MG3 from under £10k? Pricing the competition

For comparison - entry-level Fabia S, 60PS, £9835:

Engine size	1198 cc
0-60mph	16.5 secs
Top speed	96 mph
Tank Range	508 miles

More facts:

Fuel Economy	51 MPG
CO2 emissions (g/km combined)	128
Fuel Economy Grad	D
Road Tax (VED) Band	D
Road Tax (year 1)	£0.00
Road Tax (annual)	£100.00
Warranty, whole car	36 months / 60000 miles
Number of seats	5 (layout 2+3)
Luggage capacity	rear seats up: 315 litres rear seats down: 1180 litres
Service intervals	variable distance / period
Height	1498 mm
Width	1642 mm
Length	4000 mm
Date Model Introduced	9 Mar 2010
Date Version Introduced	9 Mar 2010
Country of origin	Czech Republic

http://www.carbuyer.co.uk/reviews/skoda/fabia/hatchback/12-12v-60ps-s_547960/equipment
Standard equipment:
Optional equipment:
Safety

ABS
Two disc brakes including two ventilated discs
Drivers airbag, passengers airbag with de-activation switch
Height adjustable seat belt with pre-tensioners on drivers seat and front passenger seat
Two head restraints on front seats and rear seats with height adjustment
Isofix preparation
Seat belt on driver side rear seat, seat belt on passenger side rear seat, 3-point seat belt on central rear seat
Front side airbag
Halogen headlights
Headlight controlsystems: height adjustment

£170 Front fog lights
£370 ESC + ABS+ASR+EDL+HBA

Comfort

Central door locking: Operated by key Includes dead bolt
Black internally adjustable door mirrors
Front electric windows with one-touch on two windows
Electro-hydraulic speed proportional power steering
Plastic steering wheel with tilt adjustment and telescopic adjustment

£560 Manual air conditioning

Entertainment

Audio system with CD player that reads MP3 CDs ; radio receives AM/FM and RDS
Four speakers

Interior

Driver seat: individual type, passenger seat: individual type
Asymmetrically folding rear seats: split bench type with space for three people; with zero electric adjustments and split folding base
Five seats configured 2+3
Cloth and cloth seat upholstery

Free Stone Grey upholstery

Exterior

Painted front and rear bumpers
Black internally adjustable door mirrors
Gloss paint
Front and rear tyres: 15 inch diameter, 195mm wide, 55% profile, H rated ; Load index: 85 (official data)
Front and rear wheels: 15 inch steel rims ; width: 6.0 inches

£425 15” ‘Antares’ alloys
£495 Pearl effect paint
£495 Sprint Yellow paint
£495 Metallic paint
£870 Pearl paint + white roof
£870 Metallic paint + white roof

Suzuki Swift SZ2 5-door 1.2 entry-level: £11,299

Engine size	1242 cc
0-60mph	12.3 secs
Top speed	mph
Tank Range	521 miles

More facts:

Fuel Economy	57 MPG
CO2 emissions (g/km combined)	116
Fuel Economy Grad	C
Road Tax (VED) Band	C
Road Tax (year 1)	£0.00
Road Tax (annual)	£30.00
Insurance category group	8
Warranty, whole car	36 months / 60000 miles
Number of seats	5 (layout 2+3)
Luggage capacity	rear seats up: 211 litres rear seats down: 902 litres
Service intervals	variable distance / period
Height	1510 mm
Width	1695 mm
Length	3850 mm
Date Model Introduced	1 Sep 2010
Date Version Introduced	1 Sep 2010
Country of origin	Hungary

Swift:

http://www.carbuyer.co.uk/reviews/suzuki/swift/hatchback/12-sz2_7986363/equipment

Standard equipment:
Optional equipment:
Safety

• ABS
  
• Electronic traction control
  
• Brake assist system
  
• Two disc brakes including two ventilated discs
  
• Drivers airbag, passengers airbag with de-activation switch
  
• Height adjustable seat belt with pre-tensioners on drivers seat and front passenger seat
  
