By on October 4, 2009

You VILL learn from your mistakes! (courtesy tuningmag.net)

The BMW 1-series was a bust as was the Audi A3 in America. Sales are in the tank and everyone sits back and wonders why we don’t buy small cars. We buy small cars, just not yours. Heck look at the MINI. Maybe BMW is just not as cool. Oh right, BMWs are way cool and they own MINI. Maybe it was the Euro against the dollar, price walk ups from the 1-series/A3 to the 3 or A4 respectively, true mileage gains, looks . . . I don’t know. Or maybe these manufacturers are looking through beer goggles. Let me break it down for you like a fraction through flip flops and tip tops. First some flops . . .

1988 Cadillac Cimarron (courtesy scrapetv.com)

Cadillac Cimarron — lipstick on a pig

Pontiac LeMans — speaking of eggs

GM EV1 — who believed GM was serious, they conspired with Standard Oil to get rid of streetcars

Smart Car — most people like their t-bone on a plate

Geo Metro Convertible — when the sun comes up, some tops should not be off

BMW 1-series — are you serious with that price

Audi A3 — ditto

If this is it . . . (courtesy wikimedia.org)

Tip tops:

Toyota Prius — forward-looking company sees future and puts solid product reputation behind it

MINI — slightly expensive but incredible customization makes car feel like an extension of you

Honda Fit — timing is everything, especially when you plan for it. Did you hear me, Kia Borrego? I forgive you, you’ve got Soul now.

VW Golf Rabbit — constant improvements on a good ride

I know I’m missing some cars like the Honda Insight (ahead of its time), but manufacturers should take a lesson from their youth. Don’t come at the public with a two-beer buzz expecting to get laid that night. In the end, you will slur your words, look sloppy and show your hand before reaching the egg. The best laid ideas (sorry, I’ll stop now) come from listening, understanding, planning and patience.

Someday . . ? (courtesy 4.bp.blogspot.com)

Take for example the inspiration for this story, the VW L1. Originally, VW started experimenting with its concept in 2002. But Piech put it on the shelf saying it wouldn’t be financially viable for ten years. Well, with a four year development cycle he’s timed it right for this diesel hybrid weighing under 850 lbs and getting 170 mpg.

The engine is mated to a 10 kilowatt electric motor, which VW integrated into a seven-speed DSG automatic gearbox. The drivetrain features a two-cylinder turbodiesel displacing 800 cubic centimeters putting out 20 kilowatts (26 horsepower) in Eco mode; and 29 kilowatts (39 horsepower) in sport. Maximum torque is 74 pound-feet.

The L1 has a claimed drag coefficient of just 0.195. That matches the General Motors EV1 which is the most aerodynamic production car ever built. Carbon-fiber skin stretches over 12.5 feet and 45 inches high to conceal two seats, placed fore and aft of each other, and the carbon-monocoque like the McLaren MP4-12C uses. It looks more substantial than a Smart with more padding for accidents and stability at freeway speeds. But the test will be in the price, marketing and ultimate utility.

Will it be reasonably priced? Will they position correctly? Does the bonnet have room for my many hats? You see, I wear a lot of hats at this magazine so I want to make sure they all fit when I test drive this car. Either way, I kinda dig this concept.

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28 Comments on “Motor Market Mishegos: The New Car Market Is a Cruel Mistress...”


  • avatar
    Martin Schwoerer

    They won’t build it.

  • avatar
    zaitcev

    I came this >< close to MINI S. The navigation system that combines the worst of a game console and BMW iDrive was the deal killer. I even got over the hate of run-flats (they are mandatory on Mini S because the exhaust goes through the place where the spare is on the regular Mini).

  • avatar
    krhodes1

    I fail to see why the 1-series is considered a flop. BMW sells every one they bother to import at a healthy profit. I think they forecast 10K a year, and that is what they sell. Ditto the A3. Niether are intended to be volume sellers. If I hadn’t gotten such a steal on my Saab 9-3SC, an A3 would have been on my short list. I don’t do sedans, so the 1-series is not appropriate to my needs.

