Convertible Sales Slump Hits Roof Suppliers as Plants Close
Falling demand for open top cars in Europe and North America has forced major roof system suppliers like Webasto and Valmet to close or scale back production facilities.
Major roof system suppliers are feeling the impact of shrinking demand for convertibles, as carmakers in Europe and North America cut back on open top models and buyers continue to favour SUVs and crossovers. Webasto, which holds nearly half the global market for convertible roof systems, has begun closing plants, while Finnish supplier Valmet is shutting its soft-top roof assembly facility in Osnabrueck, Germany.
Convertible output nearly halves in six years
Figures from PwC Autofacts show that combined convertible production in Europe and North America dropped from around 827,000 units in 2007 to just 444,000 in 2013. The decline has been sharpest in Europe, where the segment once thrived on a combination of mild climates and a tradition of open top motoring. Carmakers have responded by slashing the number of convertibles they offer, with Volkswagen Group considering reductions across its brands. The company had 12 convertible models in its portfolio as of 2014, but CEO Martin Winterkorn was already weighing cuts in response to falling sales.
Suppliers forced to close or consolidate plants
Webasto, the largest global supplier of convertible roof systems, has responded to the downturn by closing some of its manufacturing sites. The company’s market share, estimated at 49%, has not shielded it from the effects of shrinking orders as automakers reduce convertible production. Valmet, which acquired Germany’s Karmann in 2010, has announced it will close its Osnabrueck soft-top roof assembly plant by 2017. The closure follows years of declining demand and reflects the challenge of maintaining specialised production lines for a segment in retreat.
SUVs and crossovers change buyer priorities
The shift in consumer taste towards SUVs and crossovers has been the main factor behind the convertible’s decline. Buyers now prioritise practicality, space and all-weather capability, making open top cars less attractive. Even technological advances like retractable hard tops, which were intended to broaden the appeal of convertibles for year-round use, have not reversed the trend. Instead, manufacturers have been forced to concentrate on segments with higher volume and profitability, leaving the convertible as a niche product with limited support from the supply chain.
What it means for suppliers and buyers
For suppliers, the low volume and high complexity of convertible roof systems make plant closures and job losses difficult to avoid. Webasto’s and Valmet’s decisions reflect a wider industry move to consolidate resources and focus on growth sectors. For buyers, the shrinking choice of new convertibles will make open top motoring increasingly rare, as manufacturers drop models and prices rise due to lower economies of scale. The trend is likely to continue unless demand for convertibles recovers or manufacturers find new ways to make the segment viable.
- Convertible production in Europe and North America nearly halved between 2007 and 2013.
- Webasto and Valmet have announced plant closures in response to falling orders.
- Automakers such as Volkswagen Group are reducing convertible offerings.
