Why the German Big Three could become the European Big Five

"Speedmonkey" (Speedmonkey) 10/28/2013 at 10:15 • Filed to: Audi, BMW, Mercedes, Jaguar, Volvo

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BMW, Mercedes and Audi are the German Big Three. They have dominated the premium car scene for decades and are all now creeping into other sectors, compounding their positions.

But two contenders are emerging, both of which have flourished under their current owners but were dulled under Ford ownership and under-financed before that. Jaguar and Volvo were part of Ford's Premier Automotive Group, a disastrous affair that introduced boring design and Ford components into the formerly skint but well loved companies.

In 2008 Ford sold Jaguar and Land Rover to India's Tata Motors and in 2010 sold Volvo to China's Geely. Both Tata and Geely have deep pockets and have allowed Volvo and Jaguar to develop new models, and new tech. Without Ford's corporate interference the two are re-emerging with their old identities intact, and with great new cars.

There are various reasons why the German Big Three have risen. Here's my incomplete list:

At their core they are all premium brands with a reputation for reliability and luxury.

They all have a Unique Selling Point. With BMW it is a rear wheel drive sporty chassis, with Audi it is four wheel drive and with Mercedes it is luxury.

They have all developed an in-house tuner with a legendary name: AMG, quattro, M Division.

They all have an iconic car: S-Class, Sport Quattro, M3.

They all have a Halo car which gives the entire brand presence: SLS, M5, R8

They all have one or more massive selling SUVs

They have have huge selling core models: 3-series, C-Class: A4.

They all produce a wide range of engines in a wide range of models cars from an economical diesel to a range topping powerhouse.

They all indulge in niche busting models, which annoy purists but sell loads in India, China, Russia and the US.

They all produce four wheel drive versions of their mainstream cars.

They are all successfully building smaller and bigger cars.

They all have low depreciation which aids private sales (90% of Mercedes' UK private sales are purchased via finance.

They all produce core saloon cars and build variants of those models: estate, convertible, hatchback, coupe.

They are all thought of as German but build up to 50% of their cars abroad to keep costs down and inveigle themselves in local markets.

Their dealers have first class reputations for service (and high cost).

They are all considered cool, aspirational cars from all age ranges.

Motosport: Audi at Le Mans, Mercedes in F1, BMW in sports cars. All achieve in motorsport with the associated brand imagery.

Having said all of that each of the German Big Three has a weakness or two. Mercedes has suffered reliability and quality problems over the years, BMW's interiors are too conservative and larger Audis still understeer because the engine is too far forwards in the car.

In the years since their liberation from Ford, Volvo and Jaguar have achieved many of the above, but not all. But there are clear signs that they aim to do so, and to reach the heights of the German Big Three. Let's examine all the above points in relation to Jaguar and Volvo:

Premium brand: Jaguar are a premium brand already and Volvo is on its way to being so. Its new cars are a step above the Opels and Fords of this world but are not quite up there with Jaguar. Having said that Audi started from a low position and moved its way up.

USP: Jaguar's Britishness and roaring saloons, Volvo's class leading safety.

In-house tuner: Jaguar's R-S division is making a name for itself. !!!error: Indecipherable SUB-paragraph formatting!!! as a brand in itself and will take it world wide in a couple of years.

Iconic car: E-type translates into F-type. Volvo has been less successful in this regard. It's history is safe, boxy estates whilst its present is something slightly different. The V60 Polestar could change this.

Halo car: Jaguar has two with the XKR-S and XFR-S but the cancelled !!!error: Indecipherable SUB-paragraph formatting!!! could have been much more. Volvo doesn't have a Halo car at the moment but the !!!error: Indecipherable SUB-paragraph formatting!!! could be that at some point.

SUV: !!!error: Indecipherable SUB-paragraph formatting!!! . Volvo has the ageing !!!error: Indecipherable SUB-paragraph formatting!!! and the XC60. Both will be replaced but the new XC90 will be first and is promised to contain all the new tech, and could be a massive hit.

Core models: Volvo's S60/V60 is this car, but doesn't have the A4/C-Class/3-series reputation. It should have, but doesn't. The reason is a lack of wider range and wider brand image. Jaguar doesn't, but will. The XF is too large to sell in vast quantities, but a smaller saloon is on its way.

Engine range: Jaguar and Volvo already have a wide range of engines but buy most of them in from, would you believe it, Ford, which restricts outputs. Both are constructing their own factories to build cutting edge engines and increase supply.

