BMW is going to build a plant in Mexico

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BMW is going to build a plant in Mexico

- In 2013, BMW's global production reached 2 million units (including Mini and Rolls Royce). This production is distributed over 15 plants worldwide, 4 in Germany (55% of world production of BMW) and only 1 in the USA.

- While the top three global markets by volume for BMW are the USA (425 000 units), China (362 000 units) and Germany (265 000 units), the models produced for these markets come mainly from Germany (44% of BMW production is exported from Germany). In order to better allocate the production in the world and move closer to its main markets, BMW has announced the construction of a new plant in Mexico.

- This plant, will be located north of Mexico City (in the state of Hidalgo) and will start production in 2017, it will have a capacity of 200 000 units. BMW has not yet announced which models will be produced there, but we can imagine that it will be models that are very successful in the U.S. (the main export area for the future plant), models that are currently produced in Germany. It would hence be the Series 3 and Series 5, the Mini or the X1. These four models were sold at over 270 000 units in the U.S. in 2013. In addition to the U.S., the models produced in Mexico will be exported to South America, but also sold locally, whereas Europe will not be receiving any.

- BMW's strategy follows that of other Premium German manufacturers that  have also announced the production launch in Mexico, by 2015 for Mercedes (Aguacalientes) and Audi (San José Chiapa). In 2014, Mexico will produce 3.2 million vehicles (PC+LCV), ranking it ahead of Brazil. By 2020, the Mexican production will reach between 3.5 and 4 million units per year.
 

 

14-22-4  


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Opel unveils the new Corsa

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Opel unveils the new Corsa

- Opel has unveiled the fifth generation of the Corsa (segment B), which merely re-uses the updated Corsa 2006 platform (shared at the time with the Fiat Punto), instead of the platform of the Peugeot 208 (following the end of the agreement between PSA and GM). The GM group’s European urban vehicle will be powered by two new petrol engines: A 3-cylinder 1.0 DISI (90 or 115 hp) and a 1.4 Turbo (100 hp). Both engines will be completed by current 1.2 and 1.4 engines. Concerning diesel vehicles, Opel will continue using the 1.3 CDTI (75 hp or 95 hp). The Opel Corsa evolves in a hypercompetitive segment, segment B and must not only deal with market leaders such as the Ford Fiesta, VW Polo and Renault Clio, but also with the development of « premium » competitors  such as the Audi A1 and Mini. More sedan bodies are now challenged by the development of SUVs (Opel Mokka , Renault Captur, Peugeot 2008 ...).

- Besides a possible development of segment A, which should attract traditional B-segment customers for whom  the higher prices and larger vehicle dimensions no longer meet their needs.

- Segment B remains a key market for Opel, accounting for 30% of its European production. However, the Corsa model has been declining in recent years, from 400 000 sales in 2007 to 230 000 in 2013. The new Corsa will therefore attempt to boost Opel's sales of urban vehicles since the manufacturer is aiming 300 000 annual sales in Europe, one third of which will be produced in the Eisenach plant (Germany) and two-thirds in the Zaragoza plant (Spain).
 

 

14-22-2  


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Indonesian production has reached 1 million units in 2013

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Indonesian production has reached 1 million units in 2013

- Indonesia’s 2013 production levels went up up 17% compared to 2012 to reach 1 million units. One main factors can explain this surge in production: the growing domestic demand alongside the LCGC (low cost green car) policy launched in September 2013 coupled with the launch of LCGC compliant vehicles by several manufacturers.

- What is an LCGC vehicle? An LCGC vehicle must follow these four specifications –Priced between 50 and 85 million IDR (3 000€ to 5 000€)  –Be fuel efficient, maximum 5L/100km –Manufactured at at least 60% locally –Have a cylinder capacity of between 980 cc and 1,200 cc for spark ignition engines (Petrol) and the capacity of compression ignition engines (diesel) must not exceed 1 500 cc. Out of the 1 million vehicles produced in 2013, 53 000 vehicles produced were LCGC-compliant.

