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Car companies have nothing to lose, will consumers be able to earn?

[Aika Auto Industry News Original]

Whether it is the continuation of the war between Russia and Ukraine, or the shortage of chips and other raw materials caused by the epidemic, 2022 will continue to be difficult for the global automotive industry. In order to resist the crisis and tide over the difficulties, a number of car companies have chosen a "simple and rough" method - streamlining the product line. For those management who strategize in luxury offices and mostly have no special feelings for the car itself, whenever the car company is in the mud, it has always been a routine operation to lose money by stopping production and losing money. As a result, this year, a large number of models have officially bid us farewell, from the masterpiece of the SPA platform - PoleStar 1, to the spiritual successor of the 300SL - two-door and convertible version of the Mercedes-AMG GT...

Car companies have nothing to lose, will consumers be able to earn?

In this lengthy list of discontinued products, the appearance of two Great Wall Euler electric vehicles, the white cat and the black cat, seems to be quite interesting. Although in the official statement, it is pointed out that the reason for the "stop taking orders" of these two models is only "more order backlog, customer car purchase cycle is too long", but behind it, it is the rising price of raw materials such as batteries and chips and the complete withdrawal of government subsidies for new energy vehicles at the end of 2022. Such variables can still be solved by price adjustment for "Wei Xiaoli", which has a higher overall positioning of the product, but it is difficult to bear for electric mini-vehicles that account for 55%-60% of the production cost of the three-electric system. In this regard, Dong Yudong, CEO of the Euler brand, said bluntly in an interview with a domestic media: "If you follow the current selling method, next year Euler white cat and black cat bicycles will lose 17,000 yuan." From this point of view, the loss caused by the rise in materials and the decline of subsidies is probably the fundamental reason behind the suspension of white cats and black cats.

Car companies have nothing to lose, will consumers be able to earn?

In fact, car companies like Euler, who "stop loss in time", are lucky enough among the many car companies that have caused huge losses due to a single model. In the history of the automotive industry for a century and a half, there have been countless models that have caused huge losses due to their own design defects, poor control of product development costs, and even personal likes and dislikes of car executives. Some of them are industrial masterpieces developed at any cost, and some even directly promote the development of automotive active and passive safety...

Mercedes-Benz A-Class (W168): Whether there are elk in Germany or not, I come standard with ESP

In the mid-1990s, when the Mercedes-Benz brand was "expanding its territory" in more market segments, the SLK launched in 1996, together with the BMW Z3 and porsche Boxster, became the first European models under the revival of the British Roadster. At the same time, the original M-Class, which debuted at the same time, not only made a big splash in the movie "Jurassic Park", but also helped Stuttgartians enter the nascent luxury SUV segment.

Car companies have nothing to lose, will consumers be able to earn?

In the mid-1990s, when the Mercedes-Benz brand was "expanding its territory" in more market segments, the SLK (part 1) became the first European model under the revival of the British Roadster; The first M-Class (part 2), unveiled at the same time, helped Stuttgartians enter the nascent luxury SUV segment.

The Mercedes-Benz A-Class, code-named W168, was born in this context. As a test of the waters of the economy sedan, this car's debut at the 1997 Frankfurt Motor Show caused no less sensation than the debut of the S-Class cars of previous generations. The Mercedes-Benz brand's first production car in the history of a front-facing front-drive layout features a number of innovative designs, the most famous of which is the "sandwich" body structure. Engineers innovatively mounted the car's engine and gearbox at a 59° angle, partly in the engine compartment and the other cleverly placed in a compartment under the cab.

Car companies have nothing to lose, will consumers be able to earn?

In order to accommodate the special "sandwich" structure, the original A-class also had to make many compromises. The first is that the entire member cabin had to be raised, and in order to ensure the space in the car, the final A-class mass production car almost became a miniature version of the MPV.

The benefits are obvious, when the vehicle is in a head-on collision, the side-mounted powertrain slides towards the side like a sandwich layer that presses a sandwich, rather than invading the cab through the accelerator pedal like many vans, injuring the members of the car. But in order to accommodate this particular structure, the original A-class also had to make a lot of compromises. The first is that the entire member cabin had to be raised, and in order to ensure the space in the car, the final A-class mass production car almost became a miniature version of the MPV.

Car companies have nothing to lose, will consumers be able to earn?

