European Automotive Market Research Articles

Consumers' attitudes on downscale extensions of a luxury automotive brand

PurposeThis study aims to understand how consumers evaluate downscale vertical line extensions of a prestige/luxury original equipment manufacturer (OEM) in the European automotive market. The authors investigate the moderator effects of innovativeness and the need-for-status traits on the relationships between consumers' extension perceived fit (EPF), extension attitude (EA) and extension perceived value (EPV).Design/methodology/approachExperimental design with quantitative analyses based on a sample of 419 participants. Participants were randomly assigned to two treatments: low-fit and high-fit extension simulations.FindingsThe purchase intention of the downscale vertical extension of a luxury OEM brand is directly influenced by EPV and indirectly influenced by consumer EA and EPF with the parent brand. Findings also suggest that parent brand equity is transferable to extensions that present closeness and consistency with the brand’s heritage. Moreover, the need for status strengthens the relationship between the EPF and the extension perceived social value (EPSV).Originality/valueThe authors developed a realistic simulation of a downscale model of a well-known prestige/luxury car brand. The authors test the influence of innovativeness and need-for-status personal traits on consumer extension acceptance.

The Subsidized Green Revolution: The Impact of Public Incentives on the Automotive Industry to Promote Alternative Fuel Vehicles (AFVs) in the Period from 2010 to 2018

Throughout decades, conflicts related to the access and usage of various energy sources have caused political tensions between nations and confederations of states. Thus, partially to decrease the dependence on fossil fuels, a thorough transition towards renewable energies has been promoted by several regional and national governments as well as by multinational institutions such as the European Union. In this context, the automotive industry has particularly been held responsible for the production of negative externalities, such as global greenhouse gas emissions (GHG emissions), noise and air pollution. To a notable extent, these externalities were caused by vehicles running on fossil fuels such as petroleum products, including gasoline, diesel fuel and fuel oil. Accordingly, it is often argued that replacing vehicles run by internal combustion engines (ICEs) with so-called alternative fuel vehicles (AFVs), particularly with plug-in electric vehicles (PEVs), is crucial to increase the sustainability of the transport sector. Moreover, several EU-member states aim to reduce the vehicle-related petrol and diesel demand to decrease their dependence on foreign energy sources. However, one must consider that there are important economic costs related to such a transition process. This paper evaluates the short-term and long-term effects of fiscal policies on the European automotive market in the period from 2010 to 2018, focusing on the impact of mentioned public incentives for AFVs. This public interventionism will be critically evaluated to examine the effectiveness of government incentives in promoting AFVs, particularly for plug-in electric vehicles (PEVs). The author argues that the rather positive sales evolution of AFVs was not caused by corresponding actual customer demand but mainly by governmental policies in an increasingly interventionist market. He acknowledges that the growing variety of available PEV models, the increasing driving range of electric vehicles, as well as their decreasing production costs due to economies of scale, have helped PEVs to become more competitive. However, the concern should be raised that mentioned public interventionism is unsustainable from a macroeconomic perspective, possibly leading to significant market distortion and a new artificial market bubble. The narrowed focus on battery electric vehicles prevents the market from further elaborating on other potentially more sustainable technologies. Moreover, from a geostrategic perspective, the transition of the European automotive industry towards electrification is likely to reduce the EU’s dependency on imported fossil fuels but enables several non-European automotive brands to conquer a significant market with their new competitive plug-in electric vehicle technologies.

A Study of Regional-Level Location Factors of Car Manufacturing Companies in the EU*

The paper aims to explore how factors of regional competitiveness are associated with the location of car manufacturing companies in the EU. Although the European automotive market can be characterized by an intense dynamics in terms of location choices, literature offers little empirical guidance on how regional factors influence the location of car manufacturers in the EU. This paper aims to fill this gap by combining regional competitiveness data on 276 EU regions with the actual location of all 269 production units of car manufacturing companies currently present in the EU. Logistic regression is used to discover significant relationships, while the comparative analysis of clusters of regions is meant to offer a more detailed understanding of the role of different location factors. Results of the analysis show that the most influential location factor is related to infrastructural development, but other competitiveness factors, such as regional innovation capabilities or labour market efficiency, might also play an important role.