- By manufacturer, the leading carmaker is Daihatsu with 488 000 units (up 15.8%) surpassing the company’s annual production capacity of 460 000 units and exceeding the previous years results by some 67 000 units. Out of these 488 000 units 41 000 were LCGC compliant vehicles (Daihatsu Ayla and Toyota Agya) followed by Suzuki 180 000 units (up 34.8%), in addition to production increase of the Eriga MPV and the Futura LCV, this volume was also helped by the LCGC-compliant Karium Wagon R. Totota followed with 163 000 units and Honda with 81 000 units, Honda rose by 46.1% to 82 000 thanks to the brisk performance of the Jazz.

 

14-21-12  


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Volkswagen unveils the new Passat

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Volkswagen unveils the new Passat

- Volkswagen has unveiled the eighth generation Passat (segment D), based on the " MQB platform”. According to the manufacturer, this generation is lighter than the previous generation by nearly 90 Kg.


- The model will be powered by a petrol 1.4 TSI (122 or 150 hp), 1.8 TSI (180 hp) and 2.0 TSI (220 or 280 hp) and two diesel engines, the 2.0 TDI (150 or 190 hp) and the 2.0 TDI Biturbo (240 hp). A 1.6 TDI (120 hp) will be launched later on. A plug-in hybrid powertraincombining a 1.4 TSI 156 hp and an electric engine of 80 kW / 109 hp is also going to be produced.


- In Europe, its biggest market, the Volkswagen Passat is the leading segment D vehicle among mainstream manufacturers. However, it is also suffering from the decline in this segment because of premium brands (BMW, Mercedes and Audi) and the growth of other bodies (such as SUVs ). Thus, between 2006 (the year it reached record high sales) and 2013, the Passat has lost 50% of its sales volume, going from 300 000 to 150 000 units.


- To compensate for this loss, Volkswagen is counting on the U.S. and Chinese markets, where the Passat is already present in various specific versions of the European model. The German manufacturer has announced a target of annual sales of 250 000 units in Europe, 150 000 in North America and 250 000 in China.


- In Europe, the Passat is still produced in Emden (Germany). In China, it will be produced in Shanghai (SAIC).

 

 

14-22-1  


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In 2013 China’s electric vehicle market increased by 22%

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In 2013 China’s electric vehicle market increased by 22%

- China’s Hybrid and EV (electric vehicles, this segment includes plug-in hybrid and battery electric vehicles) production volumes went up 22% YOY (year on year) in 2013 to reach 20 420 units, according to the CATARC (China Automotive Technology and Research Center).


- The most popular electric vehicle type is the BEV (Battery Electric Vehicle, with 13 354 units produced) followed by HEV (Hybrid Eletric Vehicle, with  6 348 units) and last but not least PHEV (Plug-In Hybrid Vehicles, with 718 units). This is partially explained by the fact that the Chinese would like to transit from Thermic Engines to 100% electric engines, without having to use hybrid technology.


- By model, The leader was the Camry (GAC Toyota HEV) with 5 204 units manufactured, followed by the QQ3 (a Chery SUV) with production levels reaching 4 895 units. The Kandi EV (Zotye / Kandi from segment A) is far ahead of the E150 EV (Baic) with respectively 3 671 and 1 183 units.


- The market is expected to grow in coming years and Toyota plans to launch the new Corolla and Levin  (both C segment sedans) models both equipped with a locally developed hybrid engine while Honda Motor intends to release a locally-developed HEV (Hybrid Electric Vehicle) in 2016, prompting automakers to keep an eye on the market’s reaction to HEVs.

 

14-21-13  


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  1. China’s vehicle demand is shifting from the East towards the West
  2. Honda’s production in China reached 790 000 units in 2013
  3. 2013 ranking of models manufactured in the greatest number of plants
  4. European electric vehicle sales (PC+LCV) in 2014
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