brannon sees a bright future
108 Happy 15th
SUPPLIERS Automotive News Europe celebrates a big birthday
68 Europe’s biggest suppliers 111 Legends on wheels
Which companies made the top 30? An awesome collection of the most iconic cars ever
70 Bosch gets stronger
Automotive boss Bohr targets record 2011 sales
RETAIL
72 Steering to success 116 New kind of dealer
PSA makes downtown showrooms more affordable
Former GM-owned supplier Nexteer expands
74 Big business with safety 117 MG’s fresh start
German service provider Dekra goes global Chinese-owned British brand ready for revival
76 Cheaper carbon fiber
New processes make key material more affordable
FINAL WORD
80 Shifting gears 118 Missing in action
Dual-clutch transmissions to gain share in Europe Why the Chinese have failed so far in Europe

4 ANE EXECUTIVE EDITION SEPTEMBER 2011

AUTOMOTIVE NEWS EUROPE LETTER FROM THE PUBLISHER
WALK THROUGH TIME
WITH LEGENDS ON WHEELS
arlier this year, when the editors of
E Automotive News Europe set out to
create a small online program recog-
nizing the best cars of the last 125
years, the expectations were somewhat limited.
Surely our readers across the European
markets – and perhaps around the world –
would have an opinion on their favorite cars
of all time. Surely they would vote for their
winners, organized decade-by-decade by our
staff – from the very first Daimler vehicle to
the latest concept cars. Surely we’d be lucky to
get a few thousand votes.
Try nearly 100,000.
Everyone, including our partner on the
project, MSX International, was stunned by
the terrific response.
Our online readers voted early, often and
then voted again. And again.
They voted in droves, from places like
Romania and France and even America and,
of course, the birthplace of the car –
Germany.
They voted with fervor, clicking their way
through the decades and, ultimately, selecting
the winners for the last 125 years, and select-
ing the winners of the future, or Legends of
Tomorrow.
After all of that voting, the results were tab-
ulated and for the first time are revealed here,
in the Automotive News Europe quarterly
Executive Edition – appropriately unveiled
during the time of the majestic Frankfurt auto
Jason Stein is the
Publisher and Editorial Director of
Automotive News Europe. He can
be reached at jstein@crain.com
making their own mark on the industry. And
our annual Eurostars list, which begins on
page 88, chronicles their achievements.
In truth, legends are all around us.
Ultimately they are created every day, some-
times in ways we can’t imagine.
We hope you enjoy our walk through time
and we hope you enjoy this latest edition of
Automotive News Europe. It is filled with per-
sonalities, profiles and, of course, plenty of
legends.
Enjoy Frankfurt!
show. To honor the anniversary of the auto-
mobile and chronicle the results, Automotive
News Europe and MSX have also partnered on Jason Stein
a commemorative hardcover book, which is
available now at legendsonwheels.com.
The winners represent a swath of our histo-
ry and mark a place in time. CELEBRATE EXCELLENCE
Or, as MSX CEO Fred Minturn said: “A leg- The Legends on Wheels 125 Years:
end is someone or something that inspires. A Decade-by-Decade Celebration of
Our industry has been built on one genera- Automotive Excellence highlights the first 125
tion of automobiles serving as an inspiration years of the automobile. The hardcover book
for the next. The cars selected to receive our is a commemorative collection of winning
Legends on Wheels recognition deserve great cars that were selected by the readers of
praise for serving as that bridge, from the past Automotive News Europe. Created in part-
nership with MSX International, the book is
through today and into the future.”
filled with glossy images as well as historical
More legends will be created in Frankfurt,
facts and figures covering the evolution of
and perhaps can be found in our guide to the
the automobile. To order a copy of the 144-
Frankfurt show which starts on Page 30. Of
page book visit legendsonwheels.com.
course, other legendary personalities – the
The cost of the book is 69.90 euros, plus
people who create those great cars – are shipping.
QA &
MATTHIAS WISSMANN
‘DECADE OF
AUTOMOTIVE NEWS EUROPE
THE GERMANS’
VDA boss says 2011 is country’s
best year ever for output and exports
G
erman automakers are enjoying a
great year as car production, head-
count and market share are on the
rise at home and abroad. The forward
momentum comes just as the German auto
industry association (VDA) is readying to
host the world’s biggest automotive show,
the Frankfurt auto show.
VDA President Matthias Wissmann
recently met with Automotive News Europe
Editor-in-Chief Harald Hamprecht in Berlin
to talk about what he expects for the rest of
the year.
What effect will the numerous world
premieres at the Frankfurt show
have on overall new-car sales?
As our surveys continue to show, a large
portion of the visitors come to Frankfurt
because they intend to buy a new car in the
six months after the show. And as far as pro-
duction and exports go, the German auto
❝
industry is enjoying the best year in its
history
“In 2012, we expect a
global market of more
than 70 millions cars.”
In the first half of 2011, Germany’s
new-car registrations climbed 10
percent to more than 1.6 million
units. What do you expect for the
entire year?
The German domestic car market is on a
stable course. For the entire year, we expect
3.1 million units. To achieve this goal, an
overall market growth of 2 percent is neces-
sary in the second half of the year.
For more than half a century,
Germany has been the largest single
market in Europe. How will German
and western European sales develop
in the medium term?
In Germany, we expect between 3.1 mil-
lion and 3.2 million new registrations in the
❙ For the complete Matthias Wissmann interview go to europe.autonews.com/wissmannexecedition ❙
SEPTEMBER 2011
MARKETS
medium term. Western Europe
remains a stable market with a large volume.
In 2010, new-car registrations were just
under 13 million units. For the entire year,
we expect a level of about 13 million new
registrations. In the medium term, we expect
further recovery and slight growth.
When will Russia overtake Germany
as the largest market in Europe?
Not this year and not in 2012, but in the
medium term, Russia certainly has the
potential for this.
How is production doing
domestically?
In the first half of the year, German manu-
facturers built nearly 3 million cars domesti-
cally, an increase of 5 percent. German
automakers are utilizing 89 percent of their
capacity, compared with 84 percent last year.
Suppliers are at 84 percent, up from 76 per-
cent for the same period last year.
What is the prognosis for German
output in the second half?
The growth dynamic for domestic car pro-
duction will slow somewhat over the course
of the year, although it will remain at a high
level. For all of 2011, we expect a domestic
production volume of more than 5.9 million
cars. That would top the current record of
5.7 million set in 2007.
What happens if you include German
manufacturers’ foreign factories in
the count?
Car production by German companies
stood at 11.6 million cars in 2010, including
more than 5.5 million units domestically and
a little more than 6.1 million abroad.
How will the ranking change in 2011
and in the medium term?
In all, we expect German manufacturers’
production in 2011, in Germany and abroad,
to reach 12.5 million cars. About half of that
volume, 5.9 million units, will be manufac-
tured domestically. And globally, we can
expect a market share of about 20 percent for
our manufacturers.
MEET THE BOSS
●
Former German Transport Minister Matthias
Wissmann has been president of the German
auto industry association (VDA) since June 2007.
The 62-year-old lawyer has had a long career in
politics. In 1975, he became a member of the
national board of the Christian Democratic Union
(CDU) political party. A year later, he was the
youngest person to be directly elected to the
German Parliament. He served as deputy chair-
man of the CDU in the German state of Baden-
Wuerttemberg from 1991 until starting with the
VDA. Wissmann, who studied law, economics
and political science at University of Tuebingen
and the University of Bonn, Germany, continues
to practice law with the international firm Wilmer
Cutler Pickering Hale & Dorr.
What about the global market?
In 2012, we expect a global market of more
than 70 million cars. And we are assuming
that German manufacturers will continue to
gain importance due to their quality and
innovative strength. There is, therefore, every
indication that this will be the decade of the
Germans.
How are exports shaping up?
In the first half of the year, we boosted
exports by 6 percent to 2.3 million cars.
That’s a new record. Incoming orders from
abroad were up 13 percent for the first six
months of the year. Our export prediction
for 2011 is more than 4.5 million cars, and
that would be another all-time high.
Where are those cars going?
Our export share in the euro zone has been
stable at 32 percent, while exports to the rest
of Europe have risen one-fifth to 31 percent.
About 15 percent of our car exports go to
North America, and this share has increased
as well.
About 11 percent of our cars are exported
to China, and another 11 percent to the rest
of the world. In both cases we have been able
to increase our exports. ■
ANE EXECUTIVE EDITION 7
AUTOMOTIVE NEWS EUROPE MARKETS
PAUL McVEIGH
pmcveigh@crain.com
E
urope’s debt crisis has dampened
hopes that the region’s car market will
emerge quickly from the economic
downturn of the past three years.
The crisis is creating a two-tier Europe with
some markets in northern Europe escaping
the market downturn while others are in a
steep free-fall. In Germany, for example, vehi-
cle sales are expected to be exceed 3.1 mil-
lion this year because of a buoyant economy,
while in Greece, “the market has virtually dis-
appeared,” according to BMW sales and
marketing boss Ian Robertson.
The trouble is spreading. Stephen Odell,
Ford of Europe CEO, said: “We are seeing
BOOMING SALES A LONG WAY OFF
NICK GIBBS
autonewseurope@crain.com
Industry watchers say it will be
a long time before the UK mar-
ket returns to the heady days of a
UK decade ago when new-car sales
broke records three years in a row.
Sales peaked at 2.6 million in 2003 as the
country basked in economic good fortune.
But as austerity measures bite and buyers find
it difficult to obtain car loans, forecasters
expect a tough few years.
“It’s difficult to see an upside scenario to
the UK market in the near term,” said
Jonathon Poskitt, head of European sales
forecasting for J.D. Power Automotive
Forecasting.
The easy credit that fueled the growth in
private car sales has gone. The per-
centage of new cars sold to pri-
vate buyers in the UK has
dropped to 42 percent from
56 percent last year. There
has been a corresponding
rise in less profitable fleet
sales to 58 percent from
44 percent.
“When the market was at
“It’s quite a difficult market and I don’t
anticipate it’s going to improve for a
couple years.” NICK REILLY, GM EUROPE PRESIDENT
8 ANE EXECUTIVE EDITION
KEEP THE
CHAMPAGNE
ON ICE
Europe’s automakers enjoy boom times
abroad, but problems pile up at home
not only Greece and Portugal, but also Italy,
France, Spain and the UK slowing down from
the effects of sovereign debt concerns and
austerity packages.”
There is little optimism that the economies
of debt-hit countries will bounce back quickly.
“This is not a short-term crisis. The Italian
market is now too structurally undersized to
give the sector any chance to survive decent-
ly and to invest,” Renault Italy CEO Jacques
Bousquet said.
In a study, Ferdinand Dudenhoeffer, who
heads Duisberg-Essen University’s center for
automotive research, said German automak-
ers like Volkswagen, BMW and Daimler
shouldn’t allow their growing volume in
booming markets such as China, India and
2.6 million, credit was easy and the mentality
was to borrow to buy a car,” Poskitt said.
“The question is whether we can ever get back
to that level of lending.”
This year, sales will be 1.9 million, rising to
2 million in 2012, predicts the Society of
Motor Manufacturers and Traders. That’s
optimistic, reckons J.D. Power, which sees
sales of 1.8 million next year.
Ford, Vauxhall doing OK
GM Europe President Nick Reilly said pric-
ing pressure is an issue. “No one wants to pay
more for a car, so it’s a quite a difficult market
for every manufacturer and I don’t anticipate
it’s going to improve for a couple of years.”
GM’s Vauxhall brand, which is the UK’s
No. 2 seller, and Ford, the country’s top-sell-
ing marque, are in a good position to ride out
the storm, Poskitt said.
“Their model range is quite young and they
are traditionally the brands that sell well. We
expect that to continue,” Poskitt said.
Premium brands as well as Hyundai and
Kia have bucked the downturn to significantly
grow market share and they are expected to
continue to do well.
Hyundai and Kia have focused on European
SPECIAL
REPORT
Brazil to distract them from what is happen-
ing at home. His warning also applies to
French automakers Renault and PSA/
Peugeot-Citroen, which, though they both
posted record first-half unit sales on growth
in emerging markets, still rely on Europe for
most of their volume.
The western European auto market may be
in line for a long recession if the debt crisis
worsens, Dudenhoeffer said, adding “the
auto industry’s champagne mood shouldn’t
be allowed to hide those issues.”
Automotive News Europe looks at the
effect of the crisis on some of Europe’s
worst-hit markets – UK (below); Italy and
Ireland (Page 10); Greece, Spain and
Portugal (Page 12).
customers and started to plug holes in their
portfolio. Michael Cole, managing director of
Kia Motors UK, said the brand’s new prod-
ucts and a move away from a budget-price-
led position to one of good design and great
quality, is helping the brand.
“It’s clear that the British market remains
suppressed by local, regional and global eco-
nomic conditions. However, we expect to
continue to grow our market share and we
want to get to around 4 percent to 4.5 percent
over the next few years,” he said.
Kia has tripled its UK market share to 3 per-
cent since 2003. Hyundai’s share also increas-
ed threefold, to 3.4 percent, in the same period.
The Korean brands’ growth is mainly at the
expense of French automakers.
French brands have all seen big falls in mar-
ket share, with Renault’s share tumbling to
4.7 percent from 7.3 percent in 2003.
Peugeot’s share dropped to 5.4 percent in the
same period from 7.2 percent, while Citroen’s
share is down to 3.5 percent from 4.6 percent.
Industry observers expect that poor eco-
nomic conditions will have a negative effect
for years to come.
J.D. Power predicts 2.5 million annual sales
by 2018. Said Poskitt: “Consumer confidence
is very weak and inflation is running high. The
Bank of England can’t stamp down on infla-
tion because growth is so weak that it risks
putting the economy back into recession.
We’re expecting a long road back.” ■
SEPTEMBER 2011
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AUTOMOTIVE NEWS EUROPE MARKETS
WORST MAY BE TO COME
LUCA CIFERRI
lciferri@crain.com
Italy’s car market has yet to
emerge from a four-year sales
slide and the worst may be yet to
ITALY come.
In July, Italy’s budget deficit forced the gov-
ernment to slash expenditures by 70 billion
euros, and the majority of those cuts will
come in 2013 and 2104.
With a stagnant economy coupled with a
tax increase next year, Italian consumers will
have even less disposable income, which may
make a market rebound wishful thinking.
Fiat Group CEO Sergio Marchionne has
said industry sales will decline 8 percent to
1.8 million units this year, give or take 50,000
units – a result nearly as bad as in 1996, when
sales bottomed out at 1.73 million.
Italy’s car market has suffered a painful
decline since 2007, when sales peaked at 2.5
million units. Scrappage incentives propped
up the market for a while in 2009.
But after those incentives lapsed, sales soft-
ened further to 2.0 million units last year. The
extended downturn may claim casualties
among Italy’s dealerships, said Filippo Pavan
Bernacchi, president of Italian dealer group
Federauto.
“Italy lost almost 700,000 annual sales since
its 2007 peak and the current sales pace is not
sustainable for the dealer network,” Bernacchi
said.
Another issue is that it is hard to ascertain
the true health of the market because of “self-
MARKET REMAINS ‘AWFUL’
OLIVE KEOGH
autonewseurope@crain.com
Ireland’s car market has
plunged into uncertain territory
IRELAND
after the end of a scrappage
scheme that had buoyed sales
for the previous 18 months.
“The market reality is pretty awful,” said
Eddie Murphy, managing director of Ford
Ireland. “The economy remains very brittle,
there is poor consumer confidence and organ-
izations and individuals are cutting expendi-
ture wherever possible.”
Murphy said the industry expects new-car
sales in Ireland to be between 85,000 and
90,000 units in 2012, but adds "this forecast
carries a health warning.”
Scrappage bonuses to encourage buyers to
swap old cars for new models helped boost
sales to 88,000 in 2010 after the market fell to
just 58,000 in 2009. This compares with
186,540 in 2007 and 151,607 in 2008. After
the incentives stopped in June, new-car sales
fell 35 percent in July starting a downward
10 ANE EXECUTIVE EDITION
Fiat’s Sergio
Marchionne
predicts a
bad year for
Italy’s auto
industry.
registered” vehicles that artificially inflate
sales numbers.
This has always been a problem in Italy, just
as in other European countries, but the ploy is
being used even more by dealers and
automakers because of the economic slump.
At the end of each month, dealers some-
times purchase their own cars to meet the
automakers’ sales targets and qualify for
bonuses. In a market as bad as this, some
dealers need that bonus cash to stay in busi-
ness.
Some automakers force dealerships to self-
register cars, while other automakers register
vehicles themselves to inflate their market
share.
There is no public data on self-registrations,
but industry estimates range from 5 to 6 per-
cent of total sales. This year, that would
amount to 90,000 to 100,000 units.
Another problem in the Italian market is
the increasing volume of registrations in the
last three business days of each month. This
year, those last three days have generated 33
percent to 38 percent of total monthly sales,
said Tommaso Tommasi, founder of
trend that is expected to continue for the rest
of the year. The forecast for the full year is
100,000 units.
The traditional big-selling brands in Ireland
– Toyota, Volkswagen and Ford – continue to
battle it out for market leadership, with
Renault and Nissan completing the top five.
Opel is in sixth place with virtually no growth
in sales. Fiat, once a force in the Irish market,
now has a market share of less than 1 percent.
Low-cost brands such as Skoda, Hyundai
and Kia have been steadily gaining ground in
recent years. Skoda’s year-on-year sales are
static, but Hyundai and Kia have continued to
grow.
BMW is the strongest performing luxury
brand in Ireland with sales up 57 percent to
the end of July while sales at Audi are up
24 percent. Toyota luxury-car subsidiary
Lexus has increased its sales by 46 percent
albeit from a much lower base. Saab, a very
small player in Ireland, has seen its sales jump
by 173 percent year on year to the end of July.
Volvo’s sales for the same period are up
SPECIAL
REPORT
InterAuto-News, a trade newspaper that close-
ly monitors Italian sales. That’s up from 2008
and 2009, when sales for that period totaled
31 percent of monthly deliveries.
“Italians are internationally known for
being last-minute people in everything they
do, Tommasi noted. “But having been in this
business for more than 50 years, I do not
believe that one car out of three finds a buyer
just at very end of each month.”
Self-registrations, sales to daily rental fleets
and sales to corporate fleets may total 600,000
units or so, Bernacchi said.
If so, dealerships’ retail sales this year may
total as few as 1.2 million units. Italy’s 3,800
dealerships can’t prosper with sales that low.
“A volume like this is just killing the auto
distribution sector,” Bernacchi said.
Renault Italy CEO Jacques Bousquet, who is
also the new president of the UNRAE, Italy’s
association of foreign auto-makers, also proj-
ects sales of 1.8 million units.
He predicts the market will remain
extremely weak for another four or five
years.
Bousquet is calling on automakers, dealers
and lawmakers to form a plan to boost annual
sales to 2 million units. Even that wouldn’t
return Italy’s auto industry to prosperity,
since annual sales over the past decade have
averaged 2.3 million units.
“This is not a short-term crisis,” Bousquet
said. “The Italian market is now structurally
undersized to give the sector any chance to
survive decently and to invest.” ■
33 percent. The two luxury
losers are Mercedes-Benz,
down 7 percent, and
Jaguar, down 47 percent.
What growth there is has
come from increased sales
to the car rental sector and Industry expert
a small recovery in fleet Nolan is unsure
sales. “The overall market when Ireland
remains very fragile, and can rebound.
the months immediately
following the ending of scrappage were always
going to be challenging,” said Alan Nolan,
director-general of the Society of the Irish
Motor Industry. “There is still a big issue
around lack of working capital for the indus-
try and car finance for consumers. Until that
eases and consumer confidence returns the
market is going to remain difficult. We esti-
mate that in a normal environment new-car
sales of between 140,000 and 160,000 units a
year would be about right for Ireland. The
million dollar question is: When will things
return to normal?” ■
SEPTEMBER 2011
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New Rio (2011) From 85*
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Soul From 137
Sorento From 169
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Kia’s fleet product offerings will be further
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Fleet info at www.kia.eu/fleet

AUTOMOTIVE NEWS EUROPE MARKETS
TOURISM HELPS BUT SALES DECLINE
JOAQUIM OLIVEIRA
autonewseurope@crain.com
The car markets in Spain and
Portugal are in a poor state.
While Spain is economically
SPAIN
much stronger than its Iberian
neighbor, the country has seen a
dramatic plunge in new-car sales
PORTUGAL in the past three years.
Armando Garcia Otero,
Renault’s commercial director, said it’s all
about consumer confidence. “In 2003, Spain
had 16 million employed people and 1.5 mil-
lion cars were sold that year,” he said. “This
year there are 18 million people with a job
and the car market has lost 1 million units.
This can only mean that people are focused
on their savings and feel uncomfortable with
the idea of purchasing right now.”
With new-car sales forecast at 830,000 for
2011, Spain should just about keep its posi-
tion as one of Europe’s top five markets, but
volume is back to 1990 levels – down to
900,000 last year from 1.65 million in 2005.
Sales to private customers fell 50 percent in
the first half to 191,571. The steep decline is
blamed on a scrapping program in the first six
months of 2010 that artificially boosted sales.
Spain’s tourism industry is propping up the
fleet business. In the first half, fleet and rental
car sales rose by 5.1 percent and 6.9 percent,
CRISIS BENEFITS DACIA, HYUNDAI
SUSANNE KILIMANN,
STEFAN GROUNDHOFF
autonewseurope@crain.com
The country’s public debt crisis
has plunged the Greek car mar-
ket into unknown territory.
GREECE Sapped by high borrowing costs,
near-20 percent unemployment and falling
wages, Greece’s new-car sales are expected to
slide to 124,000 this year from 142,000 in 2010,
according to the Economist Intelligence Unit.
The downturn is hitting all brands, except
low-cost marques such as Renault’s Dacia,
Hyundai and Kia. “The Greek market is
almost nonexistent,” BMW sales and market-
ing chief Ian Robertson told Automotive News
Europe.
Last year, car sales in Greece tumbled after
the country’s first scrappage program was
canceled in late 2009. A new scheme,
launched in February, pays owners of cars at
least 12 years old 2,800 euros to trade-in for a
new vehicle. Business Monitor International
says the scheme has proved ineffective owing
12 ANE EXECUTIVE EDITION
Spanish consumers are not spending, says
Armando Garcia Otero, Renault’s commercial
director. “People are focused on their savings
and feel uncomfortable with the idea of pur-
chasing right now,” he said.
respectively. These two sales channels com-
bined are now worth a little more than half of
the country’s total new-car sales, compared
with 25 percent just a year ago.
All the top five brands saw sales fall steeply
in the first half. No. 1 seller Seat was down
27.3 percent and No. 2 VW fell 24.5 percent.
Ford, at No. 3, declined 27.7 percent, while
fourth-ranked Opel saw a 23.4 percent drop.
No. 5 Peugeot suffered a 36.3 percent fall.
Even lower-priced brands are suffering. Fiat
was down 39.8 percent, Chevrolet sales
“The Greek market is almost nonexistent,”
BMW sales boss Ian Robertson said.
to Greece’s high level of taxation on new-car
purchases and high ownership costs.
The country’s car sales peaked at 280,000 in
SPECIAL
REPORT
dropped 38.7 percent and Hyundai was down
14 percent. Among reasons was the lack of a
strong fleet business.
Winners in Portugal
New-car sales in Portugal peaked at 410,000
in 2000 but it has been downhill since. Helder
Pedro, head of the ACAP industry association,
forecasts sales at 170,000 units this year, the
lowest volume since 1988.
There are no signs of recovery since the
country is now deep in recession.
All brands in the country top five suffered
sales declines in the first half. No. 1 Renault
was down 31.3 percent. Second-placed VW
fared better with a 9.5 percent drop. Declines
at No. 3 Peugeot, and fourth-ranked Opel
were more than 15 percent. No. 5 Ford was
down 23.5 percent.
Value brands did better, with Hyundai’s
12.2 percent sale gain being the biggest among
the top 20. Dacia is having a great year. Sales
at Renault’s low-cost brand have more than
doubled to 1,114 units.
Nissan is also on a roll with first-half sales
up 6.6 percent, thanks to the Qashqai and
Juke SUV-styled crossovers.
Said Nissan country manager Diogo Jardim:
“Portuguese buyers are fond of crossover
vehicles without the added cost of the more
complex 4x4.” ■
2007 when the country enjoyed sustained eco-
nomic growth, but slipped in 2008, and nose-
dived in 2009 and are not forecast to return to
anywhere that level in the foreseeable future.
Sales will rise gradually in the coming years to
151,000 in 2015, forecasts the Economist
Intelligence Unit.
IHS Global Insight foresees some significant
brand shifts occurring over the next five years.
Led by a projected decline of some 7,000 units
by longtime market leader Toyota, IHS fore-
casts that Japanese-brand sales will tumble a
combined 30,000 units from their 2008 peak
to 50,000 by 2016. Opel and Volkswagen
brands also will lose sales and market share,
but Dacia will gain.
Hyundai No. 1?
Hyundai will be the Greek market’s big win-
ner, IHS predicts. The forecaster says the
Korean brand’s sales are expected to rise near-
ly 70 percent over its 2008 levels to more than
30,000 units in 2016, making it Greece’s top
selling brand. ■
SEPTEMBER 2011
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AUTOMOTIVE NEWS EUROPE MARKETS

RISE & FALL

In a flat European market, Volkswagen is boosting
SHIFTING SHARE
VW is leaving rivals behind.
% EU MARKET SHARE H1 2011 H1 2010

VW Group 22.7 21.0

share as rivals PSA, Renault and Fiat falter PSA
Renault Group
13.2
9.7
13.9
10.6
OLIVE KEOGH tougher home markets and also ongoing GM 8.8 8.5
autonewseurope@crain.com competition both directly from non-premi-
Ford 8.1 8.5

I
n a flat European market, one auto-
maker stands out as bucking the trend:
Volkswagen. Europe’s biggest automak-
er is now more dominant than ever. In
the first half VW Group, which
includes the VW, Audi, Seat and Skoda
brands, had a 22.7 percent market share in
the EU, up from 21 percent the year before,
according to industry association ACEA.
All of VW’s traditional European rivals lost
share, except GM Europe, which saw a slight
increase on Opel’s resurgence.
There is no single reason why VW is win-
ning market share at the expense of its tradi-
tional European rivals, industry watchers say.
Success is because of a combination of fac-
tors that include a comprehensive model
lineup covering a wide range of age groups,
sectors and tastes, a strong perception of
brand quality by consumers and heavy
investment in design, marketing, distribution
and dealer development.
VW is also a dominant force in its German
home market, where its sales were up 10 per-
cent through June. The weak Italian market
hurt Fiat and subdued post scrappage-incen-
tive sales in France provided little or no
growth for Renault and PSA/Peugeot-
Citroen.
“With a diversified brand and product
portfolio, VW has been better equipped than
others to deal with pressure, including
um brands like Hyundai and Kia, and indi-
rectly from premium brands like BMW that
are squeezing non-premium market share,”
said Jonathon Poskitt, industry analyst with
J.D. Power Automotive Forecasting. “The
VW marque remains the default choice for
many Europeans looking for a good quality
vehicle with a strong brand image.”
With the exception of Seat, where sales are
static, VW Group brands are performing
strongly in the depressed market.
Audi is enjoying the fruits of a product
offensive that has seen the launch of the A1
entry-premium car and of the new A7, plus a
refreshed A8 flagship. The brand’s EU sales
grew 8.5 percent in the first half. The core
VW brand saw a 5.3 percent rise.
While Seat’s EU first-half sales rose by less
than 1 percent, Skoda enjoyed 7.2 percent
growth. “There is nothing magical about
what VW does,” said John Wormald, man-
aging partner of automotive strategy consult-
ants, Autopolis. “It is systematic and consis-
tent and has the scale advantage of shared
platforms and components.”
VW Group brands are best-sellers in many
of Europe’s segments (see analysis, pages
101-105).
PSA/Peugeot-Citroen, No. 2 by sales vol-
ume in Europe, and No. 3 Renault saw their
market share fall in the first half.
Both automakers’ sales suffered after the
Fiat Group 7.3 8.2
Source: ACEA
ending or phasing out of scrappage incen-
tives that had boosted sales of minicars and
subcompacts.
GM enjoyed a sales resurgence of its Opel
brand, but sales of its low-cost Chevrolet
models remained static as consumers bought
fewer smaller cars as scrappage incentives
were phased out.
Ford of Europe, whose share fell, has said
it will not buy share by getting into an incen-
tives war at the expense of profits. For the
first six months, Ford’s EU sales were down
6.6 percent, but Ford of Europe reported a
$283 million pre-tax profit.
Fiat is down 13.1 percent in the period,
and is suffering from a lack of new products
after CEO Sergio Marchionne cut invest-
ments during the financial crisis.
VW’s dominance is set to continue. “VW
does not appear to pursue market share at
the cost of everything else,” said Paul
Newton, an auto analyst with IHS
Automotive.
“It is not the most competitive on the
price/value package if you look at what the
Koreans are offering, but VW can charge a
premium for its products and buyers still
come.” ■

MARCHIONNE’S VIEW OF INDUSTRY:

THE PATIENT IS IN ‘INTENSIVE CARE’
JASON STEIN
jstein@crain.com
Without drastic changes to the European automotive business
model, overcapacity and protectionist government measures threaten
to spin the European industry into another tailspin, pre-
dicts Fiat and Chrysler boss Sergio Marchionne.
Time is “running out” for European automakers
to deal with deep structural problems in the indus-
try (see Rescuing Fiat, page 64).
“The auto sector was already sick before the eco-
nomic crisis forced it into intensive care,”
Marchionne told an industry conference in
Michigan last month. “The lack of a common vision
hampered, and continues to hamper, efforts to address
deeply rooted structural problems.”
Marchionne’s view is placed in the belief that
European member states have followed their
own course of action with “some even pro-
SERGIO viding direct aid to domestic automakers,”
MARCHIONNE he said. “While the U.S. focused on
restructuring the auto industry to provide it a solid base for the
future, in Europe things went in a very different way.”
The “interventionist attitude” has put some national players in a
more advantageous position than others, “distorting the equilibrium
of the European common market and artificially preserving unpro-
ductive capacity,” he said.
Marchionne has not been alone in his view that Europe has too
much capacity.
In March at the Geneva motor show, General Motors and Ford
Motor Co. executives predicted that overcapacity will continue to
slow the pace of restructuring in Europe.
Ford estimates the European industry has between 30 and 35 per-
cent more production capacity than it currently needs.
Europe has enough plant capacity to build around 24.6 million
vehicles a year, but last year produced only 18.7 million, a 76 percent
utilization rate, according to IHS Automotive.
Said Marchionne: “The industrial and political leadership of
Western European countries must jointly find the will and determi-
nation to address the uncompetitiveness of the overall system. I have
no doubt it will happen. I, unfortunately, just do not know when.” ■

14 ANE EXECUTIVE EDITION SEPTEMBER 2011

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AUTOMOTIVE NEWS EUROPE COVER STORY
Rupert Stadler Norbert Reithofer
Audi BMW
COVER STORY
Daimler’s Zetsche wants to return Mercedes to No. 1
in global premium car sales; BMW and Audi have other plans
HARALD HAMPRECHT
hhamprecht@crain.com
L
ike a bright white spaceship, 100 meters long, 70 meters
wide and 12 meters high, Audi’s lavish new pavilion will be
impossible to miss at the 64th Frankfurt auto show. But that’s
all part of the plan. The Volkswagen AG subsidiary invested
more than 10 million euros to secure its largest ever presence
– 7,000 square meters of exhibition space – at
Germany’s biennial megashow.
Why spend so much just to show off 30 new cars?
The answer is easy: Audi wants to out-do its rivals.
It won’t be easy. Daimler AG traditionally turns its standalone
Frankfurt exhibition hall into one of the world’s biggest Mercedes-
Benz showrooms. There, Mercedes has 9,500 square meters of display
space spread over three floors to exhibit 65 Mercedes and two May-
bach models. But then there is BMW – tops in sheer space, with
10,000 square meters of exhibition area, where it plans to show 56
models.
Bigger, better, bolder.
The epic clash between Germany’s premium-car heavyweights
always reaches a whole new level whenever the three meet at the
world’s biggest automotive circus. But something feels different –
18 ANE EXECUTIVE EDITION
Dieter Zetsche
Daimler
something larger is at stake.
With ambitious plans for model proliferation, higher volume tar-
gets and increased production, the three automakers are laser-
focused on topping each other.
But they also face a growing number of new threats.
Tight sales race
The race to be this year’s global leader in premium-car sales is as
tight as ever with Audi poised to pass Mercedes in full-year sales for
the first time. If that happens, Mercedes will drop to No. 3 in the
global premium brand ranking. It has been No. 2 since being
knocked off the top spot by BMW in 2005.
All three brands increased global unit sales in the first half of the
year. Mercedes brand’s sales were up 10 percent to 610,531; Audi
ended the half with an 18 percent gain to 652,970 units; and BMW
brand was No. 1 with an 18 percent rise to 689,861.
Daimler CEO Dieter Zetsche is not happy about Mercedes’ decline.
He has vowed to be more aggressive.
“Some of our competitors are now growing faster and more prof-
itably than we are. We can’t be content to be in a solid second or
even third place: We are Daimler. We should be far ahead of the
pack! And if that requires something that we don’t currently have,
SEPTEMBER 2011
AUTOMOTIVE NEWS EUROPE COVER STORY
then we’ll identify and develop it,” Zetsche said in a letter to Daimler
employees in July.
When asked about letter, Zetsche told Automotive News Europe (see
page 24): “Our goal is to be No. 1 in profitability and sales in the pre-
mium segment.”
And he wants that to happen by 2020 – at the latest, sources said.
Zetsche’s rivals are equally committed.
“We are clearly looking forward rather than over our shoulder,”
BMW sales boss Ian Robertson told Automotive News Europe. “We
have the clear objective to stay the most successful premium manu-
facturer.”
Audi CEO Rupert Stadler also has set his sights on the No. 1 spot.
All three companies have ambitious financial targets. BMW aims
for a profit margin of 8 to 10 percent, as does Audi. Mercedes’ profit-
margin goal remains 10 percent, a target set in early 2008 as part of
Daimler’s so-called “Go for 10” strategy. The carmaker also said at
the time it wanted to be world champion in 10 disciplines including
security, comfort, design, quality, service, eco-friendliness and effi-
ciency. The wide-ranging goal has drawn criticism.
“The Mercedes brand sways between too wide of a spread of values.
And for too long it has neglected its claim as the No. 1 premium-car
ranking,” said Karl-Heinz Kalbfell, a 36-year industry veteran who
worked with BMW, Mini, Rolls-Royce, Alfa Romeo and Maserati
before becoming a consultant for brands such as Lotus.
The next big year: 2020
Zetsche declined to reveal volume targets of his Mercedes’ attack
plan. “The next step is to support our claims with goals for volume,”
❝
the CEO said. “We will talk more precisely about our milestones
later.”
The year 2020 is also important for BMW.
By then, BMW plans to sell 2 million BMW,
Mini and Rolls-Royce brand cars annually, “We are clearly
according to its Strategy Number ONE plan looking forward
launched in 2007.
Media reports say the automaker is working
on an even more ambitious plan that has it
topping 2 million sales in 2016 and achieving a
volume as high as 2.6 million by 2020. This
would include some 400,000 Minis and multi-
ple-thousand Rolls-Royce sales, according to
the reports.
Robertson admitted that something new is
being devised. “We are currently reviewing our
shoulder. We have
to stay the most
successful premium
manufacturer.”
❝
rather than over our
the clear objective
Strategy Number ONE objectives,” he said. “We BMW SALES BOSS
are asking ourselves: What do we now need to IAN ROBERTSON
ensure the next step? We will crystallize some of
that in the near future and work out more con-
crete definitions.”
Audi CEO Stadler also is aiming higher. He recently announced
that Audi plans to sell 2 million units annually by 2020, adding that
the automaker will reach 1.5 million sales by 2014, which is one year
ahead of schedule.
The real goal is even more ambitious. Audi purchasing boss Ulf
Berkenhagen recently told the company’s 200 most important suppli-
ers that the automaker wants to push its 2012 sales to more than
1.6 million units – almost double its total volume in 2005. For 2013,
the outlook is 1.7 million. The sources added that Berkenhagen asked
the suppliers for a buffer of an additional 15 percent above the 1.7 mil-
lion.
Audi declined to comment about the volume number.
But even if it comes up short of those goals, one former auto exec-
utive is impressed with Audi’s quick rise.
“Twenty years ago, Audi wouldn’t have even made the list of
Prestige Three,” former General Motors product czar Bob Lutz told
Automotive News Europe.
To make the big gains in unit sales, the three automakers will be
expanding their lineups.
SEPTEMBER 2011
GROWING FAST
Audi is poised to pass Mercedes this year, but the
lead won’t last. Here’s a look at the global
sales history and outlook for German
premium brand sales.
Units in thousands
Source: IHS Automotive
Said Zetsche: “We will introduce a wide variety of additions to our
product portfolio. By 2020, we will bring out at least 10 models, like
the new compacts and the CLS Shooting Brake.”
The new compacts that Zetsche mentions are the second-genera-
tion A- and B-class models that will be underpinned by a new plat-
form called MFA (Mercedes Front-wheel-drive Architecture). The
current two-car lineup will grow to five to include a coupe to rival
the BMW 1-series coupe, an SUV aimed at the BMW X1 and Audi
Q3 and a shooting brake (a low-slung sporty station wagon). With
the MFA architecture, Daimler hopes to double sales of its entry-level
models to 400,000 in the mid-term.
Other planned additions to the Mercedes
lineup include new variants of the next-genera-
tion C class such as a cabriolet, due in 2015, as
well as a coupe version of the M-class SUV
called the MLC that could arrive in 2015.
Coming in early 2013 is a new generation of
the S-class flagship. The current S class is the
oldest model among the German rivals in the
upper-premium segment. That usually means
declining sales, but with a global volume of
66,500 units last year, the S class outsold the
recently renewed BMW 7 series (65,800) and
Audi A8 (16,700).
BMW makes a big switch
BMW also has big plans to expand its lineup.
Sources tell Automotive News Europe that the
automaker soon will add the 2-series cabriolet
and coupe as successors to the 1-series convertible and coupe. A sim-
ilar strategy is planned for the 3-series model line, where the next-
generation coupe and convertible variants will become the 4-series
line.
“A lot of additional models are to come,” sales boss Robertson
added.
According to company sources, those include the so-called 6-series
(four-door) Gran Coupe, which is due in 2012, and a GT version of
the 3 series planned for 2013.
The biggest contributor to BMW’s future portfolio will be its so-
called Untere Fahrzeugklasse or UKL architecture. The German name
means “lower vehicle class” in English.
“With the UKL alone, there will be six to nine new models in the
coming years,” Robertson said without giving more details.
The front-wheel-drive architecture is for smaller BMW and Mini
brand models, starting with the next-generation Mini hatchback due
in 2013. Other UKL derivatives include a small minivan and sporty
compact wagon, sources say.
Due in 2017, the first BMW to use the architecture will be the next-
TITANS ❙ CONTINUED ON PAGE 20
ANE EXECUTIVE EDITION 19
AUTOMOTIVE NEWS EUROPE COVER STORY

