PSA redefines production targets for European plants in 2017
 

PSA (Peugeot-Citroën) has updated and communicated the new production targets for European plants by 2017.


Firstly, the Group confirms its commitment to produce 1 million vehicles in France in 2017, a slightly larger amount than the levels produced in 2014 (950 000 according to PSA and 1 million units according to Inovev) but the volumes will still remain a lot lower than those of 2007 (1.5 million units).


According to Inovev the volume of production in 2017 (a volume already reached in 2014), is easily achievable, especially given the volume of the European market by this deadline and the arrival of new models.


By plant, the group’s plans for 2017  are (compared to 2014) :

Sochaux: a volume of 385 000 vehicles, an increase in production of 20% due to the success of the 308, to the arrival of the Opel Zafira and the new 3008 (despite the transfer of the 5008 to Rennes).

Rennes: a production volume of 110 000 vehicles (against less than 70 000 in 2014), thanks to the arrival of the 5008.

Mulhouse: a volume of 300 000 vehicles (against 280 000 in 2014), a slight increase (thanks to the new C4 and DS).

Valenciennes: a volume of 65 000 vehicles (against 75 000 in 2014), a slight decrease (end of the Fiat Scudo).

Poissy: a volume of 140 000 vehicles (against 260 000 in 2014), representing a decrease of 45% due to the transfer of the C3 and 208 to Trnava whose volume should reach 340 000 vehicles in 2017.

Vigo, Villaverde, Mangualde : volumes up by 12%, 46% and 26% respectively, due to the increasing sales pace of the C4 Cactus, the future Berlingo, Partner and the arrival of future Opel Combo.

 

14-31-3  


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Hyundai to manufacture LCVs in Europe for the local market
 

In a European market where the share of LCVs was up by 10% in 2014 (compared to 2013), the production of 3.5 ton vehicles reached 650 000 units in 2014 (against 600 000 units in 2013). The leaders in this category are the Ford Transit (200 000 units), followed by the Mercedes Sprinter (125 000 units) and the Fiat Ducato (100 000 units).


Up until now the Korean carmaker Hyundai-Kia occupied only a very small share of the market for light commercial vehicles (H1 model imported from Korea). Today, the manufacturer is going to establish itself in this market with a new model, the H350, it will be competing with the Renault Master, Ford Transit, Fiat Ducato, Mercedes Sprinter and Volkswagen Crafter).


The name of the vehicle is related to its weight and allows us to anticipate the launch of future light commercial vehicles by the Korean carmaker. These new models could be named H250 (competing with the Renault Trafic, Opel Vivaro, Ford Transit Custom, Mercedes Vito, Volkswagen Transporter) and H150 (competing with the Renault Kangoo, Opel Combo, Fiat Doblo, Ford Transit Connect, Mercedes Citan, Volkswagen Caddy) ...


This model will be produced in the Turkish assembly plant ran by Karsan located in Bursa which already manufactures the Fiat Ducato and the Peugeot Boxer for the local market. For now, the H350 will be available in two lengths (5.50m and 6.20m) and two engines (2.5 diesel available in 170 hp or 150 hp ). Hyundai has not provided production targets, but for a newcomer, we can estimate a volume of 50 000 annual units as being a possible target and also be close to the volumes of the Citroën Jumper and Peugeot Boxer.

 

14-31-1  


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Hyundai-Kia declined in Korea but grew in emerging markets
 

With the gradual opening of the Korean market (particularly following custom agreements between Europe and South Korea), the Hyundai-Kia group suffers more and more from the pressure of its foreign competitors. Despite a Korean PC + LCV market increase (+7% over the nine months of 2014), the share of the Hyundai-Kia group market declined in 2014, to less than 70% (against nearly 77 % in 2009).


The last three months are rather interesting: 69.7% market share in July, 68.4% in August and 67.3% in September. The Hyundai-Kia group has been losing 1 point of market share every month since the summer.


