PSA will produce a new pick-up in Tunisia from 2018
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PSA will produce a new pick-up in Tunisia from 2018
- The PSA group will produce a new pick-up in Tunisia from 2018. A local assembly site will be opened for this purpose, with a capacity of 1,200 units per year, where the manufacture of the new model will start from the summer of 2018.
- The production capacity of this assembly site is not significant for the Tunisian market. The installed capacity will be just over 2% of the Tunisian market (55 000 “Passenger Cars + Light Utility Vehicles” registered in 2015). But it is significant for the PSA sales: capacity superior to 20% of the volume of sales of the Peugeot brand. Peugeot registers currently 5,500 “PC + LUV” per year in Tunisia (208, 301, Bipper and Partner), being so the fifth carmaker in the country, in terms of sales. Peugeot is behind Renault, Kia, Volkswagen and Citroën. If only PCs are taken into account, Peugeot is fourth (see graph here below).
- This industrial project in Tunisia (with the support of STAFIM, the local Peugeot importer) is part of a broader PSA development strategy in Africa and the Middle East: construction of a plant in Kenitra, Morocco (100,000 cars per year from 2018 onwards), discussions under way for an industrial plant in Algeria, restart of production in Iran (100,000 cars in 2017 and 350,000 per year from 2020). PSA intends to reduce its dependence from the European market and take advantage of the potential of the Africa-Middle East region, which is expected to increase from 5.3 million vehicle sales in 2015 to 8 million in 2025, an increase of 50 % in ten years.
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PSA reorganizes the European production of the Peugeot 208
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PSA reorganizes the European production of the Peugeot 208
- As the capacity of the PSA plant in Trnava (Slovakia) is insufficient to produce 400,000 vehicles in 2017 and in 2018, the PSA group has decided to transfer a volume of 70,000 Peugeot 208 from Trnava to the French site of Poissy, which already manufactures some of these models for the European market.
- Indeed, the Slovak site of Trnava has just started manufacturing the new Citroën C3 (130 000 units per year), while it already produces the Peugeot 208 (220 000 units in 2016) and Citroën C3 Picasso (50 000 units In 2016), which is theoretically equivalent to a manufacturing program of 400,000 vehicles per year, with a capacity of 300,000 units per year that could be increased by only 10% (to 330,000 units per year) in extreme cases.
- Even if the Citroën C3 Picasso is scheduled to be stopped in Trnava during the first half of 2017 (its replacement being produced on the GM site in Zaragoza, Spain), the manufacturing program will exceed the 300,000 units.
- The decision to transfer 70,000 Peugeot 208 from Trnava to Poissy in 2017 and 2018 will thus enable the plant to operate at less than 110% of its capacity and the Poissy plant to maintain a shift that otherwise would have been to removed.
The production volume of Poissy is expected to increase in 2017 from 133,000 units to 203,000 units, and in 2018 from 106,000 units to 176,000 units.
According to PSA, Poissy will be able to produce 200,000 vehicles per year from 2019, thanks to the new DS3.
The production volume of Poissy is expected to increase in 2017 from 133,000 units to 203,000 units, and in 2018 from 106,000 units to 176,000 units.
According to PSA, Poissy will be able to produce 200,000 vehicles per year from 2019, thanks to the new DS3.
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Production achievements (PC+UV): Canada 10 months 2016 and forecast 2017
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Production achievements (PC+UV): Canada 10 months 2016 and forecast 2017
- In the first 10 months of 2016, Canadian automotive production (Passenger Cars + Utility Vehicles) increased by 2.9%, down from 6.4% in 2015, following model shifts to Mexico. The market grew by 3.1% in 2016 compared to 2015.
- In 2016, more than 85% of production was exported to the US and Mexican markets. The level of Canadian production is heavily dependent on the growth of the US and Mexican markets. In 2016, the US market stabilized (+ 0.1%) compared to 2015, while the Mexican market rose sharply (+15.2%).
- Two scenarios can be established:
• A first scenario of stability of US markets (+ 0.1%), with consequently growth of the Mexican market, however smaller than in 2017 (+ 5%).
The US car market will likely stabilize pending a clarification of the Trump administration's policy choices. The Mexican market should continue to grow but however less strongly if consumer confidence is affected by uncertainty about future US policy. Under this assumption, Canadian production is expected to stabilize (-0.7%).
The US car market will likely stabilize pending a clarification of the Trump administration's policy choices. The Mexican market should continue to grow but however less strongly if consumer confidence is affected by uncertainty about future US policy. Under this assumption, Canadian production is expected to stabilize (-0.7%).
• A second scenario of positive growth in the US (+ 1%) and Mexican (+ 7%) markets in 2017. The US market could slightly increase in registrations, driven by an economic growth which is expected to strengthen in 2017. Regarding Mexico, economic growth should be driven by a stronger demand for imports from the United States, if the economy dynamic of the US is positive. Under this assumption, growth of Canadian production could be + 1% in 2017, a level within the current production capacities of the country.
- It is to note that no transfer of vehicles from Canada to the USA during the year 2017 is currently planned.
Moreover, a tax on imported vehicles could only be implemented in a context of a renegotiation of the NAFTA. And results of this potential renegotiation are difficult to envisage during the 2017 year.
Moreover, a tax on imported vehicles could only be implemented in a context of a renegotiation of the NAFTA. And results of this potential renegotiation are difficult to envisage during the 2017 year.
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Opel will reorganize European production of Adam, Corsa and Mokka
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Opel will reorganize European production of Adam, Corsa and Mokka
- As the plant in Zaragoza has a capacity limited to 470,000 vehicles a year, and the future Citroën C3 Aircross will now be manufactured on this site, Opel will reorganize the European production of its compact models (A-segment sedan), Corsa (B-segment sedan) and Mokka (B-segment SUV).
- The Adam is currently produced in Eisenach (Germany), the Corsa is produced on two different sites, in Eisenach and chiefly in Saragossa (Spain), the Mokka is produced in Zaragoza.
- The next generations of these three models will no longer be produced on the same sites as today:
the future Adam (planned for 2018) will be produced in Zaragoza, the future Corsa (launched in 2019) will be produced entirely in Zaragoza and the future Mokka (launched in 2020) will be produced in Eisenach.
the future Adam (planned for 2018) will be produced in Zaragoza, the future