TITANS ❙ CONTINUED FROM PAGE 19

generation 1 series, which will become the FIERCE COMPETITION
brand’s first front-wheel-drive model.
It’s a change that worried former BMW
How the 3 premium brands compare on key metrics
executive Kalbfell. Audi BMW brand Mercedes brand
“It is a clear risk that BMW is trying to
expand the brand to smaller segments Unit sales 2010 1,092,411 1,222,280 1,167,700
instead of leaving that territory to Mini,” he Europe (excl. Russia) 634,549 622,514 604,535
said. “It is a threat that they want to give up China 227,938 168,998 148,400
the unique sell position of rear-wheel drive.
That will be a stress-test for the relationship U.S. 101,629 265,757 216,400
with core customers.” Unit sales H1 2011 652,970 689,861 710,922
Robertson said UKL models are BMW’s Europe (excl. Russia) 365,641 344,057 307,770
answer to growing demand for smaller-sized
China 140,699 121,614 92,174
premium models, especially among cus-
tomers in fast-growing, densely populated U.S. 55,909 143,521 110,926
markets. Dealers worldwide 2,500 3,100 5,000
Meanwhile, Audi CEO Stadler said he Europe 1,679 about 2,000 1,800
wants to increase the number of products
China 191 230 >160
offered to 50 from 42 by 2020. If that num-
ber sounds high it’s because of the way Audi U.S. 285 450 350
counts its models. If you subtract variants Profit margin H1 2011 11.8% 14.4% 10.0%
such as the high-performance R versions of Model variants (body styles) 21 19 23
its traditional models, Audi has 21 models
Production plants (passenger cars) 4* 7 6
today, not 42.
True new additions planned for the model CKD plants 1** 7 6
family include the A9 Coupe (2015), which Employees 46,544 96,943*** 96,281***
will compete against the Mercedes CL, and R&D spending as % of total sales 7.1% 4.6 % >5.5%
the Q6 (2014), which will target the BMW X6.
Key partner VW Group PSA Renault
Output increases Partner for carbon fiber Voith SGL Group Toray
The addition of the new cars is forcing the * Audi production plants excluding contract manufacturing by Seat in Martorell and by VW in Bratislava
German automakers to look for ways to ** Audi CKD plants exlcuding Skoda factory in India
***Figures for BMW Group and Mercedes Benz Cars (incl. Maybach, Smart)
boost their production by either expanding Source: JATO Dynamics, companies
existing plants or building new ones.
A key part of Zetsche’s growth plan is
Daimler’s new plant in Kecskemet, Hungary, Audi’s biggest weakness when compared same can be said for the so-called “marriage
which will have a capacity of 100,000 units with its German rivals is that it is the only in heaven” that Zetsche’s predecessor,
when it starts producing the next A- and B- one without a factory in North America. Juergen Schrempp, arranged between
class cars in early 2012. This disadvantage is one reason why Audi Daimler and Chrysler Group. That union
Daimler sources say Zetsche is looking at sells about one-third as many cars in the failed as did Daimler’s stake-holdings in
ways to expand the Hungary factory and United States as the BMW brand, which is Mitsubishi Motors Corp. and Hyundai
would like to add production of the C-class on track to pass Lexus to become that mar- Motor Co.
coupe and the so-called MLC derivative of the ket’s premium-car sales leader for the first Today, BMW and Daimler are more inter-
M-class SUV to Mercedes’ U.S. plant in the time in 12 years. ested in strategic partnerships. They cooper-
second half of the decade. The U.S. plant cur- ate with each other – without major success
rently makes the GL-, M- and R-class SUVs. Key partners – on the joint purchase of some parts. Each
And Daimler is mulling an additional plant Audi’s biggest competitive advantage in the brand also has a partnership with a French
in China. When asked about expansion in the race to be global premium-sales champ is automaker. BMW’s alliance is with
world’s largest auto market Zetsche said: “We that it is part of the massive VW Group. PSA/Peugeot-Citroen and Daimler has
are continually in growth mode. In China, Audi is getting Q3s made at sister brand teamed with Renault (see pages 24, 28).
there are more than 120 billionaires and Seat’s underutilized plant in Martorell,
about 670,000 millionaires. Until they are all Spain, while Skoda’s factory in India also The threats
driving the S class, we still have things to do.” assembles Audis for the local market. But risks remain.
Audi is the best positioned premium brand A look at Audi’s structure (see box above) “The long-term enemy is over-supply,”
in China, which will be the automaker’s sin- shows it has the fewest employees and plants said Lutz, who has held key jobs at GM,
gle-biggest sales market as of this year. “We of the three German luxury brands, but as Ford, Chrysler and BMW. “When everyone
have to expand our current capacity of industry veteran Lutz said, it can do more has a German prestige car on a $350-a-
300,000 units in the next few years,” Audi with less because it is “able to dilute a lot of month lease, uniqueness, desirability, owner
CEO Stadler said. “It took Audi 22 years to the enormous basic development costs over pride and resale values go down.”
sell the first 1 million vehicles. We’ll sell the the worldwide volume of VW, Skoda and BMW marketing boss Robertson sees
second million in just three years, between Seat.” things differently.
2011 and 2013.” While being part of a mega organization “The global car market this year will be
Audi, like Daimler, has a plant in Hungary. has worked for Audi, attempts by BMW and around 70 million vehicles and the premium
The Gyor factory, which was opened in 1993, Daimler to grow through acquisitions failed segment will be somewhere around 5 million
is about to undergo a big improvement. miserably. vehicles, so it is still a small percentage of the
“Starting in 2013, we will have a capacity of BMW’s bid to integrate the UK-based overall car market,” he said.
125,000 cars in Gyor,” said Stadler. Rover group was a financial disaster. The TITANS ❙ CONTINUED ON PAGE 22

20 ANE EXECUTIVE EDITION SEPTEMBER 2011

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AUTOMOTIVE NEWS EUROPE COVER STORY

EUROPEAN LAUNCH DATES

PRODUCT OFFENSIVES
2011 2012 2013 2014
▼ ▼ ▼ ▼
A6 A1 5-door A3 Sportback A1 face-lift
RS3 A3 A3 cabrio A3 sporty sedan
A6 Avant A4 Avant face-lift TT A4
Q5 hybrid A6 hybrid Q7
Q3 A8 hybrid Q6
A5 face-lift R8 E-tron
S1, S6, S7, S8
Q5 face-lift

BMW 6-series cabrio X6 face-lift X1 face-lift BMW i8

BMW 1-series cabrio,
coupe face-lift
BMW 1-series M coupe
BMW 1-series 5-door
BMW 6-series coupe
BMW M5
New 3-series sedan Z4 face-lift 1-series 5-door hybrid
New 6-series Gran Coupe 7-series face-lift New 2-series cabrio
M6 cabrio New 4-series coupe First UKL model
5series hybrid New 4-series cabrio (small minivan)
M6 Coupe New 2-series coupe X3 minor face-lift
New 1-series 3-door 5-series GT face-lift
New 3-series Touring New 3-series GT
New 3-series hybrid BMW i3
New X5

C-class face-lfit New SL M-class hybrid GLC (A-class SUV)

C-class Coupe CLS Shooting Brake New S class S-class plug-in hybrid
SLK A class SLS AMG E-Cell New CL
M class New GL New CLC New CLC
B class GLK face-lift (A-class coupe) Shooting Brake
SLS Roadster G-class face-lift S-class hybrid New C class
E-class hybrid E-class major facelift New C-class F-Cell
B-class F-Cell M-class face-lift

TITANS ❙ CONTINUED FROM PAGE 20
For premium brands, it also will become
harder to stand out from fast-improving vol-
ume brands such as Volkswagen and Ford.
Said Lutz: “The German premiums are fac-
ing the problem of technical differentiation
from increasingly excellent volume producers,
(that are) using the same premium chassis
and engine solutions.”
Some experts also fear that the German pre-
mium brands risk diluting their image and
margins by dropping down into volumes seg-
ments. “You cannot stretch premium endless-
ly – neither in terms of segments nor in terms
of volumes,” Kalbfell said. “The covetousness
of the brand, its design and service at the deal-
erships, will determine who will be the premi-
um leader of the future.”
This year, the Audi A1 will account for
about 10 percent of Audi total’s sales. “If you
take the A3 into account, 25 percent of all
sales are with small and compact cars. This
will dilute the profit,” said Ferdinand
Dudenhoeffer, who heads Duisburg-Essen
University’s center for automotive research.
Kalbfell also warned against trying to play
follow the leader. “Audi has a profile of a
copier – a successful one, but still a copycat,”
he said. “They have to develop their own pro-
file and get out of the slipstream of Mercedes
and BMW.”
Dudenhoeffer supports that thesis: “Audi
has not managed to present real innovations
in recent years, but lost its technology advan-
tage promised in their marketing slogan
Vorsprung durch Technik. This becomes obvi-
ous when you look at electric mobility or car
sharing solutions.”
The rest of the pack
What risks do Audi, Mercedes and BMW face
from outside Germany? Not many, as global
sales volumes are small at competitors based in
the United States, Japan, Sweden and the UK.
Henner Lehne, global director at market
research firm IHS Automotive, said the
German premium brands will account for
two-thirds of all global premium-car sales this
year – and this won’t change in the mid-term.
“The race for premium-market leadership will
only be decided among the Germans,” Lehne
said.
Combined sales of Japan’s premium brands
(Lexus, Infiniti, Acura) will not even add up
to half of the 2011 Audi sales, according to an
IHS forecast. The most successful non-
German brand is expected to be Volvo, with
estimated 2011 global sales of 424,500 units.
Other competitors, with estimated 2011 sales,
include: Lexus (385,400), Cadillac (200,900),
Acura (150,000), Alfa Romeo (143,500),
Infiniti (137,000), Porsche (118,500) and
Jaguar (52,600).
As prestige is strongly connected to prof-
itability, Daimler’s Zetsche indicates that a 10
percent margin might not be the end goal for
his company. “If greater potential in the
industry should emerge, we will develop it,”
Zetsche said, with a wide grin on his face.
His smile must have frozen after he heard
that Stuttgart neighbor Porsche recently
achieved a profit margin of 21 percent. ■

22 ANE EXECUTIVE EDITION SEPTEMBER 2011

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QA &
DIETER ZETSCHE
DR. Z’S
AUTOMOTIVE NEWS EUROPE
ATTACK PLAN
Daimler CEO determined to push Mercedes
back to No. 1 among premium automakers
A
year before Dieter Zetsche took over
as Daimler CEO, the company’s
Mercedes-Benz brand lost its place as
the world’s top-selling premium automaker
to BMW. Zetsche wants the title back. The
35-year Daimler veteran talked about how he
is going to help Mercedes return to No. 1
when he met with Automotive News Europe
Editor-in-Chief Harald Hamprecht at
Daimler’s headquarters in Stuttgart.
In a letter to your employees, you
announced that you wanted to
become No. 1 in the premium seg-
ment again. What is your plan of
attack?
In recent years, we have already created the
basic conditions for sustained success. We
again have top quality and a clear, appealing
design. We have expanded our traditional
strengths, including safety. We are reducing
our CO2 emissions more quickly than our
direct competition and we are improving our
customer relationships more vigorously than
ever before. And this is all related to
improvements in efficiency.
And looking forward?
We will introduce a wide variety of addi-
tions to our product portfolio. We also will
have a greater presence in various markets
and grow faster than the competition with
this overall positioning. So we are moving
into the lead in sales and are no longer ahead
just in brand value.
What about in profitability?
That is naturally part of it. But due to the
particular cycle, you don’t end up at the
same level each quarter and year.
BMW had a profit margin of 13.3
percent in the first half, Audi
11.8 percent and you 10.0 percent.
In 2011 and 2012, many of our products
are in the last third of their life cycles.
The situation is just the reverse at BMW.
That’s why it is a snapshot. But I am con-
vinced we can lead right through the cycle
in profitability compared with our two
competitors.
24 ANE EXECUTIVE EDITION
COVER STORY
When do you plan to be No. 1 and
what figure are you targeting?
Our goal is to be No. 1 in profitability and
sales in the premium segment. The objective
is clear, and so is our commitment. Concrete
measures are next. We will talk more precise-
ly about our milestones later.
How are your profitability goals
shaping up?
Even before the economic crisis of 2008,
we set a profit margin of 10 percent as our
goal at Mercedes-Benz Cars, as part of our
“Go for 10” program. This still applies. We
reached this level for the first half of the year.
And we don’t have to hide from that. If
greater potential in the industry should
emerge, we will develop it.
What is your short-term sales goal?
This year, we expect sales of more than
1.35 million for Mercedes Benz Cars.
How many units does Smart account
for?
Last year, the figure was 97,500 Smarts. In
2011, we are aiming for 100,000.
For the entire year, that means
you could still stay ahead of Audi,
which targets sales of more than
1.2 million.
In recent years, we invariably sold fewer
vehicles than Audi in the first four months of
the year. This year, this was the case for six
months. But we were still ahead for all of
2010. It is certainly a bit tighter this year. But
I am confident.
Will you add staff?
At the end of 2010, Daimler had 260,000
employees worldwide. The figure was
164,000 in Germany. This year, we will make
more than 10,000 new hires globally, 4,000
of them in Germany. In the future, it’s clear
that we will predominantly see growth in the
growth markets.
In the compact segment, you want
to expand the A- and B-class family
to five models. Do you still want to
double volumes there?
MEET THE BOSS
●
Dieter Zetsche, 58, has been Daimler AG CEO and
head of the Mercedes-Benz Cars division since
2006. The German, who was born in Istanbul,
Turkey, joined the company in 1976 as part of the
research division. He has held key posts in just
about every Daimler division including sales, engi-
neering and commercial vehicles. Before being pro-
moted to the company’s top job, Zetsche was CEO
of Chrysler Group, where he gained the nickname
“Dr. Z” following a successful ad campaign. Less
than a year after leaving the U.S. automaker’s
Auburn Hills, Michigan, headquarters, Zetsche was
part of the team that sold Chrysler to private equity
firm Cerberus, a move that quickly got Daimler back
on track financially. He has a doctorate in engineer-
ing from the University of Paderborn, Germany.
We are striving for a considerable increase
in volumes. That’s why we have made invest-
ments in the Kecskemet (Hungary) plant, in
addition to our compact-class factory in
Rastatt (Germany). The Kecskemet facility
will have a capacity of 100,000 vehicles a
year. In the past, we sold 270,000 A- and B-
class units at our peak. Time will tell where
we will be with the full availability of all our
models.
You have 23 car body variations,
compared with 21 at Audi and 19 at
BMW.
As a whole, we coincide in many areas.
Today the biggest difference between us and
Audi is that we have no representation in the
A1 segment.
Audi intends to hit 120,000 units a
year in the segment.
That also explains the volume difference
compared with our portfolio. The situation
is similar at BMW with its X1.
You will launch an X1 competitor.
Will you also launch an A1 rival?
If you only focus on sales figures, it is an
interesting segment. If you look at profit
margins, it is significantly less attractive. So
SEPTEMBER 2011
AUTOMOTIVE NEWS EUROPE COVER STORY

far we have no plans for it. But we still have a 2015 and 200,000 by 2020 is
few ideas for new models. We will use them to allegedly possible?
close gaps and forge ahead into completely We have never made statements about these
new segments. We will employ these new specific volumes. It’s true that we’ll bring out
building blocks in our attack. the new Smart four-seater in 2014. We
haven’t decided whether there will be more
What is the total number of new models. We are focusing on the two- and
products we can expect? four-seat models in cooperation with Renault.
By 2020, we will bring out at least 10 com-
plementary models, like the new compact Renault has withdrawn from the
models and the CLS Shooting Break. This alliance’s two-seater?
may happen even faster. It’s true that we are planning a common
architecture. A possible two-seater from
But expanding the portfolio is an Renault was never relevant to the economic
expensive proposition. feasibility of the overall project. Our third
Initially, the prerequisite for a cost-effective generation is and will be profitable.
expansion of our portfolio at comparably little
expense and complexity is a disciplined archi- And you are planning a model based
tecture strategy, which permits the maximum on the Renault Kangoo – internally
modularization and flexibility in our two known as VS10 – starting in 2012?
main architectures. Yes, that is a very interesting project. A
small city delivery vehicle, primarily for com-
Just two? mercial use, is being developed on this basis.
Yes, with just a few exceptions. I am mainly It is being optimized for longevity, quality and
talking about the new front-wheel-drive archi- appearance and is closing a gap in our light
tecture and the rear-wheel-drive architecture commercial vehicle product line.
for the C class and E class and its derivatives.
The S class is not an integral component in this Do you plan to make your MFA
regard. We are naturally looking for the great- platform available to Infiniti?
est possible use of common parts in sports cars There has been no decision on this. There is
and SUVs, something that we will increase recognition that there is practically no
even more in the future. This is accom- substitution between Infiniti and
panied by Daimler’s substantial invest- Mercedes. The research has shown
ments. that the Lexus is rather seen as an
alternative to Mercedes in some
Which are? markets such as the U.S., whereas
Ten billion euros in 2011 and 2012, Infiniti tends to be a competitor to
in research and development to renew BMW.
and replenish our products as well as
promote our two major visions: Who do you see as a
emission- and accident-free competitor in the
driving. And our plant premium segment
investments are of about globally?
the same magnitude over Twenty years ago,
a similar time frame. we had Cadillac,
Lincoln, Jaguar,
How is the future of and Volvo as com-
the Maybach shap- petitors,
ing up? Will there at least in markets
be a partnership like the U.S. This
with Aston Martin? has
We have made no lately been
decision on Maybach. reduced to Lexus,
The analyses are on- BMW and Audi –
going. Our thinking is a great success
moving in various story for all of the
directions and we are German brands.
sticking with it.
You plan to start
What is going building the
on with the C class in your
expansion of U.S. plant in
the Smart fami- 2014. Which
ly? According to models?
internal planning, It’s well-known that
a sales increase to we are investing $2 bil-
150,000 units by lion on the factory
expansion. For the C class, we are initially
limiting ourselves to the C sedan. America is
no market for station wagons. There has been
no decision on other models, like the coupe.
What are your plans for China?
Over the last few years, we have been catch-
ing up very quickly in China, after entering
the market relatively late with our own pro-
duction. Starting this year, we are building
the GLK and then gradually the three model
lines of the new generation of the Mercedes-
Benz compact car locally. The existing assem-
bly capacity for the C class and the E-class
long-wheelbase version will be expanded fur-
ther from the current 80,000 vehicles based
on market demand. In 2015, we expect sales
of more than 300,000 units in China, of
which two-thirds, or 200,000, will be pro-
duced locally.
Do you need a second plant there?
We are continually in growth mode. But we
can’t talk about the next steps today. One
thing is clear: In China, there are more than
120 billionaires and about 670,000 million-
aires. Until they are all driving the S class, we
still have things to do.
A look at your sales structure reveals
that you do half of your business in
western Europe. Will you lower that
dependence in the future?
We will continue to grow very dispropor-
tionately in growth markets outside of
Europe. Not just in the U.S. and in China. No
matter whether it’s India, Korea or Turkey,
we will exploit the potential wherever there is
growth.
With your new plant in Hungary, you
now have six main production loca-
tions for cars worldwide. How many
more will you need to support the
growth you are targeting by 2020?
It’s too early for concrete statements, but be
assured – the planning is on-going.
In the face of this global trend in the
low-cost and volume segments,
doesn’t it make sense to incorporate
a high-volume brand once again,
even if deals with Chrysler and
Mitsubishi failed?
No, we are a premium manufacturer. On
specific issues, where volume plays a major
role, cooperative projects like the one with
Renault are a good solution. Moreover, we do
not plan to become involved in the high-vol-
ume segment ourselves.
Your contract runs until 2013, at
which point you’ll be 60. Do you
plan to retire or remain CEO?
That is a question that you have to address a
year before the expiration of the contract, not
earlier. ■

For the complete Dieter Zetsche interview go to europe.autonews.com/zetscheexecedition

SEPTEMBER 2011 ANE EXECUTIVE EDITION 25

QA &
RUPERT STADLER
MAKING GAINS
AUTOMOTIVE NEWS EUROPE
Audi has the chance to overtake Mercedes
this year in sales and has high profit goals
udi has a chance to overtake
A Mercedes-Benz this year for the first
time with new-car sales of “more
than 1.2 million” – while Mercedes is aiming
for about 1.25 million sales. VW’s premium
brand is posting record sales and profits,
helped by a big product offensive and growth
in China and the United States. Audi CEO
Rupert Stadler still sees lucrative niches that
the brand could fill. The Audi range could
grow to 50 models, Stadler says. But the
company’s ambitions don’t stop there. Its
goal is annual sales of 2 million cars by 2020
and the brand also aims to be the premium
leader in sustainability and innovation.
Stadler outlined Audi’s ambitions to
Automotive News Europe Editor-in-Chief
Harald Hamprecht.
What level of growth do you see?
Over the next 15 years, we see growth of
about 60 percent in overall passenger car
demand. The premium market is even
expected to grow at a proportionately higher
rate. Encouraged by our successful course
over the past few years, we want to sell more
than 2 million cars a year by 2020.
You could buy market share with
high rebates.
Right. A straw fire only creates heat for a
short time and afterward you freeze. That is
not our philosophy. So the core of our
approach is sustained, quality growth in the
future too. We have already come a long way
in recent years. Our profit margin never fell
below 5.4 percent even during the financial
crisis. Our employees know that this stability
in the face of crises is a precondition for
secure employment.
In 2010, you achieved a pre-tax
profit margin of 10.3 percent and as
a cash cow delivered 3.34 billion
euros of the 7.1 billion euro profit of
the entire VW Group and its 10
brands.
I don’t like the term “cash cow.” Let’s put
it this way: We want to contribute to the suc-
cess of the entire company.
Can you match your 10.6 percent
profit from the first quarter through
all of 2011 or even increase it?
❙ For the complete Rupert Stadler interview go to europe.autonews.com/stadlerexecedition ❙
26 ANE EXECUTIVE EDITION
COVER STORY
The year still has a few months to go, and
we always tend to be rather careful with our
predictions. But we have set a clear corridor
for our objectives. Of course, we will be
happy if the numbers turn out to be a bit
higher, as they were between January and
June.
What is the planned profit margin
for 2020?
We are planning on a profit margin
between 8 and 10 percent.
Your sales goal for this year is 1.2
million units. Might we even expect
a further increase?
We will clear the bar of 1.2 million sales
cleanly, perhaps with some air in between.
But let’s look beyond 2011. With the new
generation of the A6 and the Audi Q3, which
reaches dealers this autumn, we are creating
the conditions for a successful 2012 when
these models will be available over an entire
12-month period for the first time.
What is the goal for 2012?
To continue to grow. Ultimately we have 2
million in our sights and want to continually
up the ante year after year.
When will you reach the original goal
of annual unit sales of 1.5 million?
As early as 2014 according to our esti-
mates. But we have nothing against it hap-
pening earlier.
Will you overtake Mercedes and take
the No. 2 spot for the first time,
moving closer to BMW, the best-sell-
ing premium brand globally?
As far as we are concerned, this isn’t a race
for volume. It’s possible that we could over-
take one or the other of them.
How is the expansion of the model
portfolio shaping up overall?
We still see a few lucrative niches in the
markets, which is why we continue to
expand. The Audi model family could
absolutely grow to 50 members one day.
When is the A1 Cabrio coming?
This year we want to sell 120,000 units of
the three-door A1. Recall that the figure was
MEET THE BOSS
●
Unlike most CEOs of German car companies,
Rupert Stadler does not have a background in engi-
neering, having instead studied business manage-
ment. But since becoming Audi CEO in 2007, the
native of Bavaria, Germany, has presided over a
period when the Volkswagen premium unit has
reported record sales and profits and launched a big
product offensive. Stadler, 48, joined Audi in 1990
with responsibility for controlling tasks in sales and
marketing. In 1997, he became head of the board of
management’s office for VW Group, adding the
additional role as head of group product planning in
2002. A year later he was appointed Audi’s finance
boss, a job he held until he succeeded Martin
Winterkorn as CEO four years later.
just 80,000 units in our original planning.
We will introduce the A1 in China at the end
of 2011 or beginning of 2012. Then a four-
door A1 will come at some point. So we have
enough to do. The convertible is a topic for
the second generation.
Is an A9 Coupe coming after the A5
and A7 to compete with the
Mercedes CL?
We are giving a great deal of thought to
this. But there still haven’t been any deci-
sions.
What is happening in the Q family?
Will there be a small Q1?
I have also read that a Q4 and a Q6 would
be theoretically possible. But here we are
moving too far into the realm of speculation.
How is your cooperation with
Porsche going? Where are synergies
occurring and how are you prevent-
ing cannibalization?
Each brand has its own product responsi-
bility and authority over development. At the
same time, we turn to modular structures.
There are precisely established responsibili-
ties for this. The genetics of the respective
brands remains unique and protected by this
system of responsibilities. ■
SEPTEMBER 2011
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QA &
FRIEDRICH EICHINER
IN DEFENSE OF
AUTOMOTIVE NEWS EUROPE
THE NO. 1 RANK
How BMW plans to stay the world’s top-selling
and most profitable premium automaker
MW Group is seeing positive results
B from the strategic realignment it initi-
ated in late 2007. In the first half of
2011, the Bavarian premium carmaker post-
ed a profit margin of 13.3 percent, compared
with an 11.8 percent margin at Audi and
10.0 percent at Daimler.
The automaker’s new-car sales were up
19.7 percent to 833,366 units in the half,
causing BMW to revise upward its full-year
forecast. The company aims to sell more
than 1.6 million BMW, Mini and Rolls-
Royce models in 2011, which would be a
new record.
BMW Chief Financial Officer Friedrich
Eichiner expects unit sales and profits to
keep improving. He explained how this
will happen in an interview with
Automotive News Europe Editor-in-Chief
Harald Hamprecht.
BMW is the No. 1 premium carmak-
er based on unit sales and profit
margin. Can you defend this position
until 2020?
Yes, I am firmly convinced that we will
remain No. 1 in the premium segment
worldwide.
What makes you so sure?
We have the strongest reputation in the
premium segment worldwide. As early as
2007, we set the right course for success with
our strategic realignment. You can see that in
our financial results as well. For all of 2011,
we are expecting a sales increase to more
than 1.6 million vehicles. That represents
growth of more than 10 percent compared
with last year. And we are striving for an
EBIT margin of more than 10 percent in the
automotive segment for 2011.
How will these figures develop over
time?
In the ensuing years, we want to reach our
goal of a sustained profit margin of 8 percent
to 10 percent within the group, assuming
that the economic trend will basically be
normal. In addition, we are on the brink of
taking electro-mobility to a new level. Plus,
the development of a front-wheel-drive
❙ For the complete Friedrich Eichiner interview go to europe.autonews.com/eichinerexecedition ❙
28 ANE EXECUTIVE EDITION
COVER STORY
architecture across brands in the premium
small-car segment will help us improve our
profitability even more.
Will you make a profit with the first
generation BMW i3 and i8 electric
cars?
Yes, we invariably only plan vehicles with
margins that correspond to our internal
guidelines. Naturally, we have significant
advance expenditures. Nonetheless, both
models will make positive contributions to
our operating income.
This of course depends on the demand for
electric vehicles in the market. By 2020, a
global market share between 5 percent and
15 percent is expected for electric vehicles,
including plug-in hybrids. In any case, we
have made conservative production runs
part of our early planning.
Will your r&d investments increase?
Despite comprehensive investments for the
future, in new products, technologies and
drive systems, the share of r&d in 2011 will
be within the target corridor of 5 percent to
5.5 percent, thanks to efficient development
processes and the strong growth we expect in
revenue. In addition, the share of investment
will be below 7 percent of revenue by the end
of the year due to rising revenues.
What new sales channels will you
establish for BMW i?
We will take new approaches here as well.
But we’ll still need the dealer. The business is
local, so service will always take place locally.
That’s why we will continue to need ade-
quate dealer network coverage in the age of
electro-mobility. At first, we will focus on
metropolitan areas in the sale of electric
vehicles because we expect the highest
demand there and the service for the new
models naturally requires dealer investment:
high-voltage and carbon fiber technologies
demand different tools and training.
Will you expand your cooperation
with PSA?
Our hybrid joint venture includes the
development and production of basic com-
MEET THE CFO
●
Friedrich Eichiner will celebrate his 25th anniver-
sary as a BMW employee next year and his fifth
anniversary as a member of the automaker’s man-
agement board. He arrived at the company in 1987
after earning his doctorate in business management
from Ludwig-Maximilians-Universitaet in Munich. He
held a number of jobs in leading posts in logistics,
production and sales before being promoted to
director of corporate planning in 2002. BMW CEO
Norbert Reithofer picked the Bavarian to be the
board member for corporate and brand development
in 2007. Eichiner, 55, was named BMW CFO in
December 2008.
ponents and modules for powertrains, stor-
age media, batteries and control electronics.
The usage varies; however, we will tend to
use the models at the higher end of the per-
formance spectrum, and PSA at the lower
end. It makes a great deal of sense to share
one-off expenses and risks because we don’t
compete directly with one another and we
will differentiate the modules sufficiently. In
no way are we risking the dilution of the
brands.
Europe continues to be your core
market with 50 percent of global
sales. How are you positioned
elsewhere?
China’s share of sales came to 14.5 percent
in the first half the year. North America con-
tributed just under one-fifth; Germany more
than 17 percent. We are maintaining a glob-
ally balanced market distribution. We are
also positioned well in all the other high-
growth markets, that is, Brazil, Russia, India,
Korea and Turkey.
How dangerous are the U.S. and
Japanese premium brands to you?
We are rather relaxed about this from a
global standpoint. We have built up a repu-
tation over nearly 100 years. Any competitor
has to earn this first. ■
SEPTEMBER 2011
()3;

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AUTOMOTIVE NEWS EUROPE
FRANKFURT AUTO SHOW
PRODUCT FIREWORKS
NEW CARS
MASKS ECONOMIC FEARS
PAUL McVEIGH
pmveigh@crain.com
T
his is not the Frankfurt show from 2009. Brands that
stayed away two years ago during the crisis are
back. There are some stunning debuts and major
automakers such as Audi and Ford plan to have their
biggest show displays to date.
Green technologies will again dominate, with BMW using
Frankfurt to launch the first model in its new i sub-brand,
the i3 battery-powered minicar. Audi counters with the
super-slim Urban Concept designed for congested, narrow
city streets.
Fiat will debut a bigger, roomier and more fuel-efficient
Panda, Europe’s top-selling minicar, but Volkswagen will sig-
nal its intention to make a serious challenge in the segment
AUDI
SUPER-SLIM STUDY
TARGETS CROWDED CITIES
AUDI says the trim, two-seat Urban Concept is just the car for
crowded modern cities, where space is at a premium, and the car
may go into production if Frankfurt show visitors demonstrate
enough enthusiasm.
The concept is narrow so it’s easy to drive and park on congest-
ed streets. Its slim size means that the two occupants don't quite
sit next to each other. The driver's seat is slightly more forward
than the passenger’s. The concept also doesn't have conventional
doors. The single-piece roof slides back to enable occupants to
enter. The concept, which Audi calls a technical study, has fea-
tures that cut its weight to less than 500kg. It's built from a combi-
nation of aluminum and carbon fiber reinforced polymer, which
makes it very light but strong and safe. To save weight, the seats
are integrated into the car's monocoque structure and can't be
adjusted, but the driver can move the steering wheel and pedals
around to get comfortable.
The concept is driven by two electric motors powered by a lithi-
um ion battery and has a range of between 50km and 60km. It
has a tiny luggage compartment that Audi says is big enough for
short city trips. The car is 3200mm long, 1200mm tall and
1700mm wide.
30 ANE EXECUTIVE EDITION
>
For the latest show news and coverage
go to www.autonewseurope.com
with the new Up, a little car laden with high-tech features that
the company hopes will play a key role in its seemingly
unstoppable global growth.
The resurgence of Land Rover continues, and the British
SUV brand, now owned by India’s Tata Motors, will unveil a
concept that showcases a modern makeover for its iconic
Defender.
Among carmakers returning to the show is Honda, which
takes the wraps off the latest Civic. Other debuts include the
Porsche 911 and Ferrari 458 Spider.
In the midst of these product fireworks, automaker execu-
tives will be putting on a brave face over fears that austerity
measures being introduced by debt-hit European countries
will plunge the region back into recession next year, severely
hitting new-car sales. ■
BENTLEY
CONTINENTAL GTC
GETS A POWER BOOST
The second-generation BENTLEY Continental GTC has a more
muscular look than the previous model. It is more comfortable with
more legroom for rear-seat passengers, a touchscreen infotain-
ment system and a neck-and-shoulder warmer.
The four-seat convertible’s 6.0-liter, W12 engine now delivers
575 hp, compared with 560 hp previously, and maximum torque is
700 Nm, compared with 650 Nm. A new, quick-shift transmission
from ZF makes especially fast gear changes possible. The latest
GTC is 70kg lighter than the current car.
“The technology, performance and the high design quality
invested in this model mean that we are opening a new chapter
for the Bentley convertible driver,” Bentley CEO Wolfgang
Duerheimer said. Deliveries of the new luxury model, which has
a multi-layered fabric top, begin in December. Just over 10,000
units of the current Continental GTC have been sold since its
introduction in 2006. More than 2,000 went to customers in
Europe.
The car can accelerate from 0-100kph in 4.8 seconds and has a
top speed of 314kph. It will cost 170,000 euros before taxes in
mainland Europe and 149,350 pounds plus VAT in the UK.
SEPTEMBER 2011
 AUTOMOTIVE NEWS EUROPE NEW CARS

BMW
NEW 1 SERIES AIMS AT AUDI
BMW aims to end the Audi A3’s dominance of Europe’s entry-
premium segment with its latest 1 series. The second-generation
1 series is longer and wider than the current model to give rear
passengers more legroom and boost luggage space. Big improve-
ments have been made in perceived interior quality of the car.
The five-door version will arrive first in European showrooms in
September because this is the most popular variant. A three-door
debuts next year. Next spring an ultra-fuel-efficient 1-series variant
will go on sale with emissions of 99g/km. It will be the first produc-
tion BMW to have CO2 emissions below 100g/km.
BMW says the new 1 series has many driver assistance and
mobility services unique in a compact car, such as lane departure
and collision warning.
BMW
i3 TARGETS iPHONE FANS
The i3 electric car is being shown as a concept but not much
is expected to change when the production version of the sub-
compact goes on sale in 2013. The i3 is the first model from
BMW’S so-called “i” subbrand, which also includes the i8 sports
car due in 2014.
BMW said its i cars are “born electric,” designed as alternative
fuel vehicles from the ground up.
The rear-drive i3 has a 170-hp electric motor over the rear axle
that allows the car to accelerate up to 150kph.
The four-seat car has front-hinged front doors and rear-hinged
“coach doors.” The upper body is made of carbon fiber while alu-
minum is used for the drivetrain module that holds the battery,
electronics and motor.

We have a new image that speaks for itself.

