Ford, Renault and Citroën Launching Luxury Sub-Brands for Europe

The old adage is go where the market is, and FordFordUnited Kingdom, 1909 > present33 models
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, RenaultRenaultFrance, 1898 > present189 models
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and CitroënCitroënFrance, 1919 > present94 models
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are all doing just that. The three of them all intend to create upmarket models to follow where the European market is going. Ford is launching its VignaleFord Mondeo Vignale ConceptUnited Kingdom, 2013 > present trim on the MondeoFord Mondeo 5United Kingdom, 2013 > present79 versions
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; Renault has the Initiale ParisRenault Initiale ParisFrance, 2014 > 2014 sub-brand, and Citroën will move the DS sub-brand upmarket.

The problem for mass-market brands in Europe is that they are being pulled in two directions. Luxury brands like BMWBMWGermany, 1918 > present87 models
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are experiencing growing sales in Europe, and budget brands like KiaKiaRepublic of Korea, 1944 > present52 models
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and DaciaDaciaRomania, 1966 > present11 models
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are also doing well. Things are tough in the middle.

The fact that luxury brands are moving into the compact space, especially Mercedes-BenzMercedes-BenzGermany, 1924 > present197 models
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, makes things even tougher because this is the space where the mass market makers have previously thrived.

Citroën is the milestone by which the others will be measured. In Europe, the DS cars now are roughly 20% of Citroën sales since launching in 2009.

These investments are not without risk. Ford and Renault are still struggling in Europe, and the prospect of investing more in a market with falling sales is daunting. They will also be taking on long established luxury players.

To compromise, in Ford and Renault’s case, their luxury models will be based on existing cars with higher quality materials and a better dealer experience.

"It needs to be as much about what happens around the car as what happens in it," said Renault design boss Laurens van den Acker. 

Source: Automotive News Europe