” “Right now, it’s aggressive to the point of destruction.” “Costs of selling are going through the roof.” These are the reactions of long established seen-it-all suppliers to the upturn in the incentives war.by ian robertsonFuelled by the closure of third quarter programmes and with inventories swollen by August’s 50,000 shortfall on expectations, suppliers set about an aggressive off loading of September stocks.Through the month most suppliers waged major campaigns, notably Ford, Nissan, Peugeot, Citroen, Renault, Toyota and Volvo. Half of registrations were hustled through in the final ten days of the month. Frantic preregistering on the last day alone boosted TIV cumulative returns from 3.5 per cent to a net gain of 6.5 per cent.
In parallel with new model launch programmes, fleet discounts have been uprated. The number of demonstrator registrations spiralled and volume fleet orders pulled forward.
In September fleet business climbed 22 per cent to 66,284 units, while retail sales reversed 4 per cent to 78,714. This carried cumulative fleet sales ahead 16.5 per cent to 685,949 units or 43 per cent of the market.
The feel-not-so-good factor held retail gains to 4.7 per cent over the period.
Ford kept its lead in the fleet sector headed by Mondeo and Escort, with Vauxhall in pursuit.
Gains in the UK diesel sector moderated slightly in Sept ember ad v ancing 23 per cent to 32,099 units (year-to-date up 36 per cent to 357,674). With market share this year ahead almost 23 per cent there are cautionary warnings of saturation and speculation of a sector correction to hold diesel sales closer to the Euro pean market average of 20 per cent. Peugeot retains sector leadership but has been pipped by Mondeo in the model ratings.
Further sectoral analysis reveals a resurgence by the UK’s executive and luxury car market with contenders such as Volvo’s 800 range, BMW’s 5-series, Mercedes’ C-class and Vauxhall’s Omega coming through strongly. These top sector results have been achieved despite conquest sales by the UK’s off-road sector. This is ready for a further boost as the volume of new generation Range Rovers is built up.
With a clear lead in the comparative ratings for the month, BMW doubled September sales to more than 4,300 units topping a bull run that got started last December.
Throughput for the latest month was boosted by delayed fulfilment of August orders. With returns ahead of 2,500 units, September registrations of the 3-series outmatched volume mid-range contenders such as Nissan’s Primera and Citroen’s Xantia. With supply shortages reported for 316s and 318is, time from UK port to customer has been cut to less than a week.
In the 5-series, diesel variants are ahead of target and 800 new generation 7-series models have been delivered since launch. UK allocation of Munich’s output has been hiked 10 per cent this year. But for this restraint, however, the importer reckons sales would have exceeded the record 49,000 units set in 1989.
As it is, full year returns should hit 46,000.
First deliveries of new Compact models started on 11 October. Estimated volume for the rest of the year is 1,500 316 and 318ti models with a projection of 5,000 units for 1995. A 90bhp turbocharged and intercooled diesel variant joins the line in March.
Further ahead, new 3-series touring derivatives are scheduled for April. The 7-series models get a power boost with new V12 engines in March – only LWB variants are to be imported to the UK. And in 1996 this formidable programme is rounded off with first UK examples of US built roadsters and replacement 5-series models.
From the cumulative red, gains by Mazda’s 323 series (557 sales) carried the importer strongly into the comparative black with a net 60 per cent gain in September returns.
Top seller is tipped to be the 1.5-litre five door fastback in which strong fleet interest has been registered. And 1.8-litre variants of the new series follow late this year.
Other winners in the range centred on Xedos 6 and new 1.8-litre variants of MX-5. The 626 gets a revamp for November with 2.5-litre variants deleted along with four-door saloons (except 1.8-litre models).
A further strong showing by C-class (1,474 sales) and E-class gains consolidated Mercedes Benz’s chart topping run this year with Skoda’s Favorit scooping an impressive 1,250 sales.
Volvo also shrugged off earlier reversals as order intake for the new 960 range started and incentives on 800 and 400 ranges boosted results.
Cash backs, special offers and a dealer discount programme pushed 400 registrations ahead 29 per cent to almost 3,000 units, out sprinting C-segment rivals including Golf and Rover’s 400.
For the 1995 model year an additional HTA 400 has been prepared with CVT.