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Caetano Coatings, Automotive Cluster

Estrada Nacional 3, km 1, 2580-595 Carregado
Tel.: +351 263 857 200 | Fax: +351 263 857 287
caetanocoatings.pt | sales.tech@caetanocoatings.pt
AUTOMOTIVE NEWS EUROPE NEW CARS
CHEVROLET
MALIBU WILL BE BRAND’S
EUROPEAN FLAGSHIP
CHEVROLET says the Malibu mid-sized sedan will be the brand's
European flagship when it goes on sale in the region next year.
The Malibu will give the U.S. brand an upscale product in Europe
where its best-selling models are low-cost, Korean-built small
cars. The Malibu will be offered with a 164-hp 2.0-liter gasoline
engine or a 169-hp 2.4-liter diesel, both with four cylinders and
both available with manual or automatic transmissions. Chevrolet
also will give European premieres to the Miray electric hybrid
roadster concept and the Colorado Rally pickup truck concept,
which offers a preview of the next generation of the Colorado
mid-sized pickup.
FERRARI
STUNNING 458
SPIDER TO DEBUT
The 458 Spider is the convertible version of the stunning 458
Italia two-seat coupe and its Frankfurt unveiling is eagerly awaited
by fans of the supercar brand. The 458 Spider replaces the 430
Spider. It will have a folding hardtop instead of the canvas top
offered on the 430.
The 458 Spider's powertrain is the same as that on the 458 Italia
coupe – a normally aspirated 4.5-liter V-8 delivering 570 hp cou-
pled with a Getrag seven-speed dual-clutch transmission.
Sales in Europe begin in September; U.S. shipments follow in
the first quarter of 2012.
32 ANE EXECUTIVE EDITION
CITROEN
DS5 AIMS TO BE
LOUNGE ON WHEELS
The DS5 has a European debut after a concept was unveiled at
the Shanghai auto show in April. The five-seat car is the third, and
largest, model in the brand’s upscale DS range.
CITROEN says the design of the DS5 has nothing in common
with the mid-range C5. The new car rests on a different platform,
internally known as Platform 2, while the C5 is based on Platform 3
and has a conventional steel spring suspension. The DS5 has a
hydraulic suspension. The DS5 is comparatively compact, but is
very spacious inside with what Citroen calls an interior “lounge
atmosphere” and above-average width. The DS5 will be offered
with a diesel-electric drivetrain. Power comes from a 163-hp, front-
wheel-drive 2.0-liter diesel engine and, when needed, a 37-hp,
rear-wheel-drive electric motor.
FIAT
PANDA GETS BIGGER,
ROOMIER AND GREENER
The Panda, Europe’s best-selling minicar, is bigger, roomier and
more fuel efficient in its latest generation.
The new car has minimal styling changes but is 110mm longer
than the current model at 3640mm. Most of the growth in length is
on the rear overhang to increase the car’s trunk space, as well as
offer more legroom to rear passengers, who also benefit from rear
sliding seats for the first time.
The Panda is 50mm wider at 1640mm, which means it can seat
three passengers comfortably in the rear. Most minicars have room
for only two passengers in the back.
SEPTEMBER 2011
AUTOMOTIVE NEWS EUROPE NEW CARS
FORD
EVOS OFFERS HINT AT
FORD’S NEW STYLING
FORD will hint at a new global design language with the Evos
concept, an eye-catching coupe with four gullwing doors. The
coupe combines three important elements of the automaker’s
product strategy: unrivalled design, intelligent use of technology
and outstanding fuel efficiency, Ford said. The concept has a
plug-in hybrid powertrain with a lithium ion battery pack.
Ford said the concept won’t go into production, but many of
the design cues and technologies it highlights will.
On its biggest-ever stand at Frankfurt that also includes an out-
door test track, Ford will also display the production B-Max mini-
van and Focus ST.
HYUNDAI
i30 IS KEY CHALLENGER
IN COMPACT SEGMENT
HYUNDAI hopes a bolder design will help its new-generation i30
hatchback compete better against rivals in Europe’s compact seg-
ment such as the Volkswagen Golf and Ford Focus.
The new i30 has Hyundai’s signature front face, a hexagonal
shaped front grille, along with jewel-like front headlamps, designed
to give the car “a sense of refinement and luxury,” said Thomas
Buerkle, Hyundai Europe’s chief designer.
Giving the i30 a refined look is in keeping with Hyundai’s aim
to go upscale into what it calls a “modern premium” position.
The i30 will be important in helping Hyundai to reach its goal of
boosting its European sales to 500,000 by 2013, up 10 percent
from 2010.
34 ANE EXECUTIVE EDITION
HONDA
CIVIC GETS A CLEANER
DIESEL, BETTER RIDE
HONDA engineers have enhanced the ride quality of the new
Civic, while retaining the sporty handling of the current model.
Honda hopes the improvement will boost flagging sales of the
company’s second best-selling model in Europe after the Jazz.
European sales of the Civic fell 27 percent to 26,387 in the first
half, according to JATO Dynamics. The ninth-generation Civic will
reach European showrooms in early 2012. The car keeps much of
the styling of the outgoing model.
Honda’s Japanese development team worked with European
colleagues and external experts to enhance the five-door hatch-
back’s handling to cope with Europe’s varied road conditions that
include fast highways, along with poorly surfaced country roads.
The Civic will be offered with an improved 150-hp, 2.2-liter diesel
engine with CO2 emissions of 110g/km, 29g/km lower than the
engine in the current car.
JAGUAR
C-X16 CONCEPT HINTS
AT SMALL JAGUAR
The C-X16 study shows that JAGUAR is seriously considering a
small sports car. The concept is “a precursor to future Jaguar
sports cars that will aim to set new class benchmarks in design,
vehicle dynamics and technology,” the company said. Design
chief Ian Callum, who headed the C-X16 project, said: “Great
Jaguar cars have always been beautiful, innovative and have
looked firmly to the future. The finished C-X16 concept has the
potential to do these things.”
Jaguar has only three nameplates – the XK coupe and convert-
ible, XF mid-sized sedan and XJ full-sized sedan. Company execu-
tives have said the brand needs a small sports car and a sedan to
make it more competitive against rivals such as BMW and Porsche.
SEPTEMBER 2011
 BOLOGNA 3-11 DECEMBER
Made by M O T O R S H O W . I T
AUTOMOTIVE NEWS EUROPE NEW CARS

FRANKFURT AUTO SHOW FLOOR PLA

36 ANE EXECUTIVE EDITION SEPTEMBER 2011

 AUTOMOTIVE NEWS EUROPE NEW CARS

SEPTEMBER 2011 ANE EXECUTIVE EDITION 37

AUTOMOTIVE NEWS EUROPE NEW CARS
KIA
CONCEPT CONTINUES
KIA’S DESIGN SHIFT
KIA Chief Design Officer Peter Schreyer continues the brand’s
design revolution with a sporty sedan concept that debuts in
Frankfurt.
The sleek, muscular car signals a distinctive new styling direction
for Kia, Schreyer said. “No matter from which perspective you look
at it, this concept car is roaring with energy and ready for takeoff,”
he said. “I believe the car is a strong statement from Kia: We are
ready to fast forward to an all-new chapter.”
Kia is not saying whether the four-door, rear-wheel-drive con-
cept will reach production, but some of its styling could end up on
a halo model planned by Kia.
LEXUS
AGILE GS TAKES
ON BMW 5 SERIES
The LEXUS GS hybrid has a world debut in Frankfurt. The gaso-
line version was unveiled at the Pebble Beach Concours
d’Elegance in California in August. In the mid-term, Lexus aims to
boost the GS’ share to 3 percent from 2 percent in Europe’s
medium-premium segment, where it competes against the BMW 5
series and Mercedes-Benz E class. The gain would increase GS
sales to between 4,000 and 6,000 units.
Lexus’ goal is for 60 percent of the new GS sales to be hybrids,
the same percentage as with other Lexus models. Last year,
Lexus sold 30,411 units in Europe, of which just 1,487 were GS
models. Of the GS cars sold only 686 were hybrids.
SEPTEMBER 2011
LAND ROVER
DEFENDER GETS A
MODERN MAKEOVER
The DC100 (Defender Concept 100) study highlights LAND
ROVER’S ideas for updating the iconic Defender while keeping the
character of the SUV that launched in 1948.
The British brand plans to introduce a fresh version of the
rugged, boxy off-roader in 2015. The next Defender will need to
balance the model’s key characteristics while finding ways to win
new customers, managing director John Edwards said. Among
the ideas showcased in the DC100 is a terrain scanner with
technology similar to that found on fighter jets to warn of
potential obstacles when the SUV is being driven off road
and offer alternative routes.
MAZDA
CX-5 CHALLENGES FORD,
VW IN COMPACT SUV CLASS
With the CX-5, MAZDA will have a rival to cars such as the
Volkswagen Tiguan and Ford Kuga in the compact SUV segment.
The CX-5 is the first of a new generation of Mazda products that
will adopt the full range of the company’s SkyActiv fuel-saving
technologies and a new design theme called Kodo, or Soul of
Motion. In Europe, the CX-5 will be launched with a choice of a
2.2-liter diesel or a 2-0-liter gasoline engine. Mazda said its engi-
neers focused on achieving exceptional environmental perform-
ance and targeted CO2 emissions of less than 120g/km for the
diesel version, which has stop-start technology. Joining the CX-5
on Mazda’s stand at the show will be the upgraded Mazda3.
ANE EXECUTIVE EDITION 39
 AUTOMOTIVE NEWS EUROPE NEW CARS

QUATTRORUOTE

MASERATI
NEW SUV AIMS TO EMULATE
CAYENNE’S SUCCESS
MASERATI will debut a concept that hints at its Jeep Grand
Cherokee-based SUV expected to go on sale in 2013. The
Maserati variant features specific body panels and a new interior.
Adding an SUV to the luxury sports car brand is part of Fiat CEO
Sergio Marchionne’s plans to boost Maserati’s annual sales almost
tenfold to 50,000 units from 5,675 last year.
The SUV likely will be powered by Maserati’s 4.7-liter V-8 unit
capable of about 450 hp, coupled with ZF’s eight-speed automatic
transmission.
Possibly only for Europe, the SUV could also get a diesel variant
using VM Motori’s 3.0-liter V-6, with power increased to over 300
hp from the 241 hp the engine currently delivers on the Grand
Cherokee exported to Europe. Maserati declined to give a price
target for the SUV, but in Europe it would cost considerably more
than the Grand Cherokee 5.7-liter V-8 Overland that in Italy starts
at 63,800 euros.
MERCEDES
B CLASS GETS SPORTIER
LOOK, NEW TECHNOLOGY
MERCEDES-BENZ says its new B class will have more new tech-
nology than it has ever offered when launching a new-generation
car. The technology includes an all-new 1.6-liter four-cylinder, tur-
bocharged gasoline direct-injection engine designed for both trans-
verse and longitudinal installation and a four-cylinder downsized
1.8-liter diesel.
The engines have a fuel-saving stop-start system and can be
paired with a new dual-clutch transmission or a six-speed manual
transmission. The B class will also offer a radar-based collision
warning system with braking assistance that Mercedes says is a
first in its segment and lowers the risk of rear-end accidents.
The new B class is designed so that it can be adapted for alter-
native drivetrains because it has space for a battery pack or a
hydrogen tank under the rear seats. The car is slightly longer than
the current model and slightly lower, giving it a more dynamic
appearance.

Jens Werner, Penske Ulrich Selzer, Karl-Friedrich Ulrich Walker, Volker Harald J. Tobias
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MINI
SMALL CAR THINKS BIG
The MINI Coupe is the first two-seat car to be offered by the
iconic UK brand. With its eye-catching “helmet-design” roof, the
car is styled to appeal primarily to sporty, extroverted customers.
The car is being offered as a Cooper, Cooper S, Cooper Works
and Cooper SD, with an output ranging from 122 hp to 211 hp.
The new model’s strongest point is supposed to be its driving
dynamics. This is partly achieved with reduced air resistance and a
lower center of gravity.
While the overall length and width are almost identical to the Mini
hatchback, the Coupe’s overall height is 29mm lower. Its 280-liter
trunk space is 20 liters larger than the four-seat Mini Clubman sta-
tion wagon.
The Coupe is due to reach European dealers in October, and its
base price has been set: 21,200 euros in Germany, almost 2,000
euros more than the Mini hatchback. The Mini Coupe and its sister
model, the Mini Roadster, which launches next year, will be built in
Oxford, England.
OPEL
SLEEK GTC DEBUTS
With the sporty GTC three-door hatchback, OPEL/VAUXHALL is
challenging the Volkswagen Scirocco and Renault Megane Coupe.
The GTC is the third body style in the Astra compact range after
the five-door hatchback and station wagon.
Opel says the GTC was developed as a stand-alone model, and
its wheelbase is slightly longer than that of its siblings. Engineers
from Opel’s technical center in Ruesselsheim, Germany, and
Vauxhall’s engineering center in Millbrook, England, developed a
custom-made platform for the GTC. Key components, such as the
suspension used on the front axle, were derived from the Insignia
OPC high-performance car.
The GTC seats four adults and its trunk space of between 370
liters and 1,235 liters is 200 liters more than some of its competi-
tors. The UK is likely to be the biggest market for the GTC, where
it is expected to account for 20 percent of Astra sales. Opel start-
ed taking GTC orders in June. The car arrives in European show-
rooms toward the end of the year.

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AUTOMOTIVE NEWS EUROPE NEW CARS
David Jolley, Paul McVeigh, Juergen Pander
PORSCHE
911 GETS BIGGER,
MORE POWERFUL
At first glance, the new PORSCHE 911 looks very much like all the
previous generations of the car first launched in 1963. But the lat-
est version of the iconic sports car is slightly larger with a lower
stance that gives it a more dynamic look.
The 911 has grown by 56mm to 4490mm and is 65mm wider at
1870mm but 11mm lower at 1290mm. Porsche sources say the
911 was made larger so there’s enough room for a hybrid power-
train. It also gives the car a roomier interior with more legroom.
The 911’s six-cylinder boxer engine’s capacity has shrunk to 3.4
liters from 3.6 liters, but its performance has been increased to
350 hp from 345 hp.
Fuel use has been reduced to an average of 8.2 liters per 100km
by a variety of measures including a 50kg weight reduction, stop-
start system and brake energy regeneration.
TOYOTA
THE NEW YARIS
IS BIGGER AND SPORTIER
With its new Yaris hatchback, TOYOTA has a twofold sales strat-
egy: 1. Target young buyers looking for a car with innovative tech-
nology; 2. Win over cost-conscious customers.
To attract Web-savvy younger buyers, the Yaris will offer
Toyota’s Touch & Go infotainment system, which the company
says marks a breakthrough for affordable multimedia connectivity
in the subcompact segment. The system has a 6.1-inch display
with a touchscreen and offers navigation, connected services and
mobile apps.
To lure buyers on a tight budget, the price of the cheapest new-
generation Yaris, which has a 69-hp, 1.0-liter gasoline engine, will
be the same as the current version. In Germany, the base model
will cost 11,675 euros.
42 ANE EXECUTIVE EDITION
Contributors: Luca Ciferri, Harald Hamprecht,
RENAULT
FRENDZY IS A VAN
FOR FAMILY, BUSINESS
RENAULT design chief Laurens van den Acker says the Frendzy
concept takes an “original and innovative” stance in the world of
light commercial vehicles, which form an important part of the
automaker’s sales.
The car-based van is intended for people who need a light com-
mercial and family vehicle in one, Renault said.
The Frendzy features the brand’s new frontal identity, which
includes a large Renault logo as its centerpiece. It is the fourth in a
range of six concepts intended to highlight Renault’s new design
philosophy. It follows the DeZir sports car, Captur crossover and
R-Space minivan.
VOLKSWAGEN
HIGH-TECH UP AIMS
AT MINICAR RIVALS
In the crowded minicar segment, Volkswagen hopes the Up will
stand out because of its modern, pragmatic design and state-of-
the-art comfort and safety extras. These include a gadget called a
“Portable Infotainment Device” that looks like a smart phone. The
device fits on the dashboard and serves as a central display
screen and control unit for the navigation, onboard computer, tele-
phone and audio equipment.
The Up also has an emergency braking system that monitors the
area in front of the car with a laser sensor and applies the brakes if
a collision is imminent. The Up is the first car in VW’s new entry-
level lineup. In the coming years a whole range of cars, grouped
under the label New Small Family, will be introduced.
SEPTEMBER 2011
Dynamics
and efficiency
Driving pleasure, comfort and significantly reduced fuel
consumption compared with automatic transmission
are now provided by one product: the new LuK double
clutch as the core component in modern double clutch
transmissions allows drivers to take advantage of the
full agility of their vehicle.
Quick gear change without tractive power interruptions
offer sporty characteristics as seen on the race track.
The low fuel consumption also offers benefits for the
environment. The LuK double clutch – switch to the
future.

www.luk.com
AUTOMOTIVE NEWS EUROPE NEW CARS

The FF, which

stands for Ferrari
Four, replaces

FF WINS OVER the 612 Scaglietti

flagship.

FERRARI FANS
errari buyers are enthusiatic about the FF, the company’s new

F flagship, and the brand’s first four-wheel-drive model. The FF’s

first full year of production of 1,000 units was sold out by June,
just three months after the supercar’s debut at the Geneva auto
FAST FACTS
❙ TARGET BUYERS: Wealthy car enthusiasts looking for a
roomy supercar with four seats and 4wd to get out of
trouble in snow or mud.
show. Ferrari will limit production of the four-door FF to 800 a year.
The FF, which stands for Ferrari Four, replaces the company’s 612 ❙ NEW TECHNOLOGY: Secondary dual-clutch transmission
Scaglietti flagship. The FF is marginally bigger and roomier than the mounted north of the engine avoids the weight of central
Scaglietti but weighs the same at 1790kg, helped by a new light- and front differentials.
weight 4wd system called 4RM that adds a second, smaller, two- ❙ UNIQUE FEATURES: Extreme performances on every sur-
gear gearbox in front of the engine to transfer torque to the front face as the vehicle control unit calculates the maximum
wheels during 4wd. Traditional systems need a central and a front potential grip for each wheel instead of intervening when a
differential to transfer torque to the front wheels in 4wd model. wheel slips.
The main gearbox, a seven-speed dual-clutch unit, is mounted in ❙ WHAT’S GOOD? An every day driver can be as good
a transaxle design in the rear to power the rear wheels. as a Finnish rally champion in snow or mud.
In gears from first to fourth, when needed, the FF electronically
❙ WHAT’S BAD? 260,000 euros is a lot of money for a
transfers up to 47 percent of the 683Nm massive torque to the 4wd car. A wealthy buyer likely already has a suitable
front wheels. In higher gears or on high grip surfaces, all the torque vehicle for extreme driving conditions.
goes to the rear wheels.
The FF is powered by a new 660-hp, 6.3-liter V-12 direct-injection
engine that takes the car to a 335kph top speed and to just 3.7
seconds to accelerate from 0 to 100kph. Despite having more THE BASICS
horsepower than the 540-hp 5.75-liter Scaglietti, the FF is more fuel
❙ LAUNCH DATE: July,
efficient with CO2 emissions of 360 grams per kilometer, compared
mainland Europe;
with the Scaglietti’s CO2 emissions of 470g/km.
September, UK;
Ferrari product marketing director Marco Valentini said the FF, the
year end, U.S.
world’s fastest four-seat model, “creates a segment of its own."
❙ BASE PRICE: 260,000
Pininfarina S.p.A. designed a shooting brake-style body for the euros (Italy)
FF, which has a station wagon-shaped tailgate that gives access to ❙ PLATFORM: F151
a roomy cargo area of 450 liters, rising to 800 liters with the rear ❙ WHERE BUILT: Maranello, Italy
seats folded down. ❙ ANNUAL SALES FORECAST: 800
Italdesign Giugiaro S.p.A. penned the FF interior and also per- ❙ CO2 EMISSIONS: 360g/km
formed some body engineering for the FF project. ❙ MAIN COMPETITORS: Bentley Continental GT; top versions of
- Luca Ciferri BMW 6-series coupe and Mercedes CL AMG

44 ANE EXECUTIVE EDITION SEPTEMBER 2011

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AUTOMOTIVE NEWS EUROPE NEW CARS

FIAT’S Fiat plans to sell 13,000

Freemonts this year, and
33,000 units in 2012, the

NEW DODGE first full year of sales.

T
he Dodge Journey has been given a new life in Europe as
the rebadged Fiat Freemont. The car replaces Fiat’s slow-
FAST FACTS
selling Ulysse minivan. Last year, Fiat sold 1,956 Ulysse units. ❙ WHY LAUNCHED: Fiat needed to replace the slow-selling
Fiat plans to sell 13,000 Freemonts this year, and 33,000 units in Ulysee without major investments.
2012, the first full year of sales. ❙ TARGET BUYERS: Large families and sport enthusiasts.
For Europe, the Freemont received new front and rear styling, as
❙ NEW TECHNOLOGY: Trailer Sway Control that applies the
well as tweaks to its handling and suspension settings, plus Fiat’s
2.0-liter MultiJet 2 diesel engine. Fiat says the Freemont will have a brakes when a towed trailer starts to sway.
bigger sales potential than the Ulysse because it will offer four- ❙ WHAT’S GOOD? Great value for money. Second and
wheel drive, which the Ulysse did not have. In addition, sales third row seats easily fold flat to create a large cargo
through Fiat’s 5,000-member European dealer network, which is area. Third seating row is easy to access.
far larger than Chrysler’s, offer more sales potential. ❙ WHAT’S BAD? Its 4888mm length and 1878mm width
The Freemont also benefits from very aggressive prices. In Italy, make it a huge vehicle for Europe’s narrow roads.
the minivan has a starting price of 24,900 euros, 18 percent less
than the Ulysse. Total European sales in the large minivan segment
dropped from 300,000 in 2007 to 165,000 last year.
Using rebadged vehicles like the Freemont is part of Fiat-Chrysler
CEO Sergio Marchionne’s plan to cut costs and boost capacity uti-
lization at the automakers’ factories by cross-selling Fiat and
Chrysler group models. Dodge has stopped European sales of the
Journey, which launched in Europe in 2008. Sales peaked at 8,318
units in 2009 before declining 23.4 percent to 6,375 units last year,
according to UK market researcher JATO Dynamics.
- Luca Ciferri

THE BASICS
❙ LAUNCH DATE: Mainland Europe in June; no plans to launch in
UK and Ireland
❙ BASE PRICE: 24,900 euros (Italy)
❙ PLATFORM: Chrysler Group JC49
❙ WHERE BUILT: Toluca, Mexico
❙ ANNUAL SALES FORECAST: 33,000
❙ CO2 EMISSIONS: 169g/km (2.0-liter diesel)
❙ MAIN COMPETITORS: Ford Galaxy, VW Sharan, Renault Grand
Espace, Nissan Qashqai+2

46 ANE EXECUTIVE EDITION SEPTEMBER 2011

AUTOMOTIVE NEWS EUROPE NEW CARS

The Hyundai i40

station wagon
debuted in July;
a sedan variant
arrives in December.

HYUNDAI’S
FLEET CHALLENGER
W
ith the stylish i40, Hyundai is aggressively targeting rivals
such as Volkswagen, Opel and Ford in Europe’s mid-
FAST FACTS
sized segment, which is dominated by fleet sales. ❙ WHY LAUNCHED: The i40 fills a gap in Hyundai’s European
Hyundai launched the i40 first as a station wagon in July as this lineup.
body style accounts for 54 percent of the segment sales, the ❙ TARGET BUYERS: Families and fleet buyers looking for ver-
company says. A sleek, four-door sedan will be launched by year- satility and cargo space, who place value for money over
end. brand status.
The i40 is a crucial model in Hyundai’s ambitions to increase ❙ NEW TECHNOLOGY: Active park assistance, lane-keeping
European sales by 40 percent to 500,000 units by 2013. “The i40 assistance, rearview safety camera.
perfectly combines the four elements that have become core
❙ UNIQUE FEATURES: Air-ventilated front seats reduce tem-
Hyundai values: styling, efficiency, practicality and performance,"
perature and humidity, a first in the volume segment.
Hyundai Europe Chief Operating Officer Allan Rushforth said.
❙ WHAT’S GOOD? Rear legroom is better than some
Hyundai aims for an annual i40 volume of 60,000 units from 2012
premium cars.
with 45 percent of sales to business customers. The mid-sized seg-
ment is Europe’s fourth largest, with sales down 12.7 percent to ❙ WHAT’S BAD? Performance (diesel variant 137hp,
745,550 last year. gasoline model 177hp) is modest for power-hungry
The i40, which shares its platform with the Sonata model, which markets like Germany.
is sold in the United States and other global markets, was designed
and engineered at Hyundai’s European r&d headquarters in
Ruesselsheim, Germany. It is derived from the Genus concept car
unveiled at the 2006 Geneva auto show. THE BASICS
The Genus represented Hyundai’s vision for a mid-sized car that ❙ LAUNCH DATE: Station wagon, July; sedan December
combined practicality with emotional design. It had a hexagonal ❙ BASE PRICE:24,990 euros (Germany)
grille, a feature that has since become part of Hyundai’s brand face ❙ PLATFORM: YF
in Europe. ❙ WHERE BUILT: Ulsan, Korea
“We matured the Genus concept into the i40, our vision of a truly ❙ ANNUAL SALES FORECAST: 60,000
unique European car,” said Thomas Buerkle, chief designer at ❙ CO2 EMISSIONS: 122g/km (1.7-liter diesel)
Hyundai’s European technical center. ❙ MAIN COMPETITORS: VW Passat, Opel/Vauxhall Insignia, Ford
- Luca Ciferri Mondeo, Citroen C5, Toyota Avensis

48 ANE EXECUTIVE EDITION SEPTEMBER 2011

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AUTOMOTIVE NEWS EUROPE NEW CARS

Kia will offer a

Picanto three-

KIA IS PERKING door variant for

the first time.

UP THE PICANTO
K
ia is adding a three-door Picanto variant to help boost its
presence in minicars, Europe’s third-largest segment with
FAST FACTS
total sales of nearly 1.4 million cars last year. “The three- ❙ TARGET BUYERS: Single people and young families.
door is important to broaden the Picanto’s customer base to those ❙ NEW TECHNOLOGY: Heated steering wheel and LED head-
looking for a cheaper model and to buyers who want a sportier lamps – both a first for Europe in the minicar segment.
variant,” Kia Europe Chief Operating Officer Paul Philpott said. ❙ UNIQUE FEATURES: A bi-fuel (gasoline and liquefied petro-
Kia expects the three-door variant to cover a third of Picanto leum gas) variant
sales in Europe. The company plans to increase the Picanto’s
❙ WHAT’S GOOD? Exterior and interior design, built-in
European annual sales to about 60,000 from 47,094 units in 2010,
capability for a vast array of digital music players.
even though the model won’t offer a diesel engine alongside
1.0-liter and 1.2-liter gasoline powerplants. ❙ WHAT’S BAD? Interior trim fit and finish have been
For buyers looking for better fuel economy, a bi-fuel variant fueled improved a lot, but still lag behind competitors.
by gasoline or liquefied petroleum gas will launch later this year.
The Picanto is Kia’s No. 2 selling model in Europe behind the Cee’d
compact family. The Picanto, and the new Rio subcompact which
goes on sale in late August, are the crucial models in Kia’s quest to
THE BASICS
boost sales in Europe by 70 percent to 450,000 units by 2013 from ❙ LAUNCH DATE: 5-door April, 3-door September
262,627 units last year. ❙ BASE PRICE:8,990 euros (Germany)
The 3595mm-long Picanto has been completely redesigned and ❙ PLATFORM: TA
re-engineered, growing 60mm in length, with a 15mm longer ❙ WHERE BUILT: Seosan, South Korea
wheelbase. “In profile, the new Picanto features significant sculpting ❙ ANNUAL SALES FORECAST: 60,000 units (2010)
and a very prominent rising character line,” Kia ❙ CO2 EMISSIONS: 90-95g/km (1.0-liter model when running on
design boss Peter Schreyer said. “The result is LPG/gasoline)
a layering of light and shadow and this ❙ MAIN COMPETITORS: Fiat Panda, Peugeot 107,
breaks up the height, giving the car a more Citroen C1, Hyundai i10, Toyota Aygo
sure-footed stance.”
- Luca Ciferri
Kia Picanto five-door

50 ANE EXECUTIVE EDITION SEPTEMBER 2011

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AUTOMOTIVE NEWS EUROPE NEW CARS
BMW 1 SERIES
IS GROWING UP
B
MW’s latest 1 series has a bigger and better interior to help it
challenge rivals from Audi and Mercedes-Benz. "We want to
be No. 1 in the (entry-premium) segment," said Juergen
Pawlik, product management boss for the 1- and 3-series models.
BMW expects 80 percent of 1 series sales to be in Europe. Last
year, the company sold 147,900 units of the 1 series in Europe. In
comparison, Audi sold 178,900 A3 cars while Mercedes found
190,300 customers for for its A- and B-class models.
Launched in 2004, the 1 series’ biggest weakness was modest
interior quality and roominess. Both are addressed with the second-
generation car, Pawlik said, while keeping the sporty and dynamic
handling typical for a BMW.
The new 1 series is 850mm longer and 170mm wider than the
outgoing car with a 30mm longer wheelbase. This gives rear pas-
sengers more legroom and boosts luggage space by 30 liters to
360 liters.
The 1 series has become BMW’s No. 3 selling model after the 3
series and 5 series, with 196,000 units sold globally last year. “The
1 series is a real customer-conquering machine with 70 percent of
the car’s buyers coming from other brands,” Harald Krueger,
BMW’s personnel chief, said.
With the entry-level 1-series model family BMW seeks to attract
younger buyers. The five-door will arrive in showrooms in
September as this is the most popular variant, followed by the
three-door next year. Coupe and convertible versions will come to
market in 2013-2014, but these may be badged as 2 series.
- Harald Hamprecht
52 ANE EXECUTIVE EDITION
The new 1 series is
850mm longer and
170mm wider than the
outgoing car with a 30mm
longer wheelbase.
FAST FACTS
❙ TARGET BUYERS: 1-series buyers have an average age of
40 and 40 percent are women.
❙ NEW TECHNOLOGY: BMW says the 1 series has many
driver assistance and mobility services unique in a com-
pact car, such as lane departure warning with collision
warning, and road sign recognition that for the first time
also registers signs prohibiting overtaking.
❙ WHAT’S GOOD? Huge improvement in perceived inte-
rior quality, although Audi is still ahead.
❙ WHAT’S BAD? Exterior design could have been more
dynamic. The stop-start system works quite roughly
and the most powerful engine, the 120d with 184 hp,
does not accelerate as impressively as it might.
THE BASICS
❙ LAUNCH DATE: Europe, September; China, 2012
❙ BASE PRICE:23,800 euros (Germany)
❙ PLATFORM: BMW Small Rear Drive
❙ WHERE BUILT: Regensburg and Leipzig, Germany
❙ ANNUAL SALES FORECAST: 145,000-plus as of 2013
❙ CO2 EMISSIONS: 114g/km (116d); Next spring an Efficient-
Dynamics edition launches with CO2 emissions of 99g/km
❙ MAIN COMPETITORS: Audi A3
SEPTEMBER 2011
AUTOMOTIVE NEWS EUROPE OEM
LEANER, GREENER
AND MORE HIGH-TECH
How Europe’s car and component
plants are changing for the better
DOUGLAS A. BOLDUC
dbolduc@crain.com
uropean factories are being upgrad-
E
ed to make them greener, leaner and
more capable of working with high-
tech materials such as carbon fiber.
It’s all part of the industry’s effort to boost the
sustainability of their plants while also
improving their productivity and creativity to
gain a competitive advantage over rivals.
To become more environmentally friendly,
Renault, Audi, Ford, Toyota and Daimler
and others are turning to solar fields and
wind turbines in Europe.
Since early 2010, Audi has dedicated
27,000 square meters of roof space at its
facilities in Ingolstadt and Neckarsulm, both
in Germany, to generate electricity from the
sun, resulting in CO2 savings of more than
1,000 metric tons a year.
“We can produce more than 1,900
megawatt hours of electrical energy each year
(in Neckarsulm). This corresponds to the
electrical consumption of 418 four-person
households,” Bernd Martin, Audi’s head of
environmental protection, said in a release.
Toyota says it will slash 25 percent off its
heating bill and cut emissions by 20 metric
tons a year because of a new solar structure
installed this summer on the wall of its car
assembly plant in Valenciennes, France.
When sunlight hits the 12-by-33 meter solar
wall, the panels absorb the heat, which
warms the interior of the building up to 9
degrees Celsius during cold weather.
Also this summer, Toyota started generat-
ing energy from 17,000 solar panels at its
plant in Burnaston, England. The system has
Ford uses power from two 150-meter-tall
wind turbines to cover much of its electricity
needs to produce the Ford Mondeo, S-Max
and Galaxy in Genk, Belgium.
SEPTEMBER 2011
the capacity to save 2,000 metric tons of CO2
emissions from the complex each year, and
realize an energy saving equivalent to 4.6
million kilowatt hours – roughly the power
needed to build 7,000 cars a year.
In late 2009, Ford started getting power
from two 150-meter-tall wind turbines at its
plant in Genk, Belgium. Each wind turbine
can generate two megawatts – enough to
power 2,300 private homes. The wind tur-
bines provide a significant part of the electri-
cal power needed in the Genk plant, which
makes the Ford Mondeo, S-Max and Galaxy
models. The rest of the plant’s power comes
from renewable energy sources, helping the
factory save about 40,000 metric tons of CO2
emissions each year.
Meanwhile, Ford’s engine plant in
Dagenham, England, has met all of its elec-
tricity needs with power from two wind tur-
bines since 2004. Dagenham tapped into a
third wind turbine last month. The new tur-
bine covers all the electricity needs of the
plant’s newly installed production line for
the 1.4- and 1.6-liter Duratorq TDCi diesels.
Leaner output
Besides making their factories greener,
automakers are also making them more effi-
cient and high tech.
Volkswagen Group plans to tap into the
energy produced by its press shops, manu-
facturing boss Michael Macht said.
“With a press, you first have to raise the
die – and that takes energy. We can recap-
ture a part of this energy during the lowering
and braking of the die, since the new press
lines have direct drive servo systems with
highly dynamic torque motors. There is a
great dynamic and all kinds of potential with
this issue,” Macht told Automotive News
Europe sister publication Automobilwoche.
VW is also an industry leader when it
comes to using so-called “megaplatforms,”
which allow automakers to gain scale, in-
crease flexibility and boost margins by rolling
out a seemingly endless variety of models that
are virtually identical under the skin.
By 2018 VW Group plans to make 40
models, generating production of 6 million
vehicles using its Modular Transverse
Toolkit.
“With the toolkit strategy, we aim to
reduce onetime-expenditure and unit costs
by 20 percent each, and assembly hours – the
time each takes to manufacture – by 30 per-
cent,” VW brand product development boss
Ulrich Hackenberg told ANE.
A typical assembly plant produces about
250,000 vehicles a year, while fewer than
100,000 units of individual models are made
sometimes, according to consultancy Oliver
Wyman. Data from analysts IHS Automotive
shows that the number of models produced
on a platform will rise to 3.2 from about 2.6
last year and 2.2 in 2002.
For years, the magic word has been “stan-
dardization.” Automakers must now develop
a joint strategic blueprint otherwise they
won’t be able to produce several vehicle
models on the same assembly line all over
the world, as Ford does with the new Focus,
which by 2012 will be rolling out of plants in
Germany, Russia, the United States, China
and Thailand.
New capabilities
The plant of the future also will need to be
able to work with cutting-edge materials
such as carbon fiber. This will result in less
stamping, welding and painting at factories
as the use of the lightweight material grows
(see related story, page 76).
“Look at the carbon technology. You don’t
need a body shell, welding robots or a paint
shop. Instead, carbon involves weaving,”
BMW Chief Financial Officer Friedrich
Eichiner told ANE.
BMW is getting ready for this by investing
530 million euros to upgrade plants in
Leipzig and Landshut, Germany, as well as
opening a joint venture facility with carbon
fiber specialist SGL Group in Moses Lake,
Washington.
The plants will process the carbon fiber
that BMW says will be crucial to the success
of its i3 and i8 electric cars, starting with the
launch of the i3 in 2013.
Eichiner said that he believes BMW’s
investment in innovation will give it a com-
petitive advantage over rivals Audi and
Mercedes-Benz.
“The BMW i3 and i8 are the best exam-
ples,” he said. “They don’t merely involve
conversions, that is, electric motors installed
in traditional bodies. The BMW i3 is the first
high-volume vehicle whose body is made of
carbon fiber to a large degree. That’s a revo-
lution in automobile manufacturing. In
addition, we systematically organized the
value added chain to be sustainable.”
Harald Hamprecht, Luca Ciferri and
Henning Krogh contributed
ANE EXECUTIVE EDITION 53
 Revived and Remodeled:
The Path to Global Growth
SPEAKERS INCLUDE:
• Sergio Marchionne, CEO, Chrysler Group LLC
• Jim Farley, Group Vice President, Global Marketing,
Sales and Service, Ford Motor Company
• Steve Girsky, Vice Chairman, Corporate Strategy,
Business Development, Global Product Planning, and
Global Purchasing and Supply Chain, General Motors
• Bill Krueger, Vice Chairman, Nissan Americas
• Mark Norman, President and Chief Operating Officer, Zipcar
• Don Romano, CMO, Mazda NAO and President, Mazda Canada
www.autonews.com/worldcongress
• Earl Hesterberg, President and CEO, Group 1 Automotive
• Jim Kamsickas, Global Co-Chief Executive Officer
and President of North America and Asia, IAC
• Rebecca Vest, Vice President, Purchasing,
Renault-Nissan Purchasing Organization
• Roland Hwang, Transportation Program Director,
Natural Resources Defense Council
• Adam Jonas, Managing Director, Morgan Stanley
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Plus, the presentation of:
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• BorgWarner Championship Driver’s Trophy and
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QA &
STEPHEN ODELL
DOUBLE TEST
AUTOMOTIVE NEWS EUROPE
Ford of Europe’s challenge: Create successful
cars for global markets while remaining profitable
urope plays a key role in Ford Motor
E Co.’s plan to be a global powerhouse.
Ford of Europe CEO Stephen Odell
faces two challenges. Regionally, he must
keep the European operations profitable
despite a fading market. Globally, he must
develop the right compact and subcompact
models for Ford’s different markets around
the world. Those so-called B and C cars are
expected to generate 55 percent of Ford’s
global output by 2020. Odell discussed those
challenges with Automotive News Europe
Chief Correspondent Luca Ciferri.
Ford developed the Fiesta and
Focus so that one design – using
the same parts – could be sold
around the world. What percent-
age of their parts are global?
Looking to the European and U.S. ver-
sions, it is about 60 percent on the Fiesta and
over 80 percent on the Focus. Part of this
difference is that the new Fiesta started as a
European product. During the development
❝
process, it was adapted to the technical needs
of the U.S. market. The new Focus was a
global project from day one.
“Some manufacturers
reduce their vehicle prices
to unrealistic levels to attract
customers and try to keep
their production facilities
operating.”
How tightly has Ford integrated the
design activities of its North
American and European units?
You cannot develop a global car in splen-
did isolation in your own region. We inter-
face with Dearborn (Ford’s global headquar-
ters) and with the satellite technical center in
China for the B and C cars that would also
be sold there. At the same time, we are part
of the process carried on by Dearborn to
develop the future Mondeo. The advance of
technology is that today you can run global
projects in teleconference, without the need
to fly people around.
Initially, Ford was going to build
the next-generation Kuga in the
❙ For the complete Stephen Odell interview go to europe.autonews.com/odellexecedition ❙
SEPTEMBER 2011
OEM
U.S. for export to Europe. Now
Ford plans to build the European
version in Valencia, Spain. What
happened?
This decision is part of the realignment of
our European manufacturing footprint that
now calls for architecture-dedicated plants.
The next Kuga perfectly fits Valencia.
Together with the Saarlouis plant in
Germany, it will be dedicated to C cars.
Thus it can also manufacture the Focus, C-
Max and the next Transit Connect. The
Genk plant in Belgium remains the home of
the Mondeo, S-Max and Galaxy. Ford’s
Otosan plant in Kocaeli, Turkey, continues
to build the large Transit vans. Cologne will
continue building the Fiesta, while the plant
we are refurbishing in Craiova, Romania,
will make the other B products.
The Craiova plant’s first vehicle will
be the B-Max small minivan. Where
will you sell it?
Right now, the B-Max is intended mainly
for western and eastern Europe. We are con-
tinuously looking for opportunities in South
America, China and the U.S., but nothing is
on our radar screen.
Will Craiova’s second product be a
small crossover to rival Toyota’s
Urban Cruiser?
I have been to Las Vegas 25 times and I
never, ever bet. What I can tell you is this: It
would be a fantastic B vehicle!
Here’s a second guess. Will Craiova
build a small city delivery van to
compete with Fiat and PSA?
We continuously look at the gaps in our
cycle plan. Nevertheless, there will always be
gaps, because you have to prioritize your
spending. I think we have done exactly the
right thing getting the core products for the
market.
Is there still room for regional vehi-
cles in Ford’s global organization?
Absolutely. I do not see us selling many
Ford F-150 or F-250 (large pickups) in
Europe. There is no hard rule that every sin-
gle new car has to be global. For example,
although the B cars for Europe and India
look the same, they have a significantly dif-
ferent level of technical content.
MEET THE BOSS
●
Stephen Odell, 56, is a Ford veteran with wide
global management experience. The London-born
Odell joined Ford of Britain in 1980 as a graduate
trainee. He rose through the ranks to take on key
roles at Ford subsidiaries Jaguar and Mazda, as
well as at Ford of Europe. After running Volvo Cars
for two years, Odell was last year named head of
Ford’s European operations.
Fiat builds the Ford Ka alongside its
Fiat 500 and Panda minicars in
Poland. What’s next?
If you ask Sergio (Marchionne), I think he
would say we are both happy with the prod-
uct and that this is a good relationship we
are happy to continue. Ford doesn’t have an
A platform and it has always been hard to
make money on minicars.
Can Ford make any money redesign-
ing the Ka on its own?
The replacement is too far off to discuss.
Ford expects west European sales
of light vehicles will range from
14.8 million to 15.3 million units
this year, compared with 15.3 mil-
lion units in 2010. Why such a broad
spread?
This year, the industry had a run rate of
about 15.9 million units in the first quarter
and 14.9 million in the second quarter. The
market is tailing off, and it’s highly likely the
yearly total will be below 2010.
We are seeing not only Greece and
Portugal, but also Italy, France, Spain and
UK slowing down under the combined
impact of sovereign debt concerns and aus-
terity packages.
The German economy has come out of
recession far quicker than most other
Western nations, primarily spurred by its
strong manufacturing industry and exports.
It is really hard to judge how the positive
factors could balance with the negative
ones. ■
ANE EXECUTIVE EDITION 57
QA &
KARL-FRIEDRICH STRACKE
AHEAD OF PLAN
AUTOMOTIVE NEWS EUROPE
New CEO plans to revive Opel/Vauxhall; polish
the brand with innovative products like Ampera
arl-Friedrich Stracke believes he has
K the wind at his back. In April, he was
named CEO of Opel/Vauxhall with
the task of bringing General Motors’ only
unprofitable unit back into the black. The
division’s turnaround is starting to gain
momentum, Stracke says. This year, Opel has
increased market share in 19 out of 27
European markets. The company is prepar-
ing to roll out three significant products: the
Zafira Tourer, Astra GTC and Ampera plug-
in hybrid. And Opel’s sales are expected to
grow 8 percent this year despite Europe’s
sluggish recovery.
Stracke outlined Opel’s progress in an
interview with Automotive News Europe
Editor-in-Chief Harald Hamprecht.
Where does Opel’s restructuring
stand?
We are on the right path. I can’t anticipate
financial results, but we have gained market
share in 19 out of 27 European markets since
the start of the year. We are also in the run-
ning outside of Europe. For example, we
plan to sell 60,000 Opels in Russia this year –
after 40,000 last year.
Last year, you sold 1.2 million units.
How many will you sell this year?
I assume about 1.3 million vehicles for all
of 2011. And we won’t stay there. We want
to continue to expand our market share in
Europe, our main market. We achieved an
overall share of 6.4 percent in Europe over
the first half of the year. In the German car
market, we reached a share of 8.4 percent in
June alone. At the end of the year, we want
to be still higher. By the middle of the
decade, we are striving for 8.5 percent in
Europe and more than 10 percent in
Germany.
How does that affect your financial
prospects?
Nothing has changed with regard to our
objective of finishing 2011 at least at
breakeven.
So you will be fulfilling the plan
introduced by your predecessor,
Nick Reilly?
It was certainly a good, realistic plan.
Incidentally, we are even above the sales plan
for this year. Now we need special shifts and
❙ For the complete Karl-Friedrich Stracke interview go to europe.autonews.com/strackeexecedition ❙
58 ANE EXECUTIVE EDITION
OEM
shorter factory breaks (to boost production).
At the same time, we have very important
introductions ahead of us. The Zafira Tourer
and the Astra GTC will give us a more pow-
erful tailwind.
What are you planning for 2012?
Our goal is to be sustainably profitable
beginning next year.
Can you be more specific?
I wouldn’t like to cite specific figures. But
we’re confident we will achieve our goal with
our significantly improved cost structure,
which will have its effect in 2012 for the first
time. And (we are targeting) higher sales fig-
ures.
How do you plan to polish the
brand’s image?
The Ampera is our most important
launch of the year – the right vehicle at the
right time. It puts us three years ahead of
the competition. It drives under purely elec-
tric power at least 60km and then addition-
ally about 500km thanks to the range exten-
der.
Isn’t the Ampera a rebadged
Chevrolet Volt?
That perception is incorrect. The Ampera
and Volt siblings are a development of
General Motors and not of an individual
brand. Many engineers in the U.S. as well as
our research center at Mainz-Kastel carried
out this development.
I myself played a leading role as GM’s vice
president of engineering. We differentiated
the two vehicles sharply from another: In the
exterior and interior design, in the driving
and acoustic comfort, and above all in the
eight-year battery warranty that only will be
available to Ampera customers.
How many Amperas do you plan to
sell?
We expect a volume of 8,000 to 10,000
vehicles in 2012. At the moment, we already
have 5,000 pre-orders, including 2,000 from
private customers.
In addition, our production capacity was
recently increased at GM’s Hamtramck fac-
tory, where the Ampera is built. I am confi-
dent that we can build 12,000 to 15,000
Amperas if demand keeps growing.
MEET THE BOSS
●
Karl-Friedrich Stracke, 55, rose through the GM
ranks after joining Opel as a mechanical engineer in
1979. After working in Europe in jobs such as man-
ufacturing director at Opel’s plant in Bochum,
Germany, and as Opel product development direc-
tor, he became GM Europe’s head of engineering in
2004, responsible for Opel/Vauxhall and product
development and Saab product design. After 2006,
Stracke took on global product roles within GM,
becoming head of global vehicle engineering in
2009, when he led development of the Opel Ampera
and Chevrolet Volt. The native of Hesse, Germany,
was called back to Europe in April to succeed Nick
Reilly as Opel/Vauxhall CEO.
What is the process for Ampera
sales in Europe? Can every Opel
dealer sell the Ampera?
No. Out of our 4,600 dealerships in
Europe, 150 to 200 are becoming Ampera
partners. They will invest in the necessary
hardware and software. Most of the Ampera
dealers initially will be in Germany and the
Netherlands. We expect Germany and the
Netherlands each will generate 30 percent of
the Ampera’s total European sales volume.
What other measures are you plan-
ning to improve your image?
We will pay more attention to our Opel
clubs, the most loyal fans of our brand. We
will closely examine our motorsports strategy
and carefully weigh what advances our brand
the most. On the product side, we will
become more emotionally appealing with
models such as the Astra GTC, a small SUV
and a new, innovative small car in the B seg-
ment.
What are the plans for a new flag-
ship above the Insignia? According
to well-informed company sources,
it won’t be ready before 2016-2017
and you plan to sell 20,000 units a
year.
We are in the planning phase and we’ll use
GM’s modular architecture kit for it. Such a
vehicle would round out our brand upwards
and position it higher overall. ■
SEPTEMBER 2011
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 AUTOMOTIVE NEWS EUROPE OEM
RUSSIAN
REVOLUTION
Renault is making the world’s biggest car plant fit for the future
LUCA CIFERRI
lciferri@crain.com
OGLIATTI, Russia — Here at
T
AvtoVAZ's sprawling Togliatti
assembly plant, the mood is opti-
mistic after the company's near-col-
lapse during the economic crisis.
Togliatti is the world’s the biggest
car plant, with its five assembly lines covering
six square kilometers, and its giant press shop
capable of churning out 1.5 million units a
year.
A healthy AvtoVAZ is crucial for Russia as
the automaker’s revenues account for 0.5 per-
cent of the country’s gross domestic product
but the Togliatti plant is a shadow of its for-
mer self. When the downturn began in 2008,
AvtoVAZ — never a model of efficiency —
was forced to take drastic measures.
First, the company laid off more than
20,000 employees who worked in its kinder-
gartens, schools, hospitals and public trans-
port — a relic of the company’s Soviet-era
social services network. Next, AvtoVAZ elim-
inated 27,000 automotive jobs, reducing its
62 ANE EXECUTIVE EDITION
payroll is to 73,000 employees. The company
was forced to take action after the great col-
lapse of 2009, when industry sales in Russia
plunged 50 percent to 1.5 million units.
AvtoVAZ’s Lada was hit hard, as sales
slumped 44 percent to 350,000 units.
Unable to properly renew its aging product
lineup, Lada could not compete with global
brands like Chevrolet, Hyundai, Ford and
Volkswagen.
Despite the crisis, one of every four cars
sold in Russia is still a Lada. But AvtoVAZ has
yet to shed its reputation for poor quality and
obsolete technology. That’s what the Russian
automaker’s partners, Renault and Nissan,
are trying to fix.
A team of Russian, French and Japanese
engineers are working on the new assembly
lines and a paint shop that will produce five
models based on the Dacia Logan.
For easy identification, Renault employees
wear yellow safety helmets, Nissan workers
wear white, and Lada personnel wear blue. If
you don’t remember your colleague’s name,
no problem: it’s written on the helmet.
Togliatti is very
dependent on
AvtoVAZ’s success.
AvtoVAZ’s sprawling
factory in Togliatti, Russia.
Despite their presence, Renault’s makeover
of the huge Togliatti complex remains unfin-
ished. New lines are being installed, but you
can see buildings stretching for kilometers
that have not been used in decades.
And every now and then, you will see peo-
ple who are doing absolutely nothing and do
not even try to look occupied. That will
change as Renault’s turnaround plan gains
speed.
Financial crisis
Renault-Nissan CEO Carlos Ghosn wants
to make Russia the largest market for the
French-Japanese alliance.
In 2008, Renault purchased a 25 percent
stake in AvtoVAZ for $1 billion. But when the
global recession set in, the company did not
have the financial resources to rebuild its new
Russian partner.
AvtoVAZ was left to its own fate. By 2009,
Russia’s largest automaker was on the verge
of bankruptcy. The Russian government
drew up a $900 million bailout and pressured
Renault to give AvtoVAZ free access to the
Dacia Logan technology.
Renault, which previously expected to
recoup 220 million euros for licensing Dacia
technology to Lada, was forced to relinquish
it for free to prevent a dilution of its stake in
AvtoVAZ.
In 2010, the Russian car market began to
recover, and Renault expects industry sales to
jump 41 percent this year to 2.7 million units.
Russia's Ministry of Industry expects sales to
top 3.3 million units in 2015, possibly sur-
passing Germany as Europe’s largest market.
Renault sees big opportunities in Russia
because car ownership is low at 230 vehicles
per 1,000 people, less than half the number
REVOLUTION ❙ CONTINUED ON PAGE 63
SEPTEMBER 2011
AUTOMOTIVE NEWS EUROPE OEM
LADA REINVENTS ITSELF
WITH A NEW MODEL LINEUP
A
lthough Lada now accounts for less
than a quarter of Russia’s passen-
ger car sales, nearly 39 percent of
all cars on Russian roads are
Ladas.
And that represents a big opportunity.
The average Russian car is 13 years old,
and when those cars head to the scrap
heap, the owners will seek no-frills trans-
portation.
AvtoVAZ is preparing to defend its turf.
“We are and will remain the cost champion
among mass-market producers,” said Olag
Lobanov, the company’s chief financial
officer.
By year end, Lada will cease production
of its iconic Classic compact sedan, also
known as the 2107, a Fiat-designed model
first introduced in 1970.
Roughly, two of every three Ladas ever
produced were Classics, but its time is past.
In December, AvtoVAZ will launch the
Granta, a stripped-down version of its
Kalina subcompact.
Priced at 5,500 to 7,500 euros, the Granta
is a bit more expensive than the Classic,
which retails for 5,200 euros. But it is
squarely aimed at the same no-frills market
segment.
After sales started falling, AvtoVAZ had
planned to cease production of the Classic
last year.
But in March 2010, the government
introduced a cash-for-clunkers incentive
that slashed the Classic’s price to 3,900
euros. Buoyed by the incentives, Classic
sales last year doubled to 136,006 units,
and once again it was Russia’s best-selling
model.
According to Russia’s Ministry of
Industry, Lada models accounted for nearly
77 percent of the roughly 600,000 sales that
qualified for scrappage incentives.
REVOLUTION ❙ CONTINUED FROM PAGE 62
than in France, and Russians strive to own a
new car as a symbol of social success.
Last November with Russian Prime
Minister Vladimir Putin, Ghosn finally
agreed to take over AvtoVAZ.
Control of AvtoVAZ
Ghosn plans to boost Renault-Nissan’s
stake to a controlling 50 percent-plus-one-
share and industry analysts appear opti-
mistic. "The investment seemed risky in
2008 and worse in 2009, but now it looks as
if Russia could turn out to be Renault’s
China," said Deutsche Bank analyst Gaetan
Toulemonde.
SEPTEMBER 2011
But scrapping incentives elapsed in May,
and so did demand for the 41-year-old
icon.
Going upscale
While Lada won’t abandon the no-frills
segment, it does want to expand its reper-
toire. To meet rising consumer expecta-
tions, Lada will completely renew its prod-
uct range in the next six years.
Using four basic platforms, Lada will
introduce 20 new models by 2017. Three of
those future platforms will come from
AvtoVAZ, while the fourth will be
Renault’s Dacia Logan platform.
Next year, the Kalina subcompact will get
a radical overhaul, which will generate vari-
ants for the Renault and Nissan brands.
The Kalina 2, which will retail for 6,000 to
8,000 euros, will be cheaper than the cur-
rent model, which starts at 6,950 euros.
In 2012, the Priora compact car will be
restyled and eventually replaced in mid-
2015.
In 2015, Lada will replace the Lada 4x4,
previously known as the Niva, a trademark
In return for his investment, Ghosn
expects a big payoff. He aims to boost Lada
sales to 1 million units by 2016, up from
517,147 last year. Renault would nearly triple
its deliveries to 320,000, up from 96,466
units. And Nissan sales would jump to
280,000 units, up from 79,614.
To achieve those ambitious sales goals, the
alliance must upgrade the Togliatti plant,
which is 1,000 km southeast of Moscow.
AvtoVAZ has the installed capacity to pro-
duce up to 900,000 units annually. With
Renault’s plant in Moscow and Nissan’s
plant in St. Petersburg, the alliance currently
can build 1.1 million units a year in Russia.
If Togliatti were to add a third production
❝
“We are and
will remain the
cost champion
among mass-
market
producers.”
OLAG LOBANOV
AvtoVAZ chief
financial officer
Lada will replace
the 2017 (right) with
the Granta.
sold to General Motors in 2002. AvtoVAZ
promises the new 4x4 model will remain
the world’s cheapest off-road vehicle.
In 2016, Lada will introduce a new family
of compact models, possibly using the plat-
form and some components of the Renault
Megane. These cars will retail for 9,200 to
14,000 euros, Lada’s top-of-the-line models.
Lada also will woo trendy buyers with a
small and a compact crossover, both with
front-wheel or all-wheel drive. The
crossovers will be available in 2016 and
2017 respectively.
By 2017, AvtoVAZ expects the Logan
platform will account for 25 percent of its
output. The subcompact Granta and Kalina
2 will generate 34 percent of sales, while the
Priora and other compact models will
amount to 26 percent of total sales.
While it doesn’t plan to abandon Russia’s
no-frills entry-level market, Lada is count-
ing on its new model lineup to move
upscale a bit. The company hopes to grow
revenue to 405 billion rubles (10.3 billion
euros) in 2017, up from 138 billion rubles
last year. ■
shift, it could boost production by 500,000
units, which would be shared by Lada,
Renault and Nissan.
But the Lada brand also poses the biggest
risk for the alliance, because Russia’s grow-
ing middle class wants more than basic
transportation.
“Russia has some 15 million households
with $25,000 to $50,000 annual income and
over 10 million earning more than $50,000 a
year,” said Emmanuel Quidet, Moscow-
based president of the French-Russian
chamber of commerce.
And that’s the group that will ultimately
determine whether Ghosn’s big gamble suc-
ceeds. ■
ANE EXECUTIVE EDITION 63
AUTOMOTIVE NEWS EUROPE OEM