• Two head restraints on front seats and rear seats with height adjustment
  
• Isofix preparation
  
• Seat belt on driver side rear seat and passenger side rear seat
  
• Front and rear side curtain airbags
  
• Front side airbag
  
• Stability controlsystem
  
• Halogen headlights
  
• Headlight controlsystems: height adjustment
  

Comfort

• Central door locking: Operated by remote Includes dead bolt
  
• Body colour power door mirrors ; heated
  
• Front electric windows with one-touch on one window
  
• Type power steering
  
• Leather covered multi-function steering wheel with tilt adjustment
  

Entertainment

• Audio system with CD player that reads MP3 CDs ; radio receives AM/FM and RDS
  
• Six speakers
  

Interior

• Driver seat: individual type, passenger seat: individual type
  
• Asymmetrically folding rear seats: bench type with space for three people; with zero electric adjustments
  
• Five seats configured 2+3
  
• Cloth and cloth seat upholstery
  

Exterior

• Painted front and rear bumpers
  
• Body colour power door mirrors ; heated
  
• Gloss paint
  
• Front and rear tyres: 15 inch diameter, 175mm wide, 65% profile, H rated ; Load index: 84 (official data)
  
• Front and rear wheels: 15 inch alloy rims ; width: 5.0 inches
  

• £430 Metallic Paint
  

Now to spec a Polo. To get close to the 107PS I have to go some way into the range.


1.2 TSI 105 PS R-Line 5dr
price: £15,915

   engine: 1.2litres
   trim: R-Line
   fuel type: unleaded
   number of doors: 5
   transmission: Front wheel drive, Manual, 6 speed


Key facts:

Engine size	1197 cc
0-60mph	9.7 secs
Top speed	118 mph
Tank Range	527 miles

More facts:

Fuel Economy	53 MPG
CO2 emissions (g/km combined)	124
Fuel Economy Grad	D
Road Tax (VED) Band	D
Road Tax (year 1)	£0.00
Road Tax (annual)	£105.00
Insurance category group	9
Warranty, whole car	36 months / 60000 miles
Number of seats	5 (layout 2+3)
Luggage capacity	rear seats up: 280 litres rear seats down: 952 litres
Service intervals	variable distance / period
Height	1462 mm
Width	1682 mm
Length	3970 mm
Date Model Introduced	7 Aug 2009
Date Version Introduced	27 Apr 2012
Country of origin	Spain

£16k list! That's a hell of a price. I hate to think how much a Volvo V40 comes out at.

Safety

• ABS
  
• Electronic traction control
  
• Brake assist system
  
• Two disc brakes including two ventilated discs
  
• Drivers and passengers airbag
  
• Height adjustable seat belt with pre-tensioners on drivers seat and front passenger seat
  
• Two head restraints on front seats with height adjustment, three head restraints on rear seats with height adjustment
  
• Isofix preparation
  
• Seat belt on driver side rear seat, seat belt on passenger side rear seat, 3-point seat belt on central rear seat
  
• Front side airbag includes head protection
  
• Stability controlsystem
  
• Rear radar-type parking distance sensors
  
• Halogen headlights
  
• Headlight controlsystems: height adjustment
  
• Front fog lights
  
• Hill holder
  

• £765 Gas discharge (Bi-Xenon) headlights dipped and main beam
  

Comfort

• Air conditioning
  
• Central door locking: Operated by remote Includes windows and dead bolt
  
• Cruise control
  
• Body colour power door mirrors ; heated with integrated indicator lights
  
• Front and rear electric windows with one-touch on two windows
  
• Electro-hydraulic speed proportional power steering
  
• Alloy & leather steering wheel with tilt adjustment and telescopic adjustment
  

• £375 Electronic climate control (in lieu of 'Climatic')
  

Entertainment

• Audio system with CD player that reads MP3 CDs ; radio receives AM/FM and RDS
  
• Six speakers
  
• Bluetooth includes phone connection
  

• £300 RCD 510 touch-screen radio system
  
• £720 RNS 315 touch-screen navigation/radio system
  

Interior

• Driver and passenger seat: sports type
  
• Asymmetrically folding rear seats: bench type with space for three people; with zero electric adjustments and one-piece folding base
  