  • avatar
    MBella

    It’s like you said, “price walk ups from the 1-series/A3 to the 3 or A4 respectively” are not that big. The A3 starts at $25,361, the A4 $31,450. The 128i coupe starts at $29,000 and the 328i coupe is $35,750 and an even closer $32,850 for the sedan. It just doesn’t seem like the smaller cars make sense.

  • avatar
    geggamoya

    Well they do make sense if you dont need a larger car, and the hatch is more useful than he mailslot on a sedan. If you dont really need it, paying 6k more for a car is just, well, stupid.

    I would not say a 20-25% increase in price is insignificant either. Might not make a huge difference in monthly payments if you lease or pay for it over five years though..

  • avatar
    ttacgreg

    agree with MBella
    A bigger price spread with the next larger model, and I’d add, a little less content in the base configuration. Hey BMW how about a 4cyl 1- series for this side of the pond?

  • avatar
    qfrog

    Paul,

    Just a minor detail. A direct shift gearbox “DSG automatic gearbox” is not an automatic as those normally have a torque converter while the DSG uses a clutch be it dry or wet. I don’t think you need to tell us that it is a gearbox, the acronym DSG includes that detail.

  • avatar
    FreedMike

    ttacgreg :
    October 4th, 2009 at 4:22 pm
    Hey BMW how about a 4cyl 1- series for this side of the pond?

    They’ve been there, done that…the mid-90s hatchback 318. It bombed.

  • avatar
    FreedMike

    I think there are a couple of things:

    1) Size – the A3 and 1-series are NOT practical vehicles if you need to carry people around all the time.

    2) Price – obvious. I mean, $35K for a 135i? Walk 100 feet over the CPO cars, and you get a two-year-old 335 coupe for that money. Sold.

    3) Styling – the A3 is boring, and the 1-series looks like a 3 that spent time in a trash compactor.

    4) Competition – for $25,000, you can buy a Subie WRX, a Honda Civic Si, or VW Golf GTI, all of which are plenty fast enough.

    Solution for Euro-companies looking to sell premium cars here in the States: build them here. A 135i sure looks better in the high 20’s than it does at 35K.

  • avatar
    Dimwit

    Again it comes down to culture. Americans want it big, fast and cheap. They get it. Doesn’t make for great cars and if you cater to that market with your whole product line, well, you see what’s been happening.

    Most other cultures have an appreciation for premium products in small packages. It can make for exquisite vehicles that don’t scream “I paid a ton for this, look at me!”

    In the U.S., if it’s small it better be cheap.

  • avatar
    motron

    I’m a little lost as to the point of this story. The VW L1 has nothing in common with a 1-Series. The lessons of one are meaningless in the case of the other. You’d be better off comparing the L1 to BMW’s Vision EfficientDynamics Concept.

    TTAC writers continually call the 1-Series a bust, despite that fact that it has met its sales targets. It’s not clear by what measure you are judging it. But, I continually see the same misunderstandings about the car repeated here. If you are interested in a truly entry level BMW, the MINI is the car for you. If you insist in having the Rondel, then you need to look at the 128i. But, complaining that the 135i is not entry-level enough is pretty far off base. The 135i should not be seen as an entry level BMW, but rather an entry level M car. The fact that it is not that much smaller than a 335i ignores the fairly dramatic handling differences (and much different seat of the pants feel).

    It is clear that, all things being equal, most here would chose the larger of two cars. But, there are a significant number of people for whom smaller is better. Not all of us have the luxury of multi-car garages and long driveways. Many appreciate the handling characteristics of a shorter wheelbase car. Sales numbers show that there are not as many such people as one might hope, but they are out there. Just as there are people who like station wagon and/or hatchbacks. The tide of American taste is against them, unfortunately.

  • avatar
    mpresley

    For less than the price of a real world A3 (one with a few options), VAG will sell you a Passat that is larger, looks better (your milage may vary in this subjective dept), sports a similar engine, and has all the…uh…er…Audi reliability that VW can inject into their own brand. At the same time, VAG tells us that the Passat is too expensive and too small for the American market. Go figure…

  • avatar
    SherbornSean

    What it comes down to is that if you are going to go small, you have to give people a reason to buy one. BMW has never made the case for the 1-series, except as cheaper than the 3-series. Ditto for the A3 and similar experiments by Mercedes and Volvo.