RESCUING FIAT
Marchionne counts on Coda, Francois to fix flagging European operations
LUCA CIFERRI
lciferri@crain.com

F
Fiat S.p.A. CEO Sergio Marchionne hopes
a mix of Italian experience and French cre-
ativity will reverse the automaker’s steep
financial and unit-sales losses in Europe.
On Sept. 1, Fiat veteran and Italy native
Gianni Coda took charge of the European
region for the Fiat-Chrysler alliance and
Olivier Francois, a Frenchman, moved from
his job as Lancia-Chrysler CEO to lead the
Fiat brand, which accounts for three-quar-
ters of the Italian automaker global sales.
Both executives declined to comment for
this story.
With 1.67 million new-car registrations in
1991, Fiat was Europe’s second-largest
automaker, trailing only Volkswagen AG’s
2.2 million sales. Fiat now ranks sixth in
Europe and could drop to seventh because of
the sales slump.
Marchionne recently admitted that Fiat has
suffered in Europe because so much of his Fiat brand hopes to get a sales boost in Europe from creative ads like the 2007
management time in the last 30 months has campaign for Lancia that starred Italian entertainer/model Carla Bruni. The ad
been dedicated to getting Chrysler Group was the brainchild of new Fiat brand boss Olivier Francois (inset above).
back on track following its 2009 U.S. bank-
ruptcy.
Commenting in a statement on the new purchasing for Fiat Auto in July 2006 then
roles for Coda, Francois and 20 other execu-
SERIOUS SLUMP promoted him to head of procurement for
tives within Fiat’s Group Executive Council, First-half European sales the entire group in March 2008. His expert-
Marchionne said: “We recognize in these for Fiat Group’s brands ise has saved the company billions of euros
leaders the future of Fiat-Chrysler as an effi- UNITS % CHANGE
on purchasing.
cient, multi-national competitor in a global
Fiat 395,924 -19% Marketing success
automotive marketplace.”
Also taking a key new job as part of the Alfa Romeo 78,393 +48% The flamboyant Francois takes over Fiat
shake-up is Saad Chehab, who succeeds Lancia 52,355 –14% brand from Andrea Formica, who left the
Francois as Lancia-Chrysler CEO. Chehad, Ferrari, Maserati 3,556 –6% company at the end of August. Formica
44, was previously Chrysler’s head of group joined Fiat from Toyota Europe in
Total Group 530,228 –13% September 2010.
advertising.
Source: ACEA Fiat is hopeful that Francois’ creativity and
Product drought innovation will complement Coda’s engi-
Coda, who joined Fiat 32 years ago, inher- but the company lost neering rigor.
its a lot of problems, and he does not have about 1 billion euros last A Paris-born executive who turned 50 last
much time to solve them: at 63, he has less year in Europe, accord- month, Francois joined Fiat in 2005 after 15
than two years before he reaches Italy’s ing to Max Warburton, a years at Citroen.
mandatory retirement age. London-based analyst at While waiting for new products, Francois
Marchionne’s decision to freeze invest- Sanford C. Bernstein. stabilized sales of Lancia’s aging product
ments in new product in the second half of But Coda, a fast-talk- portfolio with a mix of brilliant ads and spe-
2008 kept Fiat in the black during the eco- ing, chain-smoking sea- Gianni Coda has cial model series.
nomic crisis, but the automaker has lost sales soned executive, has a taken on tough His most famous ad in Europe, shot in
and market share in Europe because of its history of leading dra- tasks at Fiat 2007, featured Italian model Carla Bruni in
lack of fresh models. The product drought matic turnarounds. From throughout his the Lancia Musa small minivan. The timing
will continue until 2012. 1999 to 2002, he led a of the ad could not have been better as it
career. began airing right before the world learned
With a weak lineup, Coda will have a revival of Fiat’s Latin
tough time stemming Fiat’s financial losses American unit, which today is a huge profit that Bruni would marry French President
in Europe because the brand will need to center for the company. Nikolas Sarkozy and become the country’s
offer big discounts to maintain sales. An He was called back to Turin in February first lady.
added challenge is that overall European car 2002 to restructure Fiat’s largest business Francois’ first task is to fine tune the mar-
sales are set to decline as countries with high unit, which included Fiat cars, light commer- keting that will be used to launch the new
public debt introduce austerity measures that cial vehicles and Lancia. Panda, which has been Europe’s best-selling
will hit consumer spending. His work helped the company avoid col- minicar since 2004 and is Fiat’s No. 2 vol-
Fiat doesn’t break down results by region, lapse. Marchionne put Coda in charge of ume model after the Punto subcompact. ■

64 ANE EXECUTIVE EDITION SEPTEMBER 2011

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AUTOMOTIVE NEWS EUROPE OEM
As Ghosn’s No. 2 at Renault, Tavares must reshape
the company and rebuild consumer confidence
THE ‘OTHER’ CARLOS
BERTRAND GAY
autonewseurope@crain.com
I
t’s one thing to take the place of a man
who was an institution inside the execu-
tive hallways at Renault. It’s another to
take that position after an alarming
industrial espionage scandal, heavy gov-
ernment pressure and plenty of public
scrutiny. But that’s where Carlos Tavares finds
himself as Renault’s relatively new No. 2.
Few doubt there’s an executive better posi-
tioned for the challenge. “I’ve dealt with
many OEMs but I’ve never dealt with anyone
with such a broad view as Carlos Tavares,”
said Joao Dias, national coordinator of the
mobi-e electric vehicle charging network in
Portugal, where Nissan has a groundbreaking
EV partnership with the government. “I think
his human characteristics, his personality, are
very important in him being able to make all
these connections with many governments
and important cities.”
An engineer by training, Tavares’ great tal-
ent lies in zooming out to see the big picture.
It’s why in late May, Renault turned to
Tavares, formerly Nissan’s top executive for
the Americas regions, as second in command
to CEO Carlos Ghosn.
Tavares replaced Renault Chief Operating
Officer Patrick Pelata, who stepped down in
April following a botched industrial espi-
onage investigation. Tavares, who is
Portuguese, spent 23 years at Renault in
engineering and program management roles
before moving to Nissan in 2004. Like
Ghosn, a French citizen who was born in
Brazil to a Lebanese father and French moth-
er, Tavares has an international outlook.
Known as a hard worker with an informal
and approachable style, Tavares is comfort-
able changing between Portuguese to flawless
French and English.
Potential Ghosn successor
“Tavares has a good knowledge of both
Renault and Nissan and should help Renault
capitalize on the alliance,” said David
Arnold, a London-based Credit Suisse ana-
lyst, who believes Tavares could “one day be
seen as a potential Ghosn successor.”
But being Pelata’s successor will not be
easy for Tavares. He faces a number of chal-
lenges to implement the carmaker’s mid-
term strategy. The plan, which is called
Renault 2016 – Drive the Change, aims to
boost growth in international markets and
become a leader in electric vehicles.
“We need to be sure that all our model
lines are profitable and more global. We have
66 ANE EXECUTIVE EDITION
TAVARES’
TOP TASKS
1. Rebuild customer confidence
2. Fix production bottlenecks
3. Maintain sales during product lull
4. Avoid conflict with French government
to raise the business fundamentals of Renault
and we have to create conditions where our
employees are clearly focused on creating
value for the company,” Tavares told
Automotive News Europe. “We work on too
many subjects at a time, we have to focus.”
As he settles into his second full quarter as
COO, Tavares has a list of other tall tasks.
Among them is regaining consumer confi-
dence and winning in Renault’s home mar-
ket of France and the rest of Europe.
While Renault reported a first-half profit
that beat analyst expectations, it was mostly
because of sales growth outside Europe.
Growth in Russia, Latin America and Turkey
led to a 1.9 percent increase in global first-
half deliveries.
Renault’s share of European registrations
narrowed to 9.5 percent in the first half from
10.5 percent a year earlier, according to data
from industry group ACEA. “Growth outside
Europe will continue to support our sales per-
formance,” Tavares said at an analyst confer-
ence at the carmaker’s French headquarters.
In its home market Renault has plenty of
challenges. Renault’s image was hit hard by
the espionage case in which the company
fired three top executives who were falsely
❝ “We work on too
many subjects at a
time, we have to focus.”
CARLOS TAVARES
Renault chief operating officer
accused of stealing electric car secrets. In
France, the episode had a negative impact on
Ghosn’s reputation and on the trustworthi-
ness of Renault. Sales dropped in France.
A shortage of Renault’s mainstream 1.5-
liter diesel engine also hurt sales. Tavares
said Renault “will invest 150 million euros to
remove those bottlenecks in our engine pro-
duction so that we’ll be able to answer to a
higher demand.”
Product problems
Renault’s domestic market share declined
by 3.3 percentage points to 25.2 percent
through the first half. Renault has suffered in
terms of product cadence and a lack of in-
vestment. A product freeze in 2008 and 2009
led to the cancellation of projects such as a
high-end SUV previewed by the Egeus con-
cept at the 2005 Frankfurt auto show.
Renault won’t have significant new product
until mid-2012 when the new Clio subcom-
pact is due. Higher-than-normal incentives,
including a 40 percent rebate on a 1.2-liter
Clio gasoline vehicle, will help stem the tide.
But Tavares said Renault has good products
coming in the compact and mid-sized seg-
ments. “I have found robust future product
ideas” in the development stage, he said.
Tavares knows about manufacturing. In
his most recent role he reduced Nissan’s
global manufacturing costs by expanding
production in Mexico. But in cutting
Renault’s production costs at home and
expanding production outside France,
Tavares will have to tread carefully to avoid
conflict with the French government, which
has a 15 percent stake in the automaker.
Early next year, Renault will open a plant
in Morocco, and capacity is being increased
at Renault’s plants in Turkey and Romania.
This will add 1 million units of capacity that
will primarily be used for entry-level vehi-
cles, including a low-cost minivan for the
Dacia brand. These moves have been closely
scrutinized by the French industry ministry
which is trying to promote the idea of
French-made products.
To reduce the pressure, Ghosn promised
to spend more time in France managing
Renault than he used to. Tavares will be the
link between Ghosn’s world ambitions and
the local issues at Renault.
Added together, it’s a tall task. If anyone
can do it, outsiders say Tavares can.
Said his fellow countryman Dias: “His eyes
are lively and shining: he’s very enthusiastic,
he transmits a lot of energy to you and he’s a
visionary.” ■
SEPTEMBER 2011
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AUTOMOTIVE NEWS EUROPE SUPPLIERS

GETTING STRONGER
Bosch extends lead at top of European supplier ranking
DOUGLAS A. BOLDUC with a global volume of $34.6 billion. In sales 31 percent to $3.4 billion compared
dbolduc@crain.com 2009, Bosch lost the top spot to Denso with 2008.
obert Bosch GmbH extended its sales Corp., which slipped back to No. 2 in the Schaeffler Group, which is based in Herz-

R lead over rival Continental AG in

Europe by 1 million euros last year.
Bosch topped Automotive News Europe’s
ranking of Europe’s Top 30 suppliers with
sales of $18.3 billion.
Continental was second last year with a
European sales volume of $14.2 billion and
France’s Faurecia SA finished No. 3 with
sales of $12.0 billion in Europe.
Bosch’s European sales lead over Conti-
nental grew to $4.1 billion last year from
$3.1 billion in 2009. Bosch also finished 2010
as the world’s No. 1 supplier based on sales
2010 ranking with sales of $32.9 billion.
Overall, sales in Europe by suppliers in the
top 30 increased by 11 percent last year to
$140.3 billion from $125.5 billion in 2009.
Climbing up
BASF, a supplier of coatings, catalysts,
engineered plastics and polyurethanes,
climbed four spots to No. 10 in the 2010
ranking because of a 35 percent rise in sales
to $5.2 billion.
The German paint specialist entered the
ranking at No. 14 in 2009 after boosting
ogenaurach, southern Germany, jumped six
spots to No. 24 in 2010. Schaeffler, a maker
of anti-friction bearings as well as engine,
chassis and transmission components that
controls 49.9 percent of Continental's shares,
increased European sales 31 percent to $2.1
billion compared with 2009.
Suppliers provided most of the data for the
ranking. Some companies' sales were esti-
mated. The numbers do not include non-
automotive, aftermarket or heavy-duty truck
sales. Sales are in dollars, translated when
necessary from other currencies. ■

TOP 30 EUROPEAN OEM PARTS SUPPLIERS

e = estimate RANKED ON 2010 EUROPEAN OEM PARTS SALES
f = fiscal year TOTAL EUROPEAN TOTAL EUROPEAN TOTAL GLOBAL TOTAL GLOBAL
fe = fiscal year estimate OEM AUTOMOTIVE OEM AUTOMOTIVE OEM AUTOMOTIVE OEM AUTOMOTIVE
PARTS SALES PARTS SALES PARTS SALES PARTS SALES 2009
RANK COMPANY (dollars to millions) 2010 (dollars to millions) 2009 (dollars to millions) 2010 (dollars to millions) 2009 RANK
▼ ▼ ▼ ▼ ▼ ▼ ▼
1 Robert Bosch GmbH $ 18,319 e $ 14,602 e $ 34,565 e $ 25,617 1
2 Continental AG 14,246 f 11,490 e 24,819 fe 18,744 fe 2
3 Faurecia SA 12,025 9,490 18,220 13,000 3
4 Magna International Inc. 10,148 8,336 23,600 17,367 4
5 ZF Friedrichshafen AG 9,606 f 7,888 f 15,748 f 12,135 f 5
6 Johnson Controls Inc. 8,134 f 6,656 f 16,600 f 12,800 f 7
7 TRW Automotive Holdings Corp. 7,344 f 6,693 f 14,400 f 11,600 f 6
8 Valeo SA 6,325 5,466 10,542 8,409 8
9 Delphi Automotive LLP 5,941 e 4,937 13,817 11,755 9
10 BASF SE 5,200 3,400 10,400 6,800 14
11 Lear Corp. 5,021 4,578 11,955 9,740 10
12 Magneti Marelli S.p.A. 4,722 4,407 f 6,754 f 5,915 f 11
13 Denso Corp. 4,230 fe 3,448 fe 32,850 fe 28,731 fe 13
14 Benteler Automobiltechnik GmbH 3,953 3,207 6,365 5,019 12
15 Mahle GmbH 3,447 fe 2,762 fe 6,628 fe 5,415 fe 16
16 Brose Fahrzeugteile GmbH 2,996 e 2,546 e 4,609 e 3,586 e 17
17 BorgWarner Inc. 2,827 1,981 5,653 3,962 22
18 Autoliv Inc. 2,741 e 2,509 e 7,171 5,121 18
19 Behr GmbH & Co., KG 2,685 e 2,127 4,630 e 3,430 20
20 Visteon Corp. 2,635 2,375 7,320 6,420 19
21 Plastic Omnium Co. 2,257 f 1,348 f 4,180 f 2,247 f --
22 Michelin Group 2,139 e 2,125 e 3,753 e 3,651 e 23
23 Federal-Mogul Corp. 2,063 1,772 3,892 3,004 24
24 Schaeffler Group 2,052 e 1,406 e 5,400 e 3,800 e 30
25 Aisin Seiki Co. Ltd. 1,994 fe 1,523 fe 24,613 fe 20,585 fe 28
26 Draexlmaier Group 1,989 e 1,641 e 2,340 1,930 27
27 Hella KGaA Hueck & Co. 1,967 f 2,374 f 3,512 f 3,200 f 15
28 Grupo Antolin 1,851 e 1,623 e 2,804 e 2,276 e 26
29 Eberspaecher Holding GmbH 1,793 e 1,349 e 2,391 e 1,645 e --
30 DuPont 1,701 e 1,488 e 5,671 4,961 --
Source: Automotive News Data Center

68 ANE EXECUTIVE EDITION SEPTEMBER 2011

 AUTOMOTIVE NEWS EUROPE SUPPLIERS

Suppliers to the new Ford Focus

MANIVERTER EXHAUST PARTS [GASOLINE]: QUICK CONNECTORS: PISTON RING: BRACKETS: GLOVE BOX ILLUMINATION: ROOF RAIL: COAX CONNECTORS [AM/FM ANTENNA]: POSITIVE TEMPERATURE COEFFICIENT HEATER:
FAURECIA A RAYMOND MAHLE HUF HÜLSBECK & FÜRST METHODE ELECTRONICS SAPA AMPHENOL BEHR
VALVE LASH ADJUSTMENT ELEMENTS: HEADLINER TEXTILE:
INA GUILFORD
FUEL MANAGEMENT DIAPHRAGMS: PILLAR [A, B]:
CONTITECH STADCO
IGNITION COIL [1.0 & 1.6 GASOLINE]: NVH FOAM PACKAGE:
DENSO; DIAMOND ELECTRIC CARCOUSTICS
AIR INDUCTION NONPERF CLAMP: AMBIENT LIGHT PACKAGE:
TRIDON CLAMP FLEXTRONICS
CARBON SYNCHRONIZER: LIGHTING:
SULZER FRICTION VISTEON
THERMOSTAT [1,6L PETROL]: RESTRAINT SYSTEM FASTENERS:
GUSTAV WAHLER HELLERMANNTYTON
TECHNICAL ADHESIVE TAPES : DOOR HINGES:
SCAPA EDSCHA
WIRING PROTECTION SYSTEM: DOOR LATCH COMPONENT COATING:
DELFINGEN MAGNI
RAIL NVH COVER [DV6 DIESEL]: SUSPENSION BEARING:
WOCO SKF
FRONT GRILLE COMPONENTS: BRAKE PADS:
LACKS ITT ITALIA
BATTERY TUB [HEV VEHICLE]: AXLE BUSHES:
CONTINENTAL VIBRACOUSTIC
ANTI FRICTION BEARINGS: BRAKE DRUM:
FAG CIMOS
VARIABLE CAM TIMING: RIVETS:
MITSUBISHI ELECTRIC TRW FASTENERS
EXHAUST SPROCKETS: FUEL RAIL ASSEMBLY:
METALDYNE BOSCH
MANUAL TRANSMISSION [6-SPEED]: FUEL LINES:
GETRAG TI AUTOMOTIVE
LASER WELDED BLANK [BACK PANEL LOWER]: DUAL MASS FLYWHEEL: UNDER AEROSHIELD FASTENERS: ADAPTIVE CRUISE CONTROL: BALL JOINTS: CV-JOINTS [RAW PARTS]: DRIVETRAIN ACTUATORS: ROCKER PANEL: FUEL RAILS: EXHAUST SYSTEM:
TALPINE
VOEST LUK EMHART TEKNOLOGIES DELPHI TRW HIRSCHVOGEL BROSE MAGNA WINKELMANN TENNECO

Suppliers wanted: If you are a supplier and have questions or want your information considered for our cutaway features, contact
Alex Boekestyn at automotivenews@supplierbusiness.com or through www.supplierbusiness.com

dr-schneider.com

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QA &
BERND BOHR
COMPETING ON
AUTOMOTIVE NEWS EUROPE
MANY FRONTS
Bosch wants to defend its position
as the world’s biggest automotive supplier
obert Bosch GmbH’s automotive divi-
R sion is on track to surpass the 30-bil-
lion-euro sales plateau for this first
time this year. Doing so should help the
German giant remain the world’s biggest
supplier based on sales.
Bernd Bohr, head of Bosch’s automotive
division, discussed the company’s future
goals with Automotive News Europe Editor-
in-Chief Harald Hamprecht.
Vehicle technology is the largest of
Bosch’s three divisions. In 2010, it
contributed 28.1 billion euros, or
about 59 percent of the company’s
total revenue. Will this change?
In 2000, more than 70 percent of the com-
pany’s total revenue came for the automotive
business. The goal is to reduce it to about 50
percent. This is not a matter of slowing
down in vehicle technology. We want to
expand our industrial technology, consumer
goods and building technology divisions.
The automotive area will continue to grow in
absolute terms.
How strongly?
For 2011, we expect growth of at least 10
percent and thus would surpass the 30 bil-
lion-euro mark for vehicle technology for the
first time. The drivers are mainly our prod-
ucts for environmental and accident protec-
tion. But there are negative signs, too.
Could you be more specific?
We see that growth in China, the world’s
largest automotive market, won’t be sky-high
this year. Rising raw material prices and the
growing volatility in the business are also
challenges. I am not just talking about eco-
nomic cycles. Their amplitude is simply
greater than in the past. And the number of
technological trends is greater than ever
before.
What are long-term earnings goals?
We are in an eight-year strategic planning
period and are striving each year for pre-tax
earnings of 7 percent to 8 percent. Doing
that allows us to finance solid growth and
innovations.
❙ For the complete Bernd Bohr interview go to europe.autonews.com/bohrexecedition ❙
70 ANE EXECUTIVE EDITION
SUPPLIERS
How much do you invest on r&d
each year?
We will spend more than 3.2 billion euros
this year on research and development for
MEET THE BOSS
●
Since becoming chief executive of Robert Bosch
the vehicle technology division. That will
GmbH’s car parts division in 2003, Bernd Bohr has
clearly put us over the industry average. But
helped the German supplier maintain market leader-
we are also competing on multiple fronts.
ship, despite tough competition from rivals Denso
Corp. and Continental AG. The 55-year-old German
Which ones?
joined the supplier in 1983 as part of the operations
Our goal is not only to provide the mobili-
scheduling team at the company’s plant in
ty solutions for tomorrow and beyond but
Reutlingen, Germany. During his career at Bosch he
also to make driving in the here and now
has held top-level jobs overseeing production of
even cleaner and more comfortable.
antilock brakes, semiconductors and electronics. He
was promoted to the company’s board of manage-
Will you defend your No. 1 position
ment in 1999. Bohr has a doctorate in engineering
in the global supplier rankings?
from University of Aachen, Germany.
We feel absolutely comfortable in this
position and naturally wish to defend it. But
there are no guarantees. The exchange rates
for the euro, dollar and the yen strongly Which of your seven business seg-
affect the rankings that the media compile. ments will grow the most — and
The fact that we are superbly positioned in which ones will struggle?
the growth markets gives us confidence. All seven business segments will grow,
since we expect 7 percent growth in global
How is your revenue distributed automotive production this year alone.
across regions? Moreover, we see clear long-term growth
Europe continues to account for the largest factors.
share of our global automotive revenue. But
the Asia-Pacific region is our largest growth What are they?
market. Asia’s share of revenue in vehicle We are making vehicle powertrains more
technology has increased more than fourfold, efficient than ever with a wide variety of
from 6 percent to 26 percent in 12 years. innovations. We will once again reduce fuel
consumption in diesel and gasoline engines
Do you plan any acquisitions? by at least 30 percent. We want to boost the
Growth in the vehicle technology division sales figures for our diesel common-rail
is primarily driven from the inside out. But injection system by more than 10 percent a
that doesn’t mean that we will pass up year through 2015. We want to triple sales of
attractive opportunities. the gasoline direct-injection system by 2013.
This year, we want to sell about 2.6 million
How much do you have available to units of our stop-start system.
spend on acquisitions?
We honestly have not imposed any upper Let’s look at electric mobility. Is the
limits. Even fairly large projects would not be end near for the internal combustion
a problem. engine?
Despite the potential for improvements in
Will you add staff? the efficiency of diesel and gasoline engines,
The number of employees in our vehicle we are working hard on this question as part
technology division is expected to rise from of our multidisciplinary technological efforts.
167,000 to 177,000 over the course of the The reason is that the future belongs to elec-
year. The growth is especially taking place in tric drive. A case can be made that there will
the Asia-Pacific region. be an evolution to electric mobility. ■
SEPTEMBER 2011
 AUTOMOTIVE NEWS EUROPE SUPPLIERS

Suppliers to the new Range Rover Evoque

SCREEN WASH SYSTEM: NAVIGATION SYSTEM: IMMOBILISER: INSTRUMENT PANEL: SHIFTING ELEMENTS: HEADLINER TEXTILE: ROOF ANTENNAS SYSTEM [GPS, SDARS & DAB]: FIXED TRANSPARENT MODULE WITH SINGLE ROLLERBLIND:
KAUTEX TEXTRON DENSO DELPHI IAC INA GUILFORD LAIRD WEBASTO
BONNET GAS SPRING: REAR SEAT ENTERTAINMENT DOCKING STATION:
STABILUS VISTEON
ALUMINIUM BONNET: TAILGATE HINGE ASSEMBLY:
NOVELIS BAS COMPONENTS
COOLING FAN MODULE: TAILGATE:
JOHNSON ELECTRIC PLASTIC
C OMNIUM
TRANSMISSION PUMP: SEAT BELT REMINDER:
IXETIC IEE
FLUID CONNECTORS: EXTERIOR MIRROR:
A RAYMOND SMR
BATTERY SENSOR: STEERING WHEEL
BOSCH TAKATA-PETRI
FUEL MANAGEMENT DIAPHRAGM: REAR SPOT LAMP:
CONTITECH CML INNOVATIVE TECHNOLOGIES
OIL FILTER: BUMPER:
MAHLE MAGNA
HOT ENDS: FUEL FILLER PIPE:
FAURECIA UNIPART EBERSPACHER
EMBLEM MOUNTING: FUEL TANK TOP LINES:
TESA TAPE TI AUTOMOTIVE
VALVE ACTUATION PARTS: LOCK SETS:
EATON HUF HÜLSBECK & FÜRST
LOCATOR: TEPEO FOR DOOR PANEL:
TRW FASTENERS BENECKE-KALIKO

ANTI-FRICTION BEARING: ALL WHEEL DRIVE:

FAG; INA HALDEEX

ASSEMBLED CAMSHAFTS: ALLOY WHEEL:

THYSSENKRUPP CROMODORA WHEELS

HEAT SHIELDS: REAR AXLE BRAKE PADS:

ELRINGKLINGER ITT ITALIA

SYNCHRONISER [MANUAL/DCT TRANSMISSION]: STRUCTURAL STAMPING [BODY & CHASSIS]: FRONT AXLE BRAKE: CHASSIS COMPONENTS: PROPSHAFT: FUEL RAILS: REAR CVJ: WHEEL & TYRE ASSEMBLY DERIVATIVES:
HOERBIGER STADCO HONEYWELL ZF FRIEDRICHSHAFEN GKN DRIVELINE WINKELMANN NTN VOITH INDUSTRIAL SERVICES

Suppliers wanted: If you are a supplier and have questions or want your information considered for our cutaway features, contact
Alex Boekestyn at automotivenews@supplierbusiness.com or through www.supplierbusiness.com

