"Saab's first car built outside Sweden will be a Subaru-built version of the zippy Impreza WRX and could be priced as low as $20,000, says GM. "
DAILY IN DEPTH
Europeans March Downmarket, Subaru Goes Up
Foreign automakers are rushing in to fill niches in their U.S. lineups, going up-market and downstream in the process. High-end players from Europe are leading the charge, says a Wall Street Journal (October 14) survey, by federalizing seven entry-level models in an open bid to challenge the Japanese and Koreans. Subaru, a long-time Japanese low-end player, meanwhile, is going upscale as it nears debut of a mid-size seven-seater station wagon off the Outback platform in
2005.
The European assault on the youth market will begin in 2004, when the Audi A3, BMW 1-Series, and Saab 9-2 all roll across the Atlantic. Influenced by the success of the MINI Cooper, the German and Swedish automakers will keep their new entries in the $20,000-$28,000 bracket. The 1-Series sedan will price under the 3-Series, which will surrender its role as BMW's entry-level vehicle. The Audi A3, already a popular seller in Europe as a hatchback, will have an MSRP of about $24,000 and be positioned below the Audi A4.
Saab's first car built outside Sweden will be a Subaru-built version of the zippy Impreza WRX and could be priced as low as $20,000, says GM. The Volvo S40 is a restyled edition of the current model and starts from about $25,000. In 2005, the long-awaited Mercedes Smart minicompact is coming Stateside from Brazil. A newly-designed four-door sedan will reach Mercedes dealers who sign special marketing agreements, like the BMW MINI Cooper arrangement. At the same time, Volkswagen will export to the U.S. updated versions of the Golf and Jetta in mid-teen price ranges.