Mexican production (PC + LUV): in 2016 and future
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Mexican production (PC + LUV): in 2016 and future
- Mexico has gradually become one of the world's leading automobile producing countries.
In 2016, it will be the seventh largest producer, behind India and South Korea, and reach for the first time the 4 million vehicles produced (against 3 million in 2012 and 1.5 million in 2009).
In 2016, it will be the seventh largest producer, behind India and South Korea, and reach for the first time the 4 million vehicles produced (against 3 million in 2012 and 1.5 million in 2009).
- Mexico has benefited from the strategy of US car groups who have launched new models there and transferred the production of several models from Canada.
- Mexico has especially benefited from the implementation of new carmakers (European, Japanese, Korean)
who wished to have access to one of the world's leading markets (NAFTA) without paying the high US nor Canadian labour costs.
The Renault-Nissan group is the largest producer in Mexico. GM and Ford are still very present in Mexico (30% of Mexican production), but Europeans (48% of Mexican production) are supplanting them since the takeover of Chrysler by Fiat in 2011. And the imminent arrival of Audi, BMW and Mercedes will amplify the gap.
Japanese (20%) arrived more recently (in the 2000s), Korean (2%) even more recently (in 2016).
who wished to have access to one of the world's leading markets (NAFTA) without paying the high US nor Canadian labour costs.
The Renault-Nissan group is the largest producer in Mexico. GM and Ford are still very present in Mexico (30% of Mexican production), but Europeans (48% of Mexican production) are supplanting them since the takeover of Chrysler by Fiat in 2011. And the imminent arrival of Audi, BMW and Mercedes will amplify the gap.
Japanese (20%) arrived more recently (in the 2000s), Korean (2%) even more recently (in 2016).
- Mexican production is very dependent on the US market (almost half of Mexico's production is sold in the USA and this share will further increase in 2020)
- Inovev forecasts a temporary production decline from 2018, as a consequence to the expected decline in US market between 2017 and 2020.
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Nissan unveils a new B-segment SUV: the Kicks
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Nissan unveils a new B-segment SUV: the Kicks
- Nissan unveiled the Kicks, a B-segment SUV built on the platform V of Indian Micra. The Kicks should gradually replace the Juke (built on the platform B of the European Micra) whose origins date back to 2010 and which arrives at the end of its life.
The Kicks’ production started in July 2016 in the Mexican plant of Nissan located in Aguascalientes. The Kicks could be exported from Mexico to Europe, which would result in the end of the Juke on the assembly lines of Sunderland (UK).
A consequence of Brexit? Or a coincidence?
The Kicks’ production started in July 2016 in the Mexican plant of Nissan located in Aguascalientes. The Kicks could be exported from Mexico to Europe, which would result in the end of the Juke on the assembly lines of Sunderland (UK).
A consequence of Brexit? Or a coincidence?
- Volume sales of the Kicks could exceed 150,000 units per year, especially if one considers that this model should be marketed in 80 countries, including those located in North America and Europe.
South America, on its sides, will be supplied by the Brazilian Nissan plant of Resende.
South America, on its sides, will be supplied by the Brazilian Nissan plant of Resende.
- In 2015, the Juke’s sales had reached 120,000 (against 133,000 units in 2014), and in 2016, they should not exceed 115 000 units. Its sales fell nearly 30% in the US and this model is now largely overpassed by the same category vehicles Chevrolet Trax, Buick Encore and Honda HRV.
The Juke will be replaced shortly on the market by the Kicks and should therefore disappear.
The Juke will be replaced shortly on the market by the Kicks and should therefore disappear.
- The Kicks is currently proposed in North America with a 1.6 petrol engine of 115hp.
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The next Dodge Journey will be produced in Italy and not in Mexico
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The next Dodge Journey will be produced in Italy and not in Mexico
- The Dodge Journey (named Fiat Freemont in Europe) is the FCA C-segment SUV.
It competes with the other C-segment SUVs such as the Ford Escape in the United States or Renault Kadjar in Europe.
