OK, so a lot of car companies are finding themselves in a severely skint state these days. They’re slashing budgets in every department. But if they cut new-car development, where does that leave their future? Several future models have been chopped or delayed.
Most prominent is the BMW CS. The Bavarians’ big, sleek sports saloon was scheduled for 2012. But the company recently said it wouldn’t appear. Since then I asked its designer Adrian Van Hooydonk and the head of R&D Klaus Draeger, and they both said they’d rather say it’s on ice rather than dead.
But it was always going to be an expensive one. BMW’s biggest platform is the one under the new 7-series, next year’s ‘Progressive Activity Sedan’, the 2010 5-series and 2011 6-series. And even that isn’t big enough for the CS.
Meanwhile over at Mercedes, they’re still clinging on to the new-model programme. Merc chief Dieter Zetsche told me he’d defend ‘to the last drop of my blood’ every new car they’re planning. That applies as much to profligate AMGs as to thrifty little fuel-cell cars, he confirmed.
No such thinking at Renault. The next generation Espace, one of the defining cars for the company, has been killed. That’s partly to save money. Also says COO Patrick Pelata, it’s because the market has simply shifted away from big MPVs. ‘So it’s not so much a cancellation as a postponement and complete re-think.’
At least the new little Alpine sports car is safe, he assures me. It’s due for 2011, an affordable lightweight rear-drive car using cut-down Nissan RWD mechanicals. Something smaller, lighter and cheaper than the Z though.
Over at Ford, a replacement for the little Fusion has hit the buffers. And in America, they’ve delayed a diesel version of the big F150 truck. That second decision sounds a bit desperate to me.
Things are worse at GM. There won’t be any new GM cars at next week’s LA Show. We were due to see a big Buick, the LaCrosse, as well as the Cadillac CTS coupe. But they will turn up at the Detroit Show in January, we’re still promised. Beyond that GM is actively looking at winding down several other programmes – possibly the Camaro convertible. But the Volt is being protected like the family jewels.
As to Chrysler, who knows? Things are so chaotic there right now I wouldn’t even speculate. It all depends on who ends up taking them over.
(Won’t be GM, by the way. Chrysler’s problem is too many factories, too many brands and too many dealers. GM has exactly the same issues. Putting them together hardly counts as synergy. My money is on Koreans or Chinese buying Chrysler to get hold of Jeep.)
Even the Volkswagen Group, which is still on target to make more cars in 2008 than ‘07, is delaying stuff. At the LA Show VW was due to unveil a serious concept for a mid-engined roadster. Now we learn it won’t be there. Instead VW wants to spotlight its diesels for the US. Yawn.
Still, I’ll be going to LA to sniff around this story, and see what else we can spot in the car industry’s rapidly shifting quicksands. Stay tuned.
Sir! Other than the terminally stupid who is actually buying new cars at present? Government authorities, local Councils, civil service( all of who fall into the above mentioned category) who will not have the budgets to do so this time next year!
English Cad therefore proposes your team, you can include the three ‘buffoons’ if you must. Find and recommend the best second hand vehicles for performance, comfort, and running costs…I suggest a budget of £5,000 this being the ‘new’ £20,000 since the ‘greedy boys’ in the city over did things…
My recommendation would be an 2000 model (lower road Tax bracket)E39 540i solely because Cad knows it will rub the ‘green sheep’ up the wrong way, that said it maybe an old motor, but is still damned fine one.
English Cad PhD ‘Greatest living Englishman’ feel free to Google…x
On the subject of Future Cars, I had to go and have a quite lie down because my gag reflex had gone into overdrive when I saw that new Tesla sports car, which disturbingly, looks an awful lot like the new Lotus Evora. Sure it can do 0-60 in 4 seconds but its disgustingly green, the whole point of a sports car apart from speed is the noise of the thing, and this car makes about as much noise as an examination hall. Don’t get me wrong, it rightfully tramples all over the G-Whiz, and its a leap forward in transport. But as a petrolhead, it really is a (tumbleweed) moment
Hardly a suprise, is it? I’m suprised someone like VW hasn’t invested in the American market. With the correct investment, redistribution of manufacture (unfortunately jobs must be lost), the US markets can be saved. Some brands would need to be collapsed, to make way for cheaper production costs. For example, the Chrysler owned Saturn would be one of the first to go. To quote ‘Truckers’ by Terry Pratchett, ‘all things under one roof’. This roof is the Chrysler badge.
