Paris fashion parade reveals impact of design on RVs

September 30, 2016

The public response to new car designs at the Paris Motor Show will play an influential role in future years as it will impact on new car demand and how cars perform on the used vehicle market. Among the biggest changes on show is the new Nissan Micra, which the firm calls a ‘redefinition’ of the car, with a complete redesign that marks a bold departure from the looks of the current model. All manufacturers’ models have a so-called lifecycle effect, where RVs decline over their lifetime as the offering ages compared to newer competitors, either in terms of looks, interior style, equipment or both. So when a new model is launched, expected RVs tend to improve by between three and five percentage points, assuming list prices remain stable. But a substantial redesign that is well received by consumers can do even more. Renault proved the potential positive impact of a successful new design language when it updated the Clio at the 2012 Paris Motor Show. The previous generation Clio struggled to achieve good RVs in comparison to competitors in France and Germany, particularly against the Opel Corsa, Peugeot 208 and Volkswagen Polo. The new design language complimented wider changes to the model range, including pricing, which pushed up residual values by 10 to 11 percentage points and put it ahead of core competitors.

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March 31, 2017

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PSA to boost UK presence in the event of a ‘hard Brexit'

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UK sales flat despite upcoming road tax hike, diesel demand plummets

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UK new car registrations fell annually by 0.3% in February to 83,115 units according to the SMMT, driven down by weaker demand from individuals and companies. More noticeable, however, was the 9.2% drop in demand for diesels compared to February 2016, a steeper drop than the decline in Germany...