Automotive News Europe - September 22, 2010 - 45

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Automotive News Europe | Q&A: Thierry Koskas

Launched 1996

Automotive News Europe | Data

Redesigned 2006
VW Polo

Small cars are big in Europe

Data

Makers of small cars are benefiting as more and more financially squeezed consumers downsize when they buy a new model. Volkswagen AG is a big winner from the trend. VW’s Polo subcompact saw sales leap by more than 30 percent in the first seven months, according to market researcher JATO Dynamics. Traditionally the Polo has trailed rival models from Renault and PSA/Peugeot-Citroen, but the latest generation, launched last year and named the 2010 European Car of the Year, is forging ahead. “The Polo is Volkswagenís star model in Europe,

selling particularly well in Germany,” David Di Girolamo, head of JATO Dynamics, said. Another winner so far in 2010 is the Nissan Qashqai, which accounts for about half of the Japanese automaker’s European sales. “The Qashqai has proved a success for Nissan in what was once a very niche segment for midsized crossover-style cars and has now become a very crowded and competitive segment,” Di Girolamo said. Qashqai sales grew 25.5 percent through July, helping Nissan achieve the highest growth of any

volume automaker at just over 24 In the first seven months, Europ car was the VW Golf, followed by t at No. 2 and the Polo at No. 3.

Automotive News Europe

Renault aims to be No. 1 in electric cars
Renault aims to become the first volume automaker to make electric vehicles accessible to the mass market, building more than 200,000 EVs a year by 2015-2016. Renault’s electric cars will sell for the same price as equivalent diesel models, the company’s EV program director Thierry Koskas told Automotive News Europe Correspondent Bruce Gain.
How far ahead of your rivals are you with EVs? We think we could be one or two years ahead. We already made big steps in the cost side and the battery technology.

Automotive News Europe
Executive Edition
Looking back: Eurostar winners 1998-2009
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 Volkswagen Group CEO Martin Winterkorn. Below are lists of the Eurostars from 1998-2009.
Group CEO Sergio Marchionne Dieter Zetsche Wendelin Wiedeking Sergio Marchionne Wendelin Wiedeking Helmut Panke Louis Schweitzer Jean-Martin Folz Joachim Milberg Jean-Martin Folz Louis Schweitzer Jürgen Schrempp Designer Walter de´Silva Roberto Giolito Adrian van Hooydonk Martin Smith Patrick Le Quément Harm Lagaay Dirk van Braeckel Peter Horbury Patrick Le Quément Walter de´Silva Geoff Lawson Claude Lobo 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 Fiat Daimler Porsche Fiat Porsche BMW Renault PSA BMW PSA Renault Daimler-Benz VW group Fiat BMW Ford Renault Porsche Bentley Motors PAG Renault Seat Jaguar Ford

EUROPE SALES BY MODEL, JULY & 7 MONTHS
July 2010
V8/V12 Vantage............................... 91 Other........................................................ 177 ASTON MARTIN ............................. 268 118/119/Kalina .................................. 30 Niva/Taiga ............................................ 217 Other........................................................ 32 Total Lada............................................. 279 AVTOVAZ .............................................. 279 Alpina...................................................... 26 1 series.................................................... 11,587 3 series................................................... 16,140 5 series................................................... 8,460 Other........................................................ 15,050 Total BMW division....................... 51,237 Mini............................................................ 9,860 Rolls-Royce........................................... 51 Other......................................................... BMW GROUP ..................................... 61,174 300C ....................................................... 230 Sebring................................................... 45 Voyager/Grand Voyager............... 440 Other........................................................ 17 Total Chrysler .................................... 732 Caliber..................................................... 306 Journey .................................................. 412 Nitro......................................................... 73 Other........................................................ 32 Total Dodge ......................................... 823 Compass................................................ 47 Grand Cherokee................................. 285 Patriot..................................................... 217 Wrangler............................................... 374 Other........................................................ 125 Total Jeep ............................................. 1,048 Other......................................................... CHRYSLER GROUP ....................... 2,603 Maybach................................................ 5 Automotive.................................................... Big Ambitions A class News Europe | Chevy’s 9,958 B class..................................................... 7,175 C class..................................................... 12,650 E class..................................................... 11,914 GLK class .............................................. 1,932 M class ................................................... 1,419 Other........................................................ 6,034 Total Mercedes-Benz ................... 51,082 ForTwo ................................................... 7,315 Other........................................................ 3 Total Smart ......................................... 7,318 Total Other........................................... DAIMLER AG ..................................... 58,405 147............................................................ 218 159............................................................ 1,193 Guilietta ................................................. 4,683 Mito.......................................................... 3,160 Other........................................................ 400 Total Alfa Romeo............................. 9,654 Ferrari...................................................... 355