And, after slow initial supplies of Renault engines, the importer is preparing a new push on 440 diesels. In the big car sector import volumes of limited 152mph T5R editions of the 850 have been lifted from 50 to 200 units and throughput of new 960 models is targeted at 2,000 units for 1995.
Bottlenecks in the paint shop at Torslanda have recently slowed deliveries from a scheduled four weeks to nearer seven.
Expect first sight of NedCar’s V40 Volvo and Mitsubishi newcomer in October 1995. Additional estate variants are anticipated.
Meanwhile the growth of Europe’s MPV sector has not gone unnoticed at Gothenburg. Engineers are looking at the potential for a 900 series estate with four wheel drive and enh anced ground clearance to stake a footing in the fast expanding sports utility segment.
With a 25 per cent surge in sales Nissan came through strongly in the Sept ember ratings. More than 50 per cent of sales were Micras (4,428 units), which overhauled Clio and 106 for the month.
Special dealer offers, limited editions, 0 per cent finance and enhanced PCP terms pushed Micra throughput up by a third.
Special offers on selected models and the run down of some variants before its replacement next summer – it will also get a new name – boosted Sunny registrations more than 20 per cent. New fleet initiatives and a courtesy car programme supported gains for Primera.
Added value Precision editions of Primera are launched in October along with limited Boston variants of Micra and Sunny. Terrano stands to benefit from its 1.9 per cent price cut last month. Some 300 examples of the all new 200SX are expected over the balance of the year – 1,500 units are tipped for 1995. QX will debut next spring and watch out for a new high van variant of Serena.
Further down the charts Rover testified to the intense competition in the market with growing anxiety about the progressive slow down by the retail sector as April tax rises finally bite. August returns benefited from enhanced supplies of Metro Rio and active promotion of the company’s Select PCP programme.
Free insurance on Mini and Metro – with entry age level reduced from 25 to 21 – is relaunched from 1 October.
Peugeot is focussing on its œ500 cash back programme for the 306 and uprated Passport Gold PCP terms on the 106. The 306 sedan models are formally released on 12 October – expect XS and XSi variants to follow – and the 605 is upgraded for 1995.
The 806 MPVs arrive late next year following the mid-year unveiling of the 406.
Citroen reported no change in September volumes citing “a very competitive month”. Gains by AX were offset by slower ZX sales. Retaliatory promotions have been stepped up to include free insurance and 0 per cent finance on AX and ZX. The standard warranty on XM is extended by two years to 36 months and there are special Elect 3 PCP deals on AX and ZX. Dimension editions add value to AX, ZX and Xantia.
Bringing up the rear, Toyota reported sharp setbacks for the Corolla and Carina in “a disappointing month”. And œ1,000 cash back deals have been introduced on Corolla and Carina to stimulate throughput to the end of the year.
Special Charisma editions of Corolla and Carina have been prepared to offer further support.Watch out for first registrations of Celica’s performance cabrio variant in November along with the upgraded Lexus LS400.
Severe competition and swollen inventories fuel aggressive pre-registration boomSuppliers set about aggressively off loading Sept em ber stocksUK FLEET MARKET: JAN-SEP 1994Top suppliers (% share) Top models (% share)
Ford 28.0 Mondeo 11.2 Fiesta 5.1
Vauxhall 22.0 Escort 10.2 405 3.7
Rover 14.8 Cavalier 8.8 Corsa 3.4
Peugeot 8.0 Astra 7.9 306 2.6
Renault 5.0 200 5.8 400 2.5
feeling not so goodSECTORAL MOVEMENTS IN THE UK CAR MARKETJAN-SEP 1994
Sector % change
Small (A/B) +12.9
Lower medium (C) +0.8
Medium (D) +11.6
Exec/luxury (E/F) +17.4
Off road +29.4
UK DIESEL MARKET: JAN-SEP 1994Top suppliers (% share) Top models (% share)
Peugeot 20.6 Mondeo 7.7 Cavalier 6.1
Ford 18.0 405 7.5 Xantia 5.1
Vauxhall 16.5 Escort 6.5 106 0.8
Rover 12.3 306 6.4 ZX 4.4
Astra 6.1 Discovery 4.0

” “Right now, it’s aggressive to the point of destruction.” “Costs of selling are going through the roof.” These are the reactions of long established seen-it-all suppliers to the upturn in the incentives war.by ian robertsonFuelled by the closure of third quarter programmes and with inventories swollen by August’s 50,000 shortfall on expectations, suppliers set about an aggressive off loading of September stocks.Through the month most suppliers waged major campaigns, notably Ford, Nissan, Peugeot, Citroen, Renault, Toyota and Volvo. Half of registrations were hustled through in the final ten days of the month. Frantic preregistering on the last day alone boosted TIV cumulative returns from 3.5 per cent to a net gain of 6.5 per cent.
