German Carmakers Uber Alles?
Automobilwoche reports that November was an automotive watershed. For the first time in history, European car sales eclipsed American. From January to November of this year, the European Union (EU), Switzerland, Norway and Iceland racked-up 14,827,000 cars. That compares to 14,763,000 new vehicles (cars and light trucks) sold in the U.S. during the same time period. Automotive analyst Peter Schmidt of AID (Auto Industry Data) thinks it's more than a quirk. "Our forecast says that in the coming years, Europe will be ahead. We see 15.6m light vehicles being sold in the U.S. in 2008, as opposed to around 16.1 million in Europe… The established markets are satiated." The strong-growth regions of eastern Europe are the EU's car sales engine. Russia will account for some 2.3 million new cars per annum. "All this explains why German car makers are so healthy. There is no growth at home, but plenty to be exploited in other countries," says Schmidt. No surprise, then, that German carmakers have built up a spectacular war chest. Spiegel Online reports that BMW, Mercedes, VW and BMW have some €34b (about $49b) in their collective piggy banks. In 2007 and 2008, they may welcome an additional €26.5b. Unicredit Analyst Georg Stürzer thinks this means that German car makers will pay out generous dividends, invest in green technology AND finance large acquisitions. Uh-oh.
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No monster trucks? What about the MB Unimog and some of the other rather extreme commercial vehicles the company makes?
I always laugh when people say they are jealous of the cars in Europe. As a Bimmer head, I fully understand the beauty of a car built for a speed limitless world on a daily basis. I also understand that lots of cars here are not nearly as good as there, be they a Focus, or a Diesel BMW. Now to reality. The Average American drives a better car than an Average Euro. Really. Having spent some time in europe, the typical euro spends a HUGE amount more to buy and keep running his car. (not including gas) Registration fees in france are determined by engine size and transmission type. A small gas engine with a manual is cheap. A car like a Corvette, with a big v-8 and an automatic, thousands a year to register alone. In Germany, you pay by horsepower, with big tariffs the higher you go. The typical middle class euro car is way less than the typical middle class american ride. I'm a euro car lover. I had VW, BMW, etc, but once you get off the upper tier of cars, the average ride in the states is better. Would you prefer a Golf with a 1.6 liter motor or an Explorer ? There is a whole group of cars that you would not even attempt to sell here in the US. Look at CAR magazine some time. Lastly, the reason the Autobahn is such a big deal is because many of the cars in the middle lane can't hang in the left lane. Unlike the US, where all cars can go 100 mph all day (not legally), many euro cars can't . No one in the US understand the SERIOUS snob factors that go into the autobahn experience. The greenies who hate the Autobahn are more upset they can't buy the AMG benz than the enviromental issues. They hate that the Benz moves their crapbox Polo over and the law agrees with the Benz. The fact that german cars all differentiate versions by grille is so you know if you need to move over or not for them. This is why the GTi Golf has the different grille than the 1.6 liter slow version. Yes, you can't get a Honda with a decent motor, you can't get a good Focus, but you would also not want to pay the amounts of money that these cars would cost. My small SAAB 9-3, in Europe, is the BIG family car. There's a lot more to the ownership experience than "I want this car and they don't sell it here WAAH waah wahh.
It still is that case that the range of automobiles offered in Europe is far greater than that on offer in the US. Obviously I don't want to move to Europe or I already would have done so. Personally I would rather drive a Jetta all day long than an Explorer. The Explorer is just a silly vehicle. It has less interior space for passengers and cargo than a Volvo V70 yet rides and handles like a truck. Other than for off-roading or towing I really don't understand the attraction.