It competes with the other C-segment SUVs such as the Ford Escape in the United States or Renault Kadjar in Europe.
- Launched in 2008 under the Dodge brand (for the US market) and in 2011 under the Fiat brand (for the European market), this model, driven by the worldwide success of the SUVs, behaved well until 2015, when it reached a production peak (just over 200,000 vehicles produced). The year 2016, however, marked a sharp decline of the model.
- The model should be replaced in 2018.
- FCA decided to produce this new model (still a C-segment one) not anymore in Mexico but in Europe, in one of the Italian plants of the group, probably Mirafiori which is currently idle.
- FCA hopes to surf on the success of the Fiat 500X (SUV segment B) and renew the same performance with the future Journey which will be available today under both Dodge and Fiat brands. As the Jeep Renegade, the Journey will be exported from Italy to North America, which will consolidate the volume of production in Italy.
FCA could indeed produce 200,000 units a year of the new model, of which 85% should be exported to North America.
FCA could indeed produce 200,000 units a year of the new model, of which 85% should be exported to North America.
- Future Journey future could share the platform of Alfa-Romeo Giulietta.
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Audi and Mercedes will increase their production capacity in Europe
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Audi and Mercedes will increase their production capacity in Europe
- German Premium carmakers Audi and Mercedes have announced they will increase their production capacities in Europe.
In a period where the car market is increasing and the Premium manufacturers’ sales grew faster than the market, Audi and Mercedes had the choice between:
In a period where the car market is increasing and the Premium manufacturers’ sales grew faster than the market, Audi and Mercedes had the choice between:
1.build new plants.
2.increase capacity of existing plants.
3.massively import models from other regions.
- Audi has selected three ways: Transfer Q5 from Ingolstadt to the new Mexican plant in San José Chiapa, freeing up capacity for the new Q2. In 2018, the A1 will be transferred from Brussels to Martorell (Spain), freeing up capacity for the new electric Q6. This transfer will lead to the displacement of Q3 from Martorell to Gyor (Hungary).
The Martorel production capacity will consequently double from 160 000 to 320 000 vehicles per year.
The Martorel production capacity will consequently double from 160 000 to 320 000 vehicles per year.
- Mercedes; on its side, has just increased its capacities in Bremen for the arrival of GLC coupe, and announced it would double its capacity in 2018 in Kecskemét (Hungary), from 200 000 to 400 000 vehicles per year, for the arrival of the new generation of CLA and a new model that could be called GLB (this would be a new compact SUV).
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Toyota starts production of the CHR on its Turkish site
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Toyota starts production of the CHR on its Turkish site
- Toyota became, with the RAV4, the pioneer of the compact SUVs from the 90s. But gradually over generations, RAV4’s dimensions have increased significantly (the length of the current generation is 4.57m).
The empty space that Toyota has gradually left was then filled by new compact SUV like the Nissan Juke (B-segment) and Qashqai (C-segment).
The empty space that Toyota has gradually left was then filled by new compact SUV like the Nissan Juke (B-segment) and Qashqai (C-segment).
- Toyota is now coming back on the compact SUV segment with the CHR that is 2cm shorter than the Nissan Qashqai (whose length is 4,36m) and 22cm longer than the Nissan Juke. CHR can be therefore considered as a C-segment vehicle.
- After its presentation as a concept at the September 2014 Paris motorshow, its production started two years later, on the Turkish site of Toyota (Adapazari), alongside the Toyota Corolla and Verso.
- Besides its very avant-garde style, the new compact SUV stands out from the competition by its engines, only gasoline engines (1.2l 115hp and 1.8l 122ch). The biggest of these two engines is connected to an electric motor in the same way as the Prius IV whose CHR shares the platform. This strategy is bold. But it is to remind that Toyota already offers a hybrid RAV4 and the Korean Kia also offers a hybrid engine on its new compact SUV, the Niro (which shares the platform of the Hyundai hybrid Ioniq).
- Inovev forecasts nearly 100,000 CHR produced annually in Turkey, for sales worldwide.
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Read more... Toyota starts production of the CHR on its Turkish site
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