Niche busting: Neither Volvo or Jaguar has upset anyone with models that sell well but don't lie easily with the brand. Jaguar's SUV will be the first step. Volvo needs to expand its model range.

Four wheel drive: Jaguar does this in some markets, but not the UK because it was retro-engineered and doesn't suit RHD models. They need to do so in all markets in future cars. Volvo has a limited four wheel drive range but needs to offer it across more models.

Bigger and smaller cars: This is all about depth of range. Volvo has it sussed at the upper end and is working on the lower echelons. Volvo has it in the lower end but the S80 lacks credibility against similar offerings.

Low residuals: With reputations rescued from the Ford years Jaguar and Volvo are on upward trajectories. Both have scored well in reliability and customer satisfaction surveys in recent years.

Variants on core car: Jaguar's small saloon will also be offered as a sports brake. It also needs a convertible and coupe version. Volvo's S60 also comes as an estate but there is no coupe or convertible in the range. Volvo has experimented with these and needs to introduce variants soon.

National identity: Jaguar will build cars in India and China. Volvo plans to build a !!!error: Indecipherable SUB-paragraph formatting!!! . Neither move should hurt Volvo's Swedishness or Jaguar's Britishness.

Dealers: Jaguar dealers give more customer satisfaction then any other brand. Volvo's are up there with Mercedes and above BMW and Audi. !!!error: Indecipherable SUB-paragraph formatting!!!

Cool and aspirational: Jaguar is considered an aspirational brand amongst older owners but not many youngsters. Volvo lacks in this regard, although it is considered quite cool. Motorsport activity, new models and brand marketing can only help in this regard.

Motorsports: Jaguar and Volvo are totally lacking here, although both had a stab at touring cars years ago. They both need high level motorsport programmes.

All of the above shows that Volvo and Jaguar are there or thereabouts and need only a few more years before the German Big Three becomes the European Big Five. I have driven cars from all these manufacturers and can absolutely attest that Jaguars and Volvo make cars that handle as well, have better interiors than, have as good tech as, have engine ranges as good as, look as good as and provide as much satisfaction as similar models from the Big German Three.

Party-vi > Speedmonkey 10/28/2013 at 10:20

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*All-wheel drive.

Also isn't it odd that BMW and Mercedes still make their iconic car and Audi's is over 2 decades old?

Arch Duke Maxyenko, Shit Talk Extraordinaire > Speedmonkey 10/28/2013 at 10:22

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Yes, this is much better. Keep up the good work.

EL_ULY > Speedmonkey 10/28/2013 at 10:32

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good news for us broke ass mofo's in 5-10 years when we can get them CPO or at a used lot :]

ColoradoTaco > Speedmonkey 10/28/2013 at 10:38

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quattro is the name of the AWD system, not an 'in-house' tuner

Speedmonkey > ColoradoTaco 10/28/2013 at 10:46

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Sorry chap, but you're wrong. quattro Gmbh media info:

https://www.audi-mediaservices.com/publish/ms/con…

From which:

As a subsidiary of AUDI AG, we cover three areas of business. The first is the development and construction of Audi’s high-performance models, i.e. the RS and R8 types. The second field of activity encompasses vehicle individualization and accessories. And the third, and most recent, is customer motorsport. We are expanding our success in all three of these areas at an astonishing rate.

ColoradoTaco > Speedmonkey 10/28/2013 at 11:39

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Well, you didn't write 'quattro GMBh' you just wrote quattro. There is a difference. quattro still = the AWD system, not a tuner.

Hoccy > Speedmonkey 10/28/2013 at 11:47

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Do the S60/V60 outsell the V70 worldwide now?

It doesn't in the Swedish and Norwegian market, but how about everywhere else?

Victorious Secret > ColoradoTaco 10/28/2013 at 12:00

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Now you're just being pedantic.

Victorious Secret > Speedmonkey 10/28/2013 at 12:01

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Certain people on Oppo should take note on how to write a proper article.

ColoradoTaco > Victorious Secret 10/28/2013 at 12:08

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Yes, but if he's gonna write something with so much factual info then it should get the fact right. Especially since it reeks of trying to get on the front page (like most posts here now, sadly)

Victorious Secret > ColoradoTaco 10/28/2013 at 12:12

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I'm not gonna disagree there.

Did you miss the memo? Oppositelock is now Nick Denton's personal talent pool for slave labour.

