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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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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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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With Citroën C5 Aircross’ arrival in Rennes, several PSA models will be transferred

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With Citroën C5 Aircross’ arrival in Rennes, several PSA models will be transferred
- Citroën unveiled the European version of its C-segment SUV, the C5 Aircross, which is already manufactured and marketed in China since September 2017. The differences between the two models are minimal. In Europe, the C5 Aircross will be marketed as of  September 2018.

- To supply this market, it will be manufactured in France, on the PSA site in Rennes, alongside the Peugeot 5008 with which it shares a large number of components, including the platform EMP2.

- The PSA Group expects 100,000 C5 Aircross sales per year in Europe, which, given Rennes' production capacity limited to 150,000 vehicles per year, will force the manufacturer to transfer part of the Peugeot 5008 from Rennes to Sochaux (approximately 50,000 units per year).

- This transfer will result in the transfer of Opel Grandland from Sochaux to Eisenach factory (about 50 000 units per year), where Opel Adam and part of the Opel Corsa are currently produced. These two end-of-life models have been experiencing a significant drop in sales for several months. The arrival of Grandland will enable this German factory to achieve full capacity.

- Given a gradual increase of the C5 Aircross, the transfer of 50,000 Peugeot 5008 from Rennes to Sochaux and 50,000 Opel Grandland from Sochaux to Eisenach should be effective in 2019.


18-14-5   
    
 

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