The Dodge Dart is deleted without any successor
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The Dodge Dart is deleted without any successor
- After announcing that it will terminate the Chrysler 200 (sedan D segment) in December 2016 without any successor, thus casting doubt about the future of the Chrysler brand, FCA Group also announced the end of Dodge Dart (sedan C segment) in September 2016 .
- Albeit positioned in different segments, the Chrysler 200 and Dodge Dart were based on the same platform, that of the Alfa-Romeo Giulietta. It seems that this platform will gradually disappear from American models, leaving the FCA group without any model in the C and D sedan segment .
- The Dodge Dart was launched on the US market in 2012 to replace the Caliber. It had to compete with the Chevrolet Cruze, Ford Focus, Toyota Corolla and Honda Civic. Although the Dart has reached 100,000 sales in 2015 (its highest score), FCA Group decided to remove it from its catalog two years before the planned term and its 2016-2020 product plan does not mention any new sedan in C or D segment neither in Dodge nor in Chrysler.
- The range is therefore now composed of the Dodge Charger and the coupes sedans Challenger (E segment) as well as the Journey SUV (D segment) and Durango (E segment). The future of the minivan Caravan remains uncertain. As for pickups and vans formerly offered under the Dodge brand, they have been grouped under the Ram brand.
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Skoda complements its range by an SUV bigger than the Yeti: the Kodiaq
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Skoda complements its range by an SUV bigger than the Yeti: the Kodiaq
- After Seat, which launched its SUV Ateca in the first half of 2016, the Czech carmaker Skoda, another branch of the German group Volkswagen, launches in turn an SUV derivative of the VW Tiguan, the Kodiaq. While Seat Ateca is shorter than Tiguan by 13cm, the Kodiaq is longer than Tiguan by 2020. It can carry up to 7 people, unlike the two other models. All three models share the same MQB-B platform. It is to note that Volkswagen will offer in a few months a stretched version of the Tiguan which will also carry up to 7 people, as Kodiaq.
- Using the size as segmentation criterion, Inovev positions the Tiguan and the Ateca in the C segment, the lengthened Tiguan and the Kodiaq in the D segment. The VW Touareg (longer than he Kodiaq by 10cm) is positioned in the E segment.
- At Skoda, the Kodiaq is positioned above the Yeti which will be replaced in 2017 by a C segment SUV, also based on the MQB-B platform.
- The Kodiaq is equipped with three petrol engines (1.4 TSI 125hp and 150hp, 2.0 TSI 180hp) and two diesel engines (2.0 TDI 150hp and 190ch). This SUV is produced in Kvasiny (Czech Republic), alongside the Seat Ateca, Skoda Superb and Skoda Yeti.
- Inovev forecasts 50,000 Kodiaq produced each year in Europe.
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Breakdown of car production by USA State
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Breakdown of car production by USA State
- Into 12 million vehicles (PC + LUV) produced in the US in 2015, nearly 8 million were light trucks (American segmentation: SUVs, minivans, pickups, vans) and slightly more than 4 million were passenger cars (American segmentation: sedans, station wagons, coupes, convertibles). The production of light trucks exceeded that of passenger cars in the early 2000s and the gap between the two volumes has grown steadily since.
- The production of GM, Ford and Chrysler represents only 52.5% of US production in 2015, whereas it represented nearly 100% even in the 80s.
- Formerly concentrated in Michigan (around Detroit), US production has gradually migrated to a dozen other states, especially since the arrival of Japanese manufacturers (in the 80s) and German manufacturer (in the 90s). This change was accompanied by a wave of plant closures at GM, Ford and Chrysler in Michigan.
- Result: Michigan now accounts for a quarter of US production (2.9 million units) against almost 100% into the 80's. It lost almost two thirds of its production volume compared to 1970.
- Ohio became the second producer of state vehicles and now produces almost as much as Michigan (2.7 million units), thanks to Honda and Nissan. Michigan and Ohio account for 45.5% of US production.
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Mercedes built its second US assembly plant
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Mercedes built its second US assembly plant
- Mercedes operates since 1997 an assembly plant in North America. This plant, located in Tuscalooosa (Alabama), has a capacity of 300,000 vehicles per year and manufactures:
- for the whole world: the SUVs GLE (ex-ML) and GLS (ex GL).
- For the North American markets: the sedan C-Class since 2014, the Sprinter and the Vito (called Metris USA.
- Due to the saturation of the Tuscaloosa plant (Inovev estimates the output of the plant to reach 350 000 vehicles in 2016), Mercedes has decided to shortly transfer the 40,000 Sprinter and Vito made each year in the new plant that is currently under construction in Charleston (South Carolina). This new plant will produce up to 40,000 trucks a year, but its capacity can be doubled if demand requires it or the carmaker would decide to add a mid-range pick-up.
- North American pickups and vans markets are indeed growing. Regarding trucks, the range offered in North America by manufacturers is increasingly composed of European models. Nissan produces in USA the NV200 since 2011, Ford the Transit since 2014, FCA the Fiat Ducato since 2014, Mercedes the Sprinter since 2010 and the Vito since 2016.
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Could in future FCA give up the brand Chrysler?
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Could in future FCA give up the brand Chrysler?
- Chrysler brand has met serious difficulties on the US market for several years. It has also disappeared in other regions in favour of Lancia, which itself is endangered. Its global sales decreased from 800 000 units in 2005 down to 400,000 in 2014 and 300,000 in 2016.
- Inovev does not foresee any improvement in 2017. On last March, production of MPV town &Country was stopped. And then FCA announced it will not manufacture any more its 200 sedan in December (100 000 vehicles have been sold in 2016), without planning any successor. Only two models in the Chrysler range will survive in 2017: the 300 sedan, which dates back to 2011 and whose future is uncertain, and the Pacifica minivan launched in March. But this model Pacifica could also be proposed under the Dodge brand, which would significantly hinder the career of Chrysler.
- FCA has developed the brand Jeep, taking advantage of the overall SUV market growth. However it failed to position the brand versus other brands of Chrysler Group. Same positioning problems were also encountered for other brands of the group, such as Lancia.
- And, conversely to GM, FCA has not managed to benefit from the Chinese market growth.
- The aim of FCA is now to increase sales of Dodge and Ram (former pick-up branch of Dodge) without building new plants, which directly threatens the existence of the Chrysler brand.
- Alfa-Romeo seems the FCA group brand which is in the better position to take up the market which would be left by Chrysler.
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