Paris Salon de l'Automobile: A Challenging Market and Innovative Designs

Strategic Insights -

The 1993 Paris Salon de l'Automobile revealed a challenging market for European car manufacturers, with recession and indifference gripping the industry. However, despite cautious notes from Renault and Peugeot-Citroen, the show offered a glimmer of hope, with commercial aspects taking center stage. The European market, still the world's largest, is set to become a battleground as manufacturers focus on profit-starved segments, particularly MPVs (multi-purpose vehicles) and four-wheel-drive off-road vehicles.

Key Takeaways:

  • The European car market is expected to become a bloody battle-ground as manufacturers compete in the MPV segment, with US giants General Motors and Chrysler entering the fray.
  • Renault's new Espace is a dominant force in the MPV market, with 50% of the European market share, and the company is releasing a special-value Espace F1 edition, featuring a 10-cylinder Formula One engine.
  • Volkswagen and Ford have previewed their MPV efforts, with Volkswagen's Sharan expected to be a potent performer, boasting a 252bhp Porsche turbo engine.
  • The MPV market is expected to benefit from a decline in four-wheel-drive sales as buyers turn to multi-seat formats.
  • Nissan's Maxima QX and Lancia's Kappa are examples of bland design, while Ford's Scorpio is a more courageous effort, and General Motors Europe is launching the Opel Tigra, a wacky baby sports coupe.
  • The industry is seeking to reignite demand through innovative designs and feature-packed vehicles.
  • Government incentives, such as France's Balladur plan, are being considered to boost car sales and reduce the number of old vehicles on the road.

Statistics:

  • European car sales are expected to rise by 5% this year, according to General Motors Europe president Lou Hughes. (Source: Lou Hughes, General Motors Europe)
  • Peugeot-Citroen chairman Jacques Calvet is less optimistic, predicting a 3% rise in European car sales. (Source: Jacques Calvet, Peugeot-Citroen)
  • Eleven percent of France's 12% market growth this year is due to government tax incentives. (Source: Jacques Calvet, Peugeot-Citroen)
  • Volkswagen group chairman Ferdinand Piech predicts that 1995 will be "a little bit better" than this year. (Source: Ferdinand Piech, Volkswagen)
  • The French government's Balladur plan is expected to introduce new-car sales incentives, revitalize the small-car market, and reduce old vehicles on the roads. (Source: Ferdinand Piech, Volkswagen)

Sources:

  • Lou Hughes, General Motors Europe president
  • Jacques Calvet, Peugeot-Citroen chairman
  • Ferdinand Piech, Volkswagen group chairman
  • Neal Janus, GM's Neal Janus, describing the new Chevrolet Blazer offroader as a new kind of luxury vehicle
  • Official Paris Salon de l'Automobile press releases
  • Various automotive industry publications