BMW will transfer the production of the Mini Countryman to Leipzig in 2023
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BMW will transfer the production of the Mini Countryman to Leipzig in 2023
- BMW has announced that it will transfer the production of the Mini Countryman from the Dutch factory in Born to the German one in Leipzig when the new generation of the model will enter the market in 2023. Firstly produced in Graz in Austria, from 2010 to 2016, the Mini Countryman was transferred to Born in the Netherlands from 2017, when it was renewed. The Leipzig plant currently produces the BMW 1 and 2 Series, as well as X1 and X2 (partly).
- As the production capacity of the BMW plant in Leipzig is limited to 400,000 vehicles per year, it is possible that a number of X1 models produced today in Leipzig will be transferred to the Born plant, as a share of the X1 production is already made there.
- It seems that this decision to transfer the Mini Countryman to Germany anticipates the decision to transfer the Mini sedan from the United Kingdom to Europe, maybe to BMW's future Hungarian plant.
- The carmaker had indeed announced that in the absence of a free trade agreement between Great Britain and the European Union, following the Brexit vote, it was no longer profitable to continue the production in the island and that the transfer of production of the Mini would be considered.
- It therefore seems that this scenario is pending and we understand better why the British government wants to compensate the departure of foreign carmakers from England by the arrival of new carmakers, for example Chinese, which would explain why this country has decided to electrify all of its automobile market from 2030.
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Renault stops the production of the Espace
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Renault stops the production of the Espace
- Renault announced last year that the current Espace model (D-segment MPV) would not be replaced, due to growing customer disinterest in MPVs. SUVs have gradually replaced these vehicles pioneered by Espace in 1984, at least in Europe. But SUVs have done much more than substitute for MPVs, as this market never exceeded 15% of the European market (the peak of MPV sales in Europe was reached in 2005), while SUVs now occupy nearly 40% of the European market. SUVs have therefore mainly bitten on sedans and station wagons, in addition to MPVs.
- Today, the market share of MPVs is less than 4% in Europe and Renault considers that it is no longer necessary to continue the production of its Espacemodel which was sold less than 5,000 sales in 2020. The French carmaker has therefore just communicated that it he will stop the production of this model in its Douai plant, after 1,348,000 units produced since 1984, in five different generations (1984, 1991, 1996, 2002, 2014).
- The Renault Espace (designed by Matra) has been an important model in the history of the automobile as it was the first European MPV launched in 1984 (the Chrysler Voyager had been launched in the United States a year before) and has created a new market segment into which all the other European carmakers have joined. Renault has indicated that the Scénic (C-segment MPV) will also be discontinued without replacement before 2023.
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Korean production down 14.0% over 9 months 2020
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Korean production down 14.0% over 9 months 2020
- While European production is down 30.1% over the nine months of 2020, compared to the same period of 2019, and US production is down 23.2%, the Korean auto production (passenger cars and light utility vehicles) has significantly less suffered from the coronavirus crisis, as it fell by only 14.0%, which is the best result recorded by a major producer country, after China (-6.5%).
- Pre-crisis levels were reached as early as March 2020, then the decline in export markets (Europe and USA) caused Korean production to fall back in April and May 2020. The return to normal level is observed from June 2020 and the pre-crisis levels were clearly exceeded from September 2020. September 2020 saw an increase of 21% compared to September 2019. At this rate, the 2020 year could end with a volume of between -7.5% and -10% (i.e. a loss of 300,000 to 400,000 vehicles), which is a good performance, given that a decrease is expected in the world in the range of -15% to -20%.
- What is the situation by carmaker? Only the GM group progressed in Korea in 2020 (+ 13%) thanks to the arrival of a new model on the carmaker’s production lines (Chevrolet Trailblazer), supporting a plant which seemed vulnerable. The Hyundai-Kia group, largely the leader in Korea (its production volume represents more than 80% of automotive production in Korea) sees its production fall by 11%, less than Renault-Nissan (-20%) or Ssangyong (-25% ).
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Evolution of the European market by engine type
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Evolution of the European market by engine type
- The share of diesel continues to decline sharply on the European market, since today this share has fallen to 27% of all passenger car registrations in 2020, while it was still 32% in 2019, 36 % in 2018, 45% in 2017, 50% in 2016 and 55% in 2012.
- Diesel has therefore lost 28 points in eight years, which have not been offset by the increase of electrified vehicles (hybrids, plug-in hybrids, battery electric) as these now represent only 21% of registrations, despite strong growth recorded over the past two or three years.
- Of this 21%, hybrid vehicles (HEVs) represent 12% of sales in 2020, produced mainly by Toyota, Lexus, Hyundai and Kia. Plug-in hybrid vehicles (PHEVs) represent 4% of sales in 2020, mainly produced by Premium carmakers. Finally, battery electric vehicles (BEVs) represents 5% of sales in 2020, produced mainly by Renault and Tesla, but many competitors are starting to ramp up (Volkswagen, Hyundai, Peugeot, Opel, etc.).
- The critical question is how far the decline in diesel will go. Some foresee the end of diesel in 2030 in passenger car registrations but is this a possible scenario? And will diesel remain in the light utility vehicle categories?
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Evolution of the passenger car market in Brazil by brand
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Evolution of the passenger car market in Brazil by brand
- The evolution of the Brazilian automobile market (passenger cars) by brand shows in terms of sales volumes a spectacular regrouping of the different brands present in this market since the beginning of the 2010s.
- In fact, between 2005 and 2010, three brands dominated the Brazilian market, namely Volkswagen (present in this market since the early 1950s), Fiat (present in this market since the early 1970s) and Chevrolet (present in this market since the early 1930s). In 2010, Volkswagen reached its maximum sales volume with more than 1,000,000 units per year, ahead of Fiat (800,000 units) and Chevrolet (650,000 units). Ford is then the fourth brand in Brazil halfway between the three leaders and the other brands which do not exceed 150,000 units per year each. Ford recorded a sales volume of 350,000 units in 2010.
- Between 2010 and 2015, the three leaders fell similarly, losing almost half of their sales volumes, while at the same time the other brands progressed inexorably (including Renault, Hyundai, Toyota), until they came very close to Ford, which saw its sales also declining.
- Finally, between 2015 and 2020, the three leaders Chevrolet, Volkswagen and Fiat are at practically the same level (between 400,000 and 500,000 units per year), slightly ahead of other brands including Ford, which recorded sales volumes of between 100 000 and 300,000 units per year. In 2019, Renault became the fourth brand sold, ahead of Hyundai, Ford and Toyota. The brands Jeep, Honda, Nissan, Citroën and Peugeot follow.
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