The FCA European Product Plan 2019-2022
The 2019-2022 FCA Product Plan reveals the effort that will be made to develop the Jeep brand, while the Chrysler and Dodge brands will fade. Indeed, the Chrysler 300 will not be replaced and its manufacture will not continue beyond  2020. The Chrysler Pacifica, for its part, will be manufactured until 2024 and will not be replaced. As for the 100% electric concept Portal if the project gives birth to a series model, its volume of sales should be very weak. On the Dodge side, the Charger and Challenger will not be replaced and their manufacture will not continue after 2021. The Caravan will suffer the same fate, while the Journey and Durango will be replaced by Jeep models (Cherokee and Grand Cherokee). The Chrysler and Dodge brands are therefore condemned in the short term, and the Lancia brand will disappear in 2019.

On the other hand, the Jeep brand will become the spearhead of the FCA group, with the renewal of Renegade, Cherokee, Grand Cherokee (in 2020), Compass (in 2022) and the arrival of the Scrambler (in 2019), Jeepster (in 2020), Wagoneer (in 2020), Grand Wagoneer (in 2020). The Ram brand will expand with a new medium-sized pickup, the Dakota. The Alfa-Romeo brand will benefit from two new SUVs (one in  the E segment in 2019 and the other in  the C segment in 2020). In addition, two new coupes will complete the range of the manufacturer (the GTV in 2020 and the 8C in 2022), while the 4C  Coupe will be removed in 2019. Finally, Fiat will renew its 500 (in 2019), 500X (in 2021 ) and 500L (in 2022).


    
 

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Ford stops Fiesta, Fusion and Taurus production in North America
Ford has confirmed that it will disengage from unprofitable market segments, not only in Europe (as seen in our latest Auto-Analysis) but also in North America, where the Fiesta (B segment), Fusion (D segment) and Taurus (E segment) sedans will be phased out by 2020 and not replaced.

The C segment Focus will be the only remaining sedan at Ford, but it is unsure whether this model will be replaced in the mid-2020s. Mustang should also survive this  “mass  slaughter“,  as part of the sports car segment. Ford's goal is to have nearly 90% of its sales in North America in 2020 made up of pick-ups, SUVs and cargo-based utilities.

This strategy of lightening ranges and maximizing profitability is very similar to what Sergio Marchionne announced shortly before his death last June, for his FCA group.

For Inovev, this is not an offensive nor a conquering strategy, but rather a defensive one, because it focuses on a smaller scope keeping only high-margin products, and leaving the lost market share to the Japanese and Korean competition. The GM group could in turn adopt the same strategy in North America, which would create a great opportunity for Asian OEMs to further increase their influence.


    
 

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Inovev forecasts production of 25,000 Mercedes EQC in Europe in 2023
Mercedes has unveiled its new 100% electric vehicle, the EQC, a D-segment SUV, similar in size to that of the GLC (4.70m long) with thermal engine, which is a big worldwide success, selling 200,000 units in the first half of 2018, therefore logically a volume of 400,000 units over the year.

The Mercedes EQC is in direct competition with the newly launched BMW X3 EV and the future Audi Q6 E-Tron, which is expected to be unveiled in the coming weeks. It also competes with the Jaguar I-Pace and the Tesla Model X.

Unlike the BMW X3 EV, the Mercedes EQC has its own body. It will be sold starting in the summer of 2019 and will be manufactured in the German factory in Bremen (alongside the Mercedes C Class and GLC) and in the Chinese factory in Beijing, owned by Chinese OEM BAIC.

The Mercedes EQC precedes the Mercedes EQA which will be based on the Class A and will be manufactured from 2020 in the Hambach plant in Lorraine, alongside the Smart EQ Fortwo and EQ Forfour.

The Mercedes EQC has a range of 450km thanks to an electric motor with a power of 400 hp (300kW).

Inovev expects that EQC production in Europe will grow from 10,000 units in 2020 to 25,000 in 2023.


    
 

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The 2018 Paris Motor Show was mainly a Premium brands event
Due to the absence of many general brands, such as Volkswagen, Opel, Ford, Fiat, Nissan, Mazda, Mitsubishi, Subaru or Jeep, the 2018 Paris Motor Show was mainly a Premium brand show.

Thus, Audi, BMW, Mercedes and Porsche presented about fifteen new products (75% of the main features of the show); in addition DS presented the DS 3 Crossback, the major novelty of the French premium brand.

SUVs accounted for two thirds of the main innovations, i.e. 12 models. Sedans accounted for 15% of the main innovations, i.e. 3 models. The 3 remaining novelties were a minivan, a coupe and a convertible.

The break-down of models at this show is therefore very different from that of the European market, which currently consists in 55% of sedans and 35% of SUV, these two categories together accounting for 90% of the European market.

The minivans and coupes / cabriolets, which were not very present at the “Mondial de l'Automobile “ make up 7% and 1% of the European market respectively.

Finally, microvans represent 2% of the European market, and no novelty has been shown in this category of vehicles. This is because the new Citroën Berlingo, Peugeot Partner and Opel Combo were unveiled at the Geneva Motor Show in March 2018, and the new Renault Kangoo will be unveiled next year.


    
 

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Suzuki withdraws from the Chinese market
Suzuki has decided to withdraw from the Chinese market because its small cars no longer meet Chinese demand. In fact, the Chinese market is increasingly fond of segment C and D SUVs, as well as C and D segment sedans, but demand for A and B segment SUVs and sedans (which Suzuki offers) has considerably shrunk, and the brands that have the most influence in this category are the Chinese brands that offer these models at very low prices.

Suzuki sold less than 110,000 vehicles in China last year (-26% over 2016) on a worldwide sales volume of 3.16 million units, therefore less than 3.5% of its global sales.

Suzuki will continue to focus on its largest market, India, which accounts for half of its worldwide sales, or 1.6 million units in 2017 (marketed under the Maruti brand) and whose potential seems to be greater.

As early as the 90s, Suzuki chose Changan, a Chinese partner, which also works with Ford and Mazda. The Japanese will sell to its local partner its 50% stake in the Chongqing Changan Suzuki Automobile joint venture. The Suzuki brand will however continue for some time in China, via vehicles produced under license by Changan.

As long as Suzuki does not offer models of the C and D segments, the Chinese market will be very unfavorable, and Suzuki’s strategy does not include these segments.


    
 

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