Marchionne unveiled his 2018/2022 Plan for FCA (1)

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Marchionne unveiled his 2018/2022 Plan for FCA (1)
- Sergio Marchionne, president of the FCA group, who will be leaving the company (the eighth largest manufacturer in the world), in April 2019 has unveiled his plan for 2018/2022. This drastic plan seems to be the culmination of the rationalization of the group that began several years ago, and is clearly reminiscent of the strategy adopted by the British group British Leyland in the 1970s, which included brand deletion, focus on premium  (Rover, Jaguar) and  SUV (Land Rover) products, and the continuation of popular entry-level models (Mini, Metro).

- Mr. Marchionne wants to close down Lancia in 2019, and Chrysler and Dodge by 2022, remove the Fiat Tipo from the European market in 2021, and focus on premium brands Alfa-Romeo and Maserati (target: 400,000 Alfa-Romeo and 100,000 Maserati in 2022) as well as the SUV Jeep and VUL Ram brands (target: 2,000,000 Jeep and 1,000,000 Ram in 2022). Also, the European range of Fiat will be reduced to the Panda and the 500 (target: 500,000 in 2022), supplemented by the utility range (Fiorino, Doblo, Ducato).

- Regarding engines, Mr. Marchionne confirmed discontinuing diesel engines on the cars of the group in 2021 ( but not on utility vehicles ) and the generalization of rechargeable and 100% electric hybrid engines on the entire range of passenger cars. After April 2019, Mr. Marchionne intends to retain the presidency of Ferrari.


18-15-1   
    
 

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Volkswagen will open three new factories in China

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Volkswagen will open three new factories in China
- The Volkswagen group now has about fifteen assembly plants in China, spread over nine different cities: Shanghai (900,000 capacity vehicles fixed on three factories), Chengdu (600,000 on two factories), Changsha ( 600,000 on two factories), Changchun (600,000 on two factories), Foshan (600,000 on two plants), Urumqi (300,000), Yizheng (300,000), Nanjing (300,000), Ningbo (300,000).

- The production capacity of the Volkswagen Group is now 4,500,000 vehicles per year. However, the group's production volume reached 4,057,000 vehicles in 2017, corresponding to a sales volume of 4,020,000 vehicles. By 2018, it could exceed 4,300,000 units and approach saturation level (which could be reached in 2019).

- The German manufacturer has therefore decided to open three new assembly plants in China, in partnership with one of its partners: FAW. They will be based in Qingdao, Foshan and Tianjin respectively in Shandong, Guangdong and Jing-Jin-Ji provinces. They will make it possible to produce more vehicles (mainly SUVs and electric cars) for the local market, and to reach a total capacity of more than 5 million units by 2020. The Volkswagen Group has planned to introduce some 40 new electrified models (PHEV and BEV) in China by 2025. It plans to manufacture these vehicles in six of its Chinese plants, notably under the SOL brand.


18-14-9   
    
 

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Evolution of Automobile Production in ASEAN Countries

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Evolution of Automobile Production in ASEAN Countries
- The ASEAN countries that produce automobiles are: Thailand, Malaysia, Indonesia and the Philippines. These four countries produced a total of 3.8 million vehicles in 2017 (of which 2 million for Thailand, 1.2 million for Indonesia, 0.5 million for Malaysia and 0.1 million for the Philippines), 3.7 million vehicles  in 2016 and 2.1 million in 2007.

- Of these four countries, Thailand remains the country that produces the most vehicles, in particular because it is the world center of production for mid-range pickups. Indonesia, which has experienced growth comparable to that of Thailand over the last decade, has supplanted Malaysia, which has experienced sluggish production since 2005. Finally, the Philippines, where production also stagnates, produces five times less than Malaysia.

- By manufacturer, we observe that the ASEAN countries have become a preferred zone for Japanese manufacturers. They account for 83% of automobile production in these countries in 2017, compared to 57% in 2007.

- In 2017, Toyota is the manufacturer that produces the most vehicles in these countries, with a volume of 1.2 million units (which is 32% of the total production of these countries, compared to 21% in 2007), followed by Honda (520,000 units), Mitsubishi (470,000 units), Isuzu (275,000 units), Daihatsu (185,000 units), Ford (185,000 units), Perodua (185,000 units), Nissan (175,000 units), Suzuki (160,000 units) and Mazda (145,000 units).


18-14-7   
    
 

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PSA ceases the production of C4 and DS 4 in France

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PSA ceases the production of C4 and DS 4 in France

- As expected, the PSA group stopped the manufacture of Citroën C4 and DS4 on the site of Mulhouse (France), and  the restyled C4 Cactus manufactured in Villaverde (Spain) is supposed to ensure the follow up of these two models until their effective replacement in 2020/2021. This production stop is just one year after the Citroën C5 in Rennes.


- Both models - C4 and DS4 - have had a very different sales career. Launched in 2010, the second-generation C4 was produced at 610,000 units, while the DS 4, launched the same year, did not exceed 170,000 units . However, the two C-segment sedans suffered a similar drop in sales in 2013/2014, just as the Peugeot 308, another C-segment sedan and direct competitor to the Citroën C4 and DS 4, was launched. The production volume of the second-generation C4 remains well below that of the first-generation C4, which had totaled one million units. The second-generation C4 has undoubtedly suffered  from the launch of the C4 Cactus, C4 Picasso, DS 4 and ... the  Peugeot 308.


- The manufacturing program of the Mulhouse plant for the years 2018-2021 shows the arrival of new generations of Peugeot 508 and Citroën C5, the new generations of DS 4 and DS 4 Crossback, DS 7 Crossback and DS 9. The arrival of the new generation of Peugeot 2008 is not yet confirmed. (The PSA group plans to produce 400,000 cars in Mulhouse in 2022 ( vs. 250,000 in 2017).



18-14-10   
    
 

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Joint platform for Renault-Nissan-Mitsubishi electric vehicles

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Joint platform for Renault-Nissan-Mitsubishi electric vehicles
- Renault, Nissan and Mitsubishi will jointly develop a common platform for electric vehicles by 2020. This approach is part of a rationalization, and therefore cost reduction, policy aimed at strengthening the competitiveness of the Franco-Japanese group in an increasingly competitive environment (Volkswagen, Daimler, BMW and Chinese automakers are preparing a multitude of electric vehicles).

- The common platform will serve as the basis for a number of mid-range (C-segment) models, primarily SUVs, which includes the Nissan Qashqai, the Renault Kadjar and the Mitsubishi Eclipse Cross. The goal is to manufacture two million electric vehicles between 2020 and 2025 using the new common platform, for a volume of 400,000 electric vehicles per year on average.

- In 2017, the group sold a total of 91,000 electric vehicles, an increase of 11% over 2016. The Nissan Leaf, which began selling  in 2010, ranks first in the group's electric line, which also includes the Renault Zoe, the Renault Kangoo ZE, and the Nissan e-NV200.

- The Renault-Nissan Group's various brands aim to commercialize 12 new electric models by 2022, with the new common platform being a central element of their electric vehicle strategy .


18-14-8   
    
 

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