Daimler is going to increase its production capacity in the U.S.
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Daimler is going to increase its production capacity in the U.S.
- Daimler AG announced that it will significantly increase the capacity of its U.S. plant in Tuscaloosa (Alabama) as soon as mid 2014 or at the latest in the first half of 2015.The annual production capacity of Daimler’s sole plant in the US (excluding heavy duty vehicles) reaches 200 000 vehicles a year. Yet in 2013, Daimler produced nearly 190 000 vehicles in its plant in Tuscaloosa, mainly recreational vehicles: such as the M-Class SUV (122 000 units) GL-Class (42 000 units) and the R-Class crossover (9 000 units). The manufacturer also produced 16 000 Sprinter LUV in this plant for the U.S. market.
- As of 2014, the C-Class sold in the U.S. will be produced in this plant, and will no longer be imported from Germany. Forecasts target 90 000 units per year, which corresponds to recent average sales of the C-Class in the U.S. The German carmaker has just begun production of the C-Class in the Tuscaloosa plant
- In addition to the new C-Class, as of 2015, Daimler will produce in this plant the coupe version of the M-Class a derivate from the Concept Coupe SUV, presented at this year's Beijing Auto Show, and which may be called MLC.
- With the arrival of two new models, the capacity of the Tuscaloosa plant should therefore go from 200 000 vehicles per year to 300 000 vehicles per year. As a result, the German Bremen plant which also produces the C-Class will loose the amount transferred to Tuscaloosa.
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China's production capacity has reached 37 million vehicles per year in 2014
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China's production capacity has reached 37 million vehicles per year in 2014
- Whereas Europe (including Russia, Ukraine and Turkey) currently has a production capacity of 27.4 million units (PC + LUV), China currently has a production capacity of 37.4 million, i.e 10 million more.
- In 2014 Europe will register a utilisation rate of its plants of about 70%, while the average rate should really exceed 80% to be efficient.
- China has an even lower rate, since it did not exceeded 60% in 2013 and will not exceed 65% in 2014, given a production volume that should increase by about 2 million units this year.
- The main difference between these two regions is in fact the expected increase in annual car production. While Europe is meant to have an average annual increase of about 3% until 2018 (500 000 additional units per year), China should have an average annual increase three times higher, of about 9% per year until 2018 (ie 2 million units per year).
- With such a development and stagnating production capacities, China would have a utilisation rate of its factories of around 70% in 2015, 75% in 2016, 80% in 2017 and 85% in 2018. But this scenario is not the most likely since China is constantly building new production capacities (2 million more before 2017).
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New model transfer project for PSA
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New model transfer project for PSA
- The announcement of the arrival of premium models to the PSA Mulhouse plant (probably DS models from segments C and D) will result in more model transfers within the group's French plants .
- The planned concentration of high end models from segments C and D in Mulhouse (France) may lead to the transfer of the 508 from Rennes to Mulhouse (the transfer of the C5 has already been confirmed and it is to be renamed DS6) alongside the transfer of the 2008 from Mulhouse to Poissy. The next plant in which the C4 will be manufactured is still to be determined. Currently produced in Mulhouse, the C4 may have to join the 308 in Sochaux, if this was the case the 3008, 5008 and Zafira could be transferred to the Rennes plant, which would become a plant dedicated to crossovers.
-Below you will find a summary of the model transfers between PSA plants, as well as Inovev’s forecasted transfers.
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European LUV sales by country in 2013
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European LUV sales by country in 2013
- European LUV sales by country in 2013 ranked France as the market leader with 365 000 units sold, ahead of Great Britain (271 000 units), Germany (213 000 units) and Italy (101 000 units). Together these four countries account for two thirds of all LUV registrations inside the European Union.
- France is generally in the first place in Europe due to the success of passenger cars converted into light utility vehicles (like the Renault Clio, Peugeot 208 and Citroën C3 ), this segment is called segment N and is not found in other countries or very rarely (Spain, Italy). Segment N are created from PC vehicles with back seats removed in order to create a larger trunk space.
- In 2013, N segment vehicles represented 72 000 sales in France, including 34 000 Renault vehicles , 22 000 Peugeot and 16 000 Citroën. Renault and PSA are also the leaders of the LUV market in Europe and have a local market very receptive to Kangoo, Berlingo and Partner vehicles . This is one main feature of the French LUV market.
- The European LUV market which fell by 28% in 2009 rebooted in 2010 (+8.9%) and 2011 (+6.7%). But fell again in 2012 (-12.9%). In 2013, this market remained stable (-0.4%). As a result, the volume of sales in 2013 is almost the same as in 2009. Since the beginning of 2014, the market has recovered substantially which suggests an increase of nearly 10% over the year (+9.3% in the first four months).
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The Korean market is more and more open to imports
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The Korean market is more and more open to imports
- In the first 4 months of 2014, five Korean manufacturers (Hyundai, Kia, GM Korea, Renault Samsung and SsangYong) sold 382 000 vehicles in their local market, an increase of 6.1% compared to the same period in 2013.
- By category, sales of large cars (segments E and F) increased by 64% (to 20 000 units), sales of SUVs rose by 27% (106 000 units) and sales of urban vehicles (segments A and B) rose by 6% (to 63 000 units). In contrast, sales of compact cars (segment C) and medium size sedans (segment D) decreased in the first four months of the year (to 193 000 units), but still remain the most popular cars with Korean customers.
- Moreover, it is interesting to note that sales of imported cars in South Korea continue to take market share from Korean manufacturers. Totalled 17 000 units in April (+25%), bringing the sales volume for the first four months of the year to 61 000 units, representing an increase of nearly 27%, an increase four times higher than the one experienced by the Korean market as a whole.
- BMW was the best-selling foreign brand over the four months (13 698 units) , followed by Mercedes (11 256 units), Volkswagen (9 668 units), Audi (8 761 units). 80% of imported cars sold were European , most of which were German. 13% were represented by Japanese brands and 7% were American brands.
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