In the 1997 elk test conducted by the Swedish car magazine Teknikens V rld, the Mercedes-Benz A-Class directly staged the "famous scene" of flat overturning. The speed of the car at a time of runaway rollover was only 60km/h, not even as fast as the East German satellite (Trabant) sedan.

Just as the so-called "success is also Xiao He defeated Xiao He", the "sandwich structure" that was originally based on passive safety considerations eventually became a hard injury in terms of safety of the car. In the 1997 elk test conducted by the Swedish car magazine Teknikens V rld, the Mercedes-Benz A-Class directly staged the "famous scene" of flat overturning. The speed of the car at a time of runaway rollover was only 60km/h, not even as fast as the East German satellite (Trabant) sedan.

Car companies have nothing to lose, will consumers be able to earn?

The re-production Mercedes-Benz A-Class not only significantly modified the front and rear suspension structures of the car, equipped with tires with better ground grip performance, but also came standard with a series of active safety configurations including electronic stability system (ESP), roll angle sensor, and lateral acceleration sensor.

At the beginning of the outbreak of Mercedes-Benz A-class "rollover doors", the official also vigorously denied, but with the continuous fermentation of the incident, Mercedes-Benz launched the largest recall in the history of the brand, in addition to recalling all 2600 vehicles that have been sold, it also temporarily suspended production for 3 months and invested 2.5 billion Deutsche Marks (according to the 1997 exchange rate of about 11.675 billion yuan) for the research and development of the reform. In the end, the engineers not only drastically modified the front and rear suspension structures of the car, equipped with tires with better grip performance, but also equipped the A-class produced after the "rolling door" incident with a series of active safety configurations including electronic stability system (ESP), roll angle sensor, and lateral acceleration sensor. In the end, before the replacement of the original Mercedes-Benz A-Class of the W168 in 2004, a total of 1.1 million units were sold worldwide, and according to the data released by the British authoritative research company Bernstein, on average, Mercedes-Benz lost 1440 euros (about 9330 yuan) per vehicle produced.

Mercedes A-Class With or without elk, I come standard with ESP

Volkswagen Phaeton: Actually, I'm a Bentley

Former President of the Volkswagen Group Ferdinand. In Pierch's autobiography" The Car and Me, the iron-fisted leader known as the "Tsar" wrote quite sincerely: "There is also a personal motivation for creating such a unique Volkswagen brand car: no matter which company I am in, I want to build a luxury car with sports car performance, which has always been my love." It can be said that Piëch, who was born as an engineer, is never a car executive in the conventional sense, compared with the trivialities of cost control and market research, which are only considered by "ordinary people", the leader of Volkswagen has an almost paranoid pursuit of the mechanical quality and performance of the vehicle itself. During his tenure, the Volkswagen Group transformed itself from a European "broken house" with declining market share, outdated and uncompetitive products, and became a first-class automobile group with many luxury brands and comparable production and sales to Toyota and General Motors. Among the many models he has led the development of, Phaeton is clearly the best embodiment of Piëch's personal will.

Car companies have nothing to lose, will consumers be able to earn?

Piëch, an engineer, has never been a car executive in the conventional sense, compared with the trivialities of controlling costs and market research, which are only considered by "ordinary people", the leader of Volkswagen has an almost paranoid pursuit of the mechanical quality and performance of the vehicle itself.

As a D-class luxury car that regards the Mercedes-Benz S and BMW 7 Series as imaginary enemies, Volkswagen's initial idea is to build the same platform model based on the Audi A8. But in Pierch's view, the A8 at that time was a "conformist" car, and the all-aluminum model did not provide enough body rigidity. For volkswagen's new flagship model, it can only be developed from scratch. Finally, after the development of the three-wheeled prototype, Phaeton was able to finalize the model.

Car companies have nothing to lose, will consumers be able to earn?

Finally, after the development of the three-wheeled prototype, Phaeton was able to finalize the model (pictured is the Volkswagen D3 concept car)

At Pierch's insistence, Phaeton has many technical details that can be called terrifying, such as an air conditioning system with up to 25 servo motors, which can not only ensure that the temperature difference between the two adjacent seats is 4 degrees, but also no matter how set, there will be no airflow directly blowing on the passengers. The system is said to have been inspired by two Cadillac sedans that Pierch had owned in the 1970s. In order to increase the strength of the body and perfectly display the characteristics of air suspension, Phaeton added 150 kg of reinforcements to the frame; since there was no passenger car automatic transmission that could withstand the maximum torque of the V10 TDI diesel engine 750Nm, the engineering team actually developed a direct ...

