Category Blog

Details: Published: 06 September 2022

The new DS product plan (2014-2018) revealed

- We have already observed that the creation of a global third brand within the PSA Peugeot Citroën group was approved by PSA’s new board of directors. This brand called DS and located in the Premium category will win over customers used to buying Audi, BMW, Mercedes or even Volvo and Saab vehicles.

- Until now, the DS 3, DS 4 and DS 5 were integrated into the Citroën brand, in Europe at least, whereas in China DS already forms a full-fledged brand since the fall 2013.

- Last year, 85% of DS sales were made in Europe and 15% outside of Europe, mainly in China. In addition, 60% of these sales accounted to the DS 3. In 2017-2018, the manufacturer’s objective is to sell 50% of its vehicles in Europe and 50% outside Europe, and these sales should be better distributed across the entire range.

- The product plan announced for the DS brand by 2017-2018 is as follows: new DS 3 in 2017 ( segment B sedan), DS 5 launch in China in 2014 and in Europe in 2016 (segment D sedan), DS 6 launch in China in 2016 and in Europe in 2017 ( segment D sedan), DS 6WR launch in China in 2014 and in Europe in 2017 (segment D SUV), DS 9 launch in China in 2017 and in Europe by 2018 (segment E sedan) and finally the DS 9WR will be launched China in 2017 and in Europe in 2018 (segment E sedan). This new DS range is part of the PSA program to offer 26 models in its catalogue by 2022, including 13 Peugeot, 7 Citroën and 6 DS.

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Details: Published: 06 September 2022

Changan Ford is going to launch a new brand

- In order to better establish themselves in the Chinese market Ford and its Chinese partner Changan have planned to launch a new common brand in 2016. This new brand could be called « Jiayue » but no official announcement has been made. The first model may be based on the Ford Focus Classic and manufactured in Chongqing by September 2016 (70 000 units per year).

- It is interesting to analyse the different strategies implemented by independent Chinese carmakers and the strategies implemented by joint venture partnerships between Chinese and foreign carmakers. The volume of sales is what defines if a new brand should be launched or not.

- In the first scenario, independent Chinese carmakers that account for 30% of the Chinese market are turning toward a multi-brand strategy instead of a mono-brand strategy. In the second scenario JV carmakers that hold 70% of the Chinese market are creating more and more brands.

- The Volkswagen group has three brands (VW, Audi, Skoda), GM Group has four brands (Chevrolet, Buick, Cadillac, Wuling), PSA has added a third brand to its catalogue (DS has been added to Peugeot and Citroën). GM (and SAIC) created the Baojun brand in 2013 and Kia will soon create a brand dedicated to China in order to boost sales.

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Details: Published: 06 September 2022

Production

New models manufactured in Europe in 2014 and 2015

- In 2014 and 2015, European production of PCs (including Russia, Turkey and Ukraine) will reach, respectively 17.8 million units and 18.7 million units. In addition to the models produced at a standard pace , thirty new models launched each year in 2014 and 2015 will help in reaching the expected growth of 5%. It is therefore interesting to analyse which countries and which manufacturers launch these models, and in which body segments they will be manufactured.

- Germany and Spain, with 7 new manufactured models are the two countries that will launch the largest number of new vehicles in 2014, slightly ahead of the Czech Republic (4 new models). Spain therefore confirms growth of its production, while the Czech Republic benefits from the renewal of Toyota Aygo/Peugeot 107/Citroën C1. In 2015, the UK will benefit from a good momentum with the launch of 8 new models. France will remain constant in 2014 and 2015, with the launch of two new models each year. However, the analysis of group nationality shows that Germany (VW-BMW-Daimler) and France (Renault-Nissan and PSA) remain the two main carmakers in Europe.

- By group, Volkswagen and Renault-Nissan are the most dynamic while Fiat-Chrysler will keep a relatively low profile in 2014 and 2015 (2 new vehicles each year). It should be noted that PSA and GM have not planned any new vehicles in 2015.

- By segment, in 2014 the C segment (10 new vehicles) and B segment (9 new vehicles) are the most present. Surprisingly, in 2015, it's inside segment D that most of the models will be launched (8 models from which 6 sedans) in a European market where mainstream manufacturers are increasingly abandoning this segment. By bodywork, despite the increase in SUVs and Crossovers, the first place is still held by sedans that will be the most produced bodywork in 2014 and 2015.

- Finally, 2014 will see the restyling of many models (19 including 4 Audi, 3 Ford, 3 BMW and 3 VW) while the year 2015 will be rather weak (5 restyled models).

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Details: Published: 06 September 2022

The Russian market may keel over in 2014

- The Russian car market reached a peak in 2012, with a volume of nearly three million light vehicles registered (2 935 000 units) but started to fall as of 2013 to 2 777 000 units, representing a decrease of 5.4% compared to the previous year.

- As for 2014, the initial forecasts of a modest reboot of the Russian market didn't last long. The first four months already suggested a decline of 4% to 5% over the whole year, but today forecasts are much more pessimistic (between -10% and -20%). The automotive market reflects the Russian economy that is experiencing a period of uncertainty with a national growth close to zero in 2014, particularly due to geopolitical unrest between Ukraine and Russia.

- The Chairman of AvtoVAZ, the largest carmaker in the country announced a possible decrease of 20% of the Russian market in 2014. According to the president of AvtoVAZ, 2014 and 2015 will be difficult for the automotive market in Russia.

- Although the context and the stakes are different, this situation is similar to what happened recently in Iran, where economic sanctions significantly worsened an already fragile situation in the country. The Iranian car market fell by more than 30% in 2013 compared to 2012, a year that had already seen its market decline by nearly 40%.

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Details: Published: 06 September 2022

U.S. exports grew in 2013

- While the US car market reached 15.6 million sales last year (levels close to those of 2007) and that US production has exceeded 11 million units (levels close to those of 2006), exports have also been growing constantly since the 2008-2009 crisis.

- For the first time in over 10 years theUSA exported more than 2 million vehicles in 2013 (PC+LCV). Starting at 1.06 million units in 2009 to over 2 million units in 2013. US exports have hence doubled in four years. These levels are still under those of Mexico (2.4 million vehicles exported in 2013).

- Back in 2004, Mexico and Canada accounted for 80% of US exports, by 2013 this figure dropped to 50%. Exports towards Germany and mainly Saudi Arabia and China are increasing rapidly.

- Over half of the 2 million vehicles exported from the US in 2013 originated from the Big Three (GM, Ford, Fiat Chrysler). Followed by Japanese carmakers (500 000 units), European carmakers (300 000 units) and Korean carmakers (100 000 units).

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