GM Intends to Create in Thailand A Production Hub of Small Automobiles for ASEAN
 
General Motors intends to promote Thailand as a production base of small automobiles for the ASEAN market. In October 2014, GM acquired approval from the Board of Investment of Thailand for participating in the second phase of the Eco Car scheme. The automaker plans to invest to set up a manufacturing base in Rayong province with an annual production capacity of 158,000 units.

While GM currently manufactures one-ton pickup trucks in Thailand and exports them to over 60 countries around the world, the automaker will now also engage in small passenger vehicle production for the Eco Car market.

In Rayong province, GM has an annual production capacity of 180,000 automobiles manufacturing one-ton pickup trucks and passenger vehicles. Apparently, the automaker's passenger vehicle production capacity is around 50,000 units. Meanwhile, the Eco Car program requires an annual production scale of at least 100,000 units and local production of Eco Car-compliant gasoline engines. Although the future Eco Car model has yet to be revealed, it is forecast to be the Spark or the Sonic.

Prior to the enhancement of the local production system, GM is stepping up activities to ensure demand. Once development functions in Thailand get on track, the importance of the Thai base will increase for GM.

15-06-9  

 

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Novelties from the 2015 Geneva Auto Show
 

The 2015 edition of the Geneva auto show was an opportunity to review the new models announced for the European market for 2015. Beyond the concept cars introduced, it is interesting to analyse which carmakers were present, which segments and bodies have carmakers targeted and especially when these models will be launched.


First observation, Inovev have selected 25 new products presented in the show while the organisation have announced close to 100 premieres. Of the 25 models that may be marketed, 12 were from European carmakers, 8 from Japanese, 3 from Korean, 1 from an American and 1 from a Chinese.


Second observation, the most represented segments were segments: C (10 models) followed by B (6 models), E (4 models), D (3 models), A and F (1 model each) in a current European market dominated by segments C and B.


Third observation, sedans (12 models) and SUV (10 models) are the two bodies largely represented during this show.


Finallyif the majority of new models (15) are expected for 2015, 10 models should be marketed in 2016.


In the following analysis, you will find the latest review by brands of new models presented the Geneva Motor Show


15-07-1  

 

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German production almost reached its record high levels in 2014
 

With nearly 6,05 million of vehicles (PC+UV) in 2014, the German car production came close to its 2011 record  (6,12 million units). Growth year on year compared to 2013 still proves to be humble (+ 2.5%).


Several factors explain this low growth. Firstly, the German market itself has only experienced a modest growth in 2014 (+ 2.9%), and it is known that the share of local production in total registrations in the German market is still large (over 20 %).


Furthermore, the growth of the European market in 2014 mostly benefited to Renault-Nissan, Mitsubishi, Mazda, and benefited less to German manufacturers.


Finally, while German exports to China have continued to increase in 2014 (60 000 units), those shipped towards other emerging markets have declined, especially to Russia (-23 000 units) and Ukraine (- 17 000 units), seeing as their markets collapsed last year.


Likewise as for France, Germany has for decades, relocated part of its production of high-volume vehicles, for instance the VW Polo are made in Spain, the VW Up in Slovakia, the Audi A1 in Belgium, the Audi Q3 in Spain. GM relocated much of its production abroad a long time ago, and these relocations have grown in recent years. Ford also outsourced a lot before relocating the production of its Fiesta, Focus and C-Max in Germany.


15-06-6  

 

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Ford Plans to Use Thailand Plant As Export Hub of Eco Car Models for ASEAN
 

Ford is aiming to promote Thailand as a strategic production base in Asia along with China and India. In October 2014, Ford plans to manufacture 180,000 units of Eco Cars annually. Although there is concern over overcapacity due to large-scale investments in Eco Car production, Ford intends to step up automobile launches in Thailand including models in the currently popular SUV segment. Apart from strengthening the local market, the automaker also plans to increase export to other ASEAN countries, Australia, New Zealand and elsewhere in an effort to improve utilisation rate.


While Ford’s market share in Thailand remained at around 1-3 percent between 2009 and 2013, share rose 0.5 percentage point to 4.4 percent in the first eleven months of 2014 from the same period of 2013 driven by the Eco Sport SUV and Ranger one-top pickup truck, boosting share despite an overall cooling down of the market. Although the automaker's five percent market goal is set for the short to medium term, the planned release of the fully-remodeled Everest in 2015 may enable Ford to realize its goal.


Ford is currently restructuring its local production structure in an effort to use Thailand as a production hub ofone-ton pickup trucks and small automobiles. Production of the Fiesta was transferred from Auto Alliance Thailand (a joint venture between Ford and Mazda located in Rayong province) to Ford Thailand Manufacturing (FTM) Plant No. 2 in June 2014. FTM's annual production capacity is planned to be increased by 50,000 units prior to the start of Eco Car manufacturing.


15-06-8  

 

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China Vehicle Export: Drops due to Political Instability and Trade Protectionism at Export Destinations
 
China's vehicle export has been dull since 2013 due to higher vehicle prices as a result of vehicle lineup adjustments by automakers and the revaluation of the Chinese currency. Political instability and stepped-up trade restrictions of core markets are also blamed for poor results. Export volume in 2013 decreased 7.5 percent compared to the previous year to 977,274 units. Of which, passenger car export fell 9.8 percent to 596,286 units and utility vehicle export declined 3.5 percent to 381,006 units.

Looking at results by automaker, Chery Automobile dropped 28.2 percent to 133,000 units due to the reorganisation of its product strategy. Nevertheless, it remained top Chinese vehicle exporter. Among the top 10 vehicle exporters, Great Wall, Dongfeng and Lifan each posted double-digit decline, while Geely, SAIC, Brilliance and BAIC realized double-digit increase. In particular, Brilliance rose some 60 percent to 70,000 units, ascending from 11uh place to fifth.

Looking at export volume by region based on customs data, South America fell 25.2 percent to 110,000 units in the first half of 2014 due to Brazil's increase of IPI excise tax on imported vehicles and worsening economic conditions in Argentina. Export to Africa fell 15 percent to 108,000 units, reducing the continent's export ratio to 22 percent. In contrast, the Middle East increased 41.8 percent to 96,000 units, pushing up its export share to 19 percent. Export to Asia increased 6.8 percent and Europe posted a slight increase as well.

15-06-7  

 

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