Car companies have nothing to lose, will consumers be able to earn?

At Pierch's insistence, Phaeton has many technical details that can be called terrifying, such as an air conditioning system with up to 25 servo motors, which can not only ensure that the temperature difference between the two adjacent seats is 4 degrees, but also no matter how set, there will be no airflow directly blowing on the passengers.

Car companies have nothing to lose, will consumers be able to earn?

Since there was no passenger car automatic transmission that could withstand the maximum torque of the V10 TDI diesel engine 750 Nm, the engineering team developed one separately from the supplier.

It is said that every time Piëch meets with the R& D team, he will not directly point out the advantages and disadvantages of the vehicle, but will propose an "inexplicable" use scenario: for example, running wildly at 290km/h in a high temperature of 50 degrees Celsius, but the temperature inside the car must always be 22 degrees. Although these requirements were met thanks to the tireless efforts of the engineering team and Phaeton was able to put it into operation at its transparent factory in Dresden, the Volkswagen Group also paid a terrible price for it.

Car companies have nothing to lose, will consumers be able to earn?

As of the end of production, a total of 84,253 Phaeton vehicles were driven out of the Dresden transparent plant. The total loss of the car reached $2.7 billion (about 17.06 billion yuan), which means that Volkswagen loses $38,000 (about 240,000 yuan) for every Phaeton sold.

As of the end of production, a total of 84,253 Phaeton vehicles were driven out of the Dresden transparent plant. The total loss of the car reached $2.7 billion (about 17.06 billion yuan), which means that Volkswagen loses $38,000 (about 240,000 yuan) for every Phaeton sold. Although bentley brand Continental and Flying Spur shared a lot of technology with Phaeton and shared some of the cost, it was still unable to save the huge loss caused by the car's continued sluggish sales.

Car companies have nothing to lose, will consumers be able to earn?

Although Phaeton is the most money-losing model in the history of Volkswagen, it is by no means the highest loss of bicycles, and in this regard, the status of bugatti Veyron is still difficult to shake.

Bugatti Veyron: The totem of the Volkswagen Group

Although Phaeton is the most money-losing model in the history of Volkswagen, it is by no means the highest loss of bicycles, and in this regard, the status of bugatti Veyron is still difficult to shake. If Phaeton embodies Piëch's personal car aesthetic, then Veyron is more like the "revenge killer" that Piëch sacrificed to his rival BMW after the failure of the acquisition of Rolls-Royce. In 1997, Volkswagen and BMW engaged in a fierce battle over the bankruptcy Rolls-Royce acquisition, and although BMW had priority in acquiring the new car Silver Angel, the Volkswagen Group offered a price that was difficult for the British to refuse – 1.44 billion Deutsche Marks (about 6.72 billion yuan at the 1997 exchange rate), which was 30% higher than Munich.

Car companies have nothing to lose, will consumers be able to earn?

Although Volkswagen eventually defeated BMW and acquired Rolls-Royce, a month later, BMW, which has always been involved in business battles, announced a sensational decision: it will stop supplying V12 engines and related components to Rolls-Royce in the future. (Pictured with Rolls-Royce Silver Angel)

As a result, the owner of the Rolls-Royce brand, the British Vickers Group, naturally sold Rolls-Royce to Volkswagen, and less than a month after the acquisition was completed, BMW, which has always been in the business war, announced a sensational decision: it will stop supplying V12 engines and related components to Rolls-Royce in the future. This means that the new car Silver Angel, which the company has high hopes for, will be forced to stop production, because all the engines of the Volkswagen Group at this time do not meet the needs of Rolls-Royce. As a result, Volkswagen had to reach an agreement with BMW to split Rolls-Royce and retain the Bentley brand for itself, while Rolls-Royce was forced to sell to BMW.

Car companies have nothing to lose, will consumers be able to earn?

Taking advantage of the acquisition of the ultra-luxury brand Bugatti, Volkswagen was determined to restore the French brand's glory in the 1930s and put it back on the top of the global automotive industry.

