by Brian Byrne. Though it is the 'most respected' automotive brand in Europe, BMW could lose its premium status because of its expansion into model segments where it wasn't before.
According to the head of European auto research at J P Morgan, Phillipe Houchois, the introduction of cars like the 1 Series puts the brand on the way to becoming a mass manufacturer in volume terms, and could thus lose its 'exclusive' tag.
Volkswagen, on the other hand, is moving in the other direction, moving towards the premium end of the market, but losing the low end of the market in the process.
The Wolfsburg carmaker has also lost its sense of style, according to analyst Adam Jonas of Morgan Stanley, who says the company needs to build 'halo' models such as it had three decades ago with the Corrado and Scirocco.
Jonas says VW could imitate Nissan's revival of the 'Z' cars of the same period with the 350Z introduction two years ago.
The analysts were speaking at a conference organised by Automotive News Europe.
