Production achievements: Russia 10 months 2016 and forecast 2017
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Production achievements: Russia 10 months 2016 and forecast 2017
- Nearly 80% of car production in Russia is sold in Russia each year. The level of the russian market has therefore a very great impact on the volume of local production.
- The Russian market declined in 2015 (-35%) and in 2016 (-12%).
For 2017, Inovev expects an increase of the Russian market (+ 5%). But everything depends on whether the economic sanctions imposed on Russia will continue (Donald Trump's policy will have to be closely monitored) and whether or not the Russian government is helping to revive the car market in Russia and Consequently the automobile industry in Russia. It will also depend on when and how much this revival will take place.
For 2017, Inovev expects an increase of the Russian market (+ 5%). But everything depends on whether the economic sanctions imposed on Russia will continue (Donald Trump's policy will have to be closely monitored) and whether or not the Russian government is helping to revive the car market in Russia and Consequently the automobile industry in Russia. It will also depend on when and how much this revival will take place.
- Taking these parameters into account, Inovev expects a 9% increase in Russian production in 2017, thanks in particular to a revival of the local market. This recovery has been noticeable for several months, as the Russian market rose by 0.6% in November 2016 (the first increase since December 2014), down from 2.5% in October and 11% in September And 18% in August.
- It should be noted that the Russian Ministry of Trade and Industry expects a 7% increase in Russian car production in 2017. It should be noted that in the first 10 months of 2016, Russian car production decreased by almost 9% While it had fallen by 27.5% in 2015 compared to 2014.
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PSA will produce a new pick-up in Tunisia from 2018
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PSA will produce a new pick-up in Tunisia from 2018
- The PSA group will produce a new pick-up in Tunisia from 2018. A local assembly site will be opened for this purpose, with a capacity of 1,200 units per year, where the manufacture of the new model will start from the summer of 2018.
- The production capacity of this assembly site is not significant for the Tunisian market. The installed capacity will be just over 2% of the Tunisian market (55 000 “Passenger Cars + Light Utility Vehicles” registered in 2015). But it is significant for the PSA sales: capacity superior to 20% of the volume of sales of the Peugeot brand. Peugeot registers currently 5,500 “PC + LUV” per year in Tunisia (208, 301, Bipper and Partner), being so the fifth carmaker in the country, in terms of sales. Peugeot is behind Renault, Kia, Volkswagen and Citroën. If only PCs are taken into account, Peugeot is fourth (see graph here below).
- This industrial project in Tunisia (with the support of STAFIM, the local Peugeot importer) is part of a broader PSA development strategy in Africa and the Middle East: construction of a plant in Kenitra, Morocco (100,000 cars per year from 2018 onwards), discussions under way for an industrial plant in Algeria, restart of production in Iran (100,000 cars in 2017 and 350,000 per year from 2020). PSA intends to reduce its dependence from the European market and take advantage of the potential of the Africa-Middle East region, which is expected to increase from 5.3 million vehicle sales in 2015 to 8 million in 2025, an increase of 50 % in ten years.
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Opel will reorganize European production of Adam, Corsa and Mokka
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Opel will reorganize European production of Adam, Corsa and Mokka
- As the plant in Zaragoza has a capacity limited to 470,000 vehicles a year, and the future Citroën C3 Aircross will now be manufactured on this site, Opel will reorganize the European production of its compact models (A-segment sedan), Corsa (B-segment sedan) and Mokka (B-segment SUV).
- The Adam is currently produced in Eisenach (Germany), the Corsa is produced on two different sites, in Eisenach and chiefly in Saragossa (Spain), the Mokka is produced in Zaragoza.
- The next generations of these three models will no longer be produced on the same sites as today:
the future Adam (planned for 2018) will be produced in Zaragoza, the future Corsa (launched in 2019) will be produced entirely in Zaragoza and the future Mokka (launched in 2020) will be produced in Eisenach.
the future Adam (planned for 2018) will be produced in Zaragoza, the future Corsa (launched in 2019) will be produced entirely in Zaragoza and the future Mokka (launched in 2020) will be produced in Eisenach.
- In 2020, the Spanish plant in Zaragoza (capacity: 470,000 vehicles per year) will produce four different models: Adam, Corsa, Crossland (ex-Meriva) and Citroën C3 Aircross (ex-C3 Picasso), while the German plant in Eisenach (capacity: 200,000 vehicles per year) will produce only one model: the Mokka.