FUTURE IN YOUR ENGINE

PRESS RELEASE
The company UFI Filters SpA, is a leading manufacturer of filtering systems for performance engines and in design of devices
for the protection of diesel injection systems, both for the original equipment (OEM) and the replacement (OES). With 40 years
experience at the highest level. UFI Filters has become a strategic partner for the automotive industry worldwide.
UFI Filters supplies to the PSA Group the original replacement parts (OES) for its brands CITROEN and PEUGEOT including
those used in the Peugeot Boxer, Citroen Jumper and Relay diesel engines (OE ref. PSA 1906-C4, UFI 60.H2O.00)
Our research shows that some diesel filters, manufactured by competitors, for example ref. C507 PURFLUX, FA 5757 COOPERS
FIAAM, N311 TECNOCAR, C10026 FRAM and others, are fitted as an equivalent replacement for UFI ref. 60.H2O.00.
UFI Filters is informing potential customers, distributors and users that the moisture present in all tanks, if not correctly filtered,
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the use of an inappropriate filter produced by other brands as an equivalent of our filter.
E-mail: commerc@ufi.it
QA &
LAURENT BRESSON
NEXTEER STEERS
AUTOMOTIVE NEWS EUROPE
TO SUCCESS
Former GM-owned supplier expands in Europe
oosted by soaring demand for its steer-
B ing and driveline systems products,
especially electric power steering,
Nexteer Automotive is expanding in Europe.
The former Delphi Corp. unit, which Gen-
eral Motors bought in 2009 and sold to
China’s Pacific Century Motors in 2010, is
investing more than 50 million euros into
plants in Tychy and Gliwice, Poland.
Nexteer is racing to get its infrastructure in
Europe ready after a record 2010.
As Nexteer’s vice president of global sales,
Paris-based Laurent Bresson has played a
major role in the company’s huge increase in
business. Bresson, who is also head of
Nexteer’s European operations, talked about
what the supplier is doing to keep up the for-
ward momentum in an interview with
Automotive News Europe Managing Editor
Douglas A. Bolduc.
What is your biggest challenge?
After our record bookings, perfect execu-
tion is the greatest challenge. Everyone is
familiar with the recent high-profile automo-
tive recalls. As a result, our customers have
exceptionally high standards. We are aiming
for zero customer returns. We also are work-
ing to strengthen our supply chain. The
Japan earthquake showed how vulnerable the
automotive industry can be. We were not
affected very much, however, when some-
thing like that happens you reassess your
entire supply chain.
What are you doing differently in the
aftermath of the quake?
COMPANY DETAILS
● What about acquisitions?
❙ NAME: Nexteer Automotive
❙ GLOBAL HEADQUARTERS: Saginaw, Michigan, USA
❙ EUROPEAN HEADQUARTERS: Paris, France
❙ OWNERS: Pacific Century Motors (sold by GM in 2010)
❙ PORTFOLIO: Electric power steering, hydraulic power
steering, steering columns, halfshafts
❙ CUSTOMERS: GM, Ford, Chrysler, Fiat, Toyota, PSA,
❙ COMPETITORS: GKN Driveline, JTEKT Corp., Mando
Corp., ZF Friedrichshafen AG
❙ HEADCOUNT: 9,800
❙ PLANTS: 20
❙ REVENUE 2010: $2.0 billion
❙ STRATEGIC GOALS: Meet production and quality demands from $6 billion worth of new bookings
in 2010; complete 50 million euro expansion of Poland plants; strengthen supply chain
72 ANE EXECUTIVE EDITION
SUPPLIERS
We are looking even more closely at hav-
ing alternative ways to get parts if our suppli-
ers get into trouble. We are looking at the
value stream and trying to balance whether it
makes sense to buy a particular part from
just one location, especially if it comes from,
for instance, a low-cost country in Asia
Pacific.
What is your rate of r&d measured
against revenue?
It is at about the industry level. That means
about 6 percent to 8 percent depending on
year and the growth. Of course, because of
our record bookings in 2010 we increased
our 2011 engineering budget by 30 percent
or about $40 million. We are also increasing
the size of our technical teams all around the
world. A significant portion of the new con-
tracts we have won are for electric power
steering, which is engineering intensive when
it comes to research. That means in 2011 we
will be on the high end of the range when it
comes to r&d measured against revenue.
How do you differentiate yourself
from the competition?
During our more than 100 years in busi-
ness we have spent a lot of time as part of an
OEM. Therefore we really understand the
requirements when it comes to the steering
and driveline in vehicles. We have a full
range of products and speak the same lan-
guage as engineers from the OEM side. We
also do our software development in-house.
❝
This is a great asset when it comes to tuning
the characteristics in a steering system.
“We had a record
$6 billion of lifetime
bookings (in 2010), which
is three times the
company’s revenue.”
Renault, others
Corp., NTN Corp., TRW Automotive Holdings
MEET THE BOSS
●
❙ NAME: Laurent Bresson
❙ TITLE: Vice president of the European region;
vice president of global sales & marketing
❙ AGE: 40
❙ BORN: Troyes, France
❙ BASED: Paris
❙ NATIONALITY: French
❙ LANGUAGES: French, English
❙ MAIN CHALLENGE: Boost organic growth; ensure
perfect execution of new production contracts
Are you planning to diversify your
product portfolio?
We are absolutely focused on steering and
driveline. We are introducing new products
and doing a lot to improve efficiency, reduce
weight and make the systems better and
more affordable. We live from chassis and
driveline products. It’s in our DNA.
Are you also planning to expand
geographically?
We have 20 manufacturing sites and right
now we are expanding capacity and build-
ing new plants around the world. In
Europe, we are investing heavily – more
than 50 million euros from 2009 to 2012 –
to introduce our next generation of prod-
ucts and to meet demand from existing and
new customers.
Our owners are really focused on growth
so my No. 1 priority is to have strong organ-
ic growth. At the same time, we are well
funded so we will take a serious look at the
right opportunity if it comes along.
You have 9,800 employees, will you
need to add staff?
I would say that we will surpass the 10,000
employee threshold pretty soon. In terms of
the growth, obviously, we are growing fastest
in emerging markets such as South America,
Mexico and Asia, but we are also going to
increase the work force in Europe. ■
SEPTEMBER 2011
Book your Advertisement
for November’s Edition now!
Key Facts for Automotive
News Europe‘s November
Executive Edition
No. 4/2011
Issue Date: November 1
Ad Closing Date: October 4
Printing Material
Deadline: October 10

Editorial Highlights
• Drivetrain cars of
tomorrow: Are electric
cars winning the race?
• Car design trends:
How pedestrian protection
has changed the shape of
cars
• Chevrolet 100th
Anniversary
• Is the United States still
an important market for
European automakers?
• The wired car: How
telematics systems are
changing cars
• Guide to automotive
partnerships
• 12 things to expect in 2012
• Bonus Distribution:
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• Bologna Motor Show
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December 3 – 11

Contact: Nina Sauer, European Director of Sales, Marketing & Events • Phone: + 49 89 381 517 400 • Email: nsauer@crain.com
AUTOMOTIVE NEWS EUROPE SUPPLIERS
BIG BUSINESS
WITH SAFETY
German service provider expands its sales globally;
wants to grow organically and from acquisitions
HARALD HAMPRECHT
hhamprecht@crain.com
A
As the number of people using the auto-
mobile has grown rapidly since its birth 125
years ago, so has the need to make sure that
the vehicles on the road are safe. One of the
world’s biggest vehicle-testing providers –
with 22 million car tests a year – is Stuttgart-
based Dekra.
Today, no German-registered vehicle may
be operated on public roads without a cer-
tificate from Dekra or one of its rivals. In
most cases, the certificate has to be renewed
every two years. Dekra is looking to expand
it vehicle-testing and other services around
the world.
Founded 1925 in Berlin, Dekra, which is
short for Deutscher Kraftfahrueberwach-
ungsverein or the German Motor Transport
Inspection Association in English, has ambi-
tious plans.
“Our strategy for 2015 is clear,” Dekra
Chairman Stefan Koelbl told Automotive
News Europe. “We want to accelerate and
push ahead with our international expan-
sion, significantly increase sales and profit
within the next five years.”
Last year, the company’s total sales rose
9 percent to almost 1.86 billion euros. This
year, Koelbl wants to reach the 2-billion-
euro milestone. The company’s 2010 earn-
ings before interest and taxes were up 33 per-
cent to 121.6 million euros
Dekra Chairman Stefan
Koelbl wants his firm to
increase sales 10
percent a year
through 2015.
74 ANE EXECUTIVE EDITION
compared with 2009. Dekra is made up of
three business units: automotive, industrial
and personnel. Of the three, the automotive
division is the group’s leading source of sales
with revenue up 4 percent to more than 1
billion euros last year.
“This year’s aim is 1.1 billion euros,”
Koelbl said. “By 2015, the automotive unit
should provide more than 1.5 billion euros
sales.” Vehicle testing accounts for more
than 60 percent of the auto division’s annual
sales, followed by vehicle appraisals at 24
percent. The unit also experienced strong
growth in its used car management services
as acquisitions have pushed up sales to near-
ly 53 million euros last year from about 46
million in 2009 (see box).
Getting bigger
A significant portion of Dekra’s growth –
its annual sales have nearly doubled in the
last six years – has come through its more
than 30 acquisitions since 2004.
“With seven automotive and industrial
acquisitions in 2010 alone, we have further
expanded our global network,” Koelbl said.
“We are currently world market leader with
our automotive services. And with our port-
folio, we are one of the three largest
providers of expert services worldwide.”
Some of its recent takeovers include
Coorevits Group, Belgium’s leading car
appraisal organization, and France’s Auto-
Contact Holding, which is one of Europe’s
top providers of used car management.
“Together with our new French subsidiary,
we are now European market leader” in used
car management, Koelbl said.
More acquisitions are planned. The aver-
age yearly sales growth of 10 percent by 2015
will be generated organically and through
acquisitions. “We will invest 60 million to
100 million euros per year in identified tar-
gets as well as in our organic growth,” Koelbl
said without sharing more details on
the target. “Beyond that, we are well
prepared for bigger transactions if
an interesting opportunity should
arise.”
Dekra plans a big increase in
headcount to secure its growth.
Said Koelbl: “We will create
more than 10,000 new jobs in
our group within the next five
years.”
Worldwide, Dekra has about
GROWING
SALES
Where Dekra’s automotive unit
makes its money; 2009 vs. 2010
revenue in million euros
2009 2010
❙ Vehicle testing 637.4 650.5
❙ Expertise 241.4 251.2
❙ Used Car
Management 46.1 53.9
❙ Homologation 17.1 17.0
❙ Consulting 8.9 13.1
❙ Claims 25.1 28.5
❙ Other 10.6 13.8
❙ Total 986.6 1,028.0
Source: Company
25,000 employees, of which 10,600 work for
the automotive unit. The majority of the
company’s total employees – 60 percent –
are based in Germany.
France is Dekra’s second-biggest market,
but it has a presence in a total of 50 coun-
tries. Koelbl said the company plans to boost
its global footprint most in China, North
America and South America. In China,
Dekra is focused on expanding its homolo-
gation services.
“Outside Europe, we want to increase our
automotive unit’s sales from about 36 mil-
lion euros last year to 250 million euros by
2015,” Koelbl said.
The competition is tough – especially in
vehicle testing: In Dekra’s home country, the
company synonymous with safety inspec-
tions is still TUEV, which stands for Techni-
scher Ueberwachsungsverein or Technical
Inspection Association in English. Dekra’s
main competitor in Germany was established
more than 140 years ago as a result of public
and workplace safety initiatives in the late
19th century. Until the early 1990s, TUEV
had a monopoly when it came to vehicle
testing in Germany.
Outside of Germany, Dekra’s rivals
include the Societe Generale de Surveillance
of Switzerland and Veritas of France. All of
those companies are looking to grow out-
side their borders in places such as Sweden,
where the market was opened to competi-
tion early last year. By July of this year,
Dekra opened its first testing center near
Gothenburg.
One area of concern at vehicle-testing
firms is the European Commission’s desire
to harmonize testing standards throughout
the EU.
A possible negative effect is that such a
move could lower car-testing standards as
well as the qualifications needed by testing
personnel. “On the other hand,” Koelbl said,
“we would then be able to carry out vehicle
inspections in countries that so far have been
inaccessible for us.” ■
SEPTEMBER 2011
 Service excellence and
teamwork win through

At Mobil 1 we thrive on keeping engines ready to perform. But we can’t do it without you. That’s why Mobil 1 was
proud to sponsor the fifth annual Mercedes-Benz TechMasters Championship which brought together after-sales
professionals who share our passion for engineering excellence, technical specialism and customer service expertise.
Congratulations from Mobil 1.

©2011 Exxon Mobil Corporation and Mobil are trademarks of Exxon Mobil Corporation or one of its subsidiaries.
AUTOMOTIVE NEWS EUROPE SUPPLIERS

AFFORDABLE
CARBON FIBER
New techniques, economies of scale cut cost of key lightweight material
DAVID SEDGWICK
autonewseurope@crain.com

C
Carbon fiber reinforced plastic was once so
expensive that it was used only in fighter
planes and supercars. As the price of the
ultra-light, super strong material declines, its
popularity is growing among automakers
seeking ways to lower the carbon-dioxide
emissions from their cars.
The cost of carbon fiber is dropping
because of production advances that let sup-
pliers speed the material’s tricky – and costly
– curing process.
One technological breakthrough that
makes carbon-fiber auto parts more afford-
able may come from a process used to make
carbon-fiber golf clubs. More on that later.
While carbon fiber does not match steel or
aluminum for cost, it is about 50 percent
lighter than conventional steel and 30 per-
cent lighter than aluminum, making it ideal
for electric cars, sports cars and luxury cars.
“While a body from steel weighs 300kg and
accounts for 20 percent of the car’s overall
weight, a body from carbon fiber only weighs
150kg,” BMW engineer Andreas Reinhardt A worker at BMW's plant in Landshut, Germany, works on the carbon fiber roof of a BMW M3.
told Automotive News Europe.
BMW will rely heavily on carbon fiber to carbon fiber and other lightweight materials
keep down weight in its i3 electric car, which will reduce the weight of the SL’s body-in- THE PLAYERS
is due in 2013. To make sure the i3 is not too white by 10 percent. Who is working with whom and on what
expensive, BMW Chief Financial Officer ■ Ferrari plans to launch an all-carbon-fiber Audi/Voith.........................Urban concept
Friedrich Eichiner said the automaker has set successor to the limited-edition Enzo super-
a tough goal: “In the course of the product car next year. The new Enzo will highlight BMW/SGL........................i3, i8
life cycle, we want to drive the cost of carbon the weight- and fuel-saving technology that Lamborghini/Boeing.........Sesto Elemento
fiber to the level of aluminum. Naturally, Ferrari plans to adapt to its entire range by concept
volumes are the key here.” the end of decade. Mercedes/Toray............... 2012 SL
BMW plans to build at least 30,000 i3s a ■ A joint venture between Lamborghini
year, internal sources say. BMW is just one S.p.A. and Boeing Co. has slashed the cost of
of the automakers charging forward with carbon fiber used in a monocoque, or uni- industrial conglomerate Voith to develop
plans to use carbon fiber. Consider these body construction, for the Sesto Elemento carbon fiber components.
developments: concept car. In effect, Lamborghini has ■ Volkswagen uses carbon fiber in its XL1.
■ General Motors may expand use of carbon become a carbon-fiber laboratory for its cor- The ultra-fuel-efficient prototype, which was
fiber in the next-generation Chevrolet porate parent, Audi AG. introduced in January, can travel 100km on
Corvette, which debuts in 2013. ■ Carbon fiber figures prominently in the less than a liter of gasoline.
■ Daimler AG formed a joint venture with Urban Concept electric car that Audi will
Japan’s Toray Industries Inc. to make car- debut at this month’s Frankfurt auto show. Tricky process
bon-fiber components for the 2012 Audi is working together with German Carbon fiber is expensive in part because
Mercedes-Benz SL. Daimler says that using the production process is so labor-intensive.
About half of a carbon-fiber component’s
The Lamborghini Sesto Elemento cost is due to the lengthy and tricky manu-
facturing process: A worker places a carbon-
concept car's body, sus-
fiber sheet on a mold, followed by a thin
pension components layer of resin, followed by another layer of
and other parts are carbon fiber. Then the component is placed
made of forged in an autoclave, a container that uses super-
composites using heated steam under pressure, where it is
carbon fiber. CARBON FIBER ❙ CONTINUED ON PAGE 77

76 ANE EXECUTIVE EDITION SEPTEMBER 2011

AUTOMOTIVE NEWS EUROPE SUPPLIERS
CARBON FIBER ❙ CONTINUED FROM PAGE 76
carefully heated, then cooled. Using tradi-
tional techniques, it can take hours to make
one part. Now, automakers are finding
ways to speed the process. Lamborghini
and Calla-way Golf Co. have partnered to
develop a manufacturing process called
“forged composites.”
The new process, developed at the
Advanced Composite Structures Laboratory
at the University of Washington in Seattle,
takes only three to five minutes to produce a
part. Forged composites don’t require a tra-
ditional woven fabric. Instead, the carbon-
fiber threads are cut into 1- or 2-inch pieces,
mixed with resin and put into a heated mold
under high pressure.
For automotive uses, the resulting part is
slightly less strong than a carbon-fiber com-
ponent produced with traditional tech-
niques, but durable enough for most uses.
Forged composites are well suited for under-
the-skin parts such as suspension parts and
monocoques.
The Lamborghini Sesto Elemento concept,
which debuted in September 2010 at the
Paris auto show, demonstrates the joint ven-
ture’s forged composite technology.
The car weighs about 450kg less than a
Lamborghini Gallardo. But the real lure for
the auto industry may be the reduced cost of
forged composites.
“In the next few years, you will see this
material in a range of cars,” said Paolo
Feraboli, who is an assistant professor of
aerospace materials at the University of
Washington and director of the Advanced
Composite Structures Laboratory. “And you
will see this material in cars that you would
never have thought could be carbon fiber.”
‘Revolution in production’
But what will happen to the price of car-
bon? More and more suppliers are gearing
up to cut costs and produce the high vol-
umes that the industry will need. In July, 14
companies announced a consortium with
U.S.-based Oak Ridge National Laboratory
to develop a carbon fiber that might cost as
little as $5 to $7 (3.50 euros to 4.90 euros) a
pound (0.45kg) – down from $15 to $20 a
pound today. Oak Ridge is building a $35
million pilot plant that will produce up to 25
tons of carbon fiber a year. The partners will
use the plant to test new raw materials.
Participants include Dow Chemical Co., 3M
Co. and France’s Faurecia SA.
BMW’s carbon fiber partner is SGL Group
of Germany. Next month BMW and SGL’s
joint U.S. factory in Moses Lake,
Washington, will start producing carbon
fiber thread, which will be shipped to
Germany for conversion into the fabric used
to make parts.
BMW and SGL formed a partnership to
produce lightweight carbon parts in October
2009. The deal closed a few months after
BMW investor Susanne Klatten emerged as a
SEPTEMBER 2011
Oak Ridge National Laboratory researcher
Bob Norris evaluates fiber performance. To
cut carbon fiber’s cost, the lab is joining with
14 suppliers to test cheaper raw materials.
major shareholder in SGL with a stake
of 22 percent.
Volkswagen AG surprised BMW in
February by acquiring an 8 percent stake in
SGL. It has since raised its stake to almost
10 percent. In response, Klatten increased her
share to almost 30 percent, giving Germany’s
richest woman a blocking stake that prevents
outside companies from influencing corpo-
rate strategy at SGL.
BMW CFO Eichiner said he does not fore-
see any problems resulting from BMW and
VW having stakes in SGL. “Every manufac-
turer is welcome to buy carbon from SGL,”
he said. “We see no disadvantage to this
because we only produce the precursor at the
SGL joint venture. The expertise to manufac-
ture carbon fiber components is and will
remain the property of BMW and is being
used initially at BMW’s Landshut factory.”
To cut costs and allow mass production,
the partners are working to perfect a process
called resin transfer molding.
The carbon fiber fabric is placed in a mold,
and resin is injected under high pressure and
temperature. The process, which once took
20 minutes per part, now requires less than
10 minutes. Robots cut and handle the mate-
rial and components, which previously were
made by hand.
The robots will help BMW achieved big
savings. A pound of carbon fiber now costs
only a third as much as a pound used in the
M3 CSL coupe’s roof when the limited-edi-
tion car was introduced in 2003.
The dramatic price drop is forcing car
manufacturers to re-think how they will
make cars in the future (see story, page 53).
Said BMW engineer Reinhardt: “You do not
need a press shop, you do not need welding
robots. This is a revolution in the produc-
tion of the automobile – comparable to the
shift from the typewriter to the PC.”
New materials
Another advantage of carbon fiber over
steel: it does not corrode. Carbon fiber is
made from extremely thin strands of carbon
thread twisted together and woven into a
fabric. It’s expensive stuff because the raw
polymer thread is made from costly petro-
chemicals, its conversion into fabric is ener-
gy-intensive, and the production of parts is
time-consuming.
But suppliers are starting to solve these
problems one by one, and the Oak Ridge
consortium could produce a breakthrough.
To cut the cost of carbon fiber, the consor-
tium will test a number of cheaper raw mate-
rials.
One of the more promising materials is
lignin, a cheap byproduct of the conversion
of wood pulp into paper. Raymond
Boeman, Oak Ridge’s program director of
energy partnerships, said lignin might
replace petroleum-based polymers used to
make carbon fiber. These polymers account
for nearly half the cost of carbon fiber,
according to Boeman. A cheaper substitute
such as lignin could slash those costs. But
first, said Boeman, “We have to figure out
how to purify the lignin so we can spin it
into fiber.”
Any breakthrough on lignin is several years
off. In the meantime, manufacturers are
finding other ways to cut costs. For example,
manufacturers are experimenting with poly-
olefins – which also are derived from petro-
leum – as the raw material for carbon fiber
thread. That could reduce the loss of raw
materials to 15 percent during the carboniza-
tion process, although manufacturers would
remain vulnerable to rising oil prices.
And now Dow is getting into the act. In
June, the Midland, Michigan, chemical com-
pany formed a joint venture with Akrilik
Kimya Sanayii AS of Turkey to produce car-
bon fiber.
Akrilik Kimya Sanayii is the world’s largest
producer of acrylic fibers; it started manufac-
turing carbon fiber in 2008. Boeman notes
that Dow, the world’s largest producer of
polyolefins, has joined the Oak Ridge con-
sortium.
The biggest established suppliers for car-
bon fiber so far are Toray, Toho Tenax and
Mitsubishi in Asia; Hexcel, Cytec and Zoltek
in the United States as well as SGL in
Germany.
In the world of carbon fiber, the auto
industry could become “the big elephant,”
Boeman said. “If I put one pound of carbon
fiber on every car in the world, I’d probably
exceed world capacity for carbon fiber pro-
duction. If you introduce transformational
technology, this could really take off.”
Harald Hamprecht contributed
ANE EXECUTIVE EDITION 77
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AUTOMOTIVE NEWS EUROPE SUPPLIERS
SHIFTING
GEARS
Sporty and fuel-efficient dual-clutch
transmissions start to make big gain
DAVID SEDGWICK
autonewseurope@crain.com
ual-clutch transmissions are rapidly
D gaining prominence as a major alter-
native to manual gearboxes, thanks to
their good fuel economy and sporty perform-
ance.
By 2016, dual-clutch transmissions will be
installed in 12 percent of all light vehicles
built in Europe, up from 7 percent this year,
according to a forecast by IHS Automotive.
“Of all the regions of the world, Europe is
where dual-clutch transmissions have the
most opportunities,” said Chris Guile, manag-
er of IHS Automotive’s European powertrain
forecasts. “Most European drivers are used to
manual transmissions and expect a fairly
sporty gear change.”
Guile also expects eight- and nine-speed
automatic transmissions to gradually supplant
less sophisticated automatics over the next
five years.
Which technologies will lose ground?
Manual transmissions will retain 68 percent of
the European market in 2016, down from 73
percent this year, Guile said.
And continuously variable transmissions
will cling to a 1 percent niche five years from
now, down from 2 percent in 2011.
From Ferraris to Fords
Like an automated manual transmission, a
dual-clutch transmission is a manual trans-
mission with the option to drive in automatic
mode. While one clutch engages a particular
gear, the other pre-selects the next gear for the
subsequent shift, permitting shifts that are
quicker, sportier and more fuel-efficient than
an automated manual transmission.
In 2003, Volkswagen AG introduced a six-
speed dual clutch – dubbed a “direct shift
gearbox” — in the VW Golf and Audi TT
using technology developed with U.S. supplier
BorgWarner Inc.
This year, VW announced it
had produced 3.5 million vehi-
cles equipped with dual-
clutch transmissions.
While VW is a market
leader, most major
automakers are developing
a dual-clutch transmission.
For example, Ford of
Europe has introduced a
dual-clutch gearbox developed in a
80 ANE EXECUTIVE EDITION
joint venture with Germany’s Getrag. The
models that feature the optional dual-clutch
Mercedes plans
transmission include the Ford C-Max, Focus,
Galaxy, S-Max, Mondeo and Kuga. Ford
claims its PowerShift unit improves fuel econ-
omy by 10 percent compared with a conven-
to replace its 7-speed automatic transmission
(shown) with a 9-speed automatic that’s likely
to debut next year in the new S class.
tional automatic.
Perhaps the ultimate testament to the dual-
clutch transmission’s performance came when CHANGING HABITS
Ferrari adopted a Getrag gearbox for the
Forecast for transmission types used in
California and 458 Italia.
European vehicles, 2011 vs. 2016
With the growing popularity of dual-clutch
transmissions, one might expect the manual 2011 UNITS SHARE
transmission to fade. Not so, said Mike CVT* 370,138 2%
Omotoso, senior manager of global power- EV** 23,356 0.1%
train forecasting for J.D. Power and AMT*** 529,105 3%
Associates. “It’s a cost issue,” Omotoso said. Automatic 3,054,405 15%
“Dual-clutch transmissions are a little more Dual clutch 1,494,369 7%
expensive, and the A- and B-car segments are Manual 14,546,984 73%
still very price-sensitive. The manual lets you Total 20,018,357
have the cheapest powertrain.”
2016 UNITS SHARE
Smooth automatics CVT* 263,182 1%
A few years back, continuously variable EV** 402,662 2%
transmissions were expected to grab market AMT*** 407,817 2%
share from traditional automatics as automak- Automatic 3,527,674 15%
ers sought better fuel economy. The transition Dual clutch 2,828,406 12%
never happened. CVTs didn’t improve fuel Manual 15,784,582 68%
economy as much as expected. While CVTs Total 23,214,323
encountered a lukewarm reception, suppliers * Continuously variable transmission
were developing seven-, eight- and nine-speed ** Electric vehicle
***Automated manual transmission
automatics that combined good fuel economy Source: IHS Automotive
with smooth performance.
“Automatics are managing to maintain their
share of the market,” Guile said. “This is This year, ZF unveiled a nine-speed auto-
because companies like ZF are pushing the matic suitable for front-wheel-drive vehicles.
envelope of efficiency.” The company claims it improves fuel econo-
Three gearbox giants – ZF Friedrichshafen my up to 16 percent compared with six-speed
AG, Aisin Seiki Co. and Mercedes-Benz – automatics.
have led the effort to add gears. Mercedes Mercedes is working on its own nine-speed
introduced its seven-speed automatic in 2003, unit. Company sources says the successor to
while Aisin designed the eight-speed gearbox the seven-speed 7G-Tronic will be called the
that debuted in the 2007 Lexus LS460. 9G-Tronic, which is likely to debut next year
Meanwhile, ZF developed an eight- on the new-generation S class.
speed unit used by BMW, Audi, What’s unclear is if the technology race can
Land Rover, Jaguar, Rolls- continue. Once automakers adopt eight- and
Royce and Bentley. ZF claims nine-speed automatics, it may not be practical
its eight-speed improves fuel to add more gears.
economy by 11 percent from Costs would rise, fuel economy wouldn’t
its six-speed automatic. improve much and technical headaches would
multiply.
For the next five years or so, the dual clutch
ZF says its 9-speed automatic appears to be the big growth story. As J.D.
improves fuel economy up to 16% Power’s Omotoso says, “It gives the European
compared with 6-speed automatics. drivers what they want.” ■
SEPTEMBER 2011
June 20 
0−r/QPVG%CTNQr/QPCEQ
Save the Date!
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Packed with keynote addresses from the industry‘s
top executives and regularly attended by up to 350 in-
dustry leaders from 25 countries, the Congress is the
only networking forum you need to attend.
Look forward to getting a comprehensive perspective of
the industry‘s big issues, answers to critical questions
from the best in the business and personally discussing
points of interest with other high-level executives.
Make it a date, share in the knowledge and sharpen
your competitive edge.
Visit www.ane-congress.com to see the highlights of
the 2011 Congress: videos, photos, speaker presentations
and more statements.
For more information, please contact:
Nina Sauer, Director of Sales, Marketing & Events,
Phone: +49 89 381 517 400, Email: nsauer@crain.com
“Automotive News Europe is always high quality.
It‘s a great event and we have a high quality of
speakers and very, very interesting topics.”
Bo Andersson, CEO, GAZ Group
“I like the Congress very much.”
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“It‘s been a real pleasure for me to represent
Toyota here at the Congress.”
Mark Adams, Head of Purchasing, Toyota
“It’s a great opportunity to meet exceptional
people and share views.”
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“The high level of speakers and of the key persons
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“The organization, atmosphere and attention to
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QA &
ELMAR DEGENHART
A CLEANER,
AUTOMOTIVE NEWS EUROPE
SAFER FUTURE
Continental CEO says drive to cut accidents
and reduce emissions will bring strong growth
C
ontinental sees increasing demand
for safety systems and cleaner
engines as huge growth drivers. The
German supplier also is working on innova-
tive technologies to bring the dream of acci-
dent-free driving closer to reality. CEO
Elmar Degenhart talked about those topics
and more with Automotive News Europe
Editor-in-Chief Harald Hamprecht.
Where do you expect the most growth
in Continental’s five divisions?
We can expect above-average growth com-
pared with the global market in all five divi-
sions. We see particularly large opportunities
in the powertrain division. But we cannot
single out any one division because all of
them are experiencing above-average growth
this year.
What are the driving forces in the
chassis and safety division, your
largest automotive division?
Safety, without a doubt! And not just with
technologies such as electronic stability con-
trol or the brake systems of the future, but
also in environment detection or other active
safety systems. This includes radar sensors
and cameras, and it is only a matter of time
until every new car has at least one camera
on board.
How fast will this happen?
Ten years or so. All the technology for
environment detection is already available. It
must now be launched on the market in
larger volumes.
How long will it be before the vision
of networked driving is realized?
This can be achieved more quickly than
many people currently believe. There is a
very large need for this. If you want to get
young people interested in cars, you must
provide everything in the car that is already
available in their social environment.
And then it will take three vehicle
generations until the technology
has penetrated the market?
We do not have that much time. Since
drivers below the age of 30 rarely drive luxu-
❙ For the complete Elmar Degenhart interview go to europe.autonews.com/degenhartexecedition ❙
82 ANE EXECUTIVE EDITION
SUPPLIERS
ry cars, it must be possible to develop the
technology in a scalable manner so that it
can be made available in compact and mid-
sized vehicles quickly.
What technology will gain wide-
spread acceptance — an onboard or
an off-board solution?
We clearly believe in the onboard solution
because this is a highly sophisticated func-
tion, particularly with regard to safety. After
all, today’s driver is already inundated with
stimuli.
For this reason, there will be more and
more intuitive voice recognition in cars in
the future. As it is, the car already has all five
human senses at its disposal.
How, exactly?
Not only can it talk via navigation systems,
it can also see the vehicles in the next lane
and warn the driver of a dangerous lane
change. It can hear a crash and deploy the
relevant airbags by measuring the noise and
impact on the bodywork. It can feel with its
equilibrium device, the yaw rate sensor,
which is part of electronic stability control.
The car can taste its gasoline blend and
even smell its own exhaust values in the cat-
alytic converter. So whatever happens inside
and outside the car is less and less attributa-
ble to the individual and isolated assessments
and actions of the driver and more and more
attributable to intelligent networking.
The car is no longer just a means of
transportation or status symbol.
Right. In the future, cars will be a kind of
first-class “wellness lounge” on four wheels,
equipped with sensors, cameras and telecom-
munications.
Are you planning on making any
acquisitions?
We are very well poised so that there is no
need to take urgent action. In addition, our
net debt will be well below 7 billion euro at
the end of the year. However, we will not be
able to do much with this.
Our goal is still to further reduce net debt
and to achieve a gearing ratio of 70 percent.
As soon as we have achieved this, we can
MEET THE BOSS
●
An aviation and aerospace engineer by training,
Elmar Degenhart had a fast rise through the German
supplier industry. After a stint at ITT Automotive
Europe, he joined Continental for the first time in
1998, moving to Robert Bosch five years later as
head of chassis systems. Between 2005 and 2008,
he served as CEO of Keiper Recaro, after which he
became head of automotive at Schaeffler Group,
which owns 49.9 percent of Continental. Degenhart,
52, was named CEO in 2009.
start thinking about major acquisitions
again.
How many new employees will you
take on in order to achieve your
growth plans?
We currently have nearly 160,000
employees worldwide and will be achieving
sales of at least 29.5 billion euros this year.
During the economic crisis in 2009, we
only had 132,000 employees, and achieved
sales of 20 billion euros with them. If I look
at the automotive study conducted by Frost
& Sullivan in late 2009, I can see that we
cover all growth fields in the automotive
industry.
The study thus shows that we have the
greatest growth opportunities on the market.
So it is obvious that we will continue
expanding with work force appropriately.
Last year, you ranked third behind
Bosch and Denso in the Automotive
News Europe global supplier rank-
ing. How are you going to continue
developing here?
We want to remain among the top five in
the world. It is not our goal to climb further
up in this ranking. Our goal is to offer our
customers the greatest benefit and the best
quality, while achieving a high degree of
profitability. ■
SEPTEMBER 2011
MARKET ANALYSIS • INTERVIEWS • HOT TOPICS • DATA • MARKET ANALYSIS • INTERVIEWS
RVIE
EWS • HOT TOPICS • DATA • MARKET ANA
ANALYSIS
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AUTOMOTIVE NEWS EUROPE SUPPLIERS
GOING GREEN
In Frankfurt, suppliers will showcase innovations that make cars cleaner
JIM HENRY
S
autonewseurope@crain.com
Suppliers at this year’s Frankfurt auto show
want the world to see the cutting-edge tech-
nologies they have available for electric vehi-
cles and hybrids.
But there’s no ignoring the fact that inter-
nal combustion engines will continue to
dominate the automotive landscape far into
the future. For suppliers, that means they
must seek innovations to boost engine per-
formance and efficiency with improved
direct-injection technology, updated tur-
bocharging, downsizing, and a host of closely
related technologies.
Another key focus is weight-saving materi-
als and designs that help increase fuel effi-
ciency and lower CO2 emissions, especially
in electric cars and hybrids that have heavy
battery packs.
Here is an overview of the key suppliers
exhibiting in Frankfurt, along with technolo-
gies they will showcase.
Behr
Increasing demand for smaller, turbo-
charged gasoline engines with direct injec-
tion, to reduce fuel consumption without
sacrificing power created new demands for
thermal management, a specialty for supplier
Behr. In Frankfurt, Behr will show variations
of systems that perform charge air cooling for
turbocharged, direct-injected gasoline en-
gines. Using the the wind or the engine
coolant, a charge air cooler cools the air that
is compressed by a turbocharger or super-
charger, before it reaches the combustion
chamber of the engine. Pre-cooling, those
temperatures can reach up to 150 degrees
Bosch’s axle-split hybrid technology
has an electric motor integrated
into a car’s rear axle.
A real-life example is the
Peugeot 3008
Hybrid4 (inset).
84 ANE EXECUTIVE EDITION
Celsius, the company said. Those high tem-
peratures reduce the fuel consumption and
emissions benefits of the turbo-charged,
direct-injection gasoline engine, and inflict
additional stress on the engine.
Bosch
Innovations on the Bosch stand will cover
a wide range of time frames: from near-term
innovations aimed at prolonging the domi-
nance of the internal-combustion engine; to
mid-term systems to be integrated into elec-
tric vehicles; to futuristic technologies such
as solar and wind power to generate electrici-
ty for vehicles.
Bosch will offer a “powertrain configura-
tor” that will allow show visitors to put
together individual powertrain configura-
tions and calculate their fuel-saving poten-
tial. A real-life example of one such configu-
ration is the company’s axle-split hybrid,
which will soon be available in the Peugeot
3008 Hybrid4. An axle-split hybrid features
an internal-combustion engine on the front
axle and an electric drive for the rear axle.
Managing the interplay of the internal-
combustion engine with the electric motor
and the clutch is enormously complex.
Besides lower overall fuel consumption, user
benefits include so-called “coasting” and
“boosting.” Coasting means that the inter-
nal-combustion engine is sometimes
stopped, while the vehicle coasts along with-
out burning fuel. Meanwhile, all safety and
comfort systems continue to be fully opera-
tional. Boosting means the internal-combus-
tion engine is briefly supported by the elec-
tric motor when there is a need for extra
power, for instance when passing a vehicle.
Another user benefit is four-wheel drive.
Brose
Brose will launch its e-mobility product
portfolio, the result of a new joint venture
with SEW-Eurodrive, a leader in electric
motors, gear units and control systems. In
the e-mobility arena, the partners are pool-
ing their expertise in manufacturing electric
motors and corresponding electronics and
charging systems for electric drive systems.
That includes r&d, and also production facil-
ities for automakers. Technology in develop-
ment uses inductive charging technology,
which charges the battery without physical
contact.
Brose is a specialist in engineering light-
weight components that save fuel and there-
fore reduce emissions. Examples include
lightweight seats, window regulators, thermal
management systems (fans and blowers) and
door systems made of renewable raw materi-
als. For instance, the company says its com-
pact window regulator is just as light as a
more expensive one made of aluminum. Its
second- and third-row seats weigh 15 per-
cent less than comparable variants. An
HVAC (heating, ventilation and air condi-
tioning) blower saves 400 grams compared
with the part it replaces, the company said.
The use of renewable materials includes
polypropylene reinforced with wood fibers
instead of glass fibers. Besides being renew-
able, the material also lowers weight and
provides both thermal and noise-reduction
benefits.
Brose says the goal of its lineup is, “cost-
neutral lightweight design.”
Continental
Continental’s display is in five main areas:
safety, environment, information systems,
affordable cars and electromobility.
The safety focus is on driver-assistance and
brake systems. Driver-assistance devices will
include a “stereo” camera with two electron-
ic “eyes,” which can measure the size and
distance of potential obstacles.
This can be paired with a new generation
of emergency brake assist, to reduce the
severity of accidents or, if possible, to avoid
accidents entirely.
A new electro-hydraulic brake integrates
brake actuation, brake booster and the trac-
tion control system (with antilock brakes
and yaw control) to reach brake pressure
much faster than a conventional hydraulic
system. Continental will show a new fuel-
quality sensor, which is used to optimize
operation of the fuel injection system. The
company also has a new turbocharger, to be
used to facilitate downsizing gasoline
engines. The idea is to save fuel without sac-
SEPTEMBER 2011
AUTOMOTIVE NEWS EUROPE SUPPLIERS
rificing performance. In the information
technology sector, the supplier will show
how a mobile phone can be used as a “virtual
key” that can open the vehicle door and start
the engine once the driver is in the car.
The phone can also be used to customize
radio pre-sets, seat settings and ambient
lighting. Continental is also working on what
it calls a “Magic UI,” for magic user inter-
face, for integrating information, entertain-
ment and portable devices so the driver can
use them safely.
Company innovations in the EV area
include an electric motor that does not
require any rare earth materials, which are
expensive and potentially difficult to obtain.
Continental also expects to show its eCar
low-rolling-resistance tire developed specifi-
cally for electric vehicles.
Denso
Denso showcases a couple of technologies
coming into widespread use in hybrids and
electric vehicles: a state-of-the-art starter for
start-stop systems, and an inverter for hybrid
vehicles, which converts direct current from
the battery to alternating current. In addi-
tion, as one of the largest mass-manufactur-
ers of common-rail diesel systems, Denso
expects to show a new injection control sys-
tem, which it calls i-ART, for intelligent-
Accuracy Refinement Technology.
Faurecia
Faurecia faces the same challenges to save
weight and cost as the rest of the supplier
industry. But its customer-facing content
must do those things while also maintaining
passenger comfort and appealing styling.
The supplier has developed a new SmartFit
seat adjustment system that can be activated
by mobile smartphone. The company will also
show seats that focus on weight and packag-
ing reduction. For instance, a new foam pad is
comfortable even though it’s thinner. The
lower-profile foam pad allows for better head-
room in more fuel-efficient, aerodynamic
vehicles with a lower roofline. Among the
environmentally friendly and lightweight inte-
rior innovations developed by Faurecia is the
use of flax fibers with polypropylene for the
Smart ForTwo instrument panel.
Federal-Mogul
Federal-Mogul will highlight several
technologies aimed at making gasoline
engines more fuel-efficient, including
its CarboGlide antifriction coating.
The coating reduces ring friction up
to 20 percent compared with other
commonly used coatings, creating
fuel-economy improvement benefits.
Other components to be displayed,
like new spark plug designs, are intend-
ed to work in conjunction with the latest
turbocharged, gasoline direct-injection
engines, which in turn are part of an indus-
trywide trend toward engine downsizing.
SEPTEMBER 2011
Federal-Mogul’s new coating
helps reduce ring friction.
The company also
has polymer-coat-
ed engine bear-
ings, designed to
withstand heavy
use associated with
fuel-saving, stop-start systems.
For electric vehicles and hybrids, Federal-
Mogul developed its CrushShield material,
which surrounds and insulates high-voltage
cables, to protect vehicle occupants and to
keep the vehicle’s electrical system isolated in
a crash.
For interiors, Federal-Mogul will show
ambient and accent lighting modules. One
new technology uses energy-efficient LEDs
that are also more compact to package and
less distracting for drivers to operate.
Johnson Controls
Johnson Controls enters this year’s Frank-
furt show with a much deeper portfolio of
seating products after acquiring Germany’s
Keiper, Recaro Automotive and C. Rob.
Hammerstein Group earlier this year. Of the
acquisitions, the Recaro brand is probably
the best known, for offering high-end, per-
formance-oriented seats. Recaro is expected
to figure prominently at the show.
Johnson Controls will give its ie:3 concept
car a European debut after it was first shown
at the Detroit auto show in January. The
compact-sized concept has an electric motor
and is a platform for Johnson Controls to
show off its seating, electronics, interiors and
battery technologies.
The ie:3 has an unusually large, 9-inch
graphic information display, which both the
driver and passenger can use.
It also has a head-up display for key driver
information; a “virtual” instrument cluster,
which displays data from various driver
assistance systems; plus wireless recharging,
for two mobile devices. The concept car’s
lithium ion batteries are under the flat floor.
Keiper is a leader in recliner system tech-
nology, and it is known for its engineering
and manufacturing expertise in metals and
mechanisms for car seats. Hammerstein is a
global supplier of metal seat structures.
Leoni
Cable systems supplier Leoni says today’s
vehicles contain a total of up to 3,000 meters
Johnson Controls’ ie:3 concept EV car
showcases seating, electronics, interiors
and battery technologies.
of cable. As the industry switches from heavy
and expensive materials such as copper in
favor of aluminum and other materials and
alternatives, cables represent a big potential
savings in weight and cost. For instance,
Leoni will display a solid aluminum conduc-
tor called a bus bar, designed to replace a
typical copper cable, for connecting the vehi-
cle’s battery to the engine. The component
weighs 40 to 60 percent as much as the part
it replaces, Leoni said. That represents a
weight savings of about 3kg. It also saves
space, the company said. Besides aluminum,
Leoni said it is exploring the use of bronze;
copper-clad steel; copper-clad aluminum;
alloys such as copper-silver and copper-mag-
nesium. Those substitutes for typical copper
can reduce cable weight by more than 60
percent, the company said.
TRW
Safety technologies such as a new genera-
tion of radar technology will feature strong-
ly for TRW Automotive Holdings Corp.
“We’re using the
IAA this year as a
platform to high-
light our latest
innovations in
intelligent or
‘cognitive’ safe-
ty,” TRW CEO John Suppliers
Plant said. The new are developing
radar systems, for modular systems,
instance, can cover 360 such as TRW’s
degrees around the airbag kit.
vehicle.
Plant said automakers are moving more
and more to global vehicle platforms. The
change is forcing suppliers to develop modu-
lar, “scalable” systems that meet widely dif-
ferent needs and price points in different
regions of the world, even though the differ-
ent variants all ride on the same basic plat-
form. Examples of TRW’s modular tech-
nologies include electronic stability control;
“scalable” camera systems; modular airbag
kits; electrically powered steering systems.
“Similar cars – even those from the same
company – frequently have different equip-
ment level re-quirements for, say, North
America, Europe and China,” Plant said.
Webasto
Webasto will show a lightweight roof con-
cept that weighs 20kg, half the weight of a
conventional roof, because of the use of
materials such as polycarbonate and a com-
posite plastic material with what the compa-
ny describes as a “paper honeycomb” core.
Webasto has also found a way to integrate
solar cells into the lightweight roof module
that can deliver up to 200 watts of power.
That’s enough power to operate ventilation
while parked; cool the seats; or operate an
on-board cooler. Eventually, solar power
could also be used to help charge the batteries
in an electric vehicle, the company said. ■
ANE EXECUTIVE EDITION 85
AUTOMOTIVE NEWS EUROPE HUMAN RESOURCES
PEOPLE ON THE MOVE
VW, Nissan, BMW strengthen sales teams; Seat names new styling chief
M
any high-level executives are taking
on new challenges in Europe.
Volkswagen AG has lured former
Nissan Europe executive Simon Thomas to
head UK sales at Europe’s largest automaker.
Simon Thomas, 51, took
over as managing director of
Volkswagen Group Sept. 1.
He succeeded Robin
Woolcock, VW’s UK boss
since 2000. Woolcock, 63,
took a new job within the
VW Group.
Thomas joined Nissan UK in 1991 from
the Austin Rover Group. Thomas was
named vice president of sales at Nissan
Europe in 2007.
Nissan, Infiniti shake up
Europe sales teams
As part of its goal of supplanting Toyota as
Europe’s top-selling Japanese brand, Nissan
and its premium subsidiary,
Infiniti, have made a number
of key moves. Nissan named
Paul Willcox as its
European sales and market-
ing chief.
On July 1, Willcox suc-
ceeded Simon Thomas, who left the compa-
ny to work for Volkswagen Group in the UK.
Willcox joined Nissan in 1992 after starting
his career at Peugeot in the UK. In 2008, he
was appointed managing director of Nissan
Motor (GB) Ltd.
Guillaume Cartier, 42, is Nissan Europe’s
new vice president for sales operations.
Cartier, 42, replaced Bernard Loire, who
was appointed head of Infiniti for Europe,
Africa, Middle East and India. Cartier, who
reports to Willcox, was managing director of
Nissan Nordic Europe.
BMW chooses long-serving
exec for Europe sales job
BMW executive Nicolas
Peter will succeed Ludwig
Willisch as head of the com-
pany’s European sales,
starting in October. Peter,
49, will have responsibility
for all the carmaker’s
European markets, excluding Germany.
BMW sales and marketing chief Ian
Robertson said Peter had extensive experi-
ence in sales and controlling that will enable
him to master the individual challenges of
different countries.
Peter joined the automaker in 1991. He
has held roles including head of BMW in
Sweden and BMW Nordic.
His predecessor, Willisch, was named
86 ANE EXECUTIVE EDITION
president of BMW North America in August,
replacing Jim O’Donnell, 61, who will retire.
Ford relocates key product
exec Samardzich to Germany
Ford Motor Co. has
expanded global product
program chief Barb
Samardzich’s duties to
include head of product
development for all of
Europe. Samardzich, 52,
who remains vice president of Ford’s global
product programs, started her new job at
Ford’s European base in Cologne,
Germany, Sept. 1. Samardzich replaced
Frank Davis, who took a new role with Ford
in North America. Samardzich joined Ford in
1990.
Seat gets new design
boss from Renault
Alejandro Mesonero-
Romanos is the new design
chief at Volkswagen Group
Spanish subsidiary Seat. He
succeeds Luc Doncker-
wolke, who moved to a new
role as VW Group’s head of advanced
design.
Previously, Mesonero-Romanos, 34, was
design director at Renault Samsung Motors.
He worked for VW Group between 1995 and
2001 before joining Renault. Donckerwolke,
46, reports directly to VW Group Design
Chief Walter de’ Silva in his new role.
Ford picks Ovenden
to head UK
Mark Ovenden is the
new head of Ford of Britain.
He succeeds Nigel Sharp,
who, on reaching 65, decid-
ed to retire after 39 years
with Ford.
Ovenden, 47, left his position as marketing
director of Ford Britain in 2006 to join the
company’s management team in Russia. He
became managing director for Russia in
January 2010. Ovenden was heavily involved
in the establishment of Ford’s new joint ven-
ture with Russian automaker Sollers.
Renault-Nissan appoints exec
to oversee alliance
Christian Mardrus was
named managing director of
the Renault-Nissan alliance
effective June 1. He reports
to the alliance’s CEO, Carlos
Ghosn. Mardrus, 52,
replaced Mouna Sephehri,
who became executive vice president as
well as chief of staff and general counsel at
Renault in May. She was one of the
founders of the alliance in 1999.
Mardrus, 52, has been the global logistics
managing director for the Renault-Nissan
alliance since 2009.
ZF names Sommer
as next CEO
ZF Friedrichshafen AG has
named Stefan Sommer its
new CEO. The change takes
effect May 1, 2012.
Sommer, 48, will serve as
deputy CEO to current CEO Hans-Georg
Haerter starting Jan. 1, 2012, and succeed
Haerter, 66, when he retires at the end of
April 2012.
Sommer joined ZF from German parts
supplier Continental AG in 2008. Most
recently, he has been heading up ZF’s
strategic restructuring plan.
German supplier Edscha
has new CEO
German hinge maker
Edscha appointed Torsten
Greiner to take over as CEO
July 1.
Prior to joining Edscha,
Greiner, a 45-year-old mech-
anical engineer, worked at Robert Bosch
GmbH as production manager heading up
the locking systems product unit and as a
manager at Brose Schliesssysteme GmbH in
Wuppertal, Germany.
Edscha is controlled by Spanish automo-
tive supplier Gestamp Automocion.
Denso promotes Makino
to lead Europe business
Denso Corp. named
Yoshikazu Makino its new
president and CEO for
Europe. He started his new
job June 22. Makino arrived
in Europe from Denso’s
headquarters in Kariya,
Japan, where he was head of the compa-
ny’s global business planning division.
Makino succeeded Shigehiro Nishimura,
who was named head of Denso’s Asia-
Pacific region.
Makino has been with Denso since 1978.
Mazda names new boss
for European fleet operations
Mazda Motor Europe named Christian
Blank to head its European fleet operations.
Blank, who started May 2, replaced James
Hopkins, who left the company.
SEPTEMBER 2011
1SPEVDU
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AUTOMOTIVE NEWS EUROPE HUMAN RESOURCES