    I am fine with paying as much for a small car as for a larger one, but I need a reason. It needs to be more attractive, more agile, more fun, and maybe more luxurious. I gotta believe its possible, all evidence to the contrary.

    And if VW can bring the L1 to the US market for $20K, I’m first in line.

  • avatar
    highrpm

    Look at your list above (with the exception of the horrible Cadillac and Pontiac entries). I see a list of small cars with poor fuel economy for their size.

    I look at the successful small cars and see low prices and great fuel economy.

    This should be very simple. Small cars should get great fuel economy. A 135i should be the minority of sales, while a 116i should be the stripped out, lightweight $22k BMW small car that averages 30mpg. Why is that so hard to understand?

  • avatar
    Gardiner Westbound

    I have seen only one BMW 1-series notwithstanding small cars are popular in Canada. It reportedly drives well. I thought it was weird looking. The BMW Mini does very well here.

    Small cars cost almost as much to manufacture as large ones and sell for very little less. They are not perceived as offering reasonable value.

  • avatar
    ZekeToronto

    So many articles lately dissing the 1-Series and the A3. I don’t get it.

    As others have pointed out, there’s no glut of unsold 1s on BMW lots. As for the A3, its dismal performance is a US-only aberration. It was Audi’s second best-selling model internationally last year, after the A4.

    I can’t figure out if you’re just being provincial on this issue … or you’d really rather that non-US manufacturers offered an even smaller selection from their model portfolios in your country.

    GW: Are you subconsciously tuning them out … or perhaps at a glance mistaking them for a 3-Series? I see 1s on the road everyday in Toronto. Not to mention the three examples (out of roughly 300 cars) in the parking lot where I work.

  • avatar
    fincar1

    “In the U.S., if it’s small it better be cheap.”

    So this is why the Miata has been so successful all these years.

  • avatar
    wstansfi

    I think the one series is just ugly…
    The A3 has terrible resale and has been a poor sell/lease compared to the slightly larger A4. I think the euation is simple – the one and A3 really only accomodate 2 good size adults. The 3 series & the A4 will realistically fit 4 adults. The utility is totally different for only slightly different
    money.

  • avatar
    rpn453

    qfrog : Just a minor detail. A direct shift gearbox “DSG automatic gearbox” is not an automatic as those normally have a torque converter while the DSG uses a clutch be it dry or wet.

    There are two basic categories: automatic and manual. You can break those categories down further, but those are the basic ones. Since it’s certainly not manually operated, you can’t call it a manual transmission. The details of how it automatically operates are irrelevant if you’re using only basic terms to describe it. It operates automatically, so why wouldn’t you call it an automatic?

  • avatar
    Buckshot

    Good looks is important :-)
    Audi A3 and BMW 1-series are good cars, but they don´t look that special/fun, like Mini, Alfa MiTo and Fiat 500.

    Americans who is complaining about the price on european small cars should talk to the importers.
    The usually import just “the top of the line” models.
    Exihibit 1: Volvo C30
    Do the majority of the buyers really want a gas guzzling turbo engine???

    Not in Europe.

  • avatar
    love2drive

    The 1 series was positioned (whether precisely or by inference) as the new “starter” BMW, since the 3 Series has gotten so expensive. But then the 1 Series turned out ot be too much money anyhow. That and the tail end needs a re-design.

    Not sure on the A3. It might have just been a “small wagon” stigma.

  • avatar
    revolver1978

    I have to agree with SherbernSean, people will buy small if they have a reason. Sometimes it doens’t make much sense either. My in-laws, a childess 30 something couple, recently purchased a brand new A3. Why? She wanted something that fit her “corporate status” – whatever that means. He wanted a fun daily driver that got better fuel economy than their 325xi.
    That all being said, I personally don’t find the A3 different enough to justify its price. It’s a bit more handsome than the GTI, but no bigger. While it is more handsome, it’s also more understated at the same time. The rear seat is tight, but decent enough for occaissional passenger use; the hatch area is small. We took it on a camping trip to WV and barely squeezed our stuff in there with three people.