This event is the most memorable memory of the careers of Volkswagen Group and Piëch. In order to take revenge and show the world its R&D capabilities, Volkswagen decided to take advantage of the acquisition of the ultra-luxury brand Bugatti to create a "super car" to restore the legendary French brand to its glory in the 1930s. The story that follows is well known, under the leadership of Pierch, Volkswagen's R&D team completed the research and development of the first model after the acquisition of Bugatti, the Veyron, with the "polytechnic man's stubbornness" at any cost.

Car companies have nothing to lose, will consumers be able to earn?

Pierch was a superficionado of the Type 41, a large ultra-luxury sedan of the 1920s, for which veyron was eventually equipped with a W16 engine. In his opinion, since the new car cannot be matched in terms of displacement (the Type 41 is equipped with an in-line 8-cylinder 12.7L engine), it is necessary to press this legendary luxury car in terms of cylinder count. (Pictured with Bugatti Type 41 royale)

Leaving aside the titanium bolts, braking force comparable to the large rear wing of a Golf GTI full braking, and many other aerospace-grade technical details, many of Veyron's basic settings are the embodiment of Piëch's personal likes and dislikes, rather than completely rational engineering thinking. For example, with its power level, in fact, a well-designed V12 turbocharged engine can be completely achieved, but due to Pië's fanatical admiration for the Type 41, a large ultra-luxury sedan of the 1920s, the car was eventually equipped with a W16 engine. In Pierch's view, since the new car cannot be matched in terms of displacement (type 41 is equipped with an in-line 8-cylinder 12.7L engine), it must be forced on the number of cylinders to beat this legendary luxury car. In the early days of development, Piëch even planned to build an 18-cylinder engine, but the terrifying weight, complex cooling system and the development cost of not seeing the upper limit eventually made him retreat to the second place. With a total production capacity of only 450 units, the Volkswagen Group paid 2.2 billion euros (about 15.171 billion yuan), and the loss of bicycles was close to 6.2 million US dollars (about 39.16 million yuan).

Car companies have nothing to lose, will consumers be able to earn?

With a total production capacity of only 450 units, the Volkswagen Group paid 2.2 billion euros (about 15.171 billion yuan), and the loss of bicycles was close to 6.2 million US dollars (about 39.16 million yuan).

However, although the Bugatti Veyron was not commercially successful, it completely ended the history of Volkswagen's inability to manufacture ultra-luxury cars, and based on the car's engine, Volkswagen developed a series of derivative products such as W12 and W8, which benefited Bentley, Volkswagen Touareg, Volkswagen Phaeton and Passat models. It can be said that Bugatti Veyron not only once again supports the image of Piët "technical madman", but also as the totem of the entire Volkswagen Group, Veyron has also made a certain contribution to enhancing the brand image.

Volkswagen Phaeton: Actually, I'm a Bentley

Smart: Early "new forces to build cars" confusing behavior awards

Whether it is the original Mercedes-Benz A-Class, Bugatti Veyron or Volkswagen Phaeton, the losses they bring to the parent company are limited to a single model, if you want to find a brand from the beginning of the global car companies that has lost money since its inception, it is probably smart. In terms of qualifications, smart can be regarded as the originator of many "new forces to build cars" enterprises. In 1982, Nicolas Hayek, CEO of the Swatch Group, who successfully helped the Swiss watch industry out of the "quartz crisis" with low-cost fashion watches, successfully helped the Swiss watch industry out of the "quartz crisis". Hayek) decided to use his successful experience in the watch industry in the field of car building – to create a stylish, compact, affordable urban car.

Car companies have nothing to lose, will consumers be able to earn?

In 1982, Nicolas Hayek, CEO of the Swatch Group, who successfully helped the Swiss watch industry out of the "quartz crisis" with low-cost fashion watches, successfully helped the Swiss watch industry out of the "quartz crisis". Hayek) decided to use his successful experience in the watch industry in the field of car building – to create a stylish, compact, affordable urban car.

So he quickly set up the "Swatchmobile" company, and began to design and develop prototypes, just at the same time as the development of new cars, the shrewd Swiss businessman realized that with the financial resources of the Swatch Group, if he rushed into the automotive industry, instead of fighting with many giants, it was better to join forces, which not only made the new cars put into production in the future less than a competitor, but also shared the financial pressure brought by research and development, which can be described as killing two birds with one stone.

Car companies have nothing to lose, will consumers be able to earn?