July 2009
117 113

7 mos. 2010
639 818

7 mos. 2009
802 736

July 2010
500........................................................... 13,693 Bravo....................................................... 3,230 Grande Punto/Punto ...................... 19,344 Panda...................................................... 17,758 Other........................................................ 11,323 Total Fiat division ........................... 65,348 Delta ........................................................ 2,041 Musa........................................................ 1,713 Ypsilon .................................................... 4,423 Other........................................................ 177 Total Lancia......................................... 8,354 GranTurismo........................................ 101 Quattroporte....................................... 34 Other........................................................ 109 Total Maserati................................... 244 Other......................................................... 88 FIAT ............................................................. 84,043 C-Max...................................................... 5,174 Fiesta....................................................... 31,075 Focus ....................................................... 22,257 Ka.............................................................. 7,079 Mondeo.................................................. 7,132 Other........................................................ 17,502 Total Ford division.......................... 90,219 Other......................................................... 3 FORD MOTOR..................................... 90,222 Total Geely ........................................... 128 C30........................................................... 1,601 S40 .......................................................... 970 V50 .......................................................... 3,831 V70/XC70 ............................................ 3,692 XC60....................................................... 4,509 Other........................................................ 2,972 Total Volvo ........................................... 17,575 GEELY GROUP† ................................ 17,703 Cadillac ................................................... 87 Corvette................................................. 59 Chevrolet's Brannon hopes Cruze ....................................................... selling U.S. models 2,981 such as Kalos/Aveo ........................................... convertible, 3,477 the Corvette C6 Matiz/Spark........................................ the brand shown, will boost 4,778 Other........................................................ in 2,447 Europe. Total Chevrolet ................................. 13,742 Hummer ................................................. 32 Astra........................................................ 22,349 Corsa ....................................................... 22,337 Insginia................................................... 11,851 Meriva..................................................... 8,137 Other........................................................ 12,470 Total Opel/Vauxhall....................... 77,144 Other......................................................... 12 GENERAL MOTORS ..................... 91,017 Civic.......................................................... 4,527 CR-V......................................................... 2,713 Jazz.......................................................... 3,585 Other........................................................ 2,364 HONDA MOTOR ............................... 13,189

July 2009
15,085 6,408 31,837 27,133 14,094 94,557 2,517 4,165 5,596 292 12,570 124 83 7 214 98

7 mo 201

230
148 474 28 650

1,457
256 1,744 114 2,114

1,538

650

2,114

4,369

984 3,182 203 4,369

What is the status of Renault's EV program? The first cars will be on the road in mid-2011. We begin production with the Fluence and the Kangoo.

How does the Nissan Leaf fit in? Renault-Nissan have a single strategy for Which company will be the biggest rival? EV cars. There will be very little overlap. The We have to look at the Chinese manufacturers, Nissan Leaf is a compact car and Renault's which have large market shares in electric cars in Fluence is for the sedan market while the China. The 2010 Eurostars stand out becauseThe Chinese market is bigEuropewill Ford of and they design chief Martin Smith Kangoo is a commercial vehicle. So the lineup is probably renew the electric technology to export they have succeeded despite has not have a big presence. complementary. Also, Nissan is focused on thetheir to markets where they do given the brand a consistent, innovative United States and facing the worst recessionother manufacturers like Volkswagen also models such as the Ka Still, in companies Japan, while Renault is look that has made focused on Europe and other regions. have their EV strategies.

