Renault-Nissan could be the second global carmaker in 2017

 

The Renault-Nissan group is currently the fourth largest carmaker behind Toyota, Volkswagen and General-Motors.
With the acquisition of Mitsubishi Motors which should be effective in 2017, the Franco-Japanese group could overpass Toyota and General Motors, to become
the world's second largest carmaker next year, with a production volume very close to that of Volkswagen (which would become the first carmaker).

What are the reasons as  analysed by Inovev?

1. The manipulated engines case at Mitsubishi motors should not have consequences for the whole group, because the takeover by Renault-Nissan will go in the way of cleansing the situation.

2. Renault-Nissan will support Mitsubishi to develop its models range, with bigger means than if Mitsubishi had remained independent.

3. Renault-Nissan could apply to Mitsubishi the mass effect strategy (platform, production plant, materials…) which has been applied to the other brands of the group.

4. Renault-Nissan will develop all brands, some of which are still small in the world, as Datsun and Samsung.

5. The Group will also increase its presence in China and the ASEAN countries.

6. The restart of the Brazilian and Russian markets will further enhance the presence of Renault and Nissan globally.

16-22-6   

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Nissan unveils the NV300 which replaces the Primastar

 

Nissan has just unveiled the NV300  which will replace the Primastar van (160,000 sales in 14 years). The NV300 shares the platform and the body of recent Renault Trafic and will be manufactured along its side at the Renault Sandouville site (France).
It can be noted that the
Primastar was manufactured on the Nissan site of Barcelona. The Renault Trafic, Nissan NV300 and Fiat Talento vans are now grouped on one site instead of three previously (Barcelona, Luton and Valenciennes).

On its side, the Opel Vivaro (which also shares the platform and the body of recent Renault Trafic) remains manufactured on the GM Luton site in England, but the US group envisages to transfer its production to the Sandouville site before the end of the decade.

The NV300  (N1-2 category) is positioned between the NV200 (produced in Barcelona, Spain) and the NV400 (produced in Batilly, France). The NV 200 is a N1-1 category light utility vehicle which replaced Kubistar (base Renault Kangoo) and the NV400 is a category N1-3 light utility vehicle which replaced the Interstar (Renault Master base).

The Nissan NV300 is equipped with diesel engines of 1.6l 95hp (turbo), 120hp (turbo), 125hp (biturbo) and 145hp (biturbo).

Inovev expects a volume of 15,000 NV300 sold each year, in addition to the 95,000 Renault Trafic and 25,000 Fiat Talento, totaling 135,000 vehicles per year at Sandouville which has 150 000 units per year capacity.

16-22-4   

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Toyota will launch a Supra derived from the BMW Z5

 

Fiat had recently launched the 124 Spider on a Mazda MX5 base.
Toyota, on its side, has decided to work with BMW for the new generation of the Supra, a sports coupe sold from 1979 to 2002, which will be renewed in 2018.

The future sports coupe Toyota Supra will have an original BMW gasoline engine combined with two electric motors, making it a hybrid four-wheel drive.

It will be in the Toyota range above the GT86, a coupe that was designed in partnership with the Japanese manufacturer Subaru (Subaru BRZ base).

Future Toyota Supra will share its platform with the future roadster BMW Z5 to be launched also in 2018.

Both models, which will share the same platform, will be manufactured at the Magna Steyr plant in Graz, Austria.

Inovev expects a volume of 50 000 units per year for worldwide sales, at equal amounts for the Z5 and Supra.
It is to note that the BMW Z5 will replace the BMW Z4.

There will be few Competitors of Z5 and Supra, as many manufacturers have abandoned the category of mid-range roadsters and coupes. It is however to mention the Mercedes SLC, Audi TT, Porsche Cayman, Nissan GTR and Lexus RC. The Chevrolet Camaro, Dodge Challenger and Ford Mustang can compete with them.

16-22-3   

Contact us: info@inovev.com 

The US market could decline from 2017

 

Vehicles’ sales (PC (Passenger Cars) + LUV (Light Utility Vehicles) ) have declined 4.5% in August in the US,
after rising 2.5% in June and 0.5% in July.

Should such a decrease announce the end of the market growth in the US?
The US market has increased every year for 6 years (2010 to 2015), which had not happened for decades.
In the first eight months of 2016, the US car market reached 11.87 million units, up 0.6% compared to 2015.
Consequently the US market could get for the full year 2016 close to (just below or just above) the 2015 record level of 17.47 million units.

The questions are:

Will the decline of August followed by also declines in the following months?
Are we at the top peak of sales and is the August decline the first step of a downturn which could have been experienced several times in the past?

Positive economic factors such as an easy access to credit, high levels of consumer confidence and attractive selling prices persist indeed. However, replacement demand that followed the 2008-2009 economic recession starts to dry up, mechanically resulting in an overall slowdown in sales.

Taken into account the demand factors and the economic situation of the US, the scenario privileged by Inovev consists in a slowdown of sales - as soon as the second semester of 2016 - followed by several years of decrease.

16-22-2   

Contact us: info@inovev.com 

Mexican production (PC + LUV): in 2016 and future

 

Mexico has gradually become one of the world's leading automobile producing countries.
In 2016, it will be the seventh largest producer
, behind India and South Korea, and reach for the first time the 4 million vehicles produced (against 3 million in 2012 and 1.5 million in 2009).

Mexico has benefited from the strategy of US car groups who have launched new models there and transferred the production of several models from Canada.

Mexico has especially benefited from the implementation of new carmakers (European, Japanese, Korean)
who wished to have access to one of the world's leading markets (NAFTA) without paying the high US nor Canadian labour costs.
The Renault-Nissan group is the largest producer in Mexico. GM and Ford are still very present in Mexico (30% of Mexican production), but Europeans (48% of Mexican production) are supplanting them since the takeover of Chrysler by Fiat in 2011.  And the imminent arrival of Audi, BMW and Mercedes will amplify the gap.
Japanese (20%) arrived more recently (in the 2000s), Korean (2%) even more recently (in 2016).

Mexican production is very dependent on the US market (almost half of Mexico's production is sold in the USA and this share will further increase in 2020)

Inovev forecasts a temporary production decline from 2018, as a consequence to the expected decline in US market between 2017 and 2020.

16-21-10   

Contact us: info@inovev.com 

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