• Five seats configured 2+3
  
• Cloth and cloth seat upholstery
  

• Free Kyalami cloth
  

Exterior

• Painted front and rear bumpers
  
• Body colour power door mirrors ; heated with integrated indicator lights
  
• Gloss paint
  
• Front and rear tyres: 16 inch diameter, 215mm wide, 45% profile, H rated (official data)
  
• Front and rear wheels: 16 inch alloy rims ; width: 7.0 inches
  

• £200 Special paint - Candy White gloss
  
• £500 Special paint - Pearlescent
  
• £500 Special paint - Metallic
  

I think a clearer picture will emerge when the CO2 and tax, MPG and MPH stats are out.

As it is, is the general feeling that MG can simply be 'competitive' or should they go for it and really undercut the opposition with £7995 for the base model? Is SAIC worried about profit - whatever happens, the MG3 will result in a sales uplift, but would they go for a loss-leader on the base model to make a splash in the market?

I note that there's to be no telly marketing, despite earlier indications that there would be. They cannot afford to repeat the MG6 process step-by-step!

How do we know there will be no TV advertising?

Other reports elsewhere have quoted them saying there won't be... *sigh*

Morris Motors wrote: Is SAIC worried about profit - whatever happens, the MG3 will result in a sales uplift, but would they go for a loss-leader on the base model to make a splash in the market?

We know that the CEO has said he wants profit in general rather than volume. However, profit in the UK market on tiny volumes is a long way off.

It could certainly damage the brand to be too cheap and not result in significant sales increases IMHO. However, unless there is TV marketing, most people won't have a clue the cars are available! It's hard enough explaining what a ZS is to people who have no concept of MG saloons post-1972...

With the MG3 they do have a competitive car; I think it's far more of a challenge in it's sector than the 6 has been against mid-range cars. Unfortunately they are starting from a disadvantage so just matching Vauxhall or Ford, or undercutting MINI isn't necessarily going to do it for them.

With no change in advertising strategy, and no competitive pricing/finance/insurance/warranty edge on the competition, they risk stagnating. After this launch there will be no new MG in the UK until we see that SUV - 3 years away? If the MG3 sells as well as the MG6, they might be wondering what to do next summer...

Morris Motors wrote:Other reports elsewhere have quoted them saying there won't be... *sigh*

They almost have a ready made TV advert, very similar to one Citroen did for the DS3

Not the 'express yourself' one?! With the girl changing her appearance?!

I hope they're not going down the fashionable route.

It's not just the actual advert that eats the money as they can pull something together quite quickly - it's the airtime. A slot in the middle of a prime time soap can be very pricey and they obviously don't have a budget.

Just another thought - the MG6, after a few months on the market, got deals lobbed at it by MG (that didn't affect dealer margin) to the value of about £3000 per car (trade-in, fuel etc). Obviously they'd hoped they wouldn't need to do it but in the end they did... I wonder if the MG3 has a pot of cash per car like that? And would it be better to chop the RRP rather than having to come up with incentives several months down the line?

Incentives are all very useful but you need the marketing there to be able to communicate the message. LAUNCH is when people will sit up and take note, not via twitter 6 months later. If the launch price is £12k for a car with all sorts of extras, but people think it should be £10k and so they don't sell, an incentive 6 months later knocking £2k off will be lost, even if it represents the 'correct' price. 

They are never going to get the same attention as they will over the next 2/3 months on this issue; it's critical they get it right.

£8000 reported on the other channel - can that be right?

That will be EXCELLENT news if true.

Morris Motors wrote:£8000 reported on the other channel - can that be right?

That will be EXCELLENT news if true.

They probably still haven't made a final decision in which case it can only be a guess or a suggestion. It may be a suggestion made by MG to see what peoples reaction is before making the final decision. The prices will be officially announced before too long.

I would imagine they would be taking serious feedback from representatives of the national dealer groups who were supposed to be sniffing about on 12th June launch.

If MG want to sign up the big dealerships, they'll have to listen to their opinions. They know what they can sell, they know the competition and can be dispassionate about it.