Who will be the CEO of Volkswagen in 2020? Which person will be making a difference at BMW or Renault in 15 years? Who will be the Eurostars of tomorrow? Those are tough questions to answer, but it is likely that those people already are on the decades. Quick action by CEO Norbert and Fiesta winners with customers. The rise in the auto industry. The inaugural ANE Reithofer kept BMW Group in the Will EVs make a profit? ten Eurostars, who were chosen by black other Rising Stars program will identify Europe’s Are there any synergies between the Leaf and sacrificing on the company’s profitability guidelines will be the of Automotive News Europe in The without Renault’s EVs? the editors same as for top up-and-coming talent. ANE will reveal its Nissan will release the Leaf before us, which any other car. commitment to developing and launching partnership with T-Systems and Siemens first group of Rising Stars next year. The will be very useful to learn from and to test the greener are a lot of synergies with Nissan, What PLM, have winners will be honored at a pre-Congress market. Theretechnology. Audi CEO Rupert types of mobility packages reached equally impressive What is unique to the one being the battery development. has the VW Group will be offered with EVs? in the face of massive challenges. Stadler’s tireless work results Renault-Nissan alliance is gala dinner on June 29, 2011. That is the There will be service packages, such as being premium brand on track to achieve record charging remotelywinners will be honored at an the best batteryevening before the 2011 ANE Congress, All the with your mobile that we have How much will Renault's EVs cost? able to start technology,Paris. enables us which will be held in Cologne, Germany. which global sales and big earnings The cars will be sold without the battery at a in 2010. We will also awards dinner on September 29 in phone. offer a [gasoline-powered]

2010 Eurostars: Champions at overcoming challenges

62,341
234 291 430 56 1,011 538 748 396 149 1,831 220 390 328 260 311 1,509 -

40 16,222 17,221 6,252 10,319 50,014 12,264 22 1

447,182
2,338 902 3,560 199 6,999 2,125 4,731 1,318 486 8,660 791 2,547 2,156 2,298 1,906 9,698 -

154 93,348 113,638 53,386 106,323 366,695 79,992 338 3

421,505
1,861 1,907 3,576 559 7,903 4,276 5,355 2,225 1,019 12,875 1,693 2,597 2,896 2,255 2,283 11,724 1

303 104,173 122,479 45,725 70,062 342,439 78,630 128 5

118,681

708,37

112,8 30,8 173,6 158,0 96,5 571,99 16,5 19,1 32,2 1,2 69,3 6 3 4 1,3 70

Catch a rising star

Interviews
4,351
9 9,897 7,633 12,737 8,821 2,794 1,400 8,107 51,389 7,813 7,813 -

116,810
78 1,780 1,495 4,189 4,167 3,709 2,145 17,485

7,093 40,636 31,130 10,497 9,165 18,287 116,808 2

39,2 278,9 181,8 65,7 60,4 124,2 750,5

750,55

Market Analysis
car for long weekend trips, but we don't see a big demand for that because most customers will probably use their EV as a second car and will have a bigger car for longer trips, but it can still be an interesting offer.

25,357
23 65,482 49,158 84,113 87,362 14,057 11,942 43,868 355,982 52,492 18 52,510 4,215 10,478 8,344 36,585 3,140 62,762 2,240

32,503
36 67,015 52,388 91,929 54,597 16,421 14,423 62,141 358,914 58,948 29 58,977 1 11,052 16,745 38,268 4,291 70,356 2,178

17,563

142,54

78 16,6 9,6 33,9 32,6 29,2 19,6 141,7

very comparable price to equivalent diesel cars in2010 EUROSTAR – GROUP CEO category and size. The battery will be leased to customers, while the leasing price plus the electricity costs will be equivalent to those of [gasoline]-powered car prices as long as you drive a minimum number of miles.

Reithofer floors the throttle to keep BMW ahead
THIERRY KOSKAS

to launch of an EV by controlling the main technology component of the vehicle.

Norbert Reithofer, BMW CEO

Ghosn vs. Winterkorn
Industry heavyweights face off in battle for EV lead

Why is Renault-Nissan investing 4 billion euros in EVs? The main reason is the green market trend. What is unique to the Renault-Nissan alliance is that we have the best battery technology, which enables us to launch of an EV by controlling the main technology component of the vehicle. Another important factor is to realize the huge potential of EVs in certain countries.

