IHS Global Insight Perspective | |
Significance | Piëch's unguarded comments are the clearest indicator yet that he has his eyes firmly set on Alfa Romeo just as some of the group's existing brands steal some of the limelight at the French industry's showcase event. |
Implications | Porsche's improving fortunes will be welcomed, although the pending court cases and necessary recapitalisation loom large on the horizon. |
Outlook | Paris again highlights the strength and depth VW possesses, not only among its brands, but in its ability to demonstrate cutting-edge design and advanced technology in a variety of real-world models which will go onto the world stage sooner or later. |
The Volkswagen (VW) Group's plethora of brands are making their presence felt at the Paris Motor Show as a range of hitherto unseen concepts were showcased at evening media events prior to the first press day. Audi, Lamborghini, SEAT and Skoda all unveiled models, most of which will be heading for production sooner or later. Meanwhile, VW's patriarchal supervisory board chairman, Ferdinand Piëch, has again indicated that VW remains interested in buying Fiat's Alfa Romeo brand, but is no hurry to clinch a deal. "Time works in our favor," Piëch told reporters at the sidelines of the event ahead of the show. "We monitor closely how Fiat and Alfa develop in Europe... Let's talks again in two years time [about a possible deal]".
In addition, Porsche announced its preliminary sales and revenue figures for its fiscal year (FY), indicating a global recovery and growth driven by the booming Chinese market. Porsche announced that global unit sales in the 12 months through to the end of July 2010 rose 8.8% to 81,850 vehicles, while production rose 16.1% to 89,123 units. "[Unit sales] outside of our key markets of Europe and North America grew rapidly by 25.8 percent to 25,283 vehicles," Porsche said in a statement. Of those, 11,724 were sold in China, a 47.5% lift year-on-year (y/y). However, while North America and Europe edged slightly higher, sales in Germany were down 3.5% y/y ending July. Revenues rose 17.9% to a record 7.79 billion euro (US$10.5 billion), and Porsche said it expects to see the positive trend continue in the current business year.
On the product front, Audi stole centre stage with the purposeful and all but ready for the road Quattro Concept. The model, based on the Audi RS5, is 200mm shorter, 40 mm lower and more aggressively styled than its A5-based donor vehicle, with carbon fibre hatch and bonnet and a spartan, sporting interior. The model harks back to the purposeful short-wheel-base Audi Coupé Sport Quattro of the 1980s with its snub snout and cut-off rear, claiming a 140 mm shorter wheelbase than the RS5 and complete with huge rear spoiler and racing harness seats to complete the rally homologation look. The concept is powered by a 408bhp version of the TT RS's twin-turbocharged five-cylinder engine, with permanent four-wheel drive. The concept was built at VW Group's latest acquisition, Italdesign, and the Quattro Concept's designer, Steve Lewis said while no production plans formally exist, "everybody says let's do it," and that "we've talked about a run of 500 units", according to an Autocar report.
VW's struggling Spanish brand, SEAT, unveiled its second-generation IBE concept, which is expected to hint at the new design direction for the Leon model. Originally shown in Geneva, the IBE is now complete with interior and running gear. It remains a 2+2 coupe concept with a length of just 3.83 metres and powered by a 101bhp, front-mounted electric motor, and lithium-ion batteries that slot under the boot floor at the rear. It has 148 lb/ft of torque from zero revs. The battery range for the car is set at around 130 km (81 miles); SEAT claims this is "ample" for most daily commutes. SEAT president James Muir said, "The IBE leaves no room for doubt: the future will find SEAT offering the most innovative, bold and youthful cars in their respective segments, without sacrificing anything in terms of usability."
Meanwhile, Skoda is unveiling an all-electric Octavia estate version. Called the Green E Line concept, it represents the first ever electric Skoda and is due to be launched in 2011 on a special test fleet to shape the car's future development. It is powered by a 114bhp electric motor and a lithium-ion battery. Peak torque of 199 lb/ft is instantly available from 0 rpm; it takes 12 seconds to get from 0-62 mph and can reach a top speed limited to 84 mph. The Skoda Octavia Green E Line's range is 140 km, enough to meet the demands of most European commuters, according to Skoda. Skoda says the Octavia's modular chassis allows the battery pack, electric motor and electronic control systems to be fitted to the estate model without affecting the five-seat interior or loading capacity.
At the other end of the spectrum, Lamborghini unveiled its Sesto Elemento concept. The show car is named after the symbol for carbon in the periodic table, the sixth element, referring to the material it is made out of and boasts a power-to-weight ratio of 570bhp per tonne. It has been created with help from American aircraft maker Boeing and is made largely from a "new" material Lamborghini called forged carbon. The styling is a clear indication of what the next Gallardo will look like when it is due in two years, and what it will be made of. At just 999kg, the car is much lighter than the donor car, the Gallardo LP 570-4 Superleggera, which weighs in at 1,340 kg. Lamborghini quotes a 0-62 mph time of just 2.5 seconds, with a top speed the same as that of the Superleggera. "Every future Lamborghini will be touched by the spirit of the Sesto Elemento," said head of Lamborghini Stephan Winkelmann. Lamborghini said the forged carbon has been developed in conjunction with Boeing and the University of Washington. It costs roughly one-third of the price of regular carbon fibre but is the same weight and is almost as stiff.
Outlook and Implications
VW Group's indomitable chairman, Ferdinand Piëch has successfully stolen some of thunder from the French manufacturers with his unguarded comments concerning VW's interest in Alfa Romeo. "Alfa is the one brand with the biggest potential for improvement," Piëch said. Piëch even made light of earlier comments he made last September that a "dozen was easier to remember than [the current] 10" when it came to the number of brands controlled by VW. "Thirteen is my lucky number," Piëch quipped at the event. He also underlined the group's commitment to struggling Spanish brand SEAT: "SEAT would be to Alfa Romeo what Skoda is to Volkswagen," he said.
In addition, the range of concepts on show at Paris again highlights the strength and depth VW possesses, not only among its brands, but in its ability to demonstrate cutting-edge design and advanced technology in a variety of real world models which will go onto the world stage sooner or later.
Meanwhile, Porsche's financial and unit recovery will be of considerable cheer to VW, although parent company Porsche SE said back in June that it expected a loss of under 1 billion euro for the full year. Fully audited financials are expected on 19 October and progress concerning the court cases brought against Porsche over share manipulation in the days before it tried to engineer a takeover of VW are still in the wings. However, the apparent success of its Panamera four-dour model will reassure many that the brand can still expand to its planned 150,000 unit per annum target without diluting its heritage too much. The Panamera has sold 20,615 units worldwide since it was introduced by Porsche as the latest model line last September. Porsche SE is also planning to hold a shareholders' meeting 30 November to approve a capital increase of about 5 billion euro in the first half of 2011.