  • avatar
    AlexD

    The current 1-series in Canada is marketed as a hairpiece car. Fun car I’m sure, but focused on the boomer crowd.

    My beef is with the lack of the 2 models that would be big sellers up here: the E81/87 hatches (I can’t speak for State-side).

    Thing is, BMW refuses to sell them. The 318i is the Gucci handbag of models up here – they’re like weeds, typically driven by civil servants, etc. No doubt BMW makes killer margins on this car (base is ~35K CDN, ~32.5K USD) and they know that the 1 series hatch would wipe out this cash cow.

  • avatar
    brettinlj

    RE the BMW 1-series: I’m buying one. Maybe the author of this article is confusing himself for the customer (a cardinal sin) since there is no reference to the standard he is using to judge success.

    It has met or exceeded sales targets and was not meant to be the largest seller. BMW, and Europe for that matter, have always been ahead of the curve compared to America. The author of this piece is not.

  • avatar
    Bruce from DC

    Re BMW 1-series:

    I have a 9-year old Z3 3.0. While it’s a fun car, the lack of a back seat has limited the car’s utility. So, I could certainly see myself in a 1-series convertible. Sure, a sedan is not going to drive the same as the Z3 roadster, where the driver sits 3 feet forward of the rear axle. But, it might be close; and, from what folks have said, the 1-series (not surprisingly) doesn’t drive like the 3-series. So, I do see at as filling a distinct need between the Mini Cooper and the 3-series (in the US). I reserve judgment on the styling, which is always subject to change. I’m talking about the basic car itself, in terms of configuration, engine, drivetrain and so on. Personally, I think a car of the size of the 1-series would look better with a lower beltline — less “chunky.”

  • avatar
    ZekeToronto

    revolver1978 wrote:

    My in-laws, a childess 30 something couple, recently purchased a brand new A3. Why? She wanted something that fit her “corporate status” – whatever that means.

    I know exactly what she means. I had originally intended to buy a GTI as a city car this year, but when I realized I could get essentially the same vehicle with more age and occupation-appropriate looks, I went for the A3. When they see it, most of my BMW, Benz and Audi-driving colleagues just assume I’m being “thrifty” and “green”.

    My wife and I also don’t have children and we’ve found the A3’s back seat offers plenty of space (and with 4 doors, very easy ingress/egress) for occasionally taking another couple to dinner or the movies. Sure I wouldn’t want to be facing a cross-country trip back there, but neither would I want to do that in the back of an A4, 3-series or C-Class.

  • avatar

    The 1 series is definitely not a flop. They sell around the forecast (yes, the forecast BEFORE it even hit the U.S.) and the sales drop off is a lot lower than the 1 series. Keep yelling about the same misinformation and you’re going to lose credibility. The A3 on the other hand, I don’t know why that’s not selling. I enjoyed driving that more than the A4 (last gen), A6, and A8 in a direct comparison. Maybe it’s that it’s a wagon. I saw that Audi is considering importing an A3 sedan. We just don’t love wagons over here (same reason BMW didn’t bring the 1 hatch here).

  • avatar
    Accords

    See…
    Maybe its me..

    Maybe everyone else is smokin some really cheap crack.

    Maybe.. the world is nuts.. and Im the only one who thinks adequately.

    Nah.

    Id just like to know..
    Why Accord / Camry / Malibu / Legacy are still called midsized cars.. and yet EACH are approaching (within IIIINches of 300 / Crown Vic)

    In another words.. cars are getting larger.. for the mere point of BEING larger.

    Since when did I ever WANT a car that I enjoyed its size.. to GET larger?
    I was fine with the 3 series at its size in 00 or 03. But now.. its being deemed as too big.. and a car must come in underneath.

    Point Im trying to make is..

    How are larger cars sold for the shit of it Cayenne / Q7 / Toureg and the coming Q5 brethen.. and yet the compact stuff that ONLY looks COMPACT because the next size up got fat?

    Im totally at loss as to why some decent cars.. arent selling.. and the shit. is flying off the shelves?

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