The European motoring scene is changing and we Americans will benefit. There’s a raft of charming, small, new cars that combine economy and style. Many of them will come to the US.
The newest one is the Fiat 500, a re-evocation of the 1957 two cylinder car that took Italians off their Dolce Vita-era Vespa scooters and enabled them to afford four wheels.
The challenge fifty years later was different; the Fiat company needed some fresh new product to stave-off bankruptcy. In one of the most stunning corporate turnarounds in automotive history, Fiat went from a total dog to Europe’s biggest automotive success story. Its stock market value has grown so that it exceeds that of Ford and General Motors combined.
It was done with product emphasizing style and quality. The 500, and a few other charming new models became cars people lusted after and would pay a premium for. The correlation between size and price was broken. Clever small cars are now sold at profit-yielding prices, much like Prius and Mini Cooper in the US. There’s even talk of bringing this Fiat to us.
The tiny Smart car has been introduced here. It’s unique looking, super-short so it can park anywhere, and calculated to appeal to eco- and style-conscious Americans. It’s been attempting to appeal to the same groups in Europe.
The problem in Europe has been that, for the same or less money, slightly larger mainstream cars, like the Fiat 500, are more versatile. The Smart is barely fast enough for freeway travel, and provides space for two people, period. Here in the US, a Nissan Versa, Honda Fit, or Toyota Yaris will probably be easier to live with, while delivering about the same fuel economy, if less “cuteness”.
As big a success as the Prius is here, the Europeans aren’t so taken by it. The new wave Diesels are more favored there. A fuel economy comparison tells part of the story. Last year, I reviewed a Toyota Camry Hybrid. On a trip to Los Angeles and back, at freeway speeds, it gave 32 miles per gallon. Last week, on a 400 mile drive from Northern Italy to Eastern France, at similar speeds, my rented Audi A-3 Turbo Diesel used ten gallons of diesel fuel. That’s 40 miles per gallon – 25% better than the Hybrid. Still, that fill-up cost 60 Euros, a bit over $90 US.
Later this year, when Volkswagen, BMW, Mercedes-Benz and Audi all introduce new Diesel models, we’ll be afforded the same choice.
The Audi A-3 is a good example of luxury in a small package. The quality of materials and construction is equal to that of the top-line Audis. All the comforts one expects are either standard equipment or available as options. The clean, timeless design that allows your ten year old Audi to look contemporary is still present on this A-3!
Porsche Rocks the Auto Industry
It’s only sixty years since the first Porsche cars appeared in early post-war Europe. Based on VW components, they were rapidly developed into first-tier sports cars, starting a long race-winning history almost immediately.
Until a few years ago, Porsche only made two-seater sports cars. Their sales volumes were limited; they needed to develop a wider product range to remain profitable and independent. The Cayenne SUV is the result. In the few years it’s been on the market, its sales, added to sales of the two-seater models, have given Porsche the critical volume they seek.
A new Porsche Cayenne S SUV recently came our way. While $81,000 is not exactly bargain territory, this three-in-one SUV-sports car-luxury sedan of seriously high quality amply justifies the price.
The seven different booklets in the owners manual packet suggest what a serious car this is. The 428-page Owners Manual is supplemented by a 182-page instruction book for the Porsche Communication Management (audio, navigation, etc.). Then there’s a Maintenance book, Warranty information, Roadside Assistance guide and some quick-summary pamphlets.
In typical German fashion, one must consult these books to understand how to work the controls, unlike Japanese and American cars, where the controls are more self-explanatory.
But once you’ve become acquainted, this Porsche is a charmer. It’s very powerful, but the quiet mechanical refinement and sophisticated suspension make rapid travel seem easy. Not surprisingly, Porsche draws on resources from around the world. The car is assembled in Leipzig, Germany, using mostly German parts. But the transmission is sourced in Japan, and many smaller parts come from Slovakia.
The Porsche was co-developed and is produced alongside the Volkswagen Touareg. But, like all Porsches, it’s sold at a much higher price. The genius of Porsche is that their cars are good enough and appealing enough that they can charge prices sufficient to make it the world’s most profitable car company (on a per-car basis).
Porsche has startled the world by taking over Volkswagen, a company many times its size, but struggling with profit margins. Porsche management thinks it can position Volkswagen to be the Toyota of Europe. If it can, the little company that has dominated race tracks for years, with VW-based cars at first, will have scored a huge commercial victory.