In parallel with new model launch programmes, fleet discounts have been uprated. The number of demonstrator registrations spiralled and volume fleet orders pulled forward.
In September fleet business climbed 22 per cent to 66,284 units, while retail sales reversed 4 per cent to 78,714. This carried cumulative fleet sales ahead 16.5 per cent to 685,949 units or 43 per cent of the market.
The feel-not-so-good factor held retail gains to 4.7 per cent over the period.
Ford kept its lead in the fleet sector headed by Mondeo and Escort, with Vauxhall in pursuit.
Gains in the UK diesel sector moderated slightly in Sept ember ad v ancing 23 per cent to 32,099 units (year-to-date up 36 per cent to 357,674). With market share this year ahead almost 23 per cent there are cautionary warnings of saturation and speculation of a sector correction to hold diesel sales closer to the Euro pean market average of 20 per cent. Peugeot retains sector leadership but has been pipped by Mondeo in the model ratings.
Further sectoral analysis reveals a resurgence by the UK’s executive and luxury car market with contenders such as Volvo’s 800 range, BMW’s 5-series, Mercedes’ C-class and Vauxhall’s Omega coming through strongly. These top sector results have been achieved despite conquest sales by the UK’s off-road sector. This is ready for a further boost as the volume of new generation Range Rovers is built up.
With a clear lead in the comparative ratings for the month, BMW doubled September sales to more than 4,300 units topping a bull run that got started last December.
Throughput for the latest month was boosted by delayed fulfilment of August orders. With returns ahead of 2,500 units, September registrations of the 3-series outmatched volume mid-range contenders such as Nissan’s Primera and Citroen’s Xantia. With supply shortages reported for 316s and 318is, time from UK port to customer has been cut to less than a week.
In the 5-series, diesel variants are ahead of target and 800 new generation 7-series models have been delivered since launch. UK allocation of Munich’s output has been hiked 10 per cent this year. But for this restraint, however, the importer reckons sales would have exceeded the record 49,000 units set in 1989.
As it is, full year returns should hit 46,000.
First deliveries of new Compact models started on 11 October. Estimated volume for the rest of the year is 1,500 316 and 318ti models with a projection of 5,000 units for 1995. A 90bhp turbocharged and intercooled diesel variant joins the line in March.
Further ahead, new 3-series touring derivatives are scheduled for April. The 7-series models get a power boost with new V12 engines in March – only LWB variants are to be imported to the UK. And in 1996 this formidable programme is rounded off with first UK examples of US built roadsters and replacement 5-series models.
From the cumulative red, gains by Mazda’s 323 series (557 sales) carried the importer strongly into the comparative black with a net 60 per cent gain in September returns.
Top seller is tipped to be the 1.5-litre five door fastback in which strong fleet interest has been registered. And 1.8-litre variants of the new series follow late this year.
Other winners in the range centred on Xedos 6 and new 1.8-litre variants of MX-5. The 626 gets a revamp for November with 2.5-litre variants deleted along with four-door saloons (except 1.8-litre models).
A further strong showing by C-class (1,474 sales) and E-class gains consolidated Mercedes Benz’s chart topping run this year with Skoda’s Favorit scooping an impressive 1,250 sales.
Volvo also shrugged off earlier reversals as order intake for the new 960 range started and incentives on 800 and 400 ranges boosted results.
Cash backs, special offers and a dealer discount programme pushed 400 registrations ahead 29 per cent to almost 3,000 units, out sprinting C-segment rivals including Golf and Rover’s 400.
For the 1995 model year an additional HTA 400 has been prepared with CVT.
