As to potential partners, both Daimler and BMW have sniffed at and then rejected Fiat, checked out Hyundai/Kia, and looked at Opel before deciding that its 1.5 million units aren't enough. BMW has had an engine project with PSA (Peugeot/Citroën) for several years, and a sequel is under way. At 3.3 million units, PSA is the right size to balance the scales against the VW Group, and as a family-run enterprise, it also has the sympathy of the Quandt clan, BMW's controlling stakeholders. Another promising potential cooperation partner is Honda. The Japanese firm is a little bigger than PSA, emphatically engineering-driven, globally active, compatible in product terms - and also family-controlled. We know that Daimler was very interested in a liaison with Honda before it settled for its ill-fated tie-up with Mitsubishi. Honda is hot on Toyota's heels in terms of hybrid technology, has a strong presence in the States, and is a world leader in small cars. Honda may be more amenable now, as its V-8/V-10 efforts have stalled, its luxury brand (Acura) isn't even sold in Europe, and the lead carved out by archrival Toyota has increased. The primary question remains: Have bad news and bad business results reached a point where BMW and Daimler will be forced to act? Perhaps not yet, but they will.
On Again, Off Again, On Again
Porsche's Bargain Sports Car Appears to be Back on Track
Will they or won't they? In October we told you about a proposed mid-engine sports car for Volkswagen, Audi, and Porsche (which later debuted as the VW Bluesport concept). Over the winter, however, the prevailing winds at Porsche headquarters shifted against a Porsche version, which was a threat to the more profitable Boxster/Cayman. Then, at the Geneva auto show this past spring, a couple of Porsche managers were overheard late at night discussing the "fifth model range" - widely believed to be a new entry-level sports car.
This past winter, word from Zuffenhausen was negative:
"The [Audi] Q5 is killing the more expensive and much more profitable Q7. That strategy may work for Audi, but it certainly won't work for us. That's why we shall protect the Cayenne by not proceeding with the Q5-derived Roxster. For the same reason, we won't do an entry-level 356-type sports car."
This spring, fears of social acceptance problems for Porsche revive the idea:
"The brand is currently running the risk of becoming the new home for hooligans and energy wasters," worries one corporate insider. "Can anyone think of a more convincing countermeasure than a credible, efficient, and not overly expensive sports car?"
To review, Porsche's on-again entry-level sports car would be a mid-engine coupe and roadster based on a platform shared with Volkswagen and Audi. The Porsche version would feature a twin-turbocharged four-cylinder with between 280 and 300 hp moving about 2650 pounds. Because of Porsche's busy new-model launch schedule, its version would arrive after the VW and Audi models, in late 2013 or early 2014. Price-wise, it slots midway between VW's entry and the Boxster.