2012 European production in the first nine manufacturers by country
 
The 2012 production breakdown by country in Europe of nine major manufacturers producing vehicles on the continent is very different from one manufacturer to another.

The three German manufacturers ( Volkswagen , BMW, Daimler ) produce most of their vehicles in Germany (55 %, 77 %, 83 % respectively), their country of origin.

PSA manufactures most of its vehicles in France (55%), its country of origin and Fiat -Chrysler most of its vehicles in Italy (50%), its country of origin.

The country of origin of the brand or group is therefore essential for these five aforementioned manufacturers.

American groups based in Europe (GM, Ford ) have a more balanced production breakdown, although Germany still plays a key role here (41 % and 46 % respectively).

The Renault- Nissan group shows the most balanced production breakdown by country, France (country of origin of the group) representing only 22 % of European production group.

The Hyundai-Kia group which has established more recently in Europe produces only in the central and eastern part of Europe (Turkey , Czech Republic, Slovakia).


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Japanese carmakers in the US
 

Japanese manufacturers gradually established themselves in the United States in the 80s, in order to reduce the volume of exports from Japan and also take advantage of a local presence in order to increase their sales in this market, which is one of the worlds largest markets.


In 2013, they will have produced a total of 4 million vehicles locally (thus displaying a new production record), while they continue to import from Japan a large number of vehicles (1.5 million vehicles estimated for 2013), mainly premium range models which aren't assembled in the United States.


Toyota and Honda are the largest Japanese producers established in the United States (each producing about 1.5 million vehicles in 2013). They are followed by Nissan (800 000 units in 2013) and Subaru (200 000 units in 2013). Mitsubishi and Mazda have for their part almost stopped all production in the United States.


While in 2011 Toyota and Honda suffered from the consequences of the tsunami in Japan (March 2011), particularly regarding parts and components, in 2012 and 2013 both manufactures had a sharp increase of their US production. Nissan suffered slightly less than its competitors and its production increased significantly in 2012 and 2013. Only Subaru production has stagnated in the U.S.A. for two years.


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Korean carmakers in China
 

Hyundai-Kia group is by far the Korean group with the largest presence in China, both in terms of production and sales.
Samsung models from the Renault-Nissan group, produced in Korea, are indeed sold in small quantities under the French brand Renault. On its side, Ssangyong exports only small numbers of vehicles from Korea.


Hyundai is the third brand produced and sold in China, behind Volkswagen and GM-Wuling. It produces locally  its model under a Joint-Venture with  “Beijing Automotive”. The graphs representing the production of Hyundai in China highlight that the first Korean brand has benefited from the temporary disaffection of Japanese brands in this market between August 2012 and August 2013.


Hyundai growth has stopped in September 2013 (zero growth compared to September 2012).
It had already slowed down in the previous months at a time when Japanese brands began to reach their 2011 level.


The same observation can be made about the Kia brand, second Korean brand and twelfth brand produced and sold in China. Its growth was reduced between July and September 2013 and September growth was almost zero (compared to September 2012). Kia produces locally in China under a Joint-Venture with Dongfeng


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Which carmakers will benefit from the recovery of Southern European countries?
 
Over the 2010-2013 period, South European markets have weighed on the whole European market. Since last summer, these markets have been restarting steadily. We can expect the well established manufacturers of these markets to be able to relaunch their sales on these markets.

This means that in France, the two leaders of the French market Renault and PSA  could benefit from a relaunch of their sales.

In Italy, the Fiat group, the leader of the Italian market, could also benefit from a relaunch of its sales.

In Spain, the revival of the market should benefit the three current leaders: Volkswagen, PSA and Renault.

By adding up these three markets, we can see that the major beneficiaries of a recovery in sales in Southern Europe (even if it's moderate) are bound to be the traditional leaders, i.e. Renault, PSA, Fiat and Volkswagen.

On the rise for a dozen years on the entire European market, Premium carmakers  and Korean manufacturers may also benefit from this recovery.

The success of Ford, GM and Japanese carmakers in these three markets will depend on their ability to offer products that stand out from the competition in a market where sales volume of general carmakers are falling.


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Korean carmakers in the USA
 
Korean brands Hyundai and Kia have located assembly plants in the United States in 2005 and 2010 respectively. They followed the strategy of Japanese brands that set up their plants in the USA in the 80’s. The objectives were to  both reduce the volume of exports from Japan and take advantage of a local presence to increase sales in this market, one of the first in the world.

The first Hyundai plant was set up  in Montgomery AL in 2005 (models produced: Sonata, Elantra) and the second in West Point GA in 2006 (model produced: Santa Fe). In 2010, Kia arrived on the site of West Point (models produced: Sorento, Optima, alongside the Santa Fe).

Production of the two plants has increased from 90,000 units in 2005 to 250,000 in 2007, 450,000 in 2010, 610,000 in 2011 and 720,000 in 2012, an increase of 700 % in seven years. This strong growth is ongoing. Inovev plans a 850,000 units production in 2013.

The production of both plants is sold in North America, but mainly in the United States. In 2013 , Hyundai and Kia will sell between 1.2 million and 1.3 million vehicles in the United States. There is therefore still a real possibility that the local production of both brands increases in the country over the coming years.


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