However, the first Korean manufacturer (fifth worldwide manufacturer) offset the decline in its domestic market by an increase in its market share in the BRIC countries (Brazil, Russia, India and China). Thus, Hyundai-Kia strengthens its third place in China (9% market share) with sales up by 8.2% (9 months 2014 / 9 months 2013). In India, the Group maintained its second place (16% market share) with sales up by 8% over the nine months of 2014. In Russia, despite declining sales (-4.4% in 9 months 2014), the group's market share is growing (15% market share) since the Russian market has as a whole declined much more (-13%). In Brazil, Hyundai-Kia is still a small manufacturer, but its market share grows month after month (sales up 13% over the first nine months of 2014). Its HB20 model was the fourth best-selling model in September (nearly 10 000 units).


On the other hand, the market share of the Korean group stagnated in mature markets, such as the United States (8% market share) despite sales increase of 8% over the nine months in 2014 and in Europe (6% market share) despite sales up 1.5%.


14-30-10  


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Production and market volumes of Kazakhstan in 2014
 
Automobile production in Kazakhstan should end the year 2014 at about 40 000 vehicles (against 37 469 vehicles in 2013). The levels are quite far from the 60 000 units targeted by the local government. One of the main reasons for the slow growth in automotive production is the difficulty of exporting vehicles to target markets around Kazakhstan, namely Russia and Belarus. This difficulty is not only due to the decline of the Russian market but also to import taxes imposed by Russia on vehicles produced in Kazakhstan. This tax established only recently being the result of the entry of Russia into the World Trade Organization. This organisation considered that the absence of fees for Kazakh producers was a disloyal advantage that other countries couldn't benefit from.

Thus, over the first eight months of 2014, Kazakhstan produced 23 228 vehicles against 21 918 units in the first eight months of 2013. Let us recall that the main assembler of Kazakhstan (Asia Auto) produces licensed cars (Lada, Skoda, Chevrolet, Kia) from segments B and C.

This situation does not prevent the Kazakh government from being optimistic for years to come by announcing a target of 190 000 vehicles produced per year in 2019.

The domestic market has increased by 7.5% over the first 8 months of 2014, representing a volume of 99 407 units (against 92 472 in the first eight months of 2013). We should end the year at about 160 000 units (against 153 665 in 2013). Over this period, Kazakhstan imported 57 000 vehicles from Russia (57% of registrations) and 20 000 from other countries (20% of registrations). Lada is the best selling brand (30% market share), followed by Kia (12%), Hyundai (9%), Chevrolet (8%), Toyota (7%), Daewoo (6%), Renault (5 %), Nissan (4%) and Skoda (3%).
 

14-31-2  


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Ford USA Product Plan (2014-2017)
 

Ford, the 6th largest worldwide automotive group, unveiled its product plan for the American market. In 2014, the Ford group is expected to produce nearly 3 million vehicles (PC + LCV) in North America (USA, Canada, Mexico). For coming years, Ford has decided to renew key models of the American market (via the Ford and Lincoln makes). Ford is launching in 2014 the replacement of two legendary models: the F-Series pickup (700 000 units per year) and the Mustang sports car (100 000 units).


In 2015, Ford will launch the next generation of the Edge SUV (200 000 units) and its Lincoln version named MKX (20 000 units). In 2016, Ford will launch the next generation of its large Lincoln, the MKS (20 000 units), currently based on the Ford Taurus. That same year, the American manufacturer will renew the large Ford Expedition SUV (70 000 units) and the Lincoln version named the Navigator (10 000 units), as well as the Super Duty F (200 000 units).


In 2017, Ford is expected to replace two key models of its US range : the Fiesta (150 000 units) and Focus (300 000 units). That same year, the manufacturer should replace two other major models of the SUV category: the Escape (375 000 units) and the Explorer (230 000 units). At the end of 2017, the manufacturers' range will be completely renewed in North America, if we include the restyling of the Ford Fusion (known as the Mondeo in Europe) introduced in 2012 and thus still considered as a recent model. It is not certain that the Ford Taurus will be replaced, given the low sales of this model.


14-30-8  


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