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VW Golf tops Europe's family car market, banker says
Renault also introduced its Megane at the Paris Car Show today to the usual blend of noise and hyperbole. The Megane doesn't look like the old model at all, which is probably just as well. The outgoing car's weird-looking rear end divided opinion so sharply that the British importer turned this to its advantage. In TV ads, the importer used this as an excuse to parade a succession of young and old, male and female in advertisements on TV wiggling their own rears while praising the Megane. But Credit Suisse doesn't discuss the relative aesthetics of the cars. The bank says the Golf wins the battle of costs, and in this market, that's all that matters. 'Megane is likely to lose the battle against the new Golf. We think the car is likely to disappoint due to strong competition from VW's Golf which offers 10 to 15 per cent superior fuel economy at a 10 per cent lower total cost of ownership,' said Credit Suisse analyst Arndt Ellinghorst. Another competitor, Peugeot of France's 308, also fails in a contest with the Golf, Ellinghorst said. 'We estimate closing the gap with VW could cost Peugeot and Renault up to $360 per vehicle, consuming planned restructuring cost savings at both firms,' he said. French engine technology is inferior to the Germans'. 'VW benefits from superior fuel efficiency and performance credentials thanks to early adoption of turbo-charger and direct fuel injection technology. We expect the new Golf to dominate its segment thanks to significant advantages,' Ellinghorst said. He said the Golf has a 30 percent fuel efficiency advantage over the 308, and 20 percent over the Megane.