201 1
EUROSTARS
Cast of stars exceeds expectations, willing to make bold decisions
T
he 2011 Eurostars stand out
because of their ability to exceed
expectations and their willingness to
make bold decisions.
People smirked when Volkswagen Group
CEO Martin Winterkorn said he wanted
the German automaker to become the
world’s largest automaker by 2018. VW
Group is expected to rise to No. 2 in global
vehicle sales this year. No one is smirking
anymore.
Dacia Managing Director Jerome Olive has
guided Renault’s low-cost Romania brand
to record results that include it having the
No. 2 selling crossover in all of France.
BMW purchasing boss Herbert Diess
needed one year less than he was given to
slash 4 billion euros from his company’s
procurement.
Nissan Europe Vice President of Product
Strategy and Planning Pierre Loing believed
so strongly in the Nissan Leaf that he over-
came doubts from within the company and
convinced his bosses to risk entering the
>>
electric car in the European Car of the Year
contest. The gamble has paid huge divi-
dends for Nissan.
The other 11 Eurostars chosen by the
editors of Automotive News Europe have
reached equally impressive results in the
face of huge challenges.
Automotive News Europe, PwC and
Siemens are proud to present the 14th
annual Eurostars awards at a private
dinner on Sept. 12 in Frankfurt.
– Douglas A. Bolduc

❙ AWARD: CEO

MARTIN WINTERKORN
INDEX
88 GROUP CEO
❙ TITLE: VW Group CEO ❙ AGE: 64 Martin Winterkorn, VW Group CEO
89 EMERGING MARKET EXECUTIVE

J
ust about everything Martin Winterkorn touches turns to gold these Bo Andersson, GAZ President & CEO
days. As head of Volkswagen Group, he has gone on record saying
that the car company will be the world’s biggest by 2018. 89 PURCHASING EXECUTIVE Looking Back:
His vision looks more real than ever. Herbert Diess, BMW Board Member
for Purchasing and Supply Network A list of
Fueled by its strong presence in China, Europe and Brazil, VW Eurostars from
Group last year sold a record 7.14 million vehicles, up 14 percent from 90 PROJECT LEADER
FOR INDIVIDUAL CAR 1998 to 2010
2009.
Since coming to Wolfsburg in 2007, Winterkorn has added the same
Gunnar Herrmann, Vehicle Line starts on
Director, Global C-segment (Focus) Page 89.
level of discipline and foresight that he introduced at Audi to set the
brand on course for a rebirth. Winterkorn has focused VW Group’s 90 CAR DIVISION CEO
400,000 worldwide employees – working for nine brands from ultraluxury Jerome Olive, Dacia Managing Director
marques Bentley and Bugatti to volume brands VW, Seat and Skoda, as 90 EUROPEAN REGION LEADER
well as the Scania truck unit – on a goal of becoming the industry leader Colin Dodge, Nissan Chief Performance Officer
in sales, profitability and customer satisfaction. He has brought in top tal- 91 DESIGNER
ent from rivals such as former General Motors global sales boss Laurens van den Acker, Renault Head of Design
Jonathan Browning, former Fiat Group Chief Marketing Officer Luca de
91 SUPPLIER DIVISION CEO
Meo, and ex-Opel Managing Director Hans Demant. Beda Bolzenius, Johnson Controls President of
And he has kept the company’s war chest bulging with cash. VW Automotive Experience unit
Group’s net profit tripled in the second quarter of this year to 4.67 billion
91 EV PROJECT LEADER
euros as surging demand for its vehicles kept the com- Pierre Loing, Nissan Europe VP of Product
pany on track for another year of record unit sales in Strategy & Planning
2011.
92 SALES & MARKETING EXECUTIVE
Revenue is on a steep climb; so is operating profit.
Paul Philpott, Kia Europe COO
Audi CEO Rupert Stadler told German magazine
WirtschaftsWoche recently: “With Martin Winterkorn 92 CFO
we have the best and most successful car Axel Strotbek, Audi CFO
manager I know as the head of VW.” 92 SUPPLIER CEO
Winterkorn has a doctorate in metal Franz Fehrenbach, Robert Bosch CEO
research from Germany’s Max 94 MANUFACTURING
Planck Institute and started his Magnus Hellsten, Volvo Senior Vice President
automotive career at supplier of Manufacturing
Robert Bosch in 1977. He 94 R&D EXECUTIVE
joined the VW Group in 1981 Joseph Bakaj, Ford VP of Powertrain Engineering
as part of Audi’s quality team
94 ENTREPRENEUR
and was Audi CEO from 2002 Henrik Fisker, Fisker Automotive CEO
to 2006. ■

88 ANE EXECUTIVE EDITION SEPTEMBER 2011

AUTOMOTIVE NEWS EUROPE HUMAN RESOURCES

E U R O S T A R S
❙ AWARD: Emerging Market Executive ❙ AWARD: Purchasing Executive
LOOKING
BACK

>
EUROSTAR WINNERS
1998-2010
Automotive News Europe has been
honoring exemplary performance in the
European automotive industry since
1998. Past winners include former
Renault CEO Louis Schweitzer, current
Daimler boss Dieter Zetsche and current
Fiat Group CEO Sergio Marchionne.
Below are lists of Eurostars from
BO HERBERT 1998-2010.
ANDERSSON DIESS GROUP CEO
❙ TITLE: GAZ Group President and CEO ❙ TITLE: BMW Board Member for Norbert Reithofer 2010 BMW
❙ AGE: 56 Purchasing, Supplier Network Sergio Marchionne 2009 Fiat
❙ AGE: 53 Dieter Zetsche 2008 Daimler

A
s General Motors’ global pur-
Wendelin Wiedeking 2007 Porsche

F
chasing chief, Bo Andersson our years ago, BMW CEO
reinvented the way GM did busi- Norbert Reithofer gave his pur- Sergio Marchionne 2006 Fiat
ness with more than 3,000 chasing chief, Herbert Diess, a very Wendelin Wiedeking 2005 Porsche
global parts suppliers. Now the former challenging task: Reduce material Helmut Panke 2004 BMW
Swedish Army colonel is reinventing GAZ, costs by 4 billion euros by 2012. Louis Schweitzer 2003 Renault
Russia’s second-biggest automaker – Not only did Diess deliver, he complet- Jean-Martin Folz 2002 PSA
and winning lots of praise. ed the mission more than a year ahead of Joachim Milberg 2001 BMW
In March, Andersson was named Best schedule despite massive volatility in the Jean-Martin Folz 2000 PSA
Market Newcomer at the international price of raw materials. He also achieved Louis Schweitzer 1999 Renault
Russian Automotive Forum for his the goal without sacrificing quality or Juergen Schrempp 1998 Daimler-Benz
achievements in returning the once near- compromising BMW’s reputation for engi-
bankrupt company to profit last year, as neering innovation. CAR DIVISION CEO
well as renewing the company’s aging On the contrary, the German premium Rupert Stadler 2010 Audi
product range and establishing interna- manufacturer recently presented new cars Rupert Stadler 2009 Audi
tional cooperation agreements, including such as the BMW 5 series, which has a John Fleming 2008 Ford of Europe
deals to build Chevrolet, Volkswagen and big sales lead in Europe over rivals such Luca De Meo 2007 Fiat
Skoda cars in GAZ’s underused Nizhny as the Mercedes E class and Audi A6. Detlef Wittig 2006 Skoda/VW
Novgorod factory. Diess also faced the challenge of secur- Hans-Olov Olsson 2005 Volvo
Sometime soon, Russia is expected to ing a consistent supply of advanced tech- Martin Winterkorn 2004 Audi
pass Germany as Europe’s largest car nology for BMW’s new i subbrand of Frederic Saint-Geours 2003 Peugeot
market, with vehicle sales rising 73 per- electric cars without breaking the budget. Wendelin Wiedeking 2002 Porsche
cent to more than 3.3 million in 2015, The battery-powered cars, which will Juergen Hubbert 2001 DaimlerChrysler
according to forecasts from Russia’s debut in 2013 starting with the i3 minicar, Juergen Hubbert 2000 Mercedes/Smart
Ministry of Industry. will rely heavily on innovative but expen- Nick Scheele 1999 Jaguar
GAZ will benefit from Russia’s exploding sive materials such as carbon fiber. Juergen Hubbert 1998 Daimler-Benz
growth in new-car sales by being a con- Diess knows his priorities: “We do not
tract manufacturer, Andersson told differentiate our product from the compe- CFO
Automotive News Europe in a recent tition by the cheapest part but by the best Hans Dieter Poetsch 2010 VW Group
interview. "It’s not worth it for us to build and most innovative," he said. Hans Dieter Poetsch 2009 VW Group
up a car brand. We have Russia’s most Diess, who also won the purchasing Holger Haerter 2008 Porsche
effective car plant and will use it to build executive Eurostar in 2008, has a doctor- Stefan Krause 2006 BMW
vehicles for other manufacturers," he said. ate degree in engineering from the Burkhard Breiing 2005 VW
Andersson, who became head of GAZ Technical University Munich. He started Thierry Moulonguet 2004 Renault
in 2009, began his career with GM in his automotive career at Robert Bosch in Holger Haerter 2003 Porsche
1987 as a manager with Saab. He rose 1989, rising to head of technology at the Holger Haerter 2002 Porsche
through the ranks to head purchasing at supplier’s plant in Treto, Spain, in 1993. Bruno Adelt 2001 VW
former subsidiary Saab, then he took over He joined BMW in 1996 as director of Helmut Panke 2000 BMW
GM Europe purchasing and later led long-term and structural planning. Diess
GM’s global purchasing. He finished his was director of BMW’s plant in Birming- DEPUTY CHIEF EXECUTIVE
career with the U.S. automaker as a ham, England, for a year and boss at its Wolfgang Strinz 1999 Opel
member of the company’s automotive Oxford, England, factory from 2000-2003. Carlos Ghosn 1998 Renault
strategy, automotive product and North He joined the BMW board in in October
America strategy boards. ■ 2007. ■ LOOKING BACK ❙ CONTINUED ON PAGE 93

SEPTEMBER 2011 ANE EXECUTIVE EDITION 89

AUTOMOTIVE NEWS EUROPE HUMAN RESOURCES
E U R O S T A R S
❙ AWARD: Project Leader/Individual Car
GUNNAR
HERRMANN
❙ TITLE: Ford Vehicle Line Director,
Global C-segment Platform
❙ AGE: 51
A
s a keen cook, Gunnar Herrmann
loves to serve a tasty paella to
his family. But lately the veteran
engineer isn’t spending too
much time in the kitchen. Instead,
Herrmann is creating the master recipe
for Ford’s C-segment compact architec-
ture that will underpin 10 vehicles.
The platform is a key part of Ford CEO
Alan Mulally’s One Ford plan to leverage
the automaker’s global scale. Herrmann
said the strategy has energized Ford’s
product development plan.
“Being global doesn’t mean being the
same,” Herrmann told Automotive News
Europe. “Cars built on the platform are
being styled to meet local market
demands. For instance, in China, we add
a lot of chrome.”
Among the cars based on the platform
is the latest Focus. Herrmann was body
engineering manager for the original
Focus that debuted in 1998. He has had
a major role in the evolution of the car
over three vehicle generations.
He said a major change since the first
Focus is the number of different models
that are now spun off a single platform.
“In the past, we built three- or five-door
cars from a platform. Now we can have a
minivan like the C-Max, an SUV, a van
like the Transit Connect or a high-per-
formance car like the Focus ST.”
The German native joined Ford in 1986.
He has been Ford of Europe’s C-Car
vehicle line director since 2002.
He developed a love of cooking along-
side his passion for cars. But, said
Herrmann, while you can experiment in
the kitchen, you can’t with cars. “If you
ruin a meal, you can start again,”
Hermann said. “If you mess up a car, it
takes years to recover.” ■
90 ANE EXECUTIVE EDITION
❙ AWARD: Car Division CEO
JEROME
OLIVE
❙ TITLE: Dacia Managing Director
❙ AGE: 53
D
acia is one of the automotive
industry’s biggest success sto-
ries, and Jerome Olive is mak-
ing sure the Renault subsidiary’s
positive momentum continues.
Olive, who joined Dacia as managing
director in 2009, played a key role in the
successful launch of the Duster, which
started in April 2010. The brand’s first
crossover surpassed the 70,000-unit
sales plateau at the end of June. The
Duster also finished the first half of this
year as France’s No. 10-selling car and
second most purchased crossover.
Since Olive arrived at Dacia’s headquar-
ters in Pitesti, Romania, the low-cost
brand’s sales have risen above the
300,000-unit threshold twice, peaking at
a record high of 348,630 in 2010. That’s
a massive increase from the 22,833 Dacia
Logan sedans sold when Renault
relaunched the brand in 2004
Dacia benefited from government-fund-
ed car-scrapping programs offered in
Europe in 2009 and 2010 to prop up
vehicle sales during the global economic
crisis. Customers looking to maximize the
effect of the thousands of euros in incen-
tives targeted low-cost cars such as the
Logan, Sandero and Duster.
As Dacia continues to expand, it will be
crucial for the automaker to have some-
one with manufacturing in his blood,
which is something Olive offers.
He started at Renault’s Sandouville,
France, plant in 1982 after earning his
engineering degree from ICAM in France.
In 1996, he moved to Renault’s Douai,
France, factory. As head of the body-in-
white assembly department, he helped
start production of one of Renault’s most
successful models, the first-generation
Scenic. Olive was promoted to plant
director at Douai in 2004. ■
❙ AWARD: European Region Leader
COLIN
DODGE
❙ TITLE: Nissan Board Member; Chief
Performance Officer; Chairman Africa,
Middle East, India and Europe unit, Head
of the Americas region
❙ AGE: 56
N
issan is one of Europe’s hottest
brands and much of its success
is due to Colin Dodge. In 2010,
the Japanese automaker’s top-
ranked executive for Europe helped
Nissan post its highest market share in
Europe since 1995.
In a flat market, Nissan reported that its
2010 volume rose 13 percent to 547,000
vehicles in Europe (including Russia and
Turkey) giving it a 3.1 percent share, up
from 2.8 percent in 2009. It was the third
consecutive year of European market
share growth. Nissan’s momentum con-
tinued in the first half with European sales
up 17 percent to 246,565 units, accord-
ing to industry association ACEA.
Under Dodge’s guidance, game-chang-
ing models such as the Qashqai and Juke
crossovers have exceeded expectations,
giving Nissan the confidence to publicly
warn Toyota that it better watch its back
in Europe.
Toyota surpassed Nissan as the best-
selling Japanese brand in Europe in 1998,
but Nissan believes it can take the crown
back within three years. It is bullish
because of its young lineup (10 new or
refreshed models have debuted since
March 2010) and fast-growing dealer net-
work (400 new sales points will be active
within three years).
Dodge started his Nissan career at the
company’s plant in Sunderland, England,
in 1984 as a paint shop manager.
By 2003, the Englishman was the man-
aging director of Nissan’s UK operations,
including the Sunderland factory.
He has been Nissan’s head of Europe,
India, Africa and the Middle East for the
last two years. ■
SEPTEMBER 2011
AUTOMOTIVE NEWS EUROPE HUMAN RESOURCES
E U R O S T A R S
❙ AWARD: Design
LAURENS
van den ACKER
❙ TITLE: Renault, Senior Vice President
of Corporate Design
❙ AGE: 46
L
aurens van den Acker is reshaping
Renault as a brand with bold new
designs that represent a break
from the past.
“I benefit from Renault’s hunger to inno-
vate because, in my case, I am a new
designer and they asked me to change a
lot because they felt that Renault really
needed to turn a page,” said Van den
Acker, who worked as Audi, Ford and
Mazda before succeeding longtime
Renault design chief Patrick Le Quement
in 2009.
The DeZir, Captur, and R-Space con-
cepts that Renault introduced at the last
Geneva and Paris auto shows reflect
Renault’s new design strategy under van
den Acker.
While the three concepts represent radi-
cal departures from past Renault designs,
they share similarities between them-
selves and are intended to represent a
person’s life, van den Acker said. The
sporty DeZir and the Captur crossover
reflect love and exploration, respectively.
The R-Space, which has a backseat that
converts into a play space, is about start-
ing a family, van den Acker said.
While his concepts are dramatic, Van
den Acker’s main goal is to create
designs that appeal to the masses.
“When I first joined Renault, Carlos
Ghosn told me that we are a popular car
brand and we have to make cars that are
popular,” van den Acker said. “If you are
making cars for the heart of the market,
then you have to relate to a lot of people.
We are making cheeseburgers, not
sushi.”
Van den Acker has an industrial design
degree from the University of Technology
in Delft, Netherlands. He started his
career in 1990 at Design System URL. ■
SEPTEMBER 2011
❙ AWARD: Supplier Division Head
BEDA
BOLZENIUS
❙ TITLE: Johnson Controls Vice President;
President, Automotive Experience
❙ AGE: 55
J
ohnson Controls Inc.’s seating busi-
ness in Europe has been given a
huge boost this year because of two
key acquisitions spearheaded by
Beda Bolzenius.
The head of JCI’s automotive experi-
ence unit played a leading role in the
U.S.-based supplier’s purchase of
German seat specialists C. Rob.
Hammerstein Group, Keiper and Keiper’s
specialty seat business, Recaro.
JCI paid about $496 million to get
Keiper and Recaro and approximately
$581 million to acquire C. Rob.
Hammerstein. What it gets in return is
well over $1 billion in business with major
European players such as BMW,
Volkswagen, Mercedes-Benz, Porsche,
Lamborghini, Ferrari and Mini.
Keiper and Recaro’s product lineup
includes mechanisms that adjust seat
length and height and recliners that adjust
the backrest position of vehicle seats. The
acquisition includes Recaro’s automotive
sport and specialty seat portfolio.
JCI plans to combine its expertise with
CRH’s to develop lightweight seats for
future vehicles.
To help their customers boost fuel
economy and reduce vehicle emissions,
seat makers are being challenged to
make their products leaner, but they must
do so without compromising on safety.
It’s a difficult challenge but its something
Bolzenius is used to after five years in his
current job leading the company’s global
seating, interiors and electronics busi-
ness.
Prior to this promotion in 2006, the
German national headed JCI’s automotive
interiors business in Europe. He joined
JCI in November 2004 after 18 years with
Robert Bosch. ■
❙ AWARD: EV Project Leader
PIERRE
LOING
❙ TITLE: Nissan Europe Vice President
of Product Strategy & Planning
❙ AGE: 51
t’s safe to say that the Nissan Leaf
I would not be the reigning European
Car of the Year had it not been for the
persistence of Pierre Loing.
Nissan Europe’s head of product strate-
gy and planning says that one of his
proudest moments during the full-electric
Leaf’s evolution from promising project to
award-winning vehicle was convincing his
bosses at Nissan and its alliance partner,
Renault, to enter the Leaf in the contest
last year to pick Europe’s top car.
“There were some who thought entering
the contest was too costly and too time
consuming and that the car had no
chance because the media judges were
petrol heads who would be biased
against an electric car,” Loing told
Automotive News Europe.
The French executive eventually won
over his bosses and after the Leaf was
named a finalist, Colin Dodge, Nissan’s top
executive for Europe, asked Loing during a
board meeting whether the car would win.
Loing said he was hoping to be in the
top three. Dodge was not satisfied with
the answer and asked again: “Can we
win?”
“I believe we can,” Loing remembers
replying, even though at the time he says
he was anything but sure.
Then Dodge said: “If we win, I’ll buy you
dinner. If not, you buy me dinner.”
Loing took the bet. He said that in April
Dodge treated him and the entire 15-per-
son team that worked on the Leaf’s
launch to dinner at a French restaurant
near Nissan’s European headquarters in
Rolle, Switzerland.
Loing joined Nissan Europe in mid-2002
and started his current job in 2006. Since
1987, he has also worked for Volvo and
Renault. ■
ANE EXECUTIVE EDITION 91
AUTOMOTIVE NEWS EUROPE HUMAN RESOURCES
E U R O S T A R S
❙ AWARD: Sales & Marketing Executive
PAUL
PHILPOTT
❙ TITLE: Kia Europe COO
❙ AGE: 45
P A
aul Philpott has clear priorities in
life. “What is important to me are
my family and the future of Kia,”
Philpott told Automotive News
Europe. The married father of two has
created substantial value for his employer.
After joining Kia as its UK chief in 2007,
the Englishman turned around the
brand’s UK business, boosting its market
share to 2.3 percent in 2009 from 1.4
percent in 2006.
That success led to a promotion to
Kia’s chief operating officer for Europe
and a move to the carmaker’s European
headquarters in Frankfurt in 2009.
Philpott quickly set about the task of
improving Kia’s new-car sales with bold
decisions. In January 2010, he introduced
a seven-year warranty on all cars the
Korean brand sells in Europe. This move
won Kia a lot attention and improved its
brand awareness and sales. Philpott also
started to roll out Kia’s new global corpo-
rate identity for the brand’s 2,000
European dealers.
As part of Kia’s plans to improve its
dealer network in major European mar-
kets, Philpott also announced in June that
the automaker will take over the importing
and distribution of Kia vehicles in Italy
from the independent dealer group
Gruppo Koelliker.
Philpott has high ambitions for Kia in
Europe. His goal is to boost European
sales to 450,000 units by 2013 from
262,627 last year and probably around
300,000 this year.
Philpott has a lot of experience in the
automotive industry. He worked for Ford
Motor Co. for 11 years and for Toyota for
nine years. He also has a good feeling for
business figures. After graduating in
finance from Loughborough University in
England, he worked for 12 months in the
financial sector. ■
92 ANE EXECUTIVE EDITION
❙ AWARD: CFO
AXEL
STROTBEK
❙ TITLE: Audi Chief Financial Officer
❙ AGE: 47
udi continues to report all-time
highs in sales and profitability. In
the first half, the brand booked
record figures for all key finan-
cial indicators. The company looks set for
a record 2011 – after a record 2010.
Axel Strotbek is the man making sure
that the numbers add up. He compares
the task of balancing investment in new
products and technology while keeping a
tight rein on costs to “walking a tightrope.”
Between 2011 and 2015, Audi plans to
invest 11.6 billion euros, mainly to boost
its product lineup and to keep its techno-
logical edge.
Strotbek also must make sure that Audi
isn’t caught by the volatile conditions of
the global economy as the ambitious
brand powers head with its goal of sur-
passing BMW and Mercedes- Benz as
the world’s best-selling and most prof-
itable premium marque.
As it chases this goal Audi is significant-
ly boosting its product lineup and CEO
Rupert Stadler values Strotbek’s skills in
assessing whether the business case for
a new car is sound. Stadler also appreci-
ates Strotbek’s knowledge of the key
Chinese market, which Audi calls its “sec-
ond home market” after Germany.
Strotbek was finance chief for VW Group
in China from 2004 to 2007 when he was
named Audi’s top financial officer.
The German also has 20 years’ experi-
ence with VW group to help him meet the
challenges ahead. He joined VW brand’s
controlling and accounting department in
1991, winning promotion nine years later
to managing director for Volkswagen
Sachsen whose Zwickau factory builds
Golfs and Passats.
An industrial engineer by training, he
studied in Germany and Sweden before
gaining an MBA at University of Illinois in
Chicago. ■
❙ AWARD: Supplier CEO
FRANZ
FEHRENBACH
❙ TITLE: Robert Bosch Chairman
❙ AGE: 62
R
obert Bosch would be proud of
the people running his company
today. The 19th century entre-
preneur, who founded the Ger-
man firm 125 years ago and who would
have turned 150 on Sept. 23, would be
delighted to see the financial results cur-
rent Bosch Chairman Franz Fehrenbach
presented this past year. He also would
be impressed with the integrity and com-
passion of his 21st century leaders.
There are many reasons why
Fehrenbach is the Automotive News
Europe Supplier CEO Eurostar.
Bosch’s total sales grew 24 percent to
47.3 billion euros ($67.8 billion) last year.
The company’s 2010 profit before tax
was 3.5 billion euros, resulting in a 7.4
percent return on sales. The company
invests heavily in r&d. Last year, this sum
was 3.8 billion euros – or 8.1 percent of
revenues.
And, mostly, Bosch’s future looks
bright. Fehrenbach is confident the com-
pany’s total sales will pass 50 billion
euros for the first time in 2011 – of which
the company’s auto division should have
contributed a record 30 billion euros. The
executive also expects that Bosch’s total
return on sales will remain at 7 percent to
8 percent.
Fehrenbach is pushing the group into
new areas, having recently approved a
deal with Daimler AG to establish a 50-50
joint venture for electric motors. The new
company, EM-motive GmbH, will develop
and produce electric motors – also known
as traction motors – for electric vehicles.
Fehrenbach started as a trainee at
Bosch in 1975. After running the compa-
ny’s starter and alternator unit and the
diesel systems divisions, Fehrenbach was
promoted to Bosch’s management board
in 1999. He became board chairman in
2003. ■
SEPTEMBER 2011
AUTOMOTIVE NEWS EUROPE

>
LOOKING BACK
EUROSTAR WINNERS
1998-2010
❙ CONTINUED FROM PAGE 89

PRODUCT DEVELOPMENT
EXECUTIVE
Ulrich Hackenberg
Ulrich Hackenberg
Harald J. Wester
Jens Ludmann
Hans Demant
Carlos Tavares
2010 Volkswagen
2008 Volkswagen
2007 Fiat
2006 Ford of Europe
2005 Opel
2004 Renault
Remi Deconinck 2003 Renault
Martin Leach 2002 Ford of Europe
Nick Barter 2001 Jaguar
Hans-Joachim Schoepf 2000 DaimlerChrysler
Nevio di Giusto 1999 Fiat
Georges Douin 1998 Renault

MANUFACTURING EXECUTIVE
Paul Cope 2009 Jaguar Land Rover
Jim Tetreault 2007 Ford of Europe
Gilles Michel 2006 PSA
Norbert Reithofer 2005 BMW Group
Gerhard Stiegler 2004 Magna Steyr
Norbert Reithofer 2003 BMW
Ditmar Porth 2002 Opel
Curt Germundsson 2001 Volvo
Daniele Bandiera 2000 Fiat Auto
Michael Macht 1999 Porsche
Ian Gibson 1998 Nissan

DESIGNER
Martin Smith 2010 Ford of Europe
Walter de’ Silva 2009 VW Group
Roberto Giolito 2008 Fiat
Adrian van Hooydonk 2007 BMW
Martin Smith 2006 Ford
Patrick Le Quement 2005 Renault
Harm Lagaay 2004 Porsche
Dirk van Braeckel 2003 Bentley
Peter Horbury 2002 PAG
Patrick Le Quement 2001 Renault
Walter de’ Silva 2000 Seat
Geoff Lawson 1999 Jaguar
Claude Lobo 1998 Ford

PROJECT LEADER Conquer the powers

FOR INDIVIDUAL CAR
Alain Joseph 2010 Peugeot of darkness.
Andreas Haefele 2009 Opel/Vauxhall
Gerard Detourbet 2008 Dacia
Fabio Mingrino 2007 Fiat
Cristina Siletto 2006 Fiat
Aude Brille 2005 Peugeot
Peter Ewerstrand 2004 Volvo
Werner Wilhelm 2002 Volkswagen
Anton Ruf 2001 BMW
Jean-Francois Poluzot 2000 Citroen
Hermann Gaus 1999 DaimlerChrysler
Bruno Cena 1998 Fiat

