Peugeot's 206 Overtakes VW Golf

FRANKFURT, Sept 19, 2002 Reuters reported that PSA Peugeot-Citroen's 206 car has knocked Volkswagen's Golf off its perch as Europe's most popular car in a sign of the changing dynamics of the industry, an industry study said on Thursday.

The German Golf, the root of success of Europe's biggest automaker in the last 25 years, fell behind the French carmaker's 206, which is in the same mid-sized class, for the first time in the first seven months of the year, said UK-based consultancy Automotive Industry Data. "This is a tell-tale indicator of what is going on -- VW is looking wobbly at the moment and Peugeot has got it right," said Peter Schmidt of AID. He said the Golf had a market share of 4.1 percent compared to the 206's 4.2 percent in the period.

VW is suffering from a low-point in its product cycle and has invested in the luxury segment over recent years at the expense of its core mass market vehicles. It expects profits to fall this year despite far-reaching cost cuts.

PSA, meanwhile, has a relatively upbeat outlook for this year on the back of a strong model lineup and has poached car buyers from other companies, such as VW and domestic rival Renault.

Schmidt said the data highlighted the importance of a strong range of models ahead of the Paris auto show next week, where carmakers aim to woo potential customers amid declining markets.

He said the Peugeot brand could overtake the VW brand in Europe in the coming months, but that such shifts are rarely permanent.

"Fortunes are fleeting and things quickly change in the industry," said Schmidt.

"I visualise VW's wobbly fortunes will stabilise during early next year and that will set the stage for the new Golf launch," said Schmidt. VW plans to launch its new Golf at the end of next year following its Touareg sports utility vehicle and a new minivan.