The rear wheel arch lip is to satisfy European wheel coverage requirements, as I posted in another thread here recently:
Quote:
The relevant EU statute is Commission Regulation (EU) No 1009/2010, Annex II, 2.1.1: "In the part formed by radial planes at an angle of 30° towards the front and 50° towards the rear of the centre of the wheels (see Figure 1), the overall width (q) of the wheel guard shall be at least sufficient to cover the total tyre width (b) taking into account the tyre envelope as well as the extremes of the tyre/wheel combination(s) as specified by the manufacturer."
This regulation is also referenced in this Car&Driver article, "How Regulations Dictate the Look of New Cars," which also explains why we still get those little plastic bits on cars in the US.
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I first noticed these on a Miata and its Fiat twin at an auto show last year, so I looked them up. Now I see them everywhere, and many of them are molded into the wheel arch trim as on the C-HR rather than a separate piece as on the Miata or Prius.