Mercedes unveils the new C Class
 
Mercedes has unveiled the new generation of its C Class (segment D) within the A Class (segment C) and E Class (segment E) range of the carmaker. This model competes primarily with the BMW 3 Series, Audi A4 and Volvo S60 offered by premium brands, but it also addresses at a lesser extent the Ford Mondeo, Opel Insignia, Renault Laguna, Peugeot 508, Citroen C5 offered by generalist brands.

Like all C Class vehicles, the new generation will be produced mainly in the German factory of Bremen (formerly the stronghold of the Borgward carmaker) and will be offered in several bodywork variants, including estate, coupe and convertible. An SUV should be derived from the new C Class: it will be the next generation GLK.

Bremen production should range between 250 000 and 300 000 units per year, a production rate already attained by previous generations, but at the time did not have a Mercedes direct competitor like the recent CLA. The CLA is indeed a 4-door sedan with a size and a price close to that of the C Class.

The new C Class should also be made in China, South Africa (like previous generations) and in the United States (this market is a new addition) production will be destined only for the local market.

In chronological order, the new C Class comes just after the BMW 3 Series (2012) and just before the Audi A4 (2015). 


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USA market segmentation
 

The outline of car market segments in the USA is slightly different from that of Europe. First, the SUV (off-road leisure vehicles), CUV (crossover), MPV (minivans) and pick-up vans are included in the category of LCV (Long commercial vehicles) while in Europe only pick-up vans are included in the LCV segment which consists mainly of small vans.


On the other hand, specific car market segments were created in the United States (small saloons, saloons, intermediate, full size and luxury) but they can be compared to European car market segments B, C, D, E, F.


This enables us to compare the market segmentation of the U.S. and Europe, with one final clarification: Inovev includes CUV (crossover) in the SUV segment, because the distinction between SUV and CUV is difficult.


In the United States, SUVs are far ahead of all other segments.  The market share went from 25% in 2000 to over 30% in 2013. Segment D (midsize sedan) is in second place and has also increased but more slowly than SUVs. Segment C (compact sedan) is third and has also progressed over the period. It overtook the market share of pickup vans, the pick-up van segment  is the segment that has declined the most.


Segments E (full size) and MPV (minivans) have declined significantly since 2000 (a loss of 5 points for each segment) whereas segment share of cars long abandoned has resurfaced: segment B (semi-compact sedans) which gives a new vision of the needs of American driver (economical cars and small urban trips).


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European generalist brands are gradually abandoning segment D
 

European generalist brands are gradually abandoning segment D (upper midrange) that is becoming increasingly the signature of German manufacturers in the European market.


-Premium German manufacturers have indeed monopolized almost all of this segment thanks to the BMW 3 Series and 4 Series, Audi A4 and A5, Mercedes C Class and CLA, and also thanks to the Volkswagen Passat and CC . Not to mention the SUV market.


On the graphs below, we can see that from one generation to the next segment D models from the Ford, Opel, Fiat, Peugeot, Citroen and Renault brands have seen their influence decline to finally account for (in Europe) only 430 000 units produced in 2012 and less than 410 000 in 2013 (against 1.2 million in 2000 and 1.85 million in 1990).


French segment D models (Renault Laguna, Peugeot 508, Citroen C5), which now account for the high-end range of French cars, seem doomed in the short term. On the other hand it can still develop in China where segment D models are very popular and not just for the benefit of German brands. Japanese and Korean manufacturers achieved in fact in this market significant scores thanks to their segment D cars (sedans and SUV).


Meanwhile Ford and Opel achieved a very modest score with the Mondeo and Insignia , both in Europe and China. Fiat abandoned this segment after the end of the Marea production in 2010.


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The European market (17 countries) in 2013
 
The European market 17 countries (Western Europe) has decreased by 2.7% over the first 11 months of 2013 compared to the first 11 months of 2012 and could therefore end the year with a decline of between -2.5% and -3%.

4 carmakers have made progress over the 11 first months of 2013: Renault-Nissan Group (+0.9%), Daimler Group (+4.3%), Tata Motors Group (+10.0%) and Mazda (16 , 6%). All other manufacturers have lost market share, including the PSA Group (-10.0%), the Fiat-Chrysler Group (-7.5%), the GM Group (-5.3%), the Ford Group (-4.9%) the Geely Group (-3.2%), the Toyota Group (-2.1%), the Hyundai-Kia Group (-1.3%), the VW Group (-0.8%), the BMW Group (-0.2 %).

Figures per models are only available for the first 9 months of 2013. Regarding PCs, the VW Golf remains the market leader and is far ahead of the Ford Focus, Renault Clio, Ford Fiesta and Renault Megane. The Renault-Nissan group is the only one to get three models in the top ten in 2013 (the Nissan Qashqai is in tenth place). It should be noted that this year, the Opel Astra is no longer ranked in the top ten and that the Fiat 500 has arrived in the top ten which precedes the Panda within the Fiat-Chrysler group.

Regarding LCV (under 2.5 tonnes), VW and PSA each place two models in the first four places, and the Renault-Nissan group has got two models in 6th and 7th places. LCVs of over 2.5 tonnes (like the Mercedes Sprinter, Renault Master or VW Crafter) are not included in these figures.


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China strengthens its global leadership every month
 
After a flying start in the early 2000s, China became in 2010 the first global market, and the largest producer of automobiles in the world as well.

This year, the Chinese market accounted for 18 million new vehicles (PC + LUV),  to compare to 15.3 million units in Europe (EU), 11.6 million in the United States and 5 million in Japan.
In terms of production, China accounted in the same year for 17.1 million vehicles (PC + LUV), to compare to 17 million units in Europe (EU), 9.6 million in Japan and 7.8 million in the United States.

Since 2009, does China continue to increase its share in terms of production in the world, or does it suffer from competition of new emerging countries (such as South East Asia countries) ?

The countries of Southeast Asia accounted for 5% of global automotive production in 2013 ( against 4.5% in 2012 and 2011 and 4% in 2011).

But this growth does not bite on that of China: the share of China continued to increase from a weighted average of 23% of world production in 2010 to 24% in 2011, 25 % in 2012 and 25% of world production in 2013, far ahead of Europe ( 18%) and the USA ( 13%).


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