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Automakers fight to rescue small cars from extinction as EU rules bite

Discussion in 'Auto News & Rumors' started by T_690, Jun 3, 2019.

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  1. T_690

    T_690 Well-Known Member

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    The U.S. buys big but relatively unsophisticated cars, while Europe prefers sophisticated small cars. That truism is about to be rewritten in Europe, however, as automakers start to question their small-car strategy in response to costly new European Union legislation covering safety and tailpipe emissions, in particular the output of CO2.

    "New CO2 rules will require automakers to fit thousands of euros of tech to each car," Max Warburton, an analyst at research and brokerage firm Sanford C. Bernstein wrote in an April report. "Big cars have the price points and margins to cover these costs. Small cars simply do not. These segments may soon be abandoned by many manufacturers."

    Automakers across Europe are axing their smallest cars or preparing to do so.

    • Opel will drop its Karl and Adam minicars, while fellow PSA Group brands Peugeot and Citroen said their 108 and C1 minicars are unlikely to survive. A source at Ford confirmed that it will stop exporting the Indian-built Ka+ small car to Europe.
    • Volkswagen executives have said privately that the automaker is preparing to drop combustion-engine versions of the Up minicar, which would almost certainly mean the fuel-powered Seat Mii and Skoda Citigo would also disappear.
    • Daimler, meanwhile, has begun the process of shifting production and development of its Smart brand to China, where the small cars will be built exclusively starting in 2022 as part of a joint venture with Zhejiang Geely Holding. That decision raises a question mark over Renault's Twingo minicar, which was developed alongside the current Smart model range.
    It won't just be minicars affected, Warburton said. VW Group could be forced to axe the Polo small car as well as the related Audi A1, Skoda Fabia and Seat Ibiza, he said.

    More at:
    Automakers fight to rescue small cars from extinction as EU rules bite (at https://europe.autonews.com/automakers/automakers-fight-rescue-small-cars-extinction-eu-rules-bite?fbclid=IwAR0o9U3t9a9svwxrNe68Vp34wVfBTYeR4OT9-PkpgMBFA3EizI2wgzmy13w )
     
    Deckard_Cain and ScramFan like this.
  2. pumadog

    pumadog Well-Known Member

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    In the end it's not the size that matters. ;) It's the price. Cheap cars are dying out. I wonder how budget brands like Dacia get away with it?
     
  3. T_690

    T_690 Well-Known Member

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    According to some rumors next Dacia Sandero will be based on a long wheelbase version of a CMF-B platform and will go against Škoda Rapid.
     
    pumadog likes this.
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