Yield and quality of bast fibre from Abutilon theophrasti (Medic.) in southwest Germany depending on the site and fibre extraction method

Natural fibres are environmentally friendly and therefore often used in the automotive industry as an alternative to glass or mineral fibres. In order to meet the demands of natural fibres for the European automotive market, mainly flax and hemp are cultivated in Europe, but the import of other fibres, like kenaf, is also necessary. To increase the possibilities of fibre use and to reduce the dependency of fibre import, additional fibre plants from European countries could be a solution. An alternative fibre crop with fibre properties described as suitable for high value fibrous applications, could be Abutilon theophrasti (velvetleaf). However, there are no European studies about the cultivation of velvetleaf published. Besides cultivation, economically and ecologically acceptable fibre extraction methods are essential for successful implementation of velvetleaf in Europe.Field trials at three different sites are carried out and, in addition, the effect of water shortage on biomass and fibre yield is investigated. Furthermore, four different fibre extraction methods, known for other fibre plants (chemical and mechanical extraction, water and dew retting) are investigated concerning linear density, breaking tenacity and tensile elongation at break.Over the two experimental years and three different sites, velvetleaf biomass yield varied between 5.2 and 12.8 t ha−1 dry matter (DM), and the fibre yield ranged from 0.7 to 2.4 t ha−1 DM. Additional irrigation significantly increased the fibre yield in 2016 by 29%.Among the different methods for fibre extraction, water retting and chemical extraction by 4% sodium hydroxide solution showed the lowest values of linear density (57 and 58 dtex, respectively). Over all extraction methods, the linear density ranged from 53 to 115 dtex. The highest breaking tenacity was determined for chemical extraction by 0.4% sodium hydroxide solution (52.4 cN tex−1) and water retting (50 cN tex−1).Generally, cultivation and fibre extraction of velvetleaf are possible under the conditions in southwest Germany. Due to the different fibre characteristics of velvetleaf compared to flax, hemp, and kenaf, this plant should be assessed in future research for its applicability as a renewable resource for industrial fibres.

Governmental regulation impact on producers and consumers: A longitudinal analysis of the European automotive market

This paper analyses the issue of whether governmental regulation results in higher producer costs that are then passed on as higher prices to the consumer, with a longitudinal study of the European automotive market. Using a large data set for the period 1995–2010 the hedonic price analysis study concludes that the claims that regulation would result in higher per unit costs for new cars are not supported, at least as far as the pass-through into retail or list prices are concerned. Consequently, regulators need a better understanding of what the ‘cost of regulation’ claims entail over the longer term – with the implication that additional costs even where they arise are more easily absorbed than has hitherto been expected.

Stiffness and strength aspects in the design of automotive coil springs for McPherson front suspensions: a case study

The current paper deals with the elastic and stress analysis of a side-load spring, which is employed in cars belonging to the medium segment of the European automotive market. In the design of this kind of spring both the elastic characteristics and the fatigue strength have to be considered as significant aspects. Side-load springs, indeed, have a thrust axis which results in skew with respect to the damper axis; for this reason they are widely employed in front McPherson automotive suspensions in order to minimize the side force acting on the strut damper, which is responsible for the undesired damper-sticking phenomenon. In addition to this particular elastic property, as a consequence of the research effort in reducing the mass of components typical of the automotive industry, these springs have to face very high working stresses. The structural reliability of the spring must therefore be ensured by high residual stresses, which are induced by presetting and shot peening treatment at the end of the manufacturing process. The evolution of the thrust axis during suspension travel was analysed by a finite element (FE) model of the spring–seats assembly, built starting from a three-dimensional (3D) scan of the spring. In addition an experimental campaign was planned in order to measure the residual stresses at several points along the spring by X-ray diffraction. The actual stresses were then obtained as the superposition of those produced by the external loads, computed by means of the FE model, and the measured residual stresses. The beneficial effect of residual stresses on the structural reliability is discussed with a theoretical fatigue analysis on the basis of different multiaxial criteria. A mechanism of residual stress generation, based on the superposition of stresses coming from presetting and shot peening, is also suggested with the aid of FE simulations.