However, my biggest fear is for the small british companies, such as Caterham, Morgan, and Westfield. Their already slender profits are likely to be cut to nothing. And we really don’t want the world’s premier independant car industry to go the way of TVR, do we?
Hi Catersam. You’re very prescient – VW is investing in the US market. But not by buying the existing brands. It’s building a factory there. At Chattanooga. A place I can’t spell.
Paul
Catersam, Saturn is owned by GM in the USA. Paul, my current hometown is minutes away from Chattanooga, in Georgia, and it is much harder to spell.
Morning. Nice to see pterry getting quoted. Paul, hope you enjoy LA, even if there isn’t much to see there in the metal
aaaaah
>>>>BUGATTI<<<<<<<< very nice
They might as well cancel the LA show. What’s the point in going just to see some VW diesels? As for Renault, everyone will probably be looking for hatch-backs or saloons, rather than the big MPV’s. The majority of people have no more than 3 kids anyway, unless you are a council estate baby making chav machine. And there are lots of those. But they won’t be able to afford brand new Espaces on their benefits allowance.
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HAHAHA…’council estate baby making chav machine’…that made my day!
thanks
The problem with American manufacturers is a lack of product line diversity. Sure, they all offer cars in the major segments, but none of the average ones are any good. They have bland or ugly styling, a reputation for nebulous reliability and poor quality interiors all at a price equal to their competitors from Japan. Considering the repair costs involved when a new car goes wrong it is no surprise that the Camry outsells the Taurus. Plus, there is a lack of a good entry level model from any of them. The halfhearted Chevy Cobalt is a dud. it looks like a facelifted mid 90’s Cavalier. Who takes the time to design a completely new car and change the name because the car it replaces was such a horror then makes it look almost identical to the old model? The new US spec Focus is also ugly, and Chrysler doesn’t even bother to make a subcompact car anymore. They left themselves wide open for this by failing to have product lines that were universally good cars. Honda succeeds because they don’t build any car that is crap. GM should take note.
Chrysler won’t last for too long, I assure you. Cadillac’s most likely to hold on to a decent share of the market for as long as americans keep being tossed with sand in their eyes.
And I’m glad the LA show will most likely feature present VW diesel models: that way americans will know what a diesel car is, and that maybe the 4 liter V8 caddilac is somewhat too much in their garage.
Car makers should concentrate on making dull cars such as the Toyota Camry, and then when the financial crisis is over, they can start making Gallardos again.
Were I feeling particularly cynical, I would suggest that some of the larger and better off companies are waiting for GM/Ford/Chrysler to fail in order to obtain some desirable brands and/or factories on the cheap. Toyota for example, or Hyundai-Kia, possibly even VAG (though quite frankly who knows what they’re up to with Porsche taking over…)
Lets face it, the credit crunch and global warming is affecting ALL car companies, thats why they’re making hydrogen powered concept cars and a lot of small cars, for example. And all of us is being affected as well. But i have found an astonishing deal. A Car Dealership (who is in autotraders car news section, click on the one with the following name ‘new cars as cheap as chips’) has an offer on which states, if you buy a brand new mazda CX-7 (which costs £24,500) you will get a brand new Mazda2 FREE, YES FREE! So what i would do is if you don’t want an off-roader, get a loan for about £24,500 buy it so you get the mazda2 free with the CX-7, then sell the CX-7 off-roader for, if you can, more than you brought if for and keep the small Mazda2. then you’ve actually GAINED money, yet you’ve still got a brand new small, cheap to run, cheap to insure yet practical car
P.S. The Mazda2 is basically the same car as the new ford fiesta, thats a good thing)
let make cars fun again!
If you still doubt the fact that cars are art, check this out;
http://www.olafmooij.com
Mind you these cars are not only scalemodels, some are real and driving!
(Mooij means beautifull in Dutch)