Big Failures Of The Last Years Of The Car Brands
mLaunching a car on the market is a considerable investment for car companies. There is a long list of car brands that spearhead financial disasters.
Why do some car brands fail in the market?
The ruin also comes to automakers when, after years of research and investment, a model simply doesn’t sell.
Some reports, like Bernstein Research in 2013, have reported some firms closing their doors; there are many cases of unforgivable mistakes by the relentless system of the market.
The automotive is a highly competitive sector. Leadership in sales requires an extreme study of costs and benefits. Some car brands, such as Volkswagen’s infamous Bugatti Veyron , had investments so high that sales failed to pay off.
The least profitable car brands in Europe of recent times
Fiat stilo
It was a car designed to be the successor to the Bravo and the Tipo, two models that were very successful in Italy. However, the new model failed to bring down the competition, led by Volkswagen, more specifically the VW Golf. The result was a low percentage of sales, which almost ruined the brand.
Volkswagen phaeton
In this case, it is a high-end saloon model designed for high-end executives. The multi-million dollar investment in its development was a resounding failure. The firm had anticipated sales of 50,000 Phaetons per year; In contrast, in 11 years they barely exceeded 71,000 sold.
Mercedes A Class
Although it is a car with a long presence in the market, its case was paradigmatic. This vehicle, launched in 1995, had the particularity of being very technologically advanced, with a new compact minivan model for its time. The downside was the tires and suspension.
The defect was detected after the ‘moose test’ was carried out, which consists of a game with the steering wheel where the car should keep its balance. Failing this test, Mercedes-Benz withdrew one by one the cars sold and to be sold from the market. The solution was successful: it fixed the anomaly and the public trusted again.
Jaguar X-Type
Under an alliance with Ford, the legendary firm ventured into new model and market terrain. The concept combined different ‘C class’ proposals from Mercedes, BMW and Audi.
Although everything seemed to be going well, the cheapness of the production ended up being expensive for the company. The sales failure was so resounding that the brand returned to familiar ground with the XF.
Peugeot 1007
The downside of this model was its excessive value. The proposal based almost entirely on an electrical system, was not functional to the market segment where it could position itself as the only car of a home.
The sliding doors of the 1007 could have been practical, although they made it difficult to access the interior. After this failed model, the lion’s signature did not come up with any better alternative.
Citroën M35
A peculiarity of French car brands is the taste for innovation. In this case, dating from 1967 and carried out together with the German NSU, the proposal was practically an experiment on wheels.
The problem with the M35 was not its rotary engine, the same one used by the Ami 6, but the air suspension. In numbers, of five thousand units per year raised at the beginning, only 250 test units were produced, until the project was terminated.
Renault wind
Little was known about this compact body model launched in 2010 . The Achilles heel that this car featured was its convertible roof. Leaving the paradigm of the retractable canvas or conventional metal systems, the firm opted for a pivoting roof.
The nullity in sales was almost overwhelming, the public opted for similar options such as the Peugeot 207 or Micra. Today, hardly any experts know the story of the short-lived Wind.