Norbert Reithofer has no intention of cost-cutting exclusively. The automaker is How is Renault preparing dealers for electric cars? relinquishing BMW Group’s title as the world’s investing heavily in a new front-wheel-drive There will probably be less maintenance required What top-selling premium automakerinfrastructure must be to Audi – or architecture; on a line of new, smaller modular for EVs compared with a gasoline or diesel car, but in place for EVs? anyone else. Reithofer has Obviously, to leaveano at home. Customers and on electric vehicles. Reithofer also vowed you need plug engines; you will still have wear-and-tear issues and will have to change brake pads and things like that. will see charging points and stone unturned to keep the group profitable alongside streets, in given the go-ahead to build a second plant has Renault dealerships will be highly compensated public parking lots, near on. While atop the sales charts where it has been sincestores, and so in China. by the fact that there will be much more loyalty they will not need to use publicly available plugs passing rival Dailmler in very often, they will want to see that they Reithofer’s cost-cutting actions at the end of among customers driving an EV compared with a 2005. are conventional car because it is a new technology. As the global economicavailable. ■ hard in late crisis hit 2008 paid off. BMW scraped out a net profit 2008, the BMW CEO moved aggressively to of 210 million euros for 2009, off 36 percent cut production and costs to keep the group from 2008, while Daimler posted a net loss of Sept. 22, 2010. Volume 1, Issue 1 profitable. In a particularly tough move, he pulled 2.64 billion euros. BMW out of Formula One racing last year and With demand growing for its cars, in July the redirected the team budget to the automaker’s company raised its 2010 sales and earnings green Efficient Dynamics program, which aims forecast. BMW predicts sales this year will rise to slash fleetwide CO2 emissions by another about 10 percent to more than 1.4 million cars 25 percent by 2020. and SUVs, while the operating margin in the But Reithofer, 54, hasn’t been focused on automotive unit will be more than 5 percent.

59,211

408,515

417,928

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ANE Executive Edition

Product Development Executive Inside: No award given 2009 Ulrich Hackenberg 2008 Volkswagen Guide to key Paris auto shows debuts Harald J. Wester 2007 Fiat VW could reach No. 1 goal before 2018 Jens Ludmann 2006 Ford of Europe Hans Demant 2005 Opel Why Saab is better off without GM Carlos Tavares 2004 Renault 11 things to expect in 2011 Remi Deconinck 2003 Renault Martin Leach 2002 Ford of Europe ANE's 2010 Eurostars Nick Barter 2001 Jaguar Hans-Joachim Schöpf 2000 DaimlerChrysler ANE Executive Edition Sept. 22, 2010. Volume 1, Issue 1 Nevio di Giusto 1999 Fiat ©2010 Crain Communications Inc. All rights reserved Georges Douin 1998 Renault Manufacturing Executive Paul Cope 2009 Jim Tetreault 2007 Gilles Michel 2006 Andrea Pininfarina 2005 Franz-Josef Kortüm 2004 Norbert Reithofer 2005 Gerhard Stiegler 2004 Norbert Reithofer 2003 Ditmar Porth 2002 Curt Germundsson 2001 Daniele Bandiera 2000 Michael Macht 1999 Ian Gibson 1998 CFO Hans Dieter Pötsch Holger Härter Stefan Krause Burkhard Breiing Thierry Moulonguet Holger Härter Holger Härter Bruno Adelt Helmut Panke Jaguar Land Rover Ford of Europe PSA Pininfarina Webasto BMW Group Magna Steyr BMW Opel Volvo Fiat Porsche Nissan VW Porsche BMW Volkswagen Renault Porsche Porsche Volkswagen BMW

European dreams
ANE Executive Edition

1,505 2,170 6,599 612 10,886 356

118,518

83 27 1,652 5,690 8,006 3,116 18,491 32 27,361 31,016 15,285 7,710 18,527 99,899 13 7,249 3,220 5,645 4,032

740,20

8 3 22,2 28,3 41,7 20,5 113,1 2 192,3 205,4 81,4 52,1 94,4 625,9 4

20,146

125,17

40,9 22,9 36,9 24,3

Sept. 22, 2

Chevrolet wants to be a serious player
C
hevrolet hopes an expanded product lineup including U.S.-built halo cars and volume models designed for the first time with European buyers in mind will enable the brand to grow sales in western Europe, especially in the lowcost segment where consumers increasingly are turning to lower-priced models. “We are still a very nascent brand,” Brannon said in an interview last month. “In most of western Europe we have been running very low market shares because we have been selling the legacy portfolio.” But with seven new models coming next year, the brand’s European lineup will consist of “Chevys designed from the ground up to be Chevys,” Brannon said. Chevrolet’s European product offensive will roll out at the Paris auto show along with celebrations to mark the 100th anniversary of the General Motors Co. unit’s 1911 founding by Louis Chevrolet, a Swiss national who emigrated to the United States. Key new models debuting in Paris will be the seven-passenger Orlando minivan, which is a first in Europe for Chevrolet, a near-production Cruze hatchback and an updated version of the Aveo subcompact, the brand’s second best-selling car in Europe after the Spark/Matiz. Chevrolet has long been strong in central and eastern Europe, where low-cost cars are popular, but Brannon now also sees growth opportunities in western Europe, where financially squeezed consumers in wealthier markets such as Germany are turning to lowpriced models in growing numbers. Detroit-born Brannon, a 55-year-old GM sales and marketing veteran, has led Chevrolet Europe since 2006. He sees Chevrolet in Europe as a rival to Kia, Hyundai, Skoda and Seat rather than brands such as GM sister marque Opel or Volkswagen, which are positioned at the higher end of the mass market. The five-door Cruze hatchback will be a crucial launch as it will compete in Europe’s secondlargest segment, which is led by the VW Golf. Hatchbacks account for 65 percent of compact car sales in Europe and the Cruze hatchback will help the brand be “taken seriously” as a mainstream player, Brannon said.

