Each Mercedes European factory will produce electric models
Mercedes (a subsidiary of the Daimler Group) has announced that all its European plants will produce future electric models that will make up the future EQ range. Each model in the EQ range will in fact be derived from a model with a thermal engine that is already produced in a dedicated plant. Therefore:

• The EQ range electric models derived from the Mercedes Class A and GLA (C segment) will be produced at Rastatt plant in Germany.
• The EQ range electric models derived from the Mercedes C-Class and GLC (D segment) will be produced at  Bremen plant in Germany.
• The EQ range electric models derived from the Mercedes E-Class and S-Class (E and F Segments) will be produced at Sindelfingen plant in Germany.
• The EQ range electric models derived from the Mercedes B-Class and GLB (C segment) will be produced at Kecskemét plant in Hungary.

The first model of the EQ range scheduled for the end of 2019 will be produced in Bremen, and will therefore be derived from the C and GLC Classes. Mercedes plans to launch 10 different electric models, between 2019 and 2025.


17-14-10   

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BMW increases production capacity in China
The German manufacturer BMW which produces in China for the local market, in joint venture with the Chinese OEM Brilliance, has just increased its production capacity in this country. They will increase from 300 000 vehicles per year in 2016 to 450 000 per year in 2017 (ie + 50% capacity), in their current plants. This increase in its Chinese capabilities is welcome as BMW has already manufactured 129,000 cars in the first four months of this year, and at this rate should produce at least 375,000 cars over the whole year to meet demand.

In fact, BMW sold 500,000 cars in China last year, of which 300,000 were produced locally and 200,000 were imported from Europe and the United States. Theoretically, BMW could therefore continue to increase its production capacity in China up to 600,000 units or more.

The BMW models currently manufactured in China are 2 Series (15,000 units in 2016), 3 Series (98,000 units), 5 Series (144,000 units) and X1 (48,000 units). The 1 Series (Sedan) started production a few weeks ago. Those BMWs not manufactured in China are imported, such as 1 Series (15,000 units in 2016), 2 Series Active / Gran Tourer (9,000 units), 3 Series GT (14,000 units), 4 Series (9 000 units), 5 Series GT (14,000 units), 6 Series (1,000 units), 7 Series (20,000 units), X3 (30,000 units), X4 (13 000 units), X5 (44 000 units), X6 (10,000 units) and Z4 (1,000 units).


17-14-8   

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Volvo Cars will produce cars in India
Swedish carmaker Volvo Cars (a subsidiary of the Chinese group Geely) has announced that it will start producing cars in India, hoping to capture part of the local demand for Premium cars. Sales figures for Premium brands are not officially known, but Inovev estimates their volume at 25,000 / 30,000 units in 2016 (in a market of 3.67 million vehicles).

Sales figures for Volvo Cars in India are estimated at 1,400 units in 2016 (all imported), which is 5% of the premium market in India. The Swedish manufacturer wants to double this figure by 2020 (to 10% of the Indian Premium market) by manufacturing  locally from kits (CKD), which would avoid import taxes. Today, the best-selling premium brands in India are BMW, Mercedes and Land Rover that already produce CKD in India, precisely to avoid import tax.

Volvo Cars has signed an agreement with truck manufacturer Volvo Trucks to install its own car assembly line in the Hoskote plant near Bangalore where Volvo Trucks produces trucks and buses.

The manufacturer believes that India has great potential for development. Volvo Cars already manufactures cars in Sweden, Belgium, China, Malaysia and is expected to start production in the United States in 2018.


17-14-7   

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Geely acquires 49,9% of Proton and 51,0% of Lotus
The Chinese group Geely has acquired 49.9% of the Malaysian brand Proton and 51% of the British brand Lotus which is owned by Proton. Geely plans to give Proton access to certain technologies it has developed with its subsidiary Volvo Cars and to certain markets where Geely is present. Geely could also use Lotus's expertise in composite materials and light manufacturing methods. Geely considers this technology to be transferable on all vehicles it sells in China. Lighter cars will help the brand meet future emission standards.

Proton had tried to internationalize its sales between 2005 and 2015, but the Malaysian manufacturer did not succeed in sustaining this strategy, which would have enabled it to become a global player. Successive attempts to partner with PSA, GM, Volkswagen and Suzuki, between 2006 and 2016, have also failed. One of the reasons for these failures may be that the Proton company not only missed its internationalization but also saw its influence sharply decrease over the past three years in its own market for the benefit of the other Malaysian manufacturer, Perodua.

Proton's worldwide sales were halved between 2013 and 2016, from 215,000 to 75,000, while Perodua's sales increased from 196,000 to 206,000 units at the same time. After taking over Proton, Geely will first have to relaunch the brand's sales on the Malaysian market before going international.


17-14-9   

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Inovev expects 95,000 sales a year of the new Skoda Karoq
Skoda, the Czech subsidiary of the Volkswagen group, unveils the replacement for the compact SUV Yeti (whose origins go back to 2009). It has a new name (Karoq) and is more clearly in the C segment (with such cars as the Nissan Qashqai, Renault Kadjar, Peugeot 3008, Volkswagen Tiguan, Opel Grandland, Ford Kuga, Seat Ateca).

Karoq is built on the MQB platform, taking the engines, several body panels, and the overall dimensions (length: 4.38m, width: 1.84m, height: 1.60m) of the Seat Ateca. It will also be produced alongside the  Ateca on the Czech site of Kvasiny, where the Yeti was produced and where the Kodiaq (D segment vehicle  which can be considered as  the 7-seater version of the Karoq) is also produced, as well as the Superb sedan (E segment).

The Karoq engines are therefore identical to those of the Seat Ateca: 3 cylinders 1.0 gasoline 115hp, 4 cylinders 1.5 gasoline 150hp, 4 cylinders 1.6 diesel 115hp and 4 cylinders 2.0 diesel 150hp and 190hp.

Sales of the Karoq will start in the fourth quarter of 2017. Inovev expects 95,000 sales a year, while Yeti has never exceeded an average of 65,000 annual sales over its eight-year series life.

A third SUV (B segment) will complete the Skoda range by 2019. Known today as Polar, this SUV will be close to the future Seat Arona and Volkswagen T-Cross. Ultimately, the Volkswagen group should have 25 SUVs.


17-14-5   

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