LOOKING BACK ❙ CONTINUED ON PAGE 95

AUTOMOTIVE NEWS EUROPE HUMAN RESOURCES
E U R O S T A R S
❙ AWARD: Manufacturing Executive
MAGNUS
HELLSTEN
❙ TITLE: Volvo Senior Vice President
of Manufacturing
❙ AGE: 52
he news might not have made
T big headlines in most countries,
but for Volvo and manufacturing
boss Magnus Hellsten, it was just
the kind of affirmation of direction needed
for the iconic brand.
Late last year, Hellsten announced that
the company’s plant in Sweden was
boosting output by nearly 10 percent as a
way to cope with the increase in demand
for its top-end models.
Volvo Car Corp. “is heading in the right
direction,” Hellsten said then.
Volvo is positioned well, and it has
Hellsten to thank for the progress.
The new S60 is a hot seller and the car-
maker’s overall quality is on the rise.
In June, Volvo was tops in the J.D.
Power and Associates Vehicle Ownership
Satisfaction Study in Germany, rising from
seventh last year to overtake last year’s
No. 1, Mercedes-Benz.
The automaker has ambitious plans for
growth now that it is under the direction
of new owner Zhejiang Geely Holding
Group. Since the purchase of Volvo from
Ford Motor Co., the Chinese company
has said that it will open a plant in
Chengdu, China, and continue to study
whether to add a factory in Daqing. A
third China plant could become a reality.
If the plan pushes through, Zhejiang
Geely will achieve a combined capacity to
build 300,000 Volvos annually in China.
With the ambitious plans coming, Hellsten
will have a role in the expansion.
After starting his Volvo career on the
assembly line in 1980, Hellsten has risen
to become director of all production. His
experience includes manufacturing engi-
neering and quality. ■
94 ANE EXECUTIVE EDITION
❙ AWARD: R&D Executive
JOSEPH
BAKAJ
❙ TITLE: Ford Vice President of Powertrain
Engineering
❙ AGE: 49
A
fter winning praise for renewing
Ford Motor Co.’s product lineup
in Europe, then globally, Joseph
Bakaj now must make the
company’s powertrains greener.
Bakaj said his latest role takes him back
to when he joined Ford in 1985 in the UK
to work on powertrains. This time, the
challenges are bigger. Tougher fuel econ-
omy and CO2 emission regulations in
Europe and the United States, and
increased consumer demand, are driving
the race for cleaner, greener engines.
“How to do it is a challenge, but it’s excit-
ing for me. The pace of technological
change is faster than ever,” Bakaj said.
Bakaj has a brilliant track record. In
2000, he was named Engineer of the Year
by a UK magazine for his work as engi-
neering manager for the Ford Mondeo.
After stints as Ford’s engineering director
for North American truck product develop-
ment and at Mazda, where he was
responsible for global product develop-
ment, Bakaj became Ford of Europe’s
head of product development in 2005.
His work in renewing Ford’s product line-
up with models such as the S-Max mini-
van, Kuga crossover and Fiesta subcom-
pact earned him a promotion to head of
global product programs three years later.
An important project on Bakaj’s desk is
Ford’s new 1.0-liter, three-cylinder engine
for the company’s global small cars. The
engine is designed to deliver the perform-
ance of a four-cylinder, 1.6-liter unit, but
with greater fuel economy.
Another key program is an eight-speed
automatic transmission that will allow the
carmaker to continue its effort to down-
size engines, Bakaj said. ■
❙ AWARD: Entrepreneur
HENRIK
FISKER
❙ TITLE: Fisker Automotive
❙ AGE: 48
A
s the designer of cars like the
Aston Martin DB9 and BMW Z8,
Henrik Fisker proved his creative
skills. Now the Danish-born
businessman has shown his entrepre-
neurial talent by raising $1 billion to
launch a company to build stylish sports
cars that are also environmentally friendly.
Fisker’s Karma plug-in electric car,
which is currently hitting showrooms in
Europe and the U.S., is the first stage in
the designer’s professed goal “to redefine
the luxury automobile with an unwavering
dedication to sustainability.”
The four-door Karma can run on battery
power for 80km and for 483km when the
lithium ion battery pack is charged by a
2.0-liter, four-cylinder engine driving an
electric generator. The car has a top
speed of 200kph, but average fuel con-
sumption of just 2.4l/100km and CO2
emissions of 83g/km.
Fisker believes his firm will succeed
because he isn’t spending huge sums to
establish new factories. The Karma is pro-
duced by Valmet Automotive in Finland.
Fisker’s Nina model will be built in a for-
mer General Motors plant in Delaware in
the U.S., helped by a $529 million gov-
ernment loan.
After 12 years working as a designer
for BMW, Fisker joined Ford Motor Co.
in 2001 where he served Aston Martin’s
design director, later becoming director
of Ford’s global advanced design
studio.
In 2005, Fisker left Ford to start a com-
pany making tailor-made cars based on
production cars with partner Bernhard
Koehler, a German-born former BMW and
Ford designer. Two years later the pair
founded Fisker Automotive. ■
SEPTEMBER 2011
>
AUTOMOTIVE NEWS EUROPE

LOOKING BACK
EUROSTAR WINNERS
1998-2010
❙ CONTINUED FROM PAGE 93

PURCHASING EXECUTIVE
Mark Adams 2010 Toyota Europe
Jean-Christophe 2009 PSA
Quemard
Herbert Diess 2008 BMW
Odile Desforges 2007 Renault
Jean-Philippe Collin 2006 PSA
Steve Armstrong 2005 Volvo
Gerhard Schuff 2004 BMW
Tommaso Le Pera 2003 GM Fiat Worldwide
Jean-Baptiste Duzan 2002 Renault Nissan
Rainer Genes 2001 Smart
Jean-Baptiste Duzan 2000 Renault
Tommaso Le Pera 1999 Fiat
Jean-Baptiste Duzan 1998 Renault

SALES AND MARKETING EXECUTIVE

Allan Rushforth 2010 Hyundai
Ingvar Sviggum 2009 Ford of Europe
Fred Kappler 2008 Skoda
Andrea Formica 2007 Toyota Europe
Rae-Su Cho 2006 Hyundai
Jean-Marc Gales 2005 Opel
Thierry Dombreval 2004 Toyota Europe
Karl-Heinz Kalbfell 2003 BMW
Michael Ganal 2002 BMW
Joachim Schmidt 2001 DaimlerChrysler
Klaus Fricke 2000 Micro Compact Car
Detlef Wittig 1999 Skoda
Dieter Zetsche 1998 Daimler-Benz

EXECUTIVE IN AN
EMERGING MARKET
Ratan Tata 2008 Tata
Chris J. Lacey 2007 GM Cent. & E. Europe
Gerard Detourbet 2006 Renault
Gianni Coda 2001 Fiat
Herbert Demel 2000 VW Brazil
Scott Mackie 1999 GM Poland
Giovanni Razelli 1998 Fiat Mercosur

SUPPLIER CEO
Yann Delabriere 2010 Faurecia
Alfredo Altavilla 2009 Fiat Powertrain Tech.
Heinz Junker 2008 Mahle
Michel Rollier 2007 Michelin
Siegfried Goll 2006 ZF
Manfred Wennemer 2005 Continental
Alberto Bombassei 2004 Brembo
Hermann Scholl 2003 Robert Bosch But using peaceful means.
Edouard Michelin 2002 Michelin Group
Alberto Bombassei 2001 Brembo
Domenico Bordone 2000 Magneti Marelli Our new lighting system Active Night Vision with Marker Light. Unexpected
Daniel Dewavrin 1999 Faurecia obstructions, pedestrians or animals on the road are identified by the infrared light
Noel Goutard 1998 Valeo in less than a second and shown on the display. Pedestrians in rural areas are auto-
matically flashed multiple times with the spot light function, pointing out potential risk
LOOKING BACK ❙ CONTINUED ON PAGE 96
to the driver. See just about everything: www.al-lighting.com

Identify pedestrians and

other hazards in time A Magneti Marelli Company
>
AUTOMOTIVE NEWS EUROPE HUMAN RESOURCES

ADVERTISING EXECUTIVE PUBLIC RELATIONS

Ian Robertson 2010 BMW Richard Gaul 2006 BMW
Klaus Maier 2007 DaimlerChrysler Richard Gaul 2002 BMW
LOOKING BACK
EUROSTAR WINNERS Tim Ellis 2004 Volvo Anton Hunger 2001 Porsche
Juan Jose Diaz Ruiz 1998 Toyota and Audi Patrick Bessy 2000 Renault
1998-2010 Roland Klein 1999 DaimlerChrysler
❙ CONTINUED FROM PAGE 95
IMPORT BRAND CEO Klaus Kocks 1998 VW
SUPPLIER DIVISION CEO Jean-Charles Lievens 2005 Kia Europe
Alex Ismail 2010 Honeywell Carlos Ghosn 2004 Nissan OEM/SUPPLIER R&D
Herbert Demel 2009 Magna International Stephen Odell 2003 Mazda Europe Klaus Draeger 2008 BMW AG
Bernd Bohr 2008 Robert Bosch Claude Satinet 2002 Citroen Heinz-Jakob Neusser 2007 Porsche
Karl-Thomas 2007 Continental Frederic-Saint- 2001 PSA Hans-Peter Schmalzl 2007 BorgWarner
Neumann Geours Martin Thall 2006 Microsoft
Wolfgang Dehen 2006 Siemens VDO Giuseppe Bonollo 2006 Fiat
Manfred Remmel 2005 Magna Steyr OEM MOTORSPORTS EXECUTIVE
Bernd Bohr 2004 Robert Bosch SUPER LUXURY
Wolfgang Ullrich 2008 Audi
Wolfgang Ziebart 2003 Continental Luca Cordero 2010 Ferrari
Flavio Briatore 2005 Renault
Siegfried Wolf 2002 Magna Steyr di Montezemolo
Jean Todt 2004 Ferrari
Franz-Josef Paefgen 2007 Bentley
Franz-Josef Paefgen 2003 Bentley Motors
Ulrich Bez 2006 Aston Martin/Ford
SUPPLIER RESEARCH Jean Todt 2002 Ferrari
AND DEVELOPMENT EXECUTIVE
Bernd Matthes 2003 BorgWarner CEO OF INDEPENDENT CONTRACT CONTRACT MANUFACTURER CEO
Bernhard Kant 2002 Robert Bosch MANUFACTURER/COACHBUILDER Andrea Pininfarina 2005 Pininfarina
OR DESIGN STUDIO Franz-Josef Kortuem 2004 Webasto
Giorgetto Giugiaro 2003 italdesign

2011 Eurostars
We are delighted to recognise the 2011 Eurostars of Europe.
Congratulations to this year’s award recipients. Your commitment
to excellence is leading the automotive industry of tomorrow.

On Monday, September 12, PwC will announce the Automotive

News Europe Eurostars of the automotive industry and the
companies nurturing their talents. Please join us in honouring
the award recipients for their outstanding leadership.

© 2011 PwC. All rights reserved. “PwC” refers to PricewaterhouseCoopers LLP, a Delaware limited liability partnership, which is a member firm of
PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

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 2011

Congratulations to the
Automotive Industry’s
Visionary Leaders!
Herbert
Diess
Member of
Joseph the Board of Colin
Bakaj Management Dodge Franz
Martin Jerome Axel Vice President, Laurens of BMW AG, Chief Fehrenbach
Winterkorn Olive Strotbek Powertrain van den Acker Purchasing and Performance Chairman
CEO President CFO Engineering Head of Design Supplier Network Officer Robert Bosch
Volkswagen AG Dacia SA Audi AG Ford Motor Co. Renault SA BMW AG Nissan Motor Co. GmbH

Beda Magnus Pierre Bo Gunnar Henrik Paul

Bolzenius Hellsten Loing Andersson Herrmann Fisker Philpott
Corporate Vice COO Vice President President & Vehicle line Designer & COO
President and Volvo AB of Product CEO director, CEO Kia Motors
President of Strategy & GAZ Group Global Fisker Europe
the Automotive Planning C-segment Automotive
Experience Nissan Platform
Business International SA Ford Motor Co.
Johnson Controls
Inc.

Automotive News Europe, PwC and Siemens are proud
to present the 14th annual Eurostars awards 2011 in
recognition of extraordinary leaders within the auto-
motive industry. Great talent coupled with vision and
commitment is what our Eurostars are made of. These
are the high-fl iers and go-getters at the leading edge
of the automotive business, pointing the way forward
to an even more successful future. The 2011 Eurostars
will be honored during a private, exclusive dinner on
September 12 in Frankfurt, Germany.

www.autonewseurope.com/eurostars
AUTOMOTIVE NEWS EUROPE DESIGN
FRENCH
REVOLUTION
Renault and PSA revamp their cars’ design to boost global appeal
BRUCE GAIN
autonewseurope@crain.com
SA/Peugeot-Citroen and Renault
P are following a similar path to help
combat increasing pressure from
new carmakers in emerging markets.
Both French automakers are revamping
the design of their product lineups, empha-
sizing consistency across their ranges to
make their vehicles more appealing globally.
PSA and Renault plan to make their
brands more recognizable among potential
buyers in fast-growing markets such as
China, Brazil, India and Russia, as well as in
their traditional strongholds in France and
the rest of Europe.
“When you look at the last 10 years, the
brands that did well were those that were
coherent and consistent,” Laurens van den
Acker, Renault’s head of design, told
Automotive News Europe.
More consistency among the different
models will be important to remain competi-
tive against carmakers from emerging mar-
kets, van den Acker said.
“There are 40 brands in China that are
knocking on the door and want to grow.
There are new car companies being created
in India, Brazil and elsewhere that have the
desire to grow and explore the world as
well,” van den Acker said. “It is one thing for
Renault to be recognized in France where we
are everywhere, but once you go abroad,
being visible is key. If you have a team and
all of the players are wearing different shirts,
then it is hard to create a team spirit.”
Separately, PSA is following a similar strat-
egy as it seeks to make Citroen and Peugeot
models more recognizable and distinct as
separate brands worldwide.
“We must distinguish the two brands in
terms of their position in the markets,” Jean-
Pierre Ploue, director of design at PSA, told
Automotive News Europe. Ploue was previ-
ously head of design at Citroen, a job he was
appointed to in 2000. “Each model must
feed the brand. Every model must be part of
the family.”
Building brand recognition outside of
Europe will represent a significant yet critical
challenge for PSA and Renault, said Carlos
Da Silva, of analyst IHS Automotive.
“Any European knows what a Renault is,
but ask a Chinese, an Indian, an Indonesian
even a Russian, and the answer is certainly
less evident,” Da Silva said.
The Peugeot 208, which is expected to be
SEPTEMBER 2011
unveiled at the Geneva auto show in March,
is the first Peugeot production model since
PSA appointed Ploue as director of design
for both brands in 2009. It will represent the
design direction of future Peugeot models.
Ploue said the SR1 concept that Peugeot
unveiled at the 2010 Geneva show hints of
the design philosophy the 208 and future
Peugeot models will follow.
“You see a little bit of what (the new style)
will be in the SR1 concept car,” Ploue said.
“The SR1 represents what we want to do,
with an athletic, pure, elegant, and precise
design with much allure.”
Emphasis on style
Ploue also said that Citroen models will
have more distinct personalities than
Peugeot designs.
“Citroen designs will be less homogenous
and consistent than the Peugeot line,” Ploue
said. “The designs will not be classic, but
very elegant with an emphasis on style.”
PSA also seeks to expand Citroen’s brand
by leveraging its DS range to compete in lux-
ury-car markets, Ploue said. While Citroen
doesn’t hope to transform itself into a premi-
um brand, “Citroen will target more of the
premium carmakers such as BMW and Audi
in the future with the DS designs,” he said.
“If you are making
cars for the heart of
the market, then
you have to relate
to a lot of people.
We are making
cheeseburgers,
not sushi.”
Laurens van den
Acker, Renault’s
head of design,
shown with a DeZir
concept. The sporty
PHOTO: REUTERS
car showcases the
carmaker’s new
design theme.
PSA is launching its DS line in China this
year and unveiled the DS5 crossover, the
third model in the upscale lineup, at the
Shanghai auto show in April.
The model will go on sale in Europe by the
end of the year.
At Renault, future models will break from
the past as van den Acker prepares to rein-
vent the brand.
“They asked me to change a lot because
they felt that Renault really needed to turn a
page,” said van den Acker, who worked at
Audi, Ford and Mazda before succeeding
longtime Renault design chief Patrick Le
Quement in 2009. “This has given me a lot
of freedom to reinvent the design of the
company,” he said.
The DeZir, Captur, and R-Space concepts
that Renault introduced in March at the
Geneva auto show and at the 2010 Paris auto
show reflect Renault’s new design strategy
under van den Acker.
Renault’s new EVs will also conform to the
company’s new design philosophy.
Van den Acker said his goal is to create
designs that appeal to the masses.
“If you are making cars for the heart of the
market, then you have to relate to a lot of
people,” van den Acker said. “We are making
cheeseburgers, not sushi.” ■
ANE EXECUTIVE EDITION 99
QA &
GIORGETTO GIUGIARO
SO FAR, SO GOOD
AUTOMOTIVE NEWS EUROPE
Design legend talks about life as part of VW
ast year, design legend Giorgetto
L Giugiaro sold just over 90 percent of
Italdesign Giugiaro, Italy’s biggest car
styling and engineering company, to
Volkswagen Group. Since then, Giugiaro has
been learning how to work within a giant
global group. Giugiaro says he does not
regret giving up his independence to VW. He
spoke with Automotive News Europe Chief
Correspondent Luca Ciferri.
Could you sum up your first year
under VW ownership?
So far, so good. I cannot be called a rookie
in the auto industry – I began working 56
years ago and I penned my first production
❝
car, the Gordon Keeble GT, back in 1960,
but I am still learning how the VW Group
operates globally.
“Rigorous discipline is a key
element of VW group’s
global success.”
What have you learned since enter-
ing VW’s inner circle?
VW was never a stranger to us and we
were never a stranger to VW, since we
worked together for so many years.
Nevertheless, now I am able to observe from
the inside VW’s level of discipline, long-term
programming and 360-degree research that
still goes beyond my imagination. What we
are trying to learn, step by step, is how to
align the speed of our small vessel with the
cruising speed of such a global group.
How has Italdesign changed?
There were no big changes in how we
work, just a different setting. In the past, we
were given a clean sheet of paper and, except
for the engine, we were designing and engi-
neering complete vehicles for the world’s
automakers. Within VW, we are part of a
powerful organization where we are proud to
add the value of our experience in design
and engineering to the vast work already car-
ried over by the parent company.
Is it frustrating to lose your inde-
pendence?
On the contrary, VW and its brands always
have so many projects running that every
good idea is welcome. And you know we
❙ For the complete Giorgetto Giugiaro interview go to europe.autonews.com/giugiaroexecedition ❙
100 ANE EXECUTIVE EDITION
DESIGN
have those good ideas! The big difference is
that we need to adjust to a more global pic-
ture, and to the discipline and precise timing
of those projects. But I have to admit that
this rigorous discipline is one of the key ele-
ments of VW Group’s global success.
Why did you decide to sell to VW?
I decided to sell with my son, Fabrizio,
because I am the past and he’s the future.
Italdesign had won some good contracts, so
our short-term future was safe. Nevertheless,
becoming part of VW offered a clear long-
term benefit for the company and its 900
employees and their families. Personally, I
like VW as a company and I have had a very
good personal relationship with (VW
Chairman) Ferdinand Piech ever since he
came to Italdesign for a summer internship
in 1972. VW people always respected me, my
work and my company more than any of the
several dozen companies I have worked for.
Your first two projects under VW,
the Tex plug-in hybrid electric com-
pact coupe and the Go electric com-
pact minivan unveiled at the 2011
Geneva auto show, did not seem to
show as much creativity as some of
your past designs.
I am convinced – and luckily I am also
told! – that my creativity is still alive and
kicking. Maximize the interior space while
minimizing the vehicle size had been a con-
stant in my career. Go and Tex both extend
this research to new highs. Many concepts
exhibited at auto shows are not industrially
feasible. Tex and Go could enter production
as unveiled in Geneva. The only modifica-
tion needed would be to make the front of
the Go 60mm longer to install an internal
combustion powertrain.
Describe the Go minivan in one or
two sentences.
A compact minivan that, thanks to a clever
packaging, offers more roominess than a
large SUV despite being shorter than a com-
pact hatchback. In addition, it has an unri-
valed easy access for passengers.
It looks like an uninspiring people
mover that only older buyers would
purchase.
I proudly defend the rights not only of
older people, but also of a broader audience
– also including youngsters – who refuse to
MEET THE BOSS
●
Giorgetto Giugiaro, 73, founded Italdesign
Giugiaro in 1968 after he had worked for Fiat
from the age of 17 and later for Bertone and
Ghia, two famous Turin coachbuilders. Giugiaro’s
new company pioneered a new formula: provid-
ing design, engineering, prototyping and testing
services to carmakers without also performing
manufacturing. Giugiaro’s current challenge is to
provide VW with innovative styling proposals to
aid the automaker’s quest to become the world’s
largest automaker.
believe that a nice vehicle has to be a low-
slung and uncomfortable car.
The Go is a perfect vehicle for an clientele
that is more mature in their approach to per-
sonal transport.
A quick description of the Tex
coupe?
It is roomier than a compact coupe. It is
3990mm long so it’s shorter than a subcom-
pact hatchback. Passengers can easily get into
and out of the rear seats, not an easy task in
many existing coupes, even those that are
much bigger than the Tex.
Could these cars make it into pro-
duction?
VW told me it received very good feedback
for both vehicles, but at the moment I am
not aware of any taken decision.
You designed the first Volkswagen
Golf. Are there any untold stories
about it?
The Golf that won a lot of praise wasn’t
exactly the one I had designed first in 1970
and VW approved for production in August
1971. Late in the project’s development, VW
decided to also sell the car in the U.S. and
federal standards meant the car’s front end
had to be lengthened by 70mm.
We worked around the clock to apply this
modification without delaying the European
launch. The Golf debuted in 1974 at the
Geneva show. Retrospectively, I would say
the final result was quite good despite this
last-minute change. ■
SEPTEMBER 2011
AUTOMOTIVE NEWS EUROPE DATA

LITTLE CARS,
BIG BATTLE
The competition is about
to get even tougher in
crucial minicar segment
LUCA CIFERRI
lciferri@crain.com

urope’s largest automaker is about to seri-

E ously strengthen itself in the region’s smallest

product grouping based on vehicle size. It’s a
move that promises to shake up the key minicar seg-
ment because Volkswagen brand is a dominant player in every VW is No. 1 or No. 2 in most volume segments in Europe. A big
other European product group where it competes. exception is minicars, where VW hopes the Up (above) can challenge
The Frankfurt auto show debut of the Up gives the VW Group a
the Fiat Panda (left).
new weapon in Europe’s third-largest segment, where the Brazil-built
VW Fox has be a slow seller since it debuted in 2005 to replace the door. VW will offer gasoline, diesel and electric versions of the Up.
Lupo. The Panda will have powertrains that run on diesel, gasoline and
The Fox has never been able to compressed natural gas. An electric version of the 500 currently is
mount a serious challenge to seg- planned only for North America.
ment leaders from Fiat, By summer 2012, it should be possible to see whether VW has con-
PSA/Peugeot-Citroen and quered another product group or if Fiat and the French will continue
Renault. to make the segment a southern-European stronghold. ■
Fiat is the current minicar
champion. The No. 1 Panda and
second-ranked Fiat 500 hold MINICAR
commanding leads over all chal- Fiat maintained its dominance of the minicar segment with the
lengers through six months, according to data from JATO Dynamics Panda on top and the 500 at No. 2. All of the models in the
(see table). top 5 are selling below levels seen last year, causing first-half sales
Fiat has reason to worry about the Up’s arrival. VW has the best- in the segment to fall 19 percent.
selling model in five European segments (compact, mid-sized, medi-
H1 2011 H1 2010 % CHANGE
um SUV, large SUV and car-derived van) and ranks second in two
other groups (subcompact and coupe), JATO data show. 1. Fiat Panda 109,410 139,568 –22%
Fiat will try to defend its large lead by debuting the third-genera- 2. Fiat 500 91,148 98,707 –8%
tion Panda at the Frankfurt show this month. The Panda has been 3. Renault Twingo 69,760 86,707 –20%
Europe’s No. 1 selling minicar since 2004. 4. Peugeot 107 49,489 54,077 –9%
Volume sales of the Up and the new Panda will begin in Europe
5. Citroen C1 45,792 51,872 –12%
early next year. VW will offer three- and five-door versions of the Up;
the Panda will come only as a five-door because the 500 is a three- SEGMENT TOTAL 644,070 791,656 –19%
Source: JATO Dynamics

MARKET ANALYSIS BY SEGMENT

EUROPEAN FIRST-HALF SALES
Big is beautiful as SUVs, CHANGING
SEGMENTS
premium cars rise in first half First half winners/losers
Electric Car .........+930%
Scrapping incentives have long finished in the major
Small SUV.............+81%
European markets but the hangover from the subsidies
continued to take a bite out of sales of minicars, subcom- Upper Premium ....+62%
pacts and compacts in the first half, according to data Coupe ...................-21%
from JATO Dynamics. Cars in those three key segments Minicar...................-19%

>
benefitted most from cash handouts given to people who Premium Coupe ....-12%
traded in their old cars in 2009 and 2010.
Download a pdf of the
Cars in the large, premium and SUV segments that European fist-half by-model
were shunned during the incentives craze are rebounding. sales from our Website at
The Dacia Duster SUV and Audi A7 are hot sellers. autonews.com/
H12011sales
Segmentation analysis starts on page 102.

SEPTEMBER 2011 ANE EXECUTIVE EDITION 101

AUTOMOTIVE NEWS EUROPE DATA

COMPACT SUBCOMPACT
The VW Golf was Europe’s top- The Ford Fiesta has a com-
selling car in the first half and at a fortable lead over the VW Polo,
volume of 257,977 units, the but overall sales in Europe’s
hatchback beat the total sales of largest product segment are
15 of the 25 segments monitored by down 9% compared with the first six
ANE. Overall, compact sales were flat in the first half. months of 2010.
H1 2011 H1 2010 % CHANGE H1 2011 H1 2010 % CHANGE
1. Volkswagen Golf 257,977 277,224 –7% 1. Ford Fiesta 207,865 248,272 –16%
2. Ford Focus 165,222 155,531 +6% 2. Volkswagen Polo 196,781 195,886 +1%
3. Open/Vauxhall Astra 164,617 153,953 +7% 3. Opel/Vauxhall Corsa 178,391 183,448 –3%
4. Nissan Qashqai 117,792 110,199 +7% 4. Renault Clio 167,939 197,950 –15%
5. Renault Megane 108,125 119,976 –10% 5. Fiat Punto 132,228 160,765 –18%
SEGMENT TOTAL 1,626,495 1,632,608 0% SEGMENT TOTAL 1,832,322 2,018,913 –9%

MID-SIZED LARGE
The VW Passat is in its custom- The Skoda Superb domi-
ary place at the top of the mid- nated the large segment in
sized segment because of a 30% the first half. With a volume
rise in first-half sales. The race to of 30,893 units, the car out-
watch is for third place where the aging sold all of its rivals combined during the period. Renault enters the
Mondeo is at risk of getting passed by the new Peugeot 508. segment at No. 3 with a strong debut for the new Latitude.
H1 2011 H1 2010 % CHANGE H1 2011 H1 2010 % CHANGE
1. Volkswagen Passat 126,598 97,381 +30% 1. Skoda Superb 30,892 24,108 –28%
2. Opel/Vauxhall Insignia 76,602 68,800 +11% 2. Subaru Legacy/Outback 7,122 8,365 –15%
3. Ford Mondeo 46,929 51,868 –10% 3. Renault Latitude 6,259 0 –
4. Peugeot 508 40,244 0 – 4. Citroen C6 554 887 –38%
5. Citroen C5 36,816 43,268 –15% 5. Chrysler 300 405 2,113 –81%
SEGMENT TOTAL 440,626 399,214 +10% SEGMENT TOTAL: 45,980 38,889 +18%

COUPE ROADSTER
One of the most competitive races The Peugeot 207CC leads the
in Europe is between the Renault segment but anything could hap-
Megane Coupe and the VW pen as just 3,846 sales separate
Scirocco for the top-selling coupe. the top spot from the No. 5 slot in
The Peugeot RCZ enters the table the roadster table. Renault re-enters the top 5 at No. 4 with a
at No. 3, giving French automakers three models in the top 5. strong surge in sales for the new Megane coupe cabrio.
H1 2011 H1 2010 % CHANGE H1 2011 H1 2010 % CHANGE

1. Renault Megane 18,534 24,957 –26% 1. Peugeot 207CC 11,655 12,681 –8%
2. Volkswagen Scirocco 15,205 19,750 –23% 2. Smart ForTwo 9,230 8,011 +15%
3. Peugeot RCZ 9,555 3,390 – 3. Peugeot 308CC 8,965 10,522 –15%
4. Opel/Vauxhall Astra 4,462 14,268 –69% 4. Renault Megane 8,454 2,436 –
5. Renault Laguna 2,924 3,353 –13% 5. Volkswagen Eos 7,809 7,804 +0%
SEGMENT TOTAL 55,133 69,624 –21% SEGMENT TOTAL 59,134 55,641 +6%

SMALL MINIVAN MEDIUM MINIVAN

The arrival of the new Opel/ The new C-Max has propelled Ford to
Vauxhall Meriva has shaken up No. 2 in the segment. Although
the small minivan segment. The C-Max sales have doubled since
Meriva lost its lead to the Citroen C3 H1 2010, the medium minivan still
Picasso in the first half of 2010, but finished the year has a long way to go to catch the
at No. 1 and has a big lead in H1. Hyundai’s ix20 also is hot. segment-leading Renault Scenic.
H1 2011 H1 2010 % CHANGE H1 2011 H1 2010 % CHANGE

1. Opel/Vauxhall Meriva 77,821 44,212 +76% 1. Renault Scenic/Grand Scenic 84,507 102,986 –18%
2. Citroen C3 Picasso 38,984 45,377 –14% 2. Ford C-Max/Grand C-Max 68,102 34,070 +100%
3. Renault Modus/Grand Modus 27,000 28,717 –6% 3. Volkswagen Touran 65,854 52,214 +26%
4. Hyundai ix20 25,853 0 – 4. Citroen C4 Picasso 61,045 69,260 –12%
5. Kia Venga 24,845 16,249 +53% 5. Opel/Vauxhall Zafira 40,874 47,611 –14%
SEGMENT TOTAL 260,007 218,659 +19% SEGMENT TOTAL 390,007 387,146 +1%
Source: JATO Dynamics

102 ANE EXECUTIVE EDITION SEPTEMBER 2011

AUTOMOTIVE NEWS EUROPE DATA

LARGE MINIVAN CAR-DERIVED VAN

The Peugeot 5008 The VW Caddy clawed its way to the
remained on top of the large top with a 31% increase to 28,692
minivan segment despite sales compared with the first half of
being the only model in the top 2010. For years, the Citroen Berlingo
5 to suffer a sales decline in the first half. The Ford S-Max and the and Renault Kangoo have dominated
new VW Sharan are in a tight battle for second place. the niche, which is down 10% after 6 months.
H1 2011 H1 2010 % CHANGE H1 2011 H1 2010 % CHANGE

1. Peugeot 5008 39,371 40,354 –2% 1. Volkswagen Caddy 28,692 21,841 +31%
2. Ford S-Max 26,154 21,343 +23% 2. Citroen Berlingo 25,410 30,376 –16%
3. Volkswagen Sharan 24,329 5,044 – 3. Renault Kangoo 19,875 21,205 –6%
4. Mercedes Vito/Viano 15,613 9,699 +61% 4. Peugeot Partner/Ranch 19,444 22,029 –12%
5. Ford Galaxy 14,349 12,533 +15% 5. Fiat Fiorino/Qubo 11,434 16,102 –29%
SEGMENT TOTAL 152,236 123,094 +24% SEGMENT TOTAL 125,739 140,297 –10%

SMALL SUV MEDIUM SUV

The Dacia Duster has a commanding The VW Tiguan is Europe’s top-
lead in the small SUV segment. The selling medium SUV. The segment
low-cost model from Renault’s has a three-model race for second
Romanian subsidiary finished 2010 as place. Hyundai’s ix35 has a slim lead
No. 1 despite debuting in April. Its lead widened over the Ford Kuga while the new Kia Sportage also has a good
during its first full year of sales in a niche where all rivals are down. chance to finish the year in the top 3.
H1 2011 H1 2010 % CHANGE H1 2011 H1 2010 % CHANGE

1. Dacia Duster 76,204 13,545 – 1. Volkswagen Tiguan 62,710 53,118 +18%

2. Suzuki SX4 19,080 19,409 –2% 2. Hyundai ix35 39,934 19,061 –
3. Fiat Sedici 8,862 9,251 –4% 3. Ford Kuga 38,751 38,329 +1%
4. Suzuki Jimny 7,402 9,370 –21% 4. Kia Sportage 32,682 10,927 –
5. Toyota Urban Cruiser 3,968 8,872 –55% 5. Mitsubishi ASX 26,730 2,380 –
SEGMENT TOTAL 122,530 67,706 +81% SEGMENT TOTAL 325,067 260,071 +25%

LARGE SUV MINI PREMIUM

The VW Touareg finished the first half Audi’s smallest model enters the
at the top of the large SUV segment segment at No. 1. The Audi A1
because of a 90% increase in year- debuted in late 2010 so it wasn’t a
on-year sales. The second-generation factor in last year’s race. The rising
Touareg debuted early last year. Nissan’s Lancia Ypsilon could overtake the
new Pathfinder had a good H1 and could finish the year at No. 4. declining Mercedes A class as the niche’s No. 3 model.
H1 2011 H1 2010 % CHANGE H1 2011 H1 2010 % CHANGE

1. Volkswagen Touareg 11,762 6,187 +90% 1. Audi A1 54,712 299 –

2. Hyundai Santa Fe 6,520 6,789 –4% 2. Mini hatchback/Clubman 46,598 57,341 –19%
3. Toyota Land Cruiser 5,994 6,115 –2% 3. Mercedes A class 28,970 55,240 –48%
4. Mitsubishi Pajero/Montero/Shogun 3,802 3,470 +10% 4. Lancia Ypsilon 28,488 27,830 +2%
5. Nissan Pathfinder 2,277 1,411 +61% 5. Alfa Romeo Mito 24,657 33,147 –26%
SEGMENT TOTAL 36,617 30,441 +20% SEGMENT TOTAL 195,271 191,298 +2%

ENTRY PREMIUM LOWER PREMIUM

Despite a 26% sales decline, the The Audi A4 and Mercedes C class
Audi A3 continued to dominate are in a tight sales race for the lower-
the BMW 1 series in the segment premium crown. The arrival of a face-
during the first half. The most lifted C class combined with the A4’s
interesting race in the niche is between the Alfa Romeo Giulietta 12% sales slide in the first half means
and the Mercedes B class for third place. that Mercedes trailed its rival by just 2,415 sales in H1.
H1 2011 H1 2010 % CHANGE H1 2011 H1 2010 % CHANGE

1. Audi A3 69,136 93,680 -26% 1. Audi A4 85,139 97,077 –12%

2. BMW 1 series 57,290 64,154 -11% 2. Mercedes C class 82,724 71,099 +16%
3. Alfa Romeo Giulietta 46,232 3,715 – 3. BMW 3 series 71,154 77,434 –8%
4. Mercedes B class 45,138 41,682 +8.3 4. Volvo V50 22,785 29,887 –24%
5. Mini Countryman 25,522 145 – 5. Saab 9-3 7,473 5,356 +40%
SEGMENT TOTAL 264,262 236,783 +12% SEGMENT TOTAL 290,653 302,031 –4%
Source: JATO Dynamics

104 ANE EXECUTIVE EDITION SEPTEMBER 2011

AUTOMOTIVE NEWS EUROPE DATA

MEDIUM PREMIUM UPPER PREMIUM

The arrival of the new-generation BMW The arrival of the Audi A7 has
5 series has turned a tight race into a shaken up the segment, which typi-
blowout among medium-premium cars. cally is a tight race between the
Sales of the 5 series were up 74% in the BMW 7 series, Mercedes S class
first half while sales of its main rival, the and Audi A8. Now those three will
Mercedes E class, fell 10% in H1. have to fight it out for second place as the A7’s lead is too big.
H1 2011 H1 2010 % CHANGE H1 2011 H1 2010 % CHANGE
1. BMW 5 series 77,480 44,588 +74% 1. Audi A7 10,419 12 –
2. Mercedes E class 50,766 56,457 –10% 2. Mercedes S class 5,878 6,090 –4%
3. Audi A6 38,225 37,377 +2% 3. Audi A8/S8 5,379 3,575 +51%
4. Volvo V70 24,796 28,858 –14% 4. BMW 7 series 5,039 5,109 –1%
5. Volvo V60 22,668 5 – 5. Porsche Panamera 3,002 3,729 –20%
SEGMENT TOTAL 271,964 210,362 +29% SEGMENT TOTAL 34,047 20,990 +62%

PREMIUM COUPE PREMIUM ROADSTER

The race to be Europe’s top The Mini Cabriolet used an 11%
premium coupe is tight. The increase in first-half sales to remain on
Audi A5 has a slim lead over top of the segment. It has tough com-
the Mercedes E-class coupe and petition from the Mercedes E-class
BMW 3-series coupe. Sales of all three models were down in the cabriolet, which had a sales surge of
first half with the E class suffering the steepest decline at 18%. 40% in the first six months of 2011.
H1 2011 H1 2010 %CHANGE H1 2011 H1 2010 % CHANGE

1. Audi A5/S5 10,359 12,553 –18% 1. Mini Cabriolet 13,392 12,056 +11%
2. Mercedes E class 9,711 11,854 –18% 2. Mercedes E class 9,369 6,796 +38%
3. BMW 3 series 9,558 10,575 –10% 3. BMW 1 series 8,603 9,392 –8%
4. BMW 1 series 7,381 7,377 0% 4. Audi A5 8,274 8,321 0
5. Audi TT Roadster 7,317 6,614 +11% 5. Mercedes SLK 7,988 5,234 +53%
SEGMENT TOTAL 57,989 65,610 –12% SEGMENT TOTAL 83,989 83,012 +1%

PREMIUM MEDIUM SUV PREMIUM LARGE SUV

The BMW X1 held on to its top spot Sales of premium large SUVs are up
in the premium medium SUV niche 4% overall because of a first-half
despite the arrival of the Q5 from volume increase for the niche’s top
rival Audi. Both models increase model, the BMW X5, as well as the
sales in the first half. Volvo’s third-ranked fourth-ranked Porsche Cayenne and No. 5
XC60 is at risk of being passed by BMW’s new-generation X3. Audi Q7. The Range Rover Sport slipped 7% in H1.
H1 2011 H1 2010 % CHANGE H1 2011 H1 2010 % CHANGE
1. BMW X1 41,212 39,531 +4% 1. BMW X5 13,404 12,833 +4%
2. Audi Q5 35,625 34,001 +5% 2. Mercedes M class 9,955 10,234 –3%
3. Volvo XC60 28,371 24,011 +18% 3. Land Rover Range Rover Sport 9,878 10,645 –7%
4. BMW X3 27,231 12,637 +116% 4. Porsche Cayenne 8,797 4,109 –
5. Mercedes GLK 16,808 11,863 +42% 5. Audi Q7 7,529 5,662 +33%
SEGMENT TOTAL 165,132 138,709 +19% SEGMENT TOTAL 85,297 82,003 +4%

EXOTICS ELECTRIC
The Audi R8 has the slimmest of The electric car sales leader in Europe is
leads – just 12 sales – over the new the Mitsubishi i-MiEV. Since the
Ferrari 458 for the No. 1 spot in the second-ranked Peugeot iOn and the
exotics segment. Meanwhile the Ferrari No. 3 Citroen C-Zero are derived from
California has slipped to No. 4 in Europe’s most expensive niche the i-MiEV, Mitsubishi technically account-
because of a 37% first-half sales decline. ed for 70 percent of the sales in the segment in the first half.
H1 2011 H1 2010 % CHANGE H1 2011 H1 2010 % CHANGE

1. Audi R8 845 972 –13% 1. Mitsubishi i-MiEV 1,750 44 –

2. Ferrari 458 833 562 +48% 2. Peugeot iOn 961 0 –
3. Bentley Continental GT 686 635 +8% 3. Citroen C-Zero 957 0 –
4. Ferrari California 607 961 –37% 4. Nissan Leaf 580 1 –
5. Aston Martin Vantage 502 544 –8% 5. Smart ForTwo Electric 474 87 –
SEGMENT TOTAL 5,411 5,634 –4% SEGMENT TOTAL 5,222 507 +930%
Source: JATO Dynamics

SEPTEMBER 2011 ANE EXECUTIVE EDITION 105

QA &
WAYNE BRANNON
CHEVROLET’S
AUTOMOTIVE NEWS EUROPE
BIG CHALLENGE
General Motors division has seven new
product launches as it targets growth in Europe
C
hevrolet, which celebrates its centen-
nial this year, has enjoyed success in
Europe by selling affordable Korean-
built small cars – but now the brand wants to
win even more buyers. The General Motors
division has seven new launches this year in
a product offensive that will propel the
brand into new segments and send a message
to competitors that it means business when
it talks about doubling its annual European
sales, including Russia, to 1 million.
Chevrolet Europe Managing Director Wayne
Brannon talked about the brand's ambitions
with Automotive News Europe Editor-in-
Chief Harald Hamprecht.
What is the relevance of Europe for
Chevrolet’s global sales?
Chevrolet Europe’s sales accounted for
11.3 percent of global Chevrolet sales in
2010. Chevrolet is doing really well there. We
expect a fairly ambitious increase in share
growth here, but we just won’t have the
increase in market size like the emerging
countries like China, India.
What are your greatest challenges?
Our biggest challenge is that many people
still don't know us. Chevrolet was
relaunched in Europe in 2005 with a new
lineup of mini, small and compact cars. Only
about 5 percent of customers know the car
models we offer and naturally only a selec-
tion of those put us on their consideration
list. The good news is that we will be selling
more than 500,000 cars across Europe this
year, despite such low awareness.
In 2011, you are launching seven
new cars in one year.
Yes! What better way to celebrate our
100th anniversary as a brand than to launch
seven new cars in one year? Especially as we
are entering new segments, like with the
Orlando seven-seat family van, which has
been available since February. The new
Captiva SUV has been at dealers since April
with new engines. In July, we launched the
all-new Aveo. Now we are presenting the
Cruze hatchback. In November, the new
Corvette Grand Sport, Camaro coupe and
convertible and the Volt electric car with
❙ For the complete Wayne Brannon interview go to europe.autonews.com/brannonexecedition ❙
106 ANE EXECUTIVE EDITION
ANNIVERSARY
range extender will be at European dealer-
ships. If you visit a Chevrolet showroom
toward the end of the year, you won't find a
model that's more than 2 years old.
How do you plan to further increase
your portfolio?
By the end of this year, we will be offering
12 models. With this portfolio, we will cover
about 50 percent of the market segments.
And of course we would like to further
increase the number. At the Frankfurt auto
show we will show the new Malibu, which
will be in Europe in 2012, and the Colorado
show truck. We are also mulling over a cou-
ple of other variants of our existing models.
Ideally, we want to be present in two-thirds
of the market.
What is the size of your dealer net-
work in Europe?
We have about 2,000 dealer outlets
throughout Europe. Over the next couple of
years, we may plug some geographical gaps,
but we do not necessarily need more stores
to accomplish our volume growth. The deal-
ers will have more space available for our
growing portfolio. More refinement is our
message, as we get in touch with new cus-
tomer groups.
How many of your sports cars will
you sell across Europe?
Currently we plan to sell between 1,000
and 1,500 Corvettes across Europe. On top,
we will sell about 2,000 Camaros.
What plans do you have for the Volt?
We expect to sell between 1,000 and 2,000
Volts in a full year across Europe.
What is your overall mid-term sales
goal?
When Chevrolet was relaunched in Europe
in 2005, we doubled our business to over
500,000 units of annual sales within three
years. Last year, we sold 477,194 in 35
European countries including Russia and
Turkey. This year it will be roughly half a
million again. And I have always said once
the recession is over, and we are not quite
there yet, it will take another five years to
MEET THE BOSS
●
Wayne Brannon, 56, is a veteran General Motors
executive who had a varied global career before
being named Chevrolet Europe head in 2006. The
Detroit-born executive began his GM career in 1973
with Cadillac. After 15 years with GM's luxury
brand, he had a stint in corporate marketing and
planning before being appointed as GM's sales and
marketing director for Africa. Before moving to
Zurich to lead Chevrolet's European operations, he
was head of sales and marketing for GM Latin
America, Africa and Middle East.
double our sales again, to 1 million cars. The
2016 time frame could still be a fair date for
this goal.
Your competitors, especially from
Asia, have ambitious sales goals as
well.
The development of one of our Japanese
competitors from a 1.5 percent to a 5 percent
share took about 10 years. We have been on
that track for the last five to six years. Our
mid-term goal is a 4 percent to 5 percent
market share in Europe after 2.5 percent in
2010. I am still optimistic that we can
achieve that, but we want to grow profitably.
My target is to move our unaided awareness
closer to the levels that our competitors
enjoy, from below 10 percent to above 20
percent.
Will there be European production
sites for Chevrolet in the future?
We have production in Russia (GM plant
in St. Petersburg; joint venture production
in Togliatti; next year with GAZ in Nizhny
Novogorod) and in Uzbekistan, for the local
markets. There are no immediate plans to
build Chevrolet cars at GM plants in west-
ern and central Europe. Let’s see what the
future brings. ■
SEPTEMBER 2011
WE’RE ALWAYS UP FOR A GOOD CHALLENGE.

iiiBest Practices iiiProcess iiiPeople iiiTechnology

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GLOBAL PROVIDER OF CUSTOMIZED solutions have been rigorously test-driven
BUSINESS SOLUTIONS FOR THE AUTO- by some of the world’s biggest automotive
MOTIVE INDUSTRY. companies in all categories:

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Furthermore, we give you the knowledge you
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network and a loyal customer base. On local, Get in touch with us today.

