Brazilian Market (PC+LCV) revives over the first 5 months of 2017
The Brazilian automotive market (PC+LCV) has increased , after four years of uninterrupted decline. It has been positive since March 2017 and growth has accelerated since then In  2016 there was already  some improvement over 2015, as the market, while continuing to decline, did so less, month over month (+16,8% in May 2017).

If the current pace of registrations continues, the Brazilian automobile market could increase by 10% over the whole year, which could place this market at around 2.3 million units (VP + LUV) as against 2. 05 million in 2016 and 2.57 million in 2015.

Which brands benefit most from the current restart of the Brazilian market?

In the first five months of 2017 (compared to the first five months of 2016), the Jeep brand increases its sales by 51%, Nissan increases its sales by 39%, Ford increases its by 12% and Chevrolet increases its by 10%.

In volume terms, Chevrolet's sales increased by 13,000 units and Jeep by 11,000 units. Chevrolet remains the leader of the Brazilian market and even increases its lead on its main competitors, Fiat (-9%) and Volkswagen (-5%) which decline over the period. The Fiat Argo will play a crucial role in trying to revive the sales of the Italian manufacturer.


17-15-6   

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Fiat replaces Punto… in South America
Fiat moved gradually from first place to second place in Brazil behind Chevrolet. One of the reasons for this decline is undoubtedly a questionable range positioning in recent years. Indeed, while in 2017, the Brazilian market is composed of 23% of A segment cars, 56% B segment cars, 19% C segment cars and 2% D / E / F segment cars , Fiat sells 31% of segment A cars and 69% segment B cars, eliminating  the 21% of the market made up of cars of segments C, D, E, F.

Concerning body types , while the Brazilian market is composed of 67% sedans, 18% SUVs and 14% pick-ups in 2017, Fiat sales are  57% sedans and 37%  pick-ups, eliminating  the SUV’s 18% of the market.

Despite the lack of products in the segment of SUVs and segment C sedans, Fiat  has decided to replace the old Punto by the Argo, while Uno and Palio , the other B segment cars made 26% of Fiat sales in the first five months of 2017. The Argo is based on the Fiat 500L, 500X, Renegade and Tipo platforms sold in Europe. But the Argo will not be sold in Europe. It will be reserved only for markets in South America.

The engines of the Argo are the following: 1.0 gasoline / 77hp; 1.3 gasoline / 109hp; 1.8 gasoline /139hp; This 4 meter long sedan will be, as all Fiat cars produced in Brazil, manufactured on the Betim site.

While the Brazilian market is growing over the first five months of 2017, Fiat sales dropped  9%.The success of this model is therefore crucial for the Italian manufacturer.


17-15-4   

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Nissan X-Trail is the most produced D segment vehicle in the world in 2016
The most produced D segment car in 2016 was the Nissan X-Trail SUV, called Nissan Rogue in North America. This model surpassed 800,000 sales last year, ahead of two other SUVs, the Toyota RAV4 and Honda CRV, which have been the X –Trail’s  main global competitors for many years.

The current X-Trail / Rogue generation was launched in 2014 on the same platform as the Nissan Qashqai launched the same year. It will be restyled in 2017 before being replaced in 2020.

This model has gradually become the most sold of the Renault-Nissan group. Last year it accounted for almost 10% of sales for the entire Franco-Japanese group. This is why its replacement is crucial.

The X-Trail is sold in all countries of the world. It is manufactured in Japan (323,000 units in 2016), China (180,000 units), the United States (170,000 units), South Korea (137,000 units) and Nissan announced that it would also be manufactured in England from its future generation (in 2020).

The global market for segment D vehicles represents 13.6 million units in 2016, compared with 13.3 million units in 2015, an increase of almost 2.5% in a global market which rose  4.7%. This market segment is  being increasingly dominated  by SUVs, relative to  of sedans and minivans.


17-15-1   

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Peugeot 508 to be produced in Mulhouse
- The next generation of the Peugeot 508 ( to be launched at the end of 2018) will no longer be produced in Rennes, western France, but in Mulhouse, in the east of France. The PSA group is  completely revising its production strategy in Europe by:

                  1. Concentrating the B segment sedans on their Tnava site (Slovakia) (Citroën C3, Peugeot 208).
                  2. Dedicating their Mulhouse site (France) to DS and D segment sedans (Citroën C5, Peugeot 508, DS4, DS6, DS7) which requires:
                         a) Transfer the future Citroën C4 from Mulhouse to Villaverde (Spain).
                         b) Transfer the future 2008 Peugeot from Mulhouse to Vigo (Spain).
 
                  3. Dedicating the site of Rennes (France) to D segment SUV (Citroën C5 Aircross, Peugeot 5008, future 7-seater Opel).
                  4. Concentrating the low-priced cars (Citroën C-Elysée, Peugeot 301) on the Moroccan site of Kenitra (Morocco), which will release 
                        capacities on the Spanish site of Vigo which will soon produce the Peugeot 2008.

- The Sochaux (France) site will continue to manufacture the Peugeot 308, as well as the SUV Peugeot 3008 and Opel Grandland, while the DS5 
     should disappear with the arrival of the DS6.

- The Valenciennes (France) site will continue to manufacture Citroën Jumpy, Peugeot Expert and Toyota ProAce light commercial vehicles.

- The site of Poissy (France) should manufacture the future DS3 and possibly  another not yet identified model.


17-15-3   

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Toyota Land Cruiser is the most produced E segment vehicle in the world in 2016
The most popular E segment car in 2016 was the Toyota Land Cruiser SUV (360,000 units), ahead of the BMW 5 Series (the best-selling segment E sedan in the world) and the Toyota Highlander (leader in the US market). Toyota thus has two leading models in their segment: the Corolla (C segment) and the Land cruiser (E segment).

The current generation of the Land Cruiser dates from 2009 (restyled in 2013). It should therefore be replaced soon.

The Land Cruiser's competitors are the E-segment SUVs, such as the Toyota Highlander, Ford Explorer, Chevrolet Equinox, Jeep Grand Cherokee and Lexus RX, which are among the top ten in 2016.

Large SUVs have gradually taken a major share in the E segment, due to the strong demand for this type of model, particularly in the North American market. 

The German E segment sedans (BMW 5 Series, Mercedes E-Class, Audi A6) remain in the top ten, ahead of all the other sedans in the same segment, whether American, Japanese, English or Swedish.

The global market for E-segment vehicles is  9.5 million units in 2016, up from 9.4 million in 2015, an increase of only 1%, in a global market up  4.7%.


17-15-2   

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