The Renault plant in Batilly will run at nearly 100% of its production capacity in 2014

Renault aims to to run its French plants at 100% of their production capacity in 2016-2017.  The plant in Batilly, which produces commercial vehicles, is about to meet this objective.

Inovev estimated that sales of light commercial vehicles (LCVs) will increase by 13% in 2014 compared to 2013 (to 1 653 000 units). The growing demand in Europe for high-volume commercial vehicles like the Renault Master, Opel Movano and Nissan NV400 is notably one of the reasons for the market growth.

The Batilly plant specialized in this type of vehicle should produce in 2014 nearly 105 000 units. In 2013, 92 000 vehicles were produced of which: 73 000 Renault Master, 10 000 Opel Movano, 5 000 Nissan NV400 and 4 000 Master (over 3.5 tonnes) from the Renault Trucks brand (a brand of the Volvo Trucks group). Batilly has increased its production of the Renault Master while the current model reaches the end of its life cycle and a restyled version is due to be launched in 2014.

The production capacity of the plant is now of 110 000 vehicles per year. With a utilization rate of 95%, the aim is therefore about to be reached.

14-10-8  

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32% overcapacity in Europe in 2013 (against 31% in 2012)

The utilization rate of car plants in Europe (Russia and Turkey included) continued to decline in 2013, but less strongly than in 2012. This rate fell to 68% instead of 69% in 2012 and had reached 75% in 2011, which is the lowest in the decade after that of 2009, which did not exceed 62%. Overcapacity in Europe therefore reached 32% in 2013 against 31% in 2012 and 25% in 2011. The best result of the decade was reached in 2007 with only 15% overcapacity.


It is the further decline in automobile production in Europe in 2013 (-5%), which worsened the situation last year, despite several plant closures in recent years, Ford (Southampton), PSA (Aulnay), Mitsubishi (Born), Opel (Antwerp), SAAB (Trollhättan), Fiat (Termini), which offset the decline. In 2014, the closure of the plants of Bochum and Genk and the expected recovery in the European market should reduce overcapacity in Europe by 1% to 2%.


Carmakers are not all in the same boat. While general manufacturers GM, PSA, Renault-Nissan, Honda and Fiat-Chrysler reduced their production rates last year, premium manufacturers BMW, Tata Motors (Jaguar -Land Rover) and Daimler increased theirs. These three manufacturers are also those with the best utilization rate of their plants in Europe (over 80%), ahead of the Volkswagen group, Hyundai-Kia and Geely (Volvo) that recorded utilization rates between 75% and 80%.


14-10-9  

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The Peugeot 308 is the Car of the Year 2014

After the Volkswagen Golf in 2013, the new generation Peugeot 308 was elected Car of the Year 2014. One year to the next, two mass-produced cars from segment C have thus won the title, after the election of two electric cars (the Nissan Leaf in 2011 and the Chevrolet Volt in 2012).


In 2014, electric cars were not far from the title, since the BMW i3 is in second place and the Tesla Model S is third. The other models that were selected were : the Citroën C4 Picasso II, Mazda 3, Mercedes S Class and Skoda Octavia III, these models had fewer points. The 308 Next Generation is the fourth car of the brand to win the title after the 504 (1969), the 405 (1988) and the 307 (2002).


Inovev expects that 180 000 Peugeot 308 will be produced per year, while the manufacturer announced a production rate of 800 units per day (160 000 per year) it has now been increased to 1 000 units per day (200 000 per year) by the second quarter of 2014, thanks to the arrival of an estate version.


The first sale figures for 2014 in Europe are not yet known, but we can see that during the first two months of 2014, the Peugeot 308 has already taken the ninth place in the French market, ahead of its competitors the Renault Megane (10th) and the VW Golf (11th).


14-10-7  

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Tesla expects to sell 500 000 electric cars a year by 2020

Tesla unveiled a plan for a plant that will produce lithium-ion batteries for electric vehicles. The plant is expected to be completed by 2017 and will equip by 2020 nearly 500 000 of the brands vehicles per year. Tesla plans to manufacture 35 000 vehicles in 2014 (against 25 000 in 2013) and 70 000 in 2015, 150 000 in 2016, 250 000 in 2017, 350 000 in 2018, 450 000 in 2019 and 500 000 in 2020.

However, no announcement was made on Tesla's ability to produce these 500 000 vehicles by 2020 and on which markets the vehicles will be sold. If it indeed wants to mass produce its electric models several questions can be raised.

Does Tesla have the capacity to produce 500 000 vehicles? Today 30 000 vehicles rolled out of the Fremont plant (California) and when the plant used to belong to GM / Toyota it could produce up to 400 000 gas vehicles. Naturally, this does not mean that Tesla is able to produce as many electric vehicles. Another solution that would be available would be to build or buy a new plant in North America or in Europe, or even using CKD assembly (like Tesla is currently doing in the Netherlands) or a JV in China if sale volumes follow.

What models will achieve this goal? Tesla currently offers a sedan from segment F (Model S), but the carmaker expects to start the production late 2014 of an SUV from segment D (Model X) and intends to launch by the end of 2016 a sedan from segment D, which will cost less than 40 000 dollars.

 


With this objective of 500 000 vehicles produced annually by 2020, Tesla will become the leading manufacturer of electric vehicles. To recap, the Renault-Nissan group, the largest producer of electric vehicles, produced since 2010 more than 100 000 units and will have the capacity to produce 500 000 vehicles per year by 2015.

14-10-6  

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The 2013 top ten assembly plants in Europe

Below are the top ten plants in Europe in 2013:

1st: the Volkswagen plant of Wolfsburg (+1.9% compared to 2012) that increased slightly thanks to the Golf VII.

2nd: the AvtoVAZ plant of Togliatti (-14.4%) declined due to a decrease in the Russian market.

3rd: the Nissan plant of Sunderland (-1.7%) declined slightly (end of life cycle of the Qashqai).

4th: the Audi plant of Ingolstadt (+9.3%) benefited from the rise of the Audi A3.

5th: the Dacia plant in Pitesti (-10.3%) suffered from the change of generation Logan / Sandero.

6th: the PSA plant of Vigo (+36.0%) benefited from rise of the C4 Picasso, C-Elysée and 301.

7th: the Skoda plant of Mlada Boleslav (-1.6%) declined slightly in 2013.

8th: the Audi plant of Neckarsulm (-14.1%) declined because of a lack of success of the A6, A7, A8, Q5.

9th: the Mercedes plant of Sindelfingen (+3.1%) benefited from the new restyled S-Class and E-Class. 

10th: the Ford plant of Koln (+19.2%) benefited from the restyling of the Fiesta.


The production of these 10 plants accounted for more than 4.6 million vehicles (passenger cars + LCVs) in 2013, 25% of European production including Turkey, Ukraine and Russia.


14-10-5  

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