- Without this reorganization, the site of Zaragoza would have passed with great difficulty the 500 000 vehicles per year, and the concentration of production of the Corsa on a single site would have been impossible.
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PSA reorganizes the European production of the Peugeot 208
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PSA reorganizes the European production of the Peugeot 208
- As the capacity of the PSA plant in Trnava (Slovakia) is insufficient to produce 400,000 vehicles in 2017 and in 2018, the PSA group has decided to transfer a volume of 70,000 Peugeot 208 from Trnava to the French site of Poissy, which already manufactures some of these models for the European market.
- Indeed, the Slovak site of Trnava has just started manufacturing the new Citroën C3 (130 000 units per year), while it already produces the Peugeot 208 (220 000 units in 2016) and Citroën C3 Picasso (50 000 units In 2016), which is theoretically equivalent to a manufacturing program of 400,000 vehicles per year, with a capacity of 300,000 units per year that could be increased by only 10% (to 330,000 units per year) in extreme cases.
- Even if the Citroën C3 Picasso is scheduled to be stopped in Trnava during the first half of 2017 (its replacement being produced on the GM site in Zaragoza, Spain), the manufacturing program will exceed the 300,000 units.
- The decision to transfer 70,000 Peugeot 208 from Trnava to Poissy in 2017 and 2018 will thus enable the plant to operate at less than 110% of its capacity and the Poissy plant to maintain a shift that otherwise would have been to removed.
The production volume of Poissy is expected to increase in 2017 from 133,000 units to 203,000 units, and in 2018 from 106,000 units to 176,000 units.
According to PSA, Poissy will be able to produce 200,000 vehicles per year from 2019, thanks to the new DS3.
The production volume of Poissy is expected to increase in 2017 from 133,000 units to 203,000 units, and in 2018 from 106,000 units to 176,000 units.
According to PSA, Poissy will be able to produce 200,000 vehicles per year from 2019, thanks to the new DS3.
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Production achievements (PC+UV): Canada 10 months 2016 and forecast 2017
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Production achievements (PC+UV): Canada 10 months 2016 and forecast 2017
- In the first 10 months of 2016, Canadian automotive production (Passenger Cars + Utility Vehicles) increased by 2.9%, down from 6.4% in 2015, following model shifts to Mexico. The market grew by 3.1% in 2016 compared to 2015.
- In 2016, more than 85% of production was exported to the US and Mexican markets. The level of Canadian production is heavily dependent on the growth of the US and Mexican markets. In 2016, the US market stabilized (+ 0.1%) compared to 2015, while the Mexican market rose sharply (+15.2%).
- Two scenarios can be established:
• A first scenario of stability of US markets (+ 0.1%), with consequently growth of the Mexican market, however smaller than in 2017 (+ 5%).
The US car market will likely stabilize pending a clarification of the Trump administration's policy choices. The Mexican market should continue to grow but however less strongly if consumer confidence is affected by uncertainty about future US policy. Under this assumption, Canadian production is expected to stabilize (-0.7%).
The US car market will likely stabilize pending a clarification of the Trump administration's policy choices. The Mexican market should continue to grow but however less strongly if consumer confidence is affected by uncertainty about future US policy. Under this assumption, Canadian production is expected to stabilize (-0.7%).
• A second scenario of positive growth in the US (+ 1%) and Mexican (+ 7%) markets in 2017. The US market could slightly increase in registrations, driven by an economic growth which is expected to strengthen in 2017. Regarding Mexico, economic growth should be driven by a stronger demand for imports from the United States, if the economy dynamic of the US is positive. Under this assumption, growth of Canadian production could be + 1% in 2017, a level within the current production capacities of the country.
- It is to note that no transfer of vehicles from Canada to the USA during the year 2017 is currently planned.
Moreover, a tax on imported vehicles could only be implemented in a context of a renegotiation of the NAFTA. And results of this potential renegotiation are difficult to envisage during the 2017 year.
Moreover, a tax on imported vehicles could only be implemented in a context of a renegotiation of the NAFTA. And results of this potential renegotiation are difficult to envisage during the 2017 year.
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Read more... Production achievements (PC+UV): Canada 10 months 2016 and forecast 2017
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