Why PSA keeps the Rennes plant?
 
In a previous analysis (new game of musical chairs in the PSA plant), we have examined the PSA decision to allocate the production of future MPV 5008 to Rennes plant and not Sochaux plant. The present anlysis relates  to the reasons of this transfer.

Despite the decline in production volume recorded in Rennes in recent years (350 000 units in 2005 and less than 100 000 in 2013), PSA plans to sustain activity in Rennes rather than close the plant, however located in an outlying region of France (and Europe), largely underutilized and with a decreasing activity .

PSA intends to use the Rennes  site as an assembly plant dedicated to segment D vehicles (Peugeot 508 and Citroën C5) . However the DS5 (5008 platform ) remains manufactured in the Sochaux plant.

This decision is difficult to understand by external analysts. Several PSA European plants are underutilized. Why keep a plant located in an  outlying region of Europe while other plants in central Europe are easier to use in terms of logistics?

The reason might be that that PSA management has in mind to load the Rennes plant after 2016, by models of segment D or E (example: the future Peugeot 608 ), or through the transfer of future Opel models. It has however not confirmed transfer models to Rennes plant.


13-48-2  

Contact us: info@inovev.com 

 

The U.S. market is gradually returning to its pre-crisis levels
 

The U.S. market is slowly returning to its pre-crisis levels (2000-2007), since it should end the year 2013 on a volume of registrations of around 15.5 to 16 million units.


In 2007, just before the outbreak of the financial crisis, the U.S. market had reached 16.2 million units, previous years were even better (17 million in 2005 and 16.5 million in 2006).


In 2013, the U.S. market is gradually approaching these same volumes and is gradually moving away from 2009, figures where it fell to 10.4 million units.


This market has increased by more than 5 million units between 2009 and 2013, which represents an increase of over 50% in four years. Meanwhile (between 2009 and 2013), the European market 27 countries (similar to the U.S. market in terms of volume) lost 17% of its sales volume, and has dropped by 25% since 2007.


Which manufacturers have benefited the most from the recovery of the U.S. market? Themarket share comparison of different automotive groups between 2009 and 2013 reveals that the builders who have made the most progress since 2009 are the Fiat-Chrysler group (+3 points), Renault-Nissan (+1 point), Hyundai-Kia (+1 point) and Volkswagen (+1 point).


In a rising market, on the other hand GM (-2 points), Toyota (-3 points), Honda (-1 point) have lost market share.


13-48-3  

Contact us: info@inovev.com 

 

GM will give up the Chevrolet brand in the European market in 2016
 

GM uses currently two brands in the European market for its passenger cars: Opel ( Vauxhall in the UK ) and Chevrolet. Both brands offer sedan models and SUVs.


Opel sedan vehicles (A, B, C, and D segments) are produced in Europe while the Opel SUVs (segment B and D) are produced in Korea in a Chevrolet plant (former Daewoo plant).  Chevrolet  sedan vehicles and SUVs are imported from Korea, with the exception of Malibu (sedan segment D ), Camaro and Corvette (sport coupes) that are produced in the USA and are imported from this country.


The launch of the Chevrolet brand in Europe in the early 2000s (rebadging of Daewoo models) failed to boost sales of GM group on the continent. The increase in sales of Chevrolet in Europe from 2002 to 2007 did not offset the drop in sales of Opel  Worse, the drop in sales of Opel from 2007 to 2012 (nearly 600,000 sales in less than five years ) was accompanied by a parallel decline in sales of Chevrolet .


Undifferentiated positioning of the two brands in the same segments resulted in cannibalization of Opel and Chevrolet.
GM considered  then to reposition the two brands (Opel preferably as Premium and Chevrolet  preferably as low price).
But finally the decision was taken to give up  the Chevrolet brand in the European market in 2016 and leave the way open for Opel  to represent GM in Europe. Chevrolet will  continue to be used in all parts of the world where Opel is not present . The fact that all Chevrolet brand vehicles were imported while Opel plants suffer from overcapacity in Europe weighed in the balance. The question now is whether Opel will recover market share of Chevrolet, which is not guaranteed.


13-48-1  

Contact us: info@inovev.com 

 

Top 5 plants of 9 major auto manufacturers in Europe
 
The charts relating to the top 5 plants  of 9 major carmakers in Europe highlight  significant differences in terms of size, geography and utilization of plants.

The Volkswagen, PSA and Renault -Nissan groups have the largest plants. But while the Volkswagen group manages to use 90 % of the capacity of its five largest factories in 2013, the group Renault-Nissan and PSA will use this year only 80 % and 75% of the capacities of their five largest plants.

Volkswagen Wolfsburg plant utilizes 100 % of its capacity and Renault -Nissan plants Sunderland (Nissan) , Pitesti (Dacia ) and Bursa (Renault) 100 % of their capacities in 2013 as well.

In PSA, none of the five main factories utilize 100 % capacity. The Rennes plant that does not appear in this ranking only used 40% of its capacity in 2013.

Ford Europe, GM Europe and Fiat -Chrysler have fewer large plants and the plants are underutilized: 70% for GM Europe , 60% for Ford Europe , 50% for Fiat -Chrysler regarding their top five factories in 2013.

BMW and Daimler use 90 % of the capacity of their top five factories, and Hyundai- Kia uses 80 %. Independent Japanese automakers (Toyota , Honda, Suzuki ) produce less than the nine carmakers analysed here.


13-47-10-1  

13-47-10-2
 
Contact us: info@inovev.com 

 

Future AvtoVaz models should use Renault-Nissan platforms and engines
 

AvtoVAZ (Lada) began producing cars in Russia in 1970. The first models were derived from the Fiat 124 that was manufactured in Italy from 1966 to 1974 . Known in Europe under the name Jigouli, over 17 million units of these models were produced until its extinction in December 2012. Then AvtoVAZ expanded its range by launching the Niva (a compact SUV) in the 70s, the Samara (segment C sedan) in the 80s. More recently it started producing the Priora (segment C sedan), the Kalina (segment B sedan) and the Granta (segment C sedan).The Russian manufacturer will cease to produce the Lada Samara five-door hatchback by December 2013. This model will be replaced by the LadaGranta hatchback.


Since its acquisition by the Renault-Nissan group, AvtoVAZ pursues the industrial agenda set by its new owner.The agenda states that the carmaker must renew all its current models by 2020 and they must all be based on the engines and platforms of the group. This is why in 2012, AvtoVAZ launched the Largus estate based on the first generation of Dacia Logan estate.


Future AvtoVAZ models should be based on existing Dacia models and will use Dacia platforms and engines. In terms of engines, AvtoVAZ has began producing K4 engines from the Renault brand: 300 000 units should be assembled in 2014. Currently, these engines are imported from Romania. As AvtoVAZ production rate increases in Russia, deliveries from Romania will be reduced.
K4 engines manufactured by AvtoVAZ will equip almost all B0 vehicles (the code name for the Entry family)
assembled
by AvtoVAZand Renault Avtoframos in Moscow. 


13-47-9  
 
Contact us: info@inovev.com 

 

Inovev platforms  >
Not yet registered ?
By keeping on browsing, on this site, you accept the use of cookies and TCU (Terms and Conditions of Use) of Inovev site (www.inovev.com)
Ok