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BMW says SUVs killed the sports car market

In many ways, we're living in a golden age of automotive performance. After all, it's possible to show up at a Dodge dealer, hand over about $60,000 and storm away with a 707-horsepower Challenger Hellcat. Or for those who prefer a touch more luxury, the BMW M4, Mercedes-AMG C63 and latest Cadillac ATS-V offer between 425 and 503 horsepower, depending on your pick, with a bit more poshness. However, none of these powerful vehicles fit the classic definition of a two-place, droptop sports car, and according BMW head of sales Ian Robertson, that's because the segment is very much in the doldrums.
According to Robertson, two factors seriously wounded the classic sports car market. First, the global economic crisis of a few years ago put a serious hurt on sales, according to Bloomberg. Further worsening the situation, the boom in popularity of luxury SUVs and crossovers in the past few years hasn't allowed for much recovery. Even car-hungry China hasn't helped much because of the smog in many cities and preference among some of the very rich there to be chauffeured.
Combined, Audi TT, BMW Z4 and Mercedes-Benz SLK sales peaked around 114,000 units a year in 2007, but they are only expected to reach 72,000 annually by the end of the decade. Robertson is pretty pessimistic about the market's comeback too. "Post-2008, it just collapsed. I'm not so sure it'll ever fully recover," he said to Bloomberg.

Audi boosts A3 Sportback e-tron plug-in hybrid production to 50 a day

Should we try to translate "Damn the torpedoes, full speed ahead" into German? Audi might force us to do that. That's because the German automaker has stepped up production of its new plug-in vehicle – the A3 Sportback e-tron plug-in hybrid – which is never a bad thing. Audi was circulating prototypes of the PHEV as early as 2012 and launched production this summer at a clip of 30 vehicles a day. Now, the company is saying that it's upped that daily production rate to 50. That's not exactly Ford F-150 manufacturing territory, but it's a pretty good sign that more Europeans are clamoring for the plug-in than Audi expected. The A3 E-Tron is priced at about $51,000 in Germany and pairs a 1.4-liter gas-powered engine with an electric motor to produce 204 horsepower and get the car from 0 to 60 miles per hour in less than seven and a half seconds. More impressively, the A3 Sportback e-tron plug-in hybrid can go 30 miles on electricity alone plus another 550 miles on gas power, and gets a Euro-based fuel-economy rating of a monstrous 156 miles per gallon. Check out Audi's press release below and take a look at our drive impressions here. On the line and on time: Production of the Audi A3 Sportback e-tron • First plug-in hybrid model drives off the assembly line in Ingolstadt • Assembly processes integrated into the A3 line • Maximum safety for employees, top quality for customers Production of the Audi A3 Sportback e-tron: Assembly – On the engine and component assembly line, the electric motor and transmission are fitted to the engine. Approximately 50 cars every day, with the same timing and on the same assembly line as the other models: Audi is now ramping up production of the Audi A3 Sportback e-tron*. The premium manufacturer is producing its first plug-in hybrid model at the brand's main plant in Ingolstadt. "We started series production of the Audi A3 Sportback e-tron in the summer," said Dr. Hubert Waltl, Board of Management Member for Production at AUDI AG. "Most of the assembly work is integrated into the A3 line; no separate manufacturing is necessary. That demonstrates the flexibility and efficiency of our production planners and employees." With the Audi A3 Sportback e-tron, Audi is launching the mobility of the future. The compact five-door combines a 1.4 TFSI combustion engine with a 75 kW electric motor, resulting in a total system output of 150 kW (204 horsepower).

Car companies may need to start curbing model proliferation

Looking at the current automotive landscape, especially from German makers, you quickly get the impression that less definitely isn't more. BMW alone offers its 3 Series platform in practically every segment possible, including the regular sedan and 4 Series Gran Coupe, which would seem to be direct competitors. Porsche might be the winner, though, with 20 different variants of the 911 listed for sale on its US website. However, some of this model madness might be reaching an end as companies begin cutting back spending or shifting money to other priorities.
According to Yahoo Finance, the offerings from the German automakers are up 25 percent over the past three years to over 200 models in Europe. The peak is expected to come around 2018 at 230 separate vehicles, according to consulting company PwC.
Amazingly, BMW, which is among the poster children for this model explosion, might be changing its tune. "I'm sure there will be points in the future where we look at certain cars and say, 'Maybe we need to think differently now,'" said head of sales Ian Robertson in an interview, according to Yahoo Finance. The statement certainly sounds shocking coming from a company rumored to have 23 front-wheel-drive vehicles all using a single platform on the way.