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CONTACT: PHONE +49 (0)221 947 00 102|CORPMARKETING@MSXI.COM|WWW.MSXI.COM

AUTOMOTIVE NEWS EUROPE ANNIVERSARY
Through ups and
downs, executive
shuffles and industry
changes, Automotive
News Europe
celebrates 15 years
of uniqueness
S
Since publishing its first issue on Feb. 5,
1996, Automotive News Europe has forever
been intimately linked to the European
industry. Born as the European edition of
its U.S.-based parent newspaper, Automo-
tive News, Automotive News Europe was pro-
duced with one mantra: The reader always
comes first.
Fittingly, the first headline of the first edi-
tion – “Mercedes plans ultra-luxury car to
fight Rolls” – was a scoop heralding the
revival of the Maybach brand. Parent
Daimler had decided to
revive this legendary
German brand after
BMW began establish-
ing engine ties with
Rolls-Royce.
Automotive News
Europe was off to a
dynamic start. It has
LUCA
been a fascinating 15 CIFERRI
lciferri@crain.com
years filled with execu-
tive upheavals, mergers, bankruptcies and
tons of intrigue.
Some favorite stories come to mind.
Memorable moments
On Feb. 17, 1997, under the headline
“Industry blasts crash tests,” Automotive
News Europe wrote about the first independ-
ent automotive tests that measured crash
safety – commonly known as the
EuroNCAP tests. The industry blasted their
use. “We don’t accept the finding of these
particular tests,” said Roger King, spokes-
man for the UK’s Society of Motor Manu-
facturers and Traders. Today the NCAP tests
are the gold standard – the benchmark for
any automaker in the European industry.
Another favorite, published July 21, 2008,
under the headline “Western Europe heads
for new lows,” foreshadowed a coming cri-
sis that few could have foreseen.
In that issue, a top European executive,
who spoke under condition of anonymity,
said coldly: “The second half of this year
and the first half of the next could be a true
bloodbath.”
Within less than two months Lehman
Brothers would collapse and the world
would head into an economic tailspin.
We couldn’t have known the depth of the
industry’s despair, or how it would change
our own course (but more on that later).
108 ANE EXECUTIVE EDITION
HAPPY
BIRTHDAY!
One final favorite, on Dec. 8, 2008, Fiat
CEO Sergio Marchionne gave us a story
under the headline: “The party is over.”
Marchionne was predicting the state of
the industry for years to come – a future
filled with mergers, acquisitions, consolida-
tion and downsizing. The cover photo that
day showed six CEOs of European auto-
makers over a story that asked the question:
“Who will survive the auto crisis?”
Four of them are still here today, albeit in
companies that have had to change radically
after the crisis of 2008 and 2009.
Automotive News Europe would publish
every other week for 13 years, until 2009
when it transitioned to a digital-only prod-
uct. The biweekly print edition of Auto-
motive News Europe was a victim of the
same gut-wrenching recession that rocked
the industry. But Automotive News Europe
never stopped covering the automotive
industry. Instead, like many forms of media
in the 21st century, it turned its focus
toward delivering daily newsletters and
breaking news alerts to an audience of near-
ly 50,000 e-mail registrants.
Back in print
Soon we discovered that our readers
wanted more. Specifically, they wanted a
print version of Automotive News Europe.
In September 2010, the first quarterly
print and digital version of the Executive
Edition was delivered throughout Europe.
Finally, I’ve been asked which single
moment perfectly epitomizes Automotive
News Europe. It is a picture in my mind
from May 2008 during our celebration of
the 25 Leading Women in the European
auto industry. We were in the Salone Diana
BIGGEST SCOOPS
■ Mercedes plans ultra-luxury car to
fight Rolls-Royce (February 1996)
■ Ousted Fiat CEO Paolo Cantarella
walks away with 20 million euros
(June 2002)
■ Diesel to peak by 2010; gasoline
to regain lead in 2014 (March 2005)
■ Toyota’s next sales goal for Europe
is 2 million (July 2005)
■ Audi’s 2015 global sales goal
is 1.5 million (October 2005)
■ Toyota working on low-cost brand
(March 2006)
■ Ford looks for buyers for Jaguar,
15
Land Rover (June 2007)
■ Clone war starts in Europe: BMW, Fiat
and Daimler sue Chinese copycats
(October 2007)
■ VW’s 10-million-unit plan
(November 2007)
■ Fiat to form alliance with Chrysler
(January 2009)
of the Venaria castle near Turin. The Euro-
pean industry had done very little to pro-
mote the cause of women. But in one night,
at a special dinner, and in front of a room
filled with their peers, ANE brought the suc-
cess of those 25 women to everyone’s atten-
tion. What an accomplishment!
With 330 fortnightly newspapers and four
quarterly magazines now in print, Automo-
tive News Europe’s goals remain the same:
Make the next paper even better; always put
the reader first. It’s a promise we plan to
honor for the next 15 years – and more. ■
SEPTEMBER 2011
 2012
Recognising talent. Rewarding excellence.

Monaco welcomes the

2012 Rising Stars!
Save the date:
Jun
ne 20, 20112

Automotive News Europe’s fi rst Rising Stars award
program was a huge success, drawing more than
250 winners and guests to Cologne, Germany last
June. The winners came from all disciplines – desig-
ners, engineers, fi nancial bosses and product plan-
ners – and from companies across Europe, including
Volkswagen, Ferrari and Aston Martin, to name just a
few. Now it is your chance to share in the moment:
Nominate a Rising Star or book your place to wit-
ness the second annual award program – this time in
beautiful Monaco on June 20, 2012.
Visit www.AneRisingStars.com to see the highlights
from the Cologne event or to fi nd out more informa-
tion about next year‘s ceremony. Save the date, pre-
pare to get up close and personal with the future of
the automotive industry. For more information, please
contact:
Nina Sauer,
European Director of Sales, Marketing & Events,
Phone: +49 89 381 517 400, Email: nsauer@crain.com

www.AneRisingStars.com
PHOTO GALLERY
On June 29-30 Automotive News Europe hosted its Congress in Cologne, Germany, and also
honored the leaders of tomorrow at the Rising Stars ceremony. Some moments from those evenings:
A B RISING
STARS
A Pasquale Abruzzese,
vice president for
integrated supply
chain at Honeywell
Transportation
Systems, collects his
Rising Star award.
B Rising Stars trophies
C L to R: Harald
Hamprecht, Editor-
D In-Chief, Automotive
News Europe; Jason
Stein, Publisher,
Automotive News
Europe; Anne Asensio,
C Design Experience,
Dassault Systemes;
Keith Crain, Publishing
Director, Automotive
News Europe
D Pininfarina Chairman
Paolo Pininfarina
addresses the Rising
Stars crowd.
PHOTOS BY
SILVIA STEINBACH

A B C

ANE CONGRESS SPEAKERS

A Stephen Odell, CEO, Ford of Europe
B Luca De Meo, director of marketing, Volkswagen Group
C Olivier Francois, new Fiat brand boss
D Jean-Marc Gales, member of the managing board,
PSA/Peugeot-Citroën
D

110 ANE EXECUTIVE EDITION SEPTEMBER 2011

AUTOMOTIVE NEWS EUROPE ANNIVERSARY

LEGENDS
onWHEELS
125 years later: Winning automobiles represent a snapshot of decades

L
LEGENDS ARE sometimes created in the most unusual
places.
A legend can be crafted from two bare hands carefully
bending metal in a machine shop in Germany more than a
century ago – a process that would lead to experimental
two-stroke engines, a tubular steel frame and eventually a
self-propelled vehicle.
A legend can be created more than 100 years later by a
British automaker using the occasion of its own 75th birthday
to build the Jaguar C-X7 hybrid supercar as a tribute to its
past and a nod to its future.
Mostly, legends stand the test of time. They are coveted,
respected, cherished and appreciated.
Legends are created around the world and in all pockets of
the auto industry.
In this ultimate collection of legends – selected in conjunc-
tion with the 125th anniversary of the automobile – we have
assembled some of the world’s best.
From the workshop where Carl Benz first attempted his
series of after-dark test drives in 1885 – sometimes only 100
meters at a time – to the Mercedes-Benz
F800 Style plug-in hybrid and fuel cell
electric-drive concept vehicle unveiled
at the 2010 Geneva motor show, the
automobile has personified change,
innovation and forward thinking.
These Legends on Wheels
have been selected by a jury
of nearly 100,000
Automotive News Europe
and MSX International vot-
ers from all corners of the
world. We’ve collected
them in a book that we
hope symbolizes the best
of the last 125 years.
These vehicles represent a
snapshot of decades.
They could also say a
lot about mobility and
innovation and about To order the hard-
society in general. cover book, please
There are more legends go to www.legends
to come. We look forward onwheels.com
to the next 125 years.

SEPTEMBER 2011 ANE EXECUTIVE EDITION 111

AUTOMOTIVE NEWS EUROPE ANNIVERSARY
LEGENDS ON WHEELS

1st PLACE BEFORE 1900 FACTS

BENZ & CIE. ❙ MANUFACTURER:
Benz & Cie.
PATENT-MOTORWAGEN ❙ INTRO: 1886
❙ PRICE: Unknown
There is no doubt that the world’s first gasoline-fueled car to run
❙ DRIVE TYPE: Rear
successfully and to lead to production within a few years was cre- ❙ ENGINE: 0.9-liter,
ated by Carl Benz in Germany. His development of a one-cylinder 1-cylinder
engine and the three-wheeled vehicle in 1886 that was known as ❙ ENGINE OUTPUT:
the Benz Patent-Motorwagen changed the world forever. 0.6 hp (0.55 kW)
❙ 2ND PLACE: Daimler Riemenwagen ❙ WHEELBASE:
❙ 3RD PLACE: Opel Patentwagen System Lutzmann 1,400 mm (57 in.)

1st PLACE 1900-1909 FACTS

FORD MODEL T ❙ MANUFACTURER:
Ford
FIRST ASSEMBLY LINE VEHICLE ❙ INTRO: 1908
❙ PRICE: $850 U.S.
It has often been said that Henry Ford’s Model T put the world on
❙ DRIVE TYPE: Rear
wheels. From its introduction in October 1908 to the end of pro- ❙ ENGINE: 2.9-liter,
duction in 1927 Ford produced 15 million vehicles globally. The inline 4-cylinder
car’s appeal was simple: The Model T offered low-cost, reliable, ❙ ENGINE OUTPUT:
and if needed, simple-to-fix transportation. 22 hp (16.4 kW)
❙ 2ND PLACE: Mercedes 35PS ❙ WHEELBASE:
❙ 3RD PLACE: Rolls-Royce Silver Ghost 2,540 mm (100 in.)

1st PLACE 1910-1919 FACTS

BLITZEN BENZ ❙ MANUFACTURER:
Benz & Cie.
BROKE LAND SPEED RECORD ❙ INTRO: 1911
❙ PRICE: Unknown
It was called the Blitzen Benz, and it was not just the fastest car in
❙ DRIVE TYPE: Rear
the world, but it also broke the land speed record that had been ❙ ENGINE: 21.5-liter,
set by cars and a powerful locomotive. Unveiled in 1911, for a inline 4-cylinder
number of years the car was a fixture on race tracks in Europe and ❙ ENGINE OUTPUT:
the United States. 200 hp (149.1 kW)
❙ 2ND PLACE: Stutz Bearcat ❙ WHEELBASE:
❙ 3RD PLACE: Cadillac Self Starter 2,800 mm (110.2 in.)

1st PLACE 1920-1929 FACTS

BUGATTI 35 ❙ MANUFACTURER:
Bugatti
HISTORY OF ARTISTRY AND SPEED ❙ INTRO: 1924
❙ PRICE: 130,000
Bugatti may be known for creating some of the most beautiful cars
Franc Francais
ever to travel a country highway or a city boulevard. But the ❙ DRIVE TYPE: Rear
automaker made its name and established its reputation with the ❙ ENGINE: 2.0-liter,
Type 35, an eight-cylinder Grand Prix car with a low center of gravi- inline 8-cylinder
ty that dominated on race tracks from 1924 to 1931. ❙ ENGINE OUTPUT:
❙ 2ND PLACE: Rolls-Royce Phantom 90 hp (67 kW)
❙ 3RD PLACE: Mercedes 6-25 PS, 10-40 PS ❙ WHEELBASE:
2,400 mm (94.5 in.)

1st PLACE 1930-1939 FACTS

MERCEDES 500K ❙ MANUFACTURER:
Mercedes
FIRST SUPERCHARGED VEHICLE ❙ INTRO: 1934
❙ PRICE: $8,661 U.S.
Mercedes-Benz put the “Roaring Twenties” behind with the intro-
❙ DRIVE TYPE: Rear
duction of a new and modern machine in 1934, the 500K. The car ❙ ENGINE: 5.0-liter,
was elegant, long and sleek, and was powered by a supercharged, inline 8-cylinder
eight-cylinder engine. The ultimate 500K model was the two-seat ❙ ENGINE OUTPUT:
special roadster introduced in 1936. 160 hp (117.8 kW)
❙ 2ND PLACE: Cadillac V16 ❙ WHEELBASE:
❙ 3RD PLACE: Citroen Traction Avant 3,290 mm (129.5 in.)

112 ANE EXECUTIVE EDITION SEPTEMBER 2011

AUTOMOTIVE NEWS EUROPE ANNIVERSARY
LEGENDS ON WHEELS

1st PLACE 1940-1949 FACTS

VW KAEFER ❙ MANUFACTURER:
Volkswagen
POST-WAR BIRTH OF THE BEETLE ❙ INTRO: 1946
❙ PRICE: 5,000
While the Ford Model T was the “Universal Car,” the Volkswagen
Reichsmark (approx.)
Type1 became the “People’s Car.” The rear-engine vehicle became ❙ DRIVE TYPE: Rear
known as the VW Kaefer, German for “beetle.” Ferdinand Porsche ❙ ENGINE: 1.13-liter,
developed this practical, affordable and reliable car for the masses. inline 4-cylinder
In all, more than 21 million were sold worldwide. ❙ ENGINE OUTPUT:
❙ 2ND PLACE: Porsche 356 25 hp (18.3 kW)
❙ 3RD PLACE: Willys-Overland Jeep ❙ WHEELBASE:
2,400 mm (94.5 in.)

1st PLACE 1950-1959 FACTS

MERCEDES 300 SL ❙ MANUFACTURER:
Mercedes-Benz
BUILT TO WIN ON THE RACETRACK ❙ INTRO: 1954
❙ PRICE: $7,463 U.S.
When auto racing resumed after World War II, Mercedes-Benz
❙ DRIVE TYPE: Rear
wanted a special vehicle to re-establish its reputation on the ❙ ENGINE: 3.0-liter,
world’s racetracks. That car would become the 300SL. Mercedes’ inline 6-cylinder
goal was not to create an iconic vehicle. But today that beautifully ❙ ENGINE OUTPUT:
styled car, highlighted by its gullwing doors, is globally cherished. 215 hp (160.3 kW)
❙ 2ND PLACE: Chevrolet Corvette ❙ WHEELBASE:
❙ 3RD PLACE: Citroen DS 2,400 mm (94.5 in.)

1st PLACE 1960-1969 FACTS

JAGUAR E-TYPE ❙ MANUFACTURER:
Jaguar
LANDMARK STYLE AND DESIGN ❙ INTRO: 1961
❙ PRICE: 2,097
The 1961 Jaguar E-Type was fast. But what really turned heads
British Pounds
was the car’s styling. More than three decades after its introduc- ❙ DRIVE TYPE: Rear
tion, it became only the third vehicle to be part of the New York ❙ ENGINE: 3.8-liter,
Museum of Modern Art’s permanent collection. The Jaguar E-Type inline 6-cylinder
continues to stir passion in both enthusiasts and the general public. ❙ ENGINE OUTPUT:
❙ 2ND PLACE: Porsche 911 256 hp (197.6 kW)
❙ 3RD PLACE: Ford Mustang ❙ WHEELBASE:
2,438 mm (96 in.)

1st PLACE 1970-1979 FACTS

VW GOLF ❙ MANUFACTURER:
Volkswagen
VW SHIFTS TO FRONT-WHEEL DRIVE ❙ INTRO: 1974
❙ PRICE: 7,995
The Volkswagen Golf succeeded the popular Kaefer, the Beetle.
Deutsche Mark
The Golf certainly was not the first front-wheel-drive hatchback. But ❙ DRIVE TYPE: Front
the Golf showed buyers that economical and practical cars could ❙ ENGINE: 1.1-liter,
also be fun to own and drive. The car is VW’s most successful inline 4-cylinder
model, surpassing the Beetle’s global model sales. ❙ ENGINE OUTPUT:
❙ 2ND PLACE: BMW M1 50 hp (37.2 kW)
❙ 3RD PLACE: Mercedes S class ❙ WHEELBASE:
2,397 mm (94.5 in.)

1st PLACE 1980-1989 FACTS

FERRARI 288 GTO ❙ MANUFACTURER:
Ferrari
THE MOTHER OF THE FERRARI F40 ❙ INTRO: 1984
❙ PRICE: 178 million
Just mention the Ferrari F40 and sports car enthusiasts worldwide
Lira
likely will say, “Wow, the best Ferrari ever!” Yet, some enthusiasts ❙ DRIVE TYPE: Rear
may have forgotten the mother of the F40 – the 288 GTO. The 288 ❙ ENGINE: Twin-turbo,
GTO’s secret weapons were a 400-hp V-8 and two turbochargers, 2.8-liter V8
rocketing the car from 0-100 kph in 4.9 seconds. ❙ ENGINE OUTPUT:
❙ 2ND PLACE: Audi Quattro 400 hp
❙ 3RD PLACE: Mazda MX-5 ❙ WHEELBASE:
2,450 mm (96.4 in.)

SEPTEMBER 2011 ANE EXECUTIVE EDITION 113

AUTOMOTIVE NEWS EUROPE ANNIVERSARY
LEGENDS ON WHEELS

1st PLACE 1990-1999 FACTS

AUDI TT ❙ MANUFACTURER:
Audi
PERFECT BLEND OF FORM, FUNCTION ❙ INTRO: 1998
❙ PRICE: 52,800
The Audi TT concept instantly caught the public’s attention and
Deutsche Mark
imagination at the Frankfurt auto show in 1995. The production ver- ❙ DRIVE TYPE: Front
sion was a perfect blend of form and function, the right car for the ❙ ENGINE: 1.8-liter,
right era. Also, the TT’s design language served as the catalyst for inline 4-cylinder
the distinctive formal language that evolved across Audi’s line. ❙ ENGINE OUTPUT:
❙ 2ND PLACE: Smart ForTwo 150 hp (110 kW)
❙ 3RD PLACE: BMW Z3 ❙ WHEELBASE:
2,242 mm (95.4 in.)

1st PLACE 2000-PRESENT FACTS

MERCEDES SLS AMG ❙ MANUFACTURER:
Mercedes-Benz
AMG SPELLS HIGH PERFORMANCE ❙ INTRO: 2010
❙ PRICE: 177,310
With its gullwing doors, the super-fast 2010 Mercedes-Benz SLS
Euros
AMG is clearly the spiritual successor to the 1950s 300SL. The ❙ DRIVE TYPE: Rear
SLS AMG is the first car developed from scratch by Mercedes’ ❙ ENGINE: 6.3-liter V-8
AMG performance arm. The two-passenger car can accelerate ❙ ENGINE OUTPUT:
from zero to 100 kilometers in about 3.7 seconds. 571 hp (425.7 kW)
❙ 2ND PLACE: Dacia Logan ❙ WHEELBASE:
❙ 3RD PLACE: Tesla Roadster 2,680 mm (106 in.)

1st PLACE FUTURE LEGENDS FACTS

JAGUAR C-X75 ❙ MANUFACTURER:
Jaguar
HYBRID SUPERCAR CONTINUES LEGACY ❙ INTRO: Concept
❙ DRIVE TYPE:
The Jaguar C-X75 concept was the star of the 2010 Paris auto
All-wheel
show. The hybrid-powered, two-passenger C-X75 is a tribute to ❙ ENGINE: 4 electric
Jaguar’s past, specifically the mid-engine XJ13, and a nod to its motors, 778 hp;
future. The concept is propelled with an electric motor at each 2 micro gas turbines,
wheel, producing a combined 778 hp. 188 hp
❙ 2ND PLACE: Mercedes F800 Style ❙ WHEELBASE:
❙ 3RD PLACE: BMW Vision EfficientDynamics 2,725 mm (107.28 in.)

LEGENDS ON WHEELS THE ULTIMATE LEGEND

Several years ago the editors of a

British car magazine set out to identify
MERCEDES and rank “the 100 coolest cars” ever to
enter production. The No. 1 car was the

300 SL 1954 Mercedes-Benz 300SL. The 300SL

was singled out for its authenticity, inno-
vation and unique style. Although the cri-
teria was different, so did the jury of
nearly 100,000 Automotive News Europe
voters from all corners of the world.

114 ANE EXECUTIVE EDITION SEPTEMBER 2011


AND THE WINNER IS ...
iiiCongratulations to the overall legend
THE EXCITING LEGENDS ON
WHEELS CONTEST JOINTLY
ORGANIZED BY MSX INTERNATIONAL
AND AUTOMOTIVE NEWS EUROPE
HAS NOW COME TO A CLOSE AND
IT’S TIME FOR THE BIG REVEAL.
An unprecedented number of people paid
fitting tribute to 125 fabulous years of auto-
motive history by voting for their favorite
cars on the Legends on Wheels website.
FUELED BY CHALLENGE. POWERING SUCCESS.
CONTACT: PHONE +49 (0)221 947 00 102|CORPMARKETING@MSXI.COM|WWW.MSXI.COM
LEGENDS
ON
WHEELS
1 2 5 Y EARS
OF THE AUTO M O B IL E
MSX International takes pride in congratu-
lating the winners, all of whom are due
to be honored during a grand Legends
on Wheels award presentation ceremony
on September 13, 2011 in Frankfurt.
So join us by raising your glasses to these
illustrious Legends on Wheels and celebrat-
ing the car in all its 125-year glory.
Find out more: www.legendsonwheels.com

A NEW KIND
OF DEALER
Peugeot expands city center showroom program
BERTRAND GAY
autonewseurope@crain.com
fter opening a new kind of dealer-
A ship in the heart of Paris last year,
Peugeot is expanding the award-
winning retail initiative to other
European cities, as well as to South America
and the Middle East.
Like all automakers, Peugeot finds it hard
to attract entrepreneurs willing or able to
finance the investment needed to establish
showrooms in city centers where real estate
costs are high. But the French brand was
unwilling to abandon selling and repairing
cars in downtown locations because there are
lots of potential customers working in offices
or retail outlets.
The fact that two-thirds of the world’s
population lives in cities, and urban popula-
tions are rising rapidly, was another reason
why Peugeot decided it could not afford to
have a reduced presence in cities. The brand
took a fresh look at the problem and came
up with fresh ideas. These included:
■ Showroom displays of just a few cars in
smaller showrooms that are cheaper to rent
than larger premises
■ Late opening hours so people can visit the
dealer after work
■ Using virtual reality technology to high-
light the brand’s full product range and cus-
tomization deals.
“We asked ourselves how we could fulfill
the needs of young urban professionals living
in city centers,” said Xavier Peugeot, the
brand’s marketing director.
The French carmaker calls its new down-
town stores Peugeot City dealerships and will
add six more this year. The first opened
recently in Riyad, Saudi Arabia. Others will
follow in the coming months in Warsaw,
At top: Peugeot is using key features from its award-winning downtown Paris dealership
at stores in Europe, South America and the Middle East. Right: Marketing director Xavier
Peugeot says the Peugeot City dealers meet the needs of young urban professionals.
116 ANE EXECUTIVE EDITION
Poland; Istanbul, Turkey; Genoa, Italy;
Ixelles, near Brussels, Belgium; and Buenos
Aires, Argentina. Currently there are no
plans to expand the program to other key
markets such as China and Russia.
Normally only luxury brands can justify
the high costs of renting expensive city cen-
ter property for showrooms. Mercedes-Benz
and Audi have also opened huge so-called
“brand palaces” in prominent locations in
metropolitan areas close to city centers.
Private investors are establishing large multi-
brand car retail outlets close to city centers,
such as the Automeile in Dusseldorf,
Germany, where more than a dozen brands
have showrooms in separate premises that
are grouped together.
Tackling high real estate costs
Peugeot says most car brands are under-
represented within the Paris city limits. “Real
estate costs in cities and local opportunities
are key factors,” a company spokesman said.
Peugeot City dealerships offer employees
in office blocks or retail outlets a convenient
place to browse for a new car or have their
current model repaired. In Paris, real estate
prices have risen so much in the past 10
years that private investors are now unable to
maintain large retail premises.
City showrooms don’t need to be as big as
those in towns or country areas, Peugeot con-
cluded. So real estate costs can be reduced by
opening small showrooms that still offer a full
service to potential buyers and existing cus-
tomers. “Nowadays, nearly 75 percent of the
customers gather information on the Internet
about the car they want to buy,” Xavier
Peugeot said. “When they arrive at the dealer-
ship, they already know what they want.”
The Peugeot City showrooms have just
enough space to display a few of the latest
models. A potential buyer can view the
brand’s full range on a virtual-reality com-
puter screen. They can also look at and
choose colors, interior trim and materials
such as cloth and leather while using the
screen. The minimum space needed for a
Peugeot City dealership is 160 square meters,
a quarter of the usual showroom surface area
for the brand’s retailers.
Although repairs and maintenance are
offered, they are not done on site. Cars are
ferried to workshops outside the center.
Customers can also have their cars collected
at their homes or workplaces.
The Peugeot City dealerships remain open
until 9 p.m., allowing customers to order a
new car, get information about new products,
set up financing and use some options includ-
ed in the so-called “Mu by Peugeot” mobility
service such as renting an electric bicycle.
The dealers have no common theme,
except that their stores are in a city center. In
Paris, the Peugeot City showroom, which
opened in April 2010 on the rue de
Chateaudun, is in an historic part of town,
near many offices and a few minutes’ walk
from a main boulevard where the famous
Galeries Lafayette department store is locat-
ed. In Riyad, the Peugeot City
outlet is in a shopping
mall close to a restau-
rant.
The Paris show-
room won the
French Design
Institute’s Janus du
Commerce award
for the best retail
practices with a par-
ticular emphasis on
customer expe-
rience. ■
SEPTEMBER 2011
AUTOMOTIVE NEWS EUROPE RETAIL

STARTING OVER
MG wants a European dealer network, but it will expand slowly
NICK GIBBS
autonewseurope@crain.com
ow do you rebuild a sales network

H after an absence of six years? That’s

the question facing the British MG
brand as it prepares to relaunch in
mainland Europe under Chinese owners
SAIC Motor Corp.
In April, MG began UK sales of the MG6
compact, the first new car assembled at its
Longbridge, England, plant in 16 years. The
brand plans to expand its lineup in the next
five years by adding six new models including
the MG3 small hatchback and a compact
model called the MG5 that will rival cars such
as the Volkswagen Golf and Ford Focus.
David Martin, MG Motor UK’s national
franchising manager, said the company has
had strong interest from potential dealers,
but the brand will ramp up its European
network slowly.
“We’ve had loads of people who’ve
approached us. I’ve got quite a lot of e-mails
from MG Rover importers who’ve sent us
massive business plans,” Martin told
Automotive News Europe. “The intention is
to have a big European network, but we have
to be realistic.” dealers already appointed by MG sold the MG dealers like this one in Banbury,
Martin said MG will start to open dealers brand before MG Rover collapsed in 2005. England, are looking forward to the brand’s
on the Continent after the MG6 hatchback SAIC inherited the Longbridge plant through product expansion.
and sedan models get a diesel engine toward its 2007 merger with Nanjing Automobile,
the end of 2012. which had bought the site. to have to around 55 dealers, with 75-80 the
The 1.9-liter powerplant will offer target when we start selling the MG3 in the
European buyers a more fuel-efficient variant Help from GM’s Vauxhall second half of next year,” Martin said.
than the current thirsty 1.8-gasoline engine. General Motors’ UK brand, Vauxhall, has Costs are low and MG’s demands on deal-
MG is not specifying the size of the dealer helped MG strengthen its UK dealer network ers are small, Martin said.
network it aims for in Europe. The plan is to after a request from SAIC, GM’s longtime “We just need a two-car showroom – about
start modestly, according to a company partner in China. “We looked at the whole 55 square meters – followed by a four-car
source. “It’s much more likely we’ll start country, and based on the product and the showroom 18 months from now. The total
with some of the smaller markets, probably demographic, we worked out the right loca- cost for a franchise is 15,000 pounds” (about
Scandinavia and the Netherlands. Then it tions where MG cars would sell best,” a 17,000 euros).
will spread out to the larger markets like Vauxhall spokesman said. It’s “quite possi- Dealers are attracted by the prospect of
Italy, France and Germany,” the source said. ble” that the same request would go out to selling MG’s future models, Martin said.
Martin said MG will probably appoint a Opel when it comes to setting up a European “They’ve accepted that MG6 is a holding
single importer per country. He expects for- network for MG, the spokesman added. MG product, but they’ve seen pictures of the
mer MG Rover dealers likely will become currently is focused on building the network MG3 and MG5 and they see a good profit
retailers. In the UK, about half of the 40 in the UK. “By the end of the year, we expect opportunity from big volumes.”
Other new MG models planned are an
SUV-style crossover that will go on sale in
FAST-GROWING LINEUP 2014 in the UK to rival the Nissan Qashqai
MG’s car launch plans and, also in 2014, a replacement for the MG7
MG6 gasoline .....................2011 that will share GM’s Epsilon 2 platform used
by the Opel/Vauxhall Insignia.
MG6 diesel .........................2012 Currently, only the MG6 and TF roadster
MG3 ...................................2012 are built at the Longbridge factory. The
MG5 ...................................2013 planned new models initially will be built in
China. SAIC has not yet decided whether to
MG SUV .............................2014 switch the final assembly to Longbridge.
MG7 replacement...............2014 Said Martin: “The perception among deal-
MG5 concept ers is that this going to be big, so they want
MG TF replacement ...........2016
NICK GIBBS
to get in on the ground floor.” ■

SEPTEMBER 2011 ANE EXECUTIVE EDITION 117

AUTOMOTIVE NEWS EUROPE
FINAL WORD
Luca Ciferri is Chief
Correspondent at Automotive News
Europe. He can be reached at
lciferri@crain.com

MISSING IN ACTION:
CHINESE CARMAKERS IN EUROPE
elcome to the Frankfurt auto

W show. The hot topic is the coming

Chinese assault on the European car
market. The China-built sedans, coupes and
SUVs that will lure cost-conscious European
buyers are made to look glamorous as
dancers in colorful traditional Chinese cos-
tume perform at their unveiling ceremonies.
The long-feared threat to European
automakers on their home turf is finally
becoming a reality.
Wait a minute.
What I’ve just described will not happen at
this year’s show. It took place at the 2005

❝
show – and the promises made in Frankfurt
six years ago by Chinese automakers and
their European
importers are still
wishful thinking.
Chinese China’s Chery
automakers Automotive found
about 1,400 buyers
may make a
for its cars in Turkey
bigger effort to in the first half,
penetrate according to JATO
Dynamics, and Geely
Europe if their Automotive sold
domestic about 300 units in
market slumps. the country, but
Chinese brands have
found little success in Europe. Great Wall,
which sold about 700 vehicles in Italy, is the
only Chinese company with sales in an EU
country that are worth mentioning.
In 2005, China’s automakers were success-
ful in gaining people’s attention. But their
planned launches were less successful. None
of the seven vehicles exhibited by Brilliance,
Geely Automotive and Landwind had a
homologation certificate allowing them to be
sold in the EU. The companies and their dis-
tributors said they were close to getting
European type approval, but they refused to
give a specific time frame.
A consultant told me at the time that it
would take years before Chinese automakers
could meet European pedestrian impact and
emission requirements.
It’s ironic that the stricter emission rules
and the debut of pedestrian impact legisla-
tion – both of which were vehemently
opposed by European automakers – actually
protected the local brands from a Chinese
product invasion.
Chinese automakers missed the chance to
have their vehicles homologated before new
Beijing Opera dancers perform at Geely’s stand at the Frankfurt auto show in 2005.
pedestrian impact legislation was enforced in
October 2005. The new rules forced compa-
nies selling in Europe to give their cars a
longer front end, a costly burden that
European automakers accepted, but one that
did not make sense to the Chinese. Creating
a new front end for Europe only, considering
the small volume achievable in the short
term, would be a bad business decision.
Chinese automakers tried a shortcut to
avoid stricter regulations, applying for sin-
gle-type approval used by European
automakers to homologate small runs of
high-performance models, eliminating the
need for crash and pedestrian impact tests.
On paper, the Landwind large SUV, with
its price starting in Germany at 14,995 euros
for the 2.0-liter gasoline version with a CD
player and metallic paint, was a bargain in
2005, but when ADAC, the German automo-
bile association, performed a crash test, the
Landwind showed it was nowhere near
European safety standards. The Landwind
“had a catastrophic result. In our 20-year
history, no car has performed as badly,”
ADAC said. Brilliance’s Zhonghua large
sedan also scored pretty poorly and quickly
faded away from European dealerships.
Since then, Chinese automakers could have
developed new vehicles fully compliant to
REUTERS
the new European standards because most of
their domestic new products were designed
and engineered in Europe – many in Turin –
but this was not worth the effort.
At home, China’s auto companies had
enough to do to keep pace with demand in a
market that grew to 11.5 million last year
from 2.3 million in 2003.
The next assault?
Still, Chinese companies are trying to gain
a foothold in Europe. Changan Auto, a part-
ner of Ford Motor Co. and PSA/Peugeot-
Citroen, has a stand in Frankfurt this year.
Shanghai Automotive has ambitious plans to
expand its UK-based MG brand in mainland
Europe and Great Wall Motor will begin
production of SUVs and pickups in Bulgaria
before the end of the year. And Geely now
owns a European brand in Volvo.
Chinese automakers may make a bigger
effort to penetrate Europe if their domestic
market slumps. But with few cars cars with
Euro 5 engines or that can meet pedestrian
impact rules, Europe will remain a niche
market for China’s car companies. Geely and
Great Wall have each sold about 1,600 cars
in Europe in each of the past two years.
That’s fewer than VW brand sells in
Germany in one day! ■

118 ANE EXECUTIVE EDITION SEPTEMBER 2011

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