In Pierch's view, Nicolas Hayek and his cheap car will not only become a potential competitor to future Lupo fuel-efficient cars, but also useless in mechanical design. (Pictured with Volkswagen Lupo)

So he approached the Volkswagen Group led by Dr. Hahn, and just two years after the signing of the cooperation agreement, the "Tsar" Ferdinand we are familiar with. Pierch officially took office and became the new CEO of the Volkswagen Group. In the eyes of this super fan, this cheap car positioned to get started will not only become a potential competitor for future Lupo fuel-saving cars, but also useless in mechanical design. A too short wheelbase does not provide the space that a qualified car should have, and the rear-drive layout cannot be guaranteed without the support of additional electronic systems. In order to stop cooperation as soon as possible, he even ridiculed the Swiss to his face, saying, "In my opinion, this is like a large roller skate, not even a qualified tricycle." ”

Car companies have nothing to lose, will consumers be able to earn?

Mercedes-Benz also proposed the concept of urban cars as early as the 1980s, and its core idea coincided with Swatchmobile's prototype car, so the two companies hit it off and established MCC. (Pictured with Mercedes-Benz eco-speedster and eco-sprinter concept car)

Coincidentally, Mercedes-Benz also proposed the concept of urban cars as early as the 1980s, and its core idea highly coincided with Swatchmobile's prototype, so the two companies established MCC. For the naming of the new car, the two partners used S (Swatch Group) and M (Mercedes-Benz) as the initials, respectively, and the ART behind not only foreshadowed that the car has a work of art-like temperament, but also the English meaning of the entire word smart is "smart; fashionable" is also in line with the brand tone.

Car companies have nothing to lose, will consumers be able to earn?

Although Mercedes-Benz subsequently launched many models such as smart forfour (middle) and smart roadster (bottom), the first model, smart fortwo (top), has also undergone two generations. But these efforts have never changed the passive market position of the Smart brand.

However, this wonderful car name did not bring good luck to Smart, first the two sides of the cooperation disagreed, Smart finally became a wholly-owned company of Mercedes-Benz after several equity acquisitions, and then the first batch of sample cars was as Pişi expected, in the high-speed stability of the sand, after Mercedes-Benz spent a lot of money on research and development upgrades, its sales are still much lower than the same period. Although Mercedes-Benz has subsequently launched many models such as smart forfour and smart roadster, the first model, smart fortwo, has also undergone two generations. But these efforts have never changed the passive market position of the Smart brand. Even on the eve of Mercedes-Benz's final decision to join hands with Geely to build a smart new car in 2019, an executive of the Daimler Group said angrily in a media interview: "Now that even Opel has started to make profits, we will make a decision about smart as soon as possible!" ”

Car companies have nothing to lose, will consumers be able to earn?

Mercedes-Benz's Smart Genie #1 production model, which is about to be unveiled at the Beijing Auto Show, may open a new chapter for the brand

Therefore, there is no accurate figure for how much money the brand has lost, according to the estimates of the US investment bank Eternal Nuclear Partners (EVR), The smart brand brings Mercedes-Benz a loss of 500-700 million euros (about 3.495-4.893 billion yuan) a year, and according to data previously released by Bernstein, as of 2013, Smart has brought Mercedes-Benz a huge loss of 4.6 billion US dollars (about 29.074 billion yuan), and the bicycle loss is as high as 6100 US dollars (about 38555 yuan).

Car companies have nothing to lose, will consumers be able to earn?

summary

For most consumers, the loss of car companies seems to have nothing to do with daily car selection and car buying. However, if you are unfortunate enough to buy a model that has been forced to stop production due to losses (except for Bugatti, which can manage money, it is estimated that the brand's potential consumers overlap with the readers of this article infinitely close to 0%), and the uncertain supply of spare parts undoubtedly lays hidden dangers for future maintenance.

However, for car companies, many of these ostensibly "huge loss" models have a more far-reaching significance, the first generation of Mercedes-Benz A-class indirectly promoted the popularity of ESP body stability system in passenger cars, and Phaeton and Bugatti Veyron allowed the Volkswagen Group to accumulate a lot of experience in research and development strength, manufacturing process, marketing and other aspects. In addition, whether it is the "Toei Ferrari" NSX that brought Honda to the top, or the Jaguar Shenche XJ220, which has achieved a generation of classics, no matter how failed their commercial performance, it cannot hide their outstanding contribution to the brand and the entire automobile industry.

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