Lead-acid batteries in micro-hybrid vehicles

More and more vehicles hit the European automotive market, which comprise some type of micro-hybrid functionality to improve fuel efficiency and reduce emissions. Most carmakers already offer at least one of their vehicles with an optional engine start/stop system, while some other models are sold with micro-hybrid functions implemented by default. But these car concepts show a wide variety in detail—the term “micro-hybrid” may mean a completely different functionality in one vehicle model compared to another. Accordingly, also the battery technologies are not the same. There is a wide variety of batteries from standard flooded and enhanced flooded to AGM which all are claimed to be “best choice” for micro-hybrid applications. A technical comparison of micro-hybrid cars available on the European market has been performed. Different classes of cars with different characteristics have been identified. Depending on the scope and characteristics of micro-hybrid functions, as well as on operational strategies implemented by the vehicle makers, the battery operating duties differ significantly between these classes of vehicles. Additional laboratory investigations have been carried out to develop an understanding of effects observed in batteries operated in micro-hybrid vehicles pursuing different strategies, to identify limitations for applications of different battery technologies.

Waste not, want not [EU End-of-Life Vehicle Directive

The European Union's "End-of-Life Vehicle Directive", which will impact upon all manufacturers that supply the European automotive market, is due to be adopted by the UK Government in July 2002. The actual legislation that each country will introduce will vary, but BMW has been an early pioneer of vehicle recycling and is ready for the Directive.

Avon and Acadia target European automotive market

Avon and Acadia target European automotive market

Car Industry

The European and North American automotive industries are facing a strong challenge posed by the Japanese automotive industry. Recent investigations predict the loss of hundreds of thousands of jobs when the import restrictions on the European automotive market are completely lifted. What is the basis for these prognoses? The success of Japanese companies on the world market and their significant growth rates over the last few years are often explained by references to Far Eastern entrepreneurialism, based on an autonomous cultural identity. In addition, new manufacturing technologies and organisational innovations such as KANBAN and JIT are said to be involved. An MIT study covering the last five years concluded that Japanese companies produce two or three times as many cars per worker as European or American factories. This also applies to so-called transplants, assembly plants in Europe or North America under Japanese management. The advantages of this high productivity have been summarized in the expression ‘lean production’, which describes an integrated approach to the manufacturing process. This comprehensive approach is based on a simultaneous engineering process which combines product and manufacturing tool design and development, material requirement planning, close ties with suppliers and not least, continuous improvements to the quality of the manufacturing process. This paper deals with three alternative reactions to this challenge. The means of combatting this challenge are presented using concrete examples. Individual stages in the supply chain will be examined in greater detail, and opportunities for improvement proposed.

Environmental implications of increasing particulate emissions resulting from diesel engine penetration of the European automotive market

The anticipated, continued steady increase in diesel engine usage in Europe over the next two decades will, in the absence of new controls, lead to higher emissions of diesel exhaust particulates. Consideration of the physical and chemical nature of these particulates suggests that this may constitute a risk to public health, as well as bringing about increased soiling of the urban fabric, and decreased atmospheric visibility. Current European legislation relating to diesel particulate emissions is concerned solely with the loss of visual amenity due to these emissions as they leave the exhaust pipe, and seeks only to control their visual appearance. If it were considered necessary to contain or reduce emissions of diesel particulates, new emission controls may need to be implemented. New control technologies are in the process of being developed; it could be that their further development and application would be aided by more appropriate, guiding legislation.