MORE 2010 EUROSTARS
2010 EUROSTAR – CAR DIVISION CEO Rupert Stadler, Audi CEO Page 32 2010 EUROSTAR – DESIGN Martin Smith, Ford of Europe Executive Director of Design Page 32 2010 EUROSTAR – SUPPLIER CEO Yann Delabriere, Faurecia CEO Page 32 2010 EUROSTAR – SUPERLUXURY Luca Cordero di Montezemolo, Ferrari Chairman Page 34 2010 EUROSTAR – ENTREPRENEUR Victor Muller, Saab Chairman/Spyker CEO Page 34 2010 EUROSTAR – ADVERTISING Ian Robertson, BMW Board Member for Sales and Marketing Page 34 2010 EUROSTAR – PRODUCT DEVELOPMENT Ulrich Hackenberg, VW brand Board Member for Development Page 36 2010 EUROSTAR – PURCHASING EXECUTIVE Mark Adams, Toyota Europe Vice President of Purchasing, R&D/Manufacturing Page 36 2010 EUROSTAR – PROJECT LEADER FOR INDIVIDUAL CAR Alain Joseph, Head of Citroen Synthese Client Page 36 2010 EUROSTAR – CFO Hans Dieter Poetsch, VW Group CFO Page 38 2010 EUROSTAR – SALES & MARKETING EXECUTIVE Allan Rushforth, Hyundai Europe Vice President Page 38

2010 EUROSTAR – SUPPLIER DIVISION CEO Alex Ismail, Honeywell Transportation Systems CEO Page 38

30
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Automotive News Europe
CFO/*Deputy Chief Exec *Wolfgang Strinz 1999 Opel *Carlos Ghosn 1998 Renault Page 33 ➧

2009 2008 2006 2005 2004 2003 2002 2001 2000

ALL NEW

We will have to be creative, and we have some unique ideas. We are hopeful that we will be able to make a dent.
WAYNE BRANNON

March • June • September • November

Chevrolet still has a long way to go to win over European buyers in large numbers, especially in western Europe where the brand’s market share was just 1.2 percent in the first eight months on new-car sales of about 104,800, down 7.1 percent on the year before, according to ACEA, the European automakers association. Skoda sold more than twice as many cars as Chevrolet during the same period at nearly 228,700 while Seat’s sales were way ahead at nearly 201,300. Hyundai, with about 215,500 units sold, and Kia, with sales of about 149,500, were also far in front.

Brannon said Chevrolet is raising the quality of its cars but will remain positioned as an affordable, value-for-money brand in Europe. The brand has suffered due to a lack of growth in its product line – which previously consisted mainly of rebadged Daewoo vehicles from Korea – and a lack of brand awareness. Brannon hopes that U.S. models such as the Corvette will boost brand recognition and sales. He expects about 65 percent of Chevrolet’s European dealers to sell the sporty Camaro coupe and 10 percent to sell the Corvette sports car, although sales volume for both vehicles will be low. Industry watchers warn that the mix of sporty cars and budget, mass-market vehicles might confuse buyers. “Chevrolet in Europe is a low-end, low-price brand,” said Christoph Stuermer, IHS Automotive’s strategic analysis director in Frankfurt. The automaker “may need to hire an agency to find an elegant way of rebranding so people understand there are really two types of Chevrolet,” he said. Brannon admits that marketing will be a challenge. Chevrolet has a marketing budget that is significantly less than many of its competitors. The message will be that Chevrolet offers two cars connected to American pop culture, the Camaro and Corvette, and practical cars that are the right size and have good fuel economy. Said Brannon: “We will have to be creative, and we have some unique ideas. We are hopeful that we will be able to make a dent.” Rick Kranz/Paul McVeigh

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Automotive News Europe - September 22, 2010

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