Limburg, Germany- The European compact car segment has long been dominated by the VW Golf, Opel/Vauxhall Astra and the Ford Focus but hard times are coming for the market leaders, facing a host of new competitors this year, according to market analysts. "The Asian competitors have done their homework well and will make sure that the next generation Golf planned for next year will not achieve the dominance of earlier years," says Henner Lehne, a representative of the German CSM prognosis specialists.
Leading the pack of foreign challengers is the Toyota Auris that is replacing the Corolla with a price starting at 15,200 euros (20,382 dollars). The Japanese car maker is offering three petrol- engine and two diesel versions with a performance spectrum of between 71 kW/97 hp and 130 kW/177 hp.
The South Korean manufacturer Kia is betting on the Cee'd, the first car to be developed and built in Europe. It is offering a choice of five engines from 66 kW/90 hp to 105 kW/143 hp with prices starting at 14,300 euros.
This is some 3,000 euros cheaper than the VW Golf, according to the CEO of Kia's Germany division, Haydan Leshel, who adds that Kia is also planning the launch of a three-door sports model and a station wagon version in the near future.
The mother concern Hyunda is planning to build the successor to the Accent based on the Arnejs study presented at the Paris Motor Show.
Nissan is also taking another shot at the compact segment with the Quashqai, succeeding the Almera as a crossover vehicle. It is designed in the shape of a small Sports Utility Vehicle (SUV) with a high seating position. Scheduled for launch next February, it will sell at a price of 19,790 euros. It can also be ordered in a four- wheel drive version, according to Nissan.
Other Japanese newcomers in the segment are the Honda Civic Type R and the Suzuki SX4 scheduled for launch at next year's Geneva Motor Show.
But several European car makers are preparing a flurry of new cars in the compact class. The Fiat Bravo is making a comeback as a replacement for the Stilo. Fiat's marketing chairman Luca De Meo said in Rome that the new Bravo would come in an all-Italian design and offer above average space.
A new Peugeot 308 will possibly be presented at the Frankfurt Motor Show in September. Meanwhile even the Americans are taking another look at the European compact car market with Chevrolet thinking "intensively" about exporting the retro-station wagon HHR, according to the German Chevrolet headquarters in Bremen.
The General Motors subsidiary in Germany, Opel, is reacting to the competition with a pepped-up design of the Astra and more economical engines, according to marketing chairman Alain Visser.
Volkswagen is planning to boost the Golf family with a station wagon, presented at this year's Geneva Show, and Ford apparently has a sport Focus ST in the pipeline, according to German reports.
But not only the cheaper import cars are challenging the German dominance in the sector. Analyst Lehne says there is a trend toward higher-priced luxury cars in the compact class such as the BMW 1- Series or the Volvo C30. The new Alfa Junior and the Lancia Delta, which are scheduled for launch in 2008, are positioned in the same league.
Importers should not be too optimistic about making big inroads into the compact segment, according to analyst Nick Margetts from the market research bureau Jato Dynamics.
It is especially difficult to make inroads on the German car market in this segment, says Margetts pointing out that the Renault Megane, Toyota Corolla and Mazda3 together managed to sell only 66,000 cars in Germany last year while the Mercedes A-Class alone achieved a sales figure of 71,000.
