AUTO #24 Q3 / 2018
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UP FRONT Gallery News
AUTO ASKS The Big Question
DRIVING FORCES Enaam Ahmed
TECH REPORT The Halo effect
COVER STORY Former President of Mexico, Felipe Calderón on sustainability
AUTO FOCUS FIA Innovation Fund for all; F1’s rules rewritten; the SUV boom; Frédéric Sausset’s dream team; Ban Ki-moon’s world plan; drive for safe cities; Nissan CEO Hiroto Saikawa; #3500LIVES – Marc Márquez; WTCR flies high; EU transport boss Violeta Bulc; hero medic Jean Jacques Issermann
REAR VIEW Juha Kankkunen Mini’s legend
INSIDE THE FIA Club World: The Netherlands
AUTO GRAPH Global car sales figures: H1 2018 boom
FINAL LAP Remembering Sergio Marchionne
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483,105 registrations last year and recently posted a 20 per cent sales increase in Germany. The Honda Civic, meanwhile, is the world’s fourth best-selling car, although it is available in multiple body styles.
Analyse Jato’s global figures further and another striking trend emerges: the rise of the small SUV. So while the 4.01m sales of C-segment SUVs – including the Nissan Qashqai, Ford Kuga and Volkswagen Tiguan – in the first four months of this year represent a 14 per cent increase, the B-segment or subcompact SUV category has grown at a far greater rate – the 2.28m units of Renault Capturs, Volkswagen T-Rocs and the like represent a 28 per cent rise, the most significant increase of all SUV segments. These cars are much more fuel-efficient than larger SUVs, and more suited to cramped urban environments. That they provide entry to SUV ownership at a much more affordable price further underlines the appeal. The implications for the future composition of vehicle segments are dramatic, as while C-segment and larger SUVs are already challenging sedans/saloons globally, C-segment SUVs also pose a threat to the hatchbacks that top Europe’s sales charts – the Volkswagen Tiguan is the fifth best-selling passenger car in Europe, behind the Volkswagen Golf, Renault Clio, VW Polo and Ford Fiesta. The rise of the B-segment looks certain to intensify this shift, offering a tempting alternative to the Clio/Polo/Fiesta. Indeed, in May 2018, European sales of SUVs grew by 24.2 per cent against a decline of 8.5 per cent for all other segments. Of the SUV sales, the smallest SUV segment was up 37 per cent. The B-segment SUV is also booming in traditionally ‘biggeris-better’ America. Ford data shows that just four years ago, 18- to 24-year-old Americans bought 8,121 subcompact cars but just 443 subcompact SUVs. By 2017, that margin had narrowed to 3,981 subcompacts and 2,840 subcompact SUVs. Given current trends, Ford projects subcompact SUV sales could gain the upper hand as early as next year. Traditional segments are, however, likely to survive globally. The station wagon/estate car was the forerunner to the crossover, maintaining the best virtues of the saloon car while adding more luggage space. Sales remain stable at around 2.5m units globally, mostly due to the genre’s enduring popularity in Europe, which accounts for 72 per cent of sales. Hatchbacks, too, continue to be consistently popular and sell well globally – the Golf is Europe’s best-selling car with
When Nissan brought out the Qashqai in 2006 it was judged as a risky move; now it’s among Europe’s best-selling cars.
While some manufacturers are dropping sedans from their range, Volvo’s Stefan Elfström says the company still sees a future for them.
LAST CHANCE SALOONS? The future of the saloon/sedan looks more uncertain, and more fragmented according to market and price point. Globally, the Toyota Corolla sedan stands as the world’s second-best selling vehicle, with sales up 3.3 per cent on the back of a 19 per cent surge in China, a stronghold for the segment. In America, the Toyota Camry held steady with 387,081 sales, the former bestseller still good for sixth position overall. Even amid news that Ford plans to stop selling sedans altogether in the US, Volvo – owned by the sedan-loving Chinese – recently unveiled the S60 sedan at its new American production facility. With rivals easily shifting six-figure units in America, a strong market in China and demand in Europe, it can clearly sense an opportunity. “The segment as a whole is shrinking, but Volvo sees potential to grow its share of the segment, as well the amount of mid-size sedans it sells as a whole,” says Volvo Cars media relations manager Stefan Elfström. “The S60 is a new take on the segment for Volvo. Compared with the previous version, it targets a younger demographic and we’d expect it to sell more.” In Europe, the premium saloon segment continues to perform strongly: Mercedes’ C-class beat the Renault Megane and Vauxhall/Opel Mokka. But the rise of the German premium set and the increasing prevalence of SUVs is squeezing the mainstream saloon into oblivion. In 1997, Ford sold 322,716 Mondeos in Europe, but by last year that number had tumbled to 56,173 units. Toyota has cancelled its Avensis saloon in the UK; Renault stopped selling its Laguna to British buyers in 2012. So while the future of Ford’s traditional and strong-selling hatchback models is surely assured in Europe and many other markets, the case for the Mondeo appears increasingly less robust – especially with Ford US already setting the precedent and ending production of its comparable models. Not everyone, however, is convinced Ford has made the correct call in the US. Speaking to Automotive News, Chris Lemley of Sentry Auto Group near Boston called Jim Hackett’s decision “a short-sighted overreaction to a shift in the market”. The sales expert drew parallels to the situation faced by former CEO Alan Mulally a decade ago, and noted Mulally could have similarly axed SUVs and pick-ups. “Ford’s leadership demonstrated the good judgement to hedge its bets, recognising that not all predictions of the future will come true,” concluded Lemley. Time will tell if Ford’s strategy will pay dividends. What’s for certain is that SUVs are steadily – and sometimes rapidly – increasing their share of every market segment they enter. That they’ll continue to do so for the foreseeable future seems a safe bet.
‘The S60 is a new take on the sedan segment for Volvo. Compared with the previous version, it targets a younger demographic’ STEFAN ELFSTRÖM, VOLVO