With Citroën C5 Aircross’ arrival in Rennes, several PSA models will be transferred
Citroën unveiled the European version of its C-segment SUV, the C5 Aircross, which is already manufactured and marketed in China since September 2017. The differences between the two models are minimal. In Europe, the C5 Aircross will be marketed as of  September 2018.

To supply this market, it will be manufactured in France, on the PSA site in Rennes, alongside the Peugeot 5008 with which it shares a large number of components, including the platform EMP2.

The PSA Group expects 100,000 C5 Aircross sales per year in Europe, which, given Rennes' production capacity limited to 150,000 vehicles per year, will force the manufacturer to transfer part of the Peugeot 5008 from Rennes to Sochaux (approximately 50,000 units per year).

This transfer will result in the transfer of Opel Grandland from Sochaux to Eisenach factory (about 50 000 units per year), where Opel Adam and part of the Opel Corsa are currently produced. These two end-of-life models have been experiencing a significant drop in sales for several months. The arrival of Grandland will enable this German factory to achieve full capacity.

Given a gradual increase of the C5 Aircross, the transfer of 50,000 Peugeot 5008 from Rennes to Sochaux and 50,000 Opel Grandland from Sochaux to Eisenach should be effective in 2019.


18-14-5   
    
 

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The Smart Hambach site will produce a compact electric Mercedes
The Daimler Group has announced that the Smart plant in Hambach (France) will manufacture a Mercedes brand compact electric car (C segment )  starting in 2019/2020 It will be the first time that a Mercedes car will be produced in Hambach. Currently, a Mercedes model is manufactured in France, the Citan utility derived from the Renault Kangoo and produced in Maubeuge alongside the Kangoo (following agreements between Renault and Daimler). The future compact electric car will therefore be the second Mercedes model to be produced in France.

On the one hand the decision of the Daimler Group makes it possible to ensure the perennity of  the Hambach site, which only manufactures the Smart For Two, a car with declining sales, with only the electric version to be produced as of 2019/2020.

On the other hand, with this decision, the site of Hambach will be dedicated solely to the manufacture of electric cars as of 2019/2020, which is a first in Europe, since today there is no factory dedicated only to the manufacture of electric cars.

Finally, it should be noted that this decision by the Daimler Group is part of the strategy of electrification of the Mercedes brand, which plans to market a dozen 100% electric models by 2022 in all segments, from the compact car to the SUV. These models will be grouped in a sub-brand called EQ.


18-14-6   
    
 

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The 30 best-selling models in Europe in the first quarter of 2018
In a European market (29 countries) which grew by 2.6% in the first four months of 2017 compared to the first four months of 2016, the Volkswagen Golf has remained by far the best-selling model (182,000 units) . It is up 6.9% even though  the Golf is at the end of its life and will be replaced in 2019.

The Renault Clio is second (107,000 units) and is down 2.4%. In third place, the Ford Fiesta (106,000 units) manages to stabilize its sales (-0,2%), despite the fall in sales in England, thanks to the ramp up  of its new generation. The Volkswagen Polo is fourth (97,000 units) and down 7.3% despite the arrival of the new generation. Then follows  the Peugeot 208 (89,000 units, + 4.2%), VW Tiguan (86,000 units, + 7.4%), Nissan Qashqai (86,000 units, -1.2%) and Citroën C3 (77,000 units). + 14.7%) and Opel Corsa (72,000 units, -20.0%).

The Opel Corsa has the largest drop in sales, along with the Fiat Panda (-21.4%), Opel Astra (-36.7%) and Opel Mokka (-19.4%). The fall in Opel Corsa, Astra and Mokka sales was partially offset by strong growth in Opel Crossland and Grandland, keeping in mind that the Opel brand fell by 7% in Europe in the first quarter of 2018.

On the other hand, the Peugeot 3008 (+ 40.9%), Dacia Duster (+ 33.0%), Mercedes GLC (+ 31.8%) and BMW 5 Series (+ 32.9%) recorded the largest increases. Note that the BMW 5 Series is selling more than the 3 Series over the period.


18-14-2   
    
 

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BMW had to increase production capacity in Leipzig and Regensburg
The BMW group has had to quickly  increase the production capacity of two of its German plants,  located in Leipzig and Regensburg  over the past few years , because of the successive launches of many new models  which  are  assembled in these two factories: 1Series in 2011, 2  Series in 2013, 4  Series in 2013, i3 in 2013, i8 in 2014, Active Tourer in 2014, Gran Tourer in 2015, X1 in 2015 and X2 in 2018.

To be able to manufacture all these models on these two German sites, BMW had to increase the capacity of the Leipzig plant from 200,000 units per year to 400,000 in 2015, and that of Regensburg by 300,000 units per year to 400,000 in 2014. On the other hand , the factories of Munich (3 Series) and Dingolfing (5 Series, 6 Series, 7 Series),  have not  increased  production capacity . They are still  at 225,000 units a year and 300,000 units a year respectively, since there has been no successive launches  of many new models.

At these two sites, there was simply a replacement of existing models and not a widening of the range to new models, such as Leipzig and Regensburg.

If BMW wants to expand its range with other innovative  new models, it will now be necessary to build a new factory because the capacity of the Leipzig and Regensburg sites can not be further increased.


18-14-4   
    
 

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Geely will build a new factory in Chengdu
The Geely Group has 10 assembly plants in China in 2018: Chengdu (100,000 capacity vehicles), Xiangtan (200,000), Lanzhou (120,000), Jinan (60,000), Shanghai (200,000), Ningbo (300,000), Taizhou (150,000), Linhai (80,000), Daqing (150,000) dedicated to the Volvo brand, Luqiao (200,000) dedicated to the Lynk & Co brand. The Geely Group's production capacity is now 1.560.000 vehicles per year. The group's production volume reaches 1,426,000 vehicles in 2017 (including 1,332,000 Geely and 94,000 Volvo). By 2018, it could exceed 1,560,000 units and thus reach the level of saturation of its current facilities.

The Geely group therefore urgently needs a new plant to be able to produce 1,650,000 or even 1,700,000 vehicles in 2019. This is why this leading  independent Chinese manufacturer has decided to build a new factory, which will be located in Chengdu (where it already has a plant), with an initial capacity of 150,000 units a year, dedicated to hybrid vehicles, which is expected to start in a year.

Chinese government quotas require Geely to produce 10% of its local automobile production in hybrid or electric motorizations, which is equivalent to around 150,000 units in 2019.

The Geely Group's capacity is expected to reach 1,710,000 vehicles per year in 2019.  If China's market growth continues in 2020 and 2021, Geely will build another new plant, or expand an existing one.


18-14-3   
    
 

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