And, after slow initial supplies of Renault engines, the importer is preparing a new push on 440 diesels. In the big car sector import volumes of limited 152mph T5R editions of the 850 have been lifted from 50 to 200 units and throughput of new 960 models is targeted at 2,000 units for 1995.
Bottlenecks in the paint shop at Torslanda have recently slowed deliveries from a scheduled four weeks to nearer seven.
Expect first sight of NedCar’s V40 Volvo and Mitsubishi newcomer in October 1995. Additional estate variants are anticipated.
Meanwhile the growth of Europe’s MPV sector has not gone unnoticed at Gothenburg. Engineers are looking at the potential for a 900 series estate with four wheel drive and enh anced ground clearance to stake a footing in the fast expanding sports utility segment.
With a 25 per cent surge in sales Nissan came through strongly in the Sept ember ratings. More than 50 per cent of sales were Micras (4,428 units), which overhauled Clio and 106 for the month.
Special dealer offers, limited editions, 0 per cent finance and enhanced PCP terms pushed Micra throughput up by a third.
Special offers on selected models and the run down of some variants before its replacement next summer – it will also get a new name – boosted Sunny registrations more than 20 per cent. New fleet initiatives and a courtesy car programme supported gains for Primera.
Added value Precision editions of Primera are launched in October along with limited Boston variants of Micra and Sunny. Terrano stands to benefit from its 1.9 per cent price cut last month. Some 300 examples of the all new 200SX are expected over the balance of the year – 1,500 units are tipped for 1995. QX will debut next spring and watch out for a new high van variant of Serena.
Further down the charts Rover testified to the intense competition in the market with growing anxiety about the progressive slow down by the retail sector as April tax rises finally bite. August returns benefited from enhanced supplies of Metro Rio and active promotion of the company’s Select PCP programme.
Free insurance on Mini and Metro – with entry age level reduced from 25 to 21 – is relaunched from 1 October.
Peugeot is focussing on its œ500 cash back programme for the 306 and uprated Passport Gold PCP terms on the 106. The 306 sedan models are formally released on 12 October – expect XS and XSi variants to follow – and the 605 is upgraded for 1995.
The 806 MPVs arrive late next year following the mid-year unveiling of the 406.
Citroen reported no change in September volumes citing “a very competitive month”. Gains by AX were offset by slower ZX sales. Retaliatory promotions have been stepped up to include free insurance and 0 per cent finance on AX and ZX. The standard warranty on XM is extended by two years to 36 months and there are special Elect 3 PCP deals on AX and ZX. Dimension editions add value to AX, ZX and Xantia.
Bringing up the rear, Toyota reported sharp setbacks for the Corolla and Carina in “a disappointing month”. And œ1,000 cash back deals have been introduced on Corolla and Carina to stimulate throughput to the end of the year.
Special Charisma editions of Corolla and Carina have been prepared to offer further support.Watch out for first registrations of Celica’s performance cabrio variant in November along with the upgraded Lexus LS400.
Severe competition and swollen inventories fuel aggressive pre-registration boomSuppliers set about aggressively off loading Sept em ber stocksUK FLEET MARKET: JAN-SEP 1994Top suppliers (% share) Top models (% share)
Ford 28.0 Mondeo 11.2 Fiesta 5.1
Vauxhall 22.0 Escort 10.2 405 3.7
Rover 14.8 Cavalier 8.8 Corsa 3.4
Peugeot 8.0 Astra 7.9 306 2.6
Renault 5.0 200 5.8 400 2.5
feeling not so goodSECTORAL MOVEMENTS IN THE UK CAR MARKETJAN-SEP 1994
Sector % change
Small (A/B) +12.9
Lower medium (C) +0.8
Medium (D) +11.6
Exec/luxury (E/F) +17.4
Off road +29.4
UK DIESEL MARKET: JAN-SEP 1994Top suppliers (% share) Top models (% share)
Peugeot 20.6 Mondeo 7.7 Cavalier 6.1
Ford 18.0 405 7.5 Xantia 5.1
Vauxhall 16.5 Escort 6.5 106 0.8
Rover 12.3 306 6.4 ZX 4.4
Astra 6.1 Discovery 4.0