The BMW Group plans to sell more than 2 million vehicles by 2014

The BMW Group plans to sell more than two million vehicles in 2014. This is the first time a Premium manufacturer will exceed this annual threshold.

In 2013, the German group sold 1.92 million vehicles, thanks to a growth of 20% in China and 8% in the United States. BMW became in 2000 the first premium manufacturer in terms of sales.

Last year, its two main competitors Audi and Daimler (Mercedes + Smart) sold respectively 1.58 million and 1.36 million vehicles (excluding LCV and trucks).

These two competitors are still far from the two million unit mark, and it is clear that the Mini brand is an asset for BMW if it wants to continue to outpace its rivals.

This is why Daimler wants to boost and diversify its Smart brand to try to get closer to Mini in terms of volume. Daimler is now in third place, while it was still leader of the premium market in the early 2000s. The new Mercedes C-Class will in the coming months help breathe new life into the Mercedes brand. As for BMW, in addition to Mini, the new models from Series 2, the Active Tourer and the X4, should enable the brand to stay far ahead of its two rivals.

14-12-4  

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Some of the next VW Tiguan will be assembled in Hanover

Volkswagen, that already produces the Tiguan SUV (segment C) in Wolfsburg, will in the future assemble some of the next generation Tiguan in its Hanover plant (about 50 000 per year). This decision was taken to make better use of the production capacity of the Hanover plant, currently underused, while the Wolfsburg site is saturated.


The Hanover plant already produces the Transporter (T5) a commercial vehicle and a passenger car version (Kombi) as well as the Amarok a pick-up previously produced exclusively in Argentina.


In 2013, Volkswagen produced 226 000 Tiguan models in its factory in Wolfsburg, which also produces the Golf (500 000 units) and Touran (124 000 units), these three vehicles are part of segment C. The plant produced 850 000 vehicles last year, a production level equivalent to its total production capacity.


The Volkswagen Group has also decided to launch two SUVs from segment C marketed under the Seat and Skoda brands. The manufacturer chose the Skoda plant located in Kvasiny (Czech Republic) as a pilot production site for these two SUVs.


The future Seat and Skoda SUVs will be based on the common modular MQB platform of the German group, that is shared by the Volkswagen Golf, Seat Leon, Audi A3, Skoda Octavia and the future Volkswagen Tiguan.


14-12-3  

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Fiat is planning a vast program to re-vitalise the Alfa-Romeo brand

Alfa-Romeo is one of the Premium subsidiaries (with Lancia and Chrysler) of the Fiat-Chrysler group (FCA). In Europe, the group is struggling to keep both the Alfa Romeo and Lancia brands, because of their similar positioning. The management of FCA has recently announced that the Lancia brand would soon disappear, except in Italy. This strategy will be accompanied at the same time by the re-boosting of the Alfa-Romeo brand. The group has announced a major product launch plan with the goal of achieving 500 000 sales in 2020 (against less than 100 000 in 2013).


FCA will present seven new Alfa Romeo models between 2014 and 2018: a Spider based on the Mazda MX5 roadster will be launched by 2016, a sedan and an estate Giulia (segment D) in 2017, a sedan and an estate Alfetta (segment E) in 2018.


In addition two SUVs based on a Giulietta will be launched, a compact car in 2017 and an elongated version in 2018. Alfa-Romeo will take over the Maserati platform for these models that will all be made in Italy (probably in Mirafiori).


Furthermore, Fiat doesn't plan to replace the Mito and Giulietta, although these models could help reach global targets, by accounting for up to 100 000 units per year. It is quite surprising when one compares the Alfa strategy to the Audi, BMW and Mercedes ones who have also developed their range on these segments.


It will be very difficult for Alfa to achieve such high goals, because of the strong competition of Premium German manufacturers who have monopolized the market for decades.


14-12-1  

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By 2014 Honda could stop exporting the Jazz from China to Europe

The Japanese carmaker Honda could stop importing its Jazz models to Europe (segment B) from 2014 onwards due to lower sales of this model and the imminent launch of the new generation that will be produced in the British plant of Swindon.

Since the end of 2013, the monthly production of the Jazz manufactured in Britain is equivalent to the volume of sales of this model on the European continent, hence it is no longer necessary to import these vehicles from China.

Honda chose China as a production country for the Jazz because production costs are lower in China than in Japan and Britain. But the decline in sales of the Jazz in China has pushed Honda to export this model to Europe, in order to upkeep its production levels in this country.

Honda imported from China its B-segment model to Europe, while Toyota was manufacturing the Yaris in France and Nissan was manufacturing the Micra in Britain and then in India. Mazda produced the Mazda 2 in Japan and the Mitsubishi Space Star was produced in Thailand (after producing the Colt in the Netherlands). Suzuki produces its Swift model in Hungary.

Honda now has the opportunity to produce all its Jazz models for the European market in Britain and no longer has to produce some in Britain and some in China.

14-12-2  

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EU exports rose by 5.4% in 2013

Europe exported a total of 2 835 000 vehicles in 2013 to regions outside of Europe, against 2.69 million in 2012, representing an increase of 5.4% from one year to the next.

The three main regions are the USA, China and Russia that represent over 70% of total exports. They increased from 1 435 000 units to 2 017 000 between 2009 and 2013:
-USA: increased from 651 000 to 968 000 in four years (+49%).
-China: increased from 270 000 to 550 000 in four years (+104%).
-Russia: decreased from 514 000 to 499 000 in four years (-3%).

The growth in the U.S. and China can be explained by the volume increase of these markets in four years (+36% and +74% respectively), but also by an even stronger increase in domestic sales of European cars, mainly German.

In Russia, the decline in the overall market in 2013 (-5.4%) and the Russian government incentives so that clients purchase vehicles manufactured in Russia has caused a decline in European exports in 2013.

Note that 40% of EU exports in 2013 to regions outside of Europe came from Germany but 80% are from German manufacturers (Volkswagen Group, Daimler and BMW).

14-11-10  

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