

Following the approach taken by rival Renault, PSA/Peugeot-Citroen is working on an entry-level car set to debut in emerging markets in 2011. The Renault Logan has done well in Russia and Romania, which has prodded this interest and action from PSA. The new five-passenger vehicle will be assembled in Turkey or Poland and sold in eastern and central Europe, Russia, Turkey, and North Africa wearing both Citroen and Peugeot badging. If successful, sales would also expand to include China and South America. Even if the vehicle sells well, PSA/Peugeot-Citroen CEO Christian Streiff maintains there are no plans to sell the new car in western Europe – regardless of Renault's strategy.




Russia has just passed Germany as Europe's largest market for new car sales -- for the first half of the year, at least. In fact, Russian consumers managed to snatch up 41% more cars for the first half of this year as compared to the previous year. Not only that, but the vehicles being sold in Russia are more profitable than before as well, with the record $33.8 billion in sales so far an increase of 64%. Top marques are General Motors and Hyundai, which replace last year's first and second place finishers, Ford and Toyota. Russian brands? Not so much.
Don't expect the sales figures to cool down any time soon, as the economy in Russia is still booming and it's the middle-class that is seeing the biggest benefit. Older cars will continue to be taken off the road as consumers purchase new replacements which will allow automakers to find an estimated 20-percent of the entire industry's growth in the Russian market over the next several years.
You would think a car company with BMW's brand recognition could roll out its redesigned flagship 7 Series covered in burlap at a mid-December reveal in Siberia with no concerns over public perception, but BMW apparently feels the up-and-coming Russian market needs to be romanced with a glitzy intro right in the middle of Red Square. That's where the carmaker held the official unveiling (though we already got the official photos earlier this month) July 8th.
For two days, the 7-Series was hidden in 180,000 silver balls that filled a giant glass-and-acrylic hourglass almost 40 feet tall that had been built right in front of the Kremlin. Then, on the night of the 8th, as 400 invited guests watched, the top of the hourglass emptied to reveal the car.
BMW officials say the stunt was meant to illustrate the event's tagline, "Never stand still." Hey, if it sells a few Bimmers in Russia, maybe giant hourglasses are the way to go. Still, maybe next time they should at least consider the burlap. It's gotta be cheaper than silver balls, and we'd still blog about it.

Ford says Volvo's not for sale, and the Blue Oval would be smart to hold on to its remaining vestige of the Premier Auto Group as long as it can, especially since engineering and platforms have become so entwined with Dearborn's product line. For its part, Volvo is angling to take on the high end Germans. Volvos have long been premium products, having built a reputation on exceptional durability, meticulous engineering, and of course, safety. Try as it might, however, Volvo has a hard time competing head on with BMW, Audi and Mercedes. The cachet of the Swedish automaker is diminished compared to the Germans, and dynamically, Volvos tend to get schooled hard despite being good, capable drivers when taken alone.
Operations chief Steven Armstrong tells Automotive News that Volvo is looking to be mentioned in the same breath as its intended targets, even as losses mount and layoffs ensue. Volvos already occupy the same pricing arena as the premium Germans, but that's partly due to a weak dollar and transport costs. The possibility of building its cars in the United States might bring prices down and allow better developed performance versions, versus the outclassed R models of the past. Also hurtful is the model range's appetite for fuel -- we've gotten mileage in the teens from some Volvos in the Autoblog Garage. Armstrong says that the fuel economy issue will be addressed soon as technologies like start-stop, energy recovery from braking, and further down the road, hybrid powertrains are brought to market. Green is a good way for Volvo to go, given the Scandinavian proclivity for low-impact, gentler consumption. What it all means is that soon, we may see a kinder, gentler, meaner, faster Volvo product lineup -- possibly managed by Russian, Chinese, or Swedish owners.
