What would be the disadvantages of a Renault-FCA merger?
- Details
What would be the disadvantages of a Renault-FCA merger?
We have seen earlier what the advantages of a Renault-FCA merger could be. Let us now take a look at the disadvantages of such a merger for the Renault group, and for the Renault-Nissan-Mitsubishi group.
1. This merger would lead to a new strategy for the Renault group, which would have to partner with a manufacturer with uncertain potential. Indeed, FCA has a incomplete range of models ,with hypothetical renewals. The Chrysler, Dodge, Lancia and Alfa-Romeo brands are under threat, Fiat exists only through the 500 range, its SUVs and its South American market. Only Jeeps and Rams are sold in large quantities. By partnering with Renault, FCA could, however, have a core range with significant potential (Clio, Captur, Megane, Kadjar), a very popular low-cost brand (Dacia), a strong presence on the Russian market (Lada) and electrical technology (Zoé) that FCA does not have.
2. Within the Renault-Nissan group, the addition of a group such as FCA would add an additional layer to an entity whose two main groups (Renault and Nissan) are not yet fully integrated, and which has not yet begun the technical integration process (platforms and engines) of the Mitsubishi brand.
3. Also, the presence of many brands in the newly created group would undermine the coherence of the entire model range, which would require substantial brand trimming.
4. Finally, the very large number of plants serving the group could threaten some of them, especially since FCA already suffers from overcapacity, particularly in Europe and South America.
Contact us: info@inovev.com
Read more... What would be the disadvantages of a Renault-FCA merger?
FCA is a competitor of Nissan and Mitsubishi in North America
- Details
FCA is a competitor of Nissan and Mitsubishi in North America
- The FCA group is a direct competitor of Nissan-Mitsubishi, on the one hand, for SUVs, and on the other hand , on the North American market. The latter is the main friction point between FCA and Nissan-Mitsubishi.
- Indeed, the FCA group sells more than 2 million vehicles each year in the United States (2.265 million units in 2018 compared to 2.093 million in 2017). Nissan and Mitsubishi sell more than 1.6 million vehicles each year in the United States (1.612 million vehicles in 2018 compared to 1.697 million in 2017).
- The FCA group and Nissan-Mitsubishi do not compete in other regions, particularly China, Japan, Russia and Southeast Asia (ASEAN countries), where FCA has very little presence.
- With regard to SUVs, the FCA group sells more than one million SUVs each year in the United States (1.056 million vehicles in 2018 compared to 0.908 million in 2017). Nissan and Mitsubishi sell almost as many SUVs in this market, or more than 800,000 SUVs each year in the United States (0.811 million vehicles in 2018 compared to 0.772 million in 2017).
- SUVs account for 43% of the FCA group's sales in 2018 and 40% of Nissan-Mitsubishi's sales. All manufacturers are mainly competing in this category of vehicles.
- For pick-ups, there is no direct competition because FCA pick-ups are in the FULL SIZE (Ram) category while Nissan-Mitsubishi pick-ups are in the MIDDLE SIZE category (Nissan Frontier/Navara, Mitsubishi L200).
Contact us: info@inovev.com
Read more... FCA is a competitor of Nissan and Mitsubishi in North America
Inovev Forecasts 25,000 new Cadillac CT4 per year
- Details
Inovev Forecasts 25,000 new Cadillac CT4 per year
- Just a few months after the presentation of the CT5 sedan (which follows the CTS), Cadillac unveils the more compact CT4 sedan (which follows the ATS).
- The CT4 is a 4.65m long D-segment sedan (sub-compact range in the United States), while the CT5 is a 4.92m long E-segment sedan (mid-range in the United States). Above these two sedans, Cadillac has a 5.18m long CT6 in the F segment (full size range in the United States). The CT6 will be discontinued by the GM group because the volume of its sales does not correspond to the targets set by the manufacturer (12,000 sales in 2018).
- After the SUV offensive (XT5 in 2016 and XT4 in 2018), Cadillac decided to replace its CTS (launched in 2013) and ATS (launched in 2012) sedans. The Cadillac CT4 wants to rival Premium D-segment sedans, such as Mercedes C-Class, BMW 3-Series, Audi A4, Volvo S60, Jaguar XE while the CT5 competes against Premium E-segment sedans, such as Mercedes E-Class, BMW 5-Series, Audi A6, Volvo S90, Jaguar XF.
- The Cadillac CT4 shares its GM Alpha platform with the CT5. Both models are manufactured in the same factory in Lansing, Michigan. The CT4 is equipped with the 2.0 turbo gasoline engine mounted on the CT5, but it is not entitled to the 3.0 twin-turbo gasoline V6 reserved for the CT5. As Cadillac's influence in the sedan category has diminished over the years, Inovev expects a maximum of 25,000 units per year of the new CT4.
Contact us: info@inovev.com
Read more... Inovev Forecasts 25,000 new Cadillac CT4 per year
Jaguar will stop production of the XJ sedan
- Details
Jaguar will stop production of the XJ sedan
- Jaguar will stop production of the famous XJ sedan (segment F) which was the direct competitor of the Mercedes S-Class, Audi A8, BMW 7 Series, Maserati Quattroporte and Lexus LS.
- A whole part of Jaguar's history disappears forever ,as for fifty years now (from 1968 to 2018) ,the XJ (ex-XJ6) was the reference in top-of-the-range British sedans, all the while being cheaper than the Bentley and Rolls-Royce.
- They were also the cars that saved Jaguar in the 1970s, at a time when the brand's future seemed very compromised within the British Leyland group, then in a state of disarray.
- The latest generation (X351) born in July 2009 will therefore definitively end in July 2019, just ten years after its launch. This model has been much less successful than previous generations.
- In 2018, for example, less than 5,000 units were sold worldwide, compared to 21,000 in 2010, but the older generations scored much higher, often exceeding 30,000 sales per year. The peak sales were reached in 1988 with the XJ40 generation and again in 1998 with the X300 generation: 50,000 sales in the year.
- In the first half of 2019, sales fell to less than 1,500 ,and the manufacturer considered that this volume was no longer sufficient to continue manufacturing the model. However, Jaguar has announced that a new top-of-the-range 100% electric model will be launched in the coming years, but it will probably not be a sedan.
Contact us: info@inovev.com
Audi stops production of TT/TTS
- Details
Audi stops production of TT/TTS
- Audi announced that it would stop manufacturing TT/TTS coupés and convertibles in 2021. These sporty C-segment models, based on the Volkswagen Golf and Audi A3 platform, are no longer as successful as in previous years, due to the shift of customers to SUVs in all markets and the announcement of the technological breakthrough that will result from the large-scale marketing of electric models around the world.
- Within the Volkswagen group alone, it is expected that one million electric cars will be sold per year between 2025 and 2030. Of this total, electric Audis will represent a significant quantity, but for the moment the manufacturer has not announced how many different vehicles it intends to launch in this category.
- The Volkswagen brand had already removed its Sirocco coupe from its catalogue in 2018. Between 2008 and 2018, 276,000 copies had been produced. Audi TT/TTS coupés and convertibles sold much more than the Volkswagen Scirocco coupe, selling 680,000 units between 1998 and 2018, with a peak of 57,000 units in 2007. However, sales collapsed between 2015 and 2018, from 38,000 to 18,000 units over this period.
- These Audi TT/TTS models have been manufactured at the Gyor site in Hungary since the beginning .Their manufacture should be stopped in two years. Their replacement is not planned, but Audi reports that an electric model, probably an SUV, would be produced on Gyor's assembly lines in the early 2020s.
Contact us: info@inovev.com
Inovev platforms >