Your boy, BJR > Speedmonkey 10/28/2013 at 12:13

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Jaguar should already be in the same boat as Zee Germans. I have driven every non-AMG Merc from the past 5 years, every BMW except the 5 series GT, but including the X6M and E90 M3 of the past 5 years, and quite a few audis including a S8, S5, and R8. And I gotta say, they all feel so..........German. No nonsense, manufactured. HOWEVER, All the JLR cars I've driven (XJ, F-Type, Evoque, Range Rover, XFR) ALL of them feel special, as though they were hand assembled, with (at the risk of sounding cheesy) love and care.

Speedmonkey > Your boy, BJR 10/28/2013 at 12:27

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Yep. I've driven 90% of AMG models and they still feel very German

LuczOr > ColoradoTaco 10/28/2013 at 12:48

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It actually is the name of the tuner that makes all "S" branded models. s4, s5, s6 and so on are all cars developed by Quattro Gmbh.

LuczOr > ColoradoTaco 10/28/2013 at 12:50

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If that were the case, then I should always say "Mercedes-Benz Cars Gmbh."

BigDog95325 > ColoradoTaco 10/28/2013 at 14:00

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There isn't a difference. It's about context. Learn comprehensive reading skills.

GmbH is German for "company with limited liability". Many companies in the US are LLC's and even though that may be part of the official name, it isn't often used in text or speech. No one says Abercrombie & Fitch LLC or General Electric LLC.

Calling the tuner Quattro is completely normal and acceptable.

ColoradoTaco > BigDog95325 10/28/2013 at 16:56

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Ok, I will. gonna read up on my comprehensive reading. Sadly, it's likely I won't be able to comprehend it since my comprehension is so bad. It's a vicious cycle. I will add that the linked proof of quattro GmbH only refers to it self as such, not just quattro.

Rico > Speedmonkey 10/29/2013 at 12:00

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At their core they are all premium brands with a reputation for reliability and luxury.

Lolwat.

BiTurbo228 - Dr Frankenstein of Spitfires > Speedmonkey 11/05/2013 at 14:15

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I really want this to happen. I'd love to be able to buy something premium that's not German, which has been very difficult to do for a long time.

What I would love above all else though is for there to be a European Big Six, with the final member being comprised of the Alfa/Maserati pairing. We'll have to wait and see what their new slew of models are like when they finally come out, but they have the potential.

After that, the only car-building bloc that needs representation from Europe is France. They've got 3 big domestic manufacturers, but none are truly pushing the premium market. I'd like to see Citroen bring back the 'big French saloon' concept. They didn't quite get it right with the old C6, and sales reflected that.

What they need to aim for is the DS and SM. Both looked, and still look, utterly incredible. Unlike anything else on the roads, then and now. The C6 just looked like a German saloon without a face you recognised.

lingmeister > Your boy, BJR 11/05/2013 at 22:53

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the only people raving about jaguars are the british reviewers, even back in the days when it would fall apart in the midst of driving it. From their view, Jag is like a Lexus, but they don't like the Lexus...go figure.

Jag is nowhere near the big leagues, with their lack of R&D or high tech skill in auto mfg. It seems like they just rehash the same engine and making alum chassis the small shop low budget way. Don't think any of that will scale. Its like another version of Mclaren, a one chassis/one engine shop that uses them from $140k to $900k. At least Mclaren is super advanced tech and has a racing pedigree.

lingmeister > BiTurbo228 - Dr Frankenstein of Spitfires 11/05/2013 at 22:55

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Alfa has the most potential, but with Fiat mired in its own trouble, I don't know if they are going to ever capitalize on that. I thought Alfa would be in the US by now.

lingmeister > Party-vi 11/05/2013 at 23:04

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there are 2 ways to name new cars, using the same name or completely new name.

If you think having the same name go on forever, then you must think cars like the Mclaren F1, every Lamborghini and Ferrari model are failures because they are all so passe.

The point is, the M3 that made a name for BMW is close to 30 years old. And S-class is just a class, which I don't even think is what made MB the company it is (maybe the 300SL).

lingmeister > Speedmonkey 11/05/2013 at 23:16

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Selling loads of cars in India? These German Big Three has monthly sales figures of 3 digits in India.

BiTurbo228 - Dr Frankenstein of Spitfires > lingmeister 11/06/2013 at 04:27

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Yeah definitely. They'd be dead in the water if Chrysler hadn't turned out to be the goose that laid the golden egg.

It remains to be seen if they can pull through. I'm hoping they will. Their main area of hurt is that their principle market, Europe, is in dire straits and they didn't expand into other markets when they needed to. If either of those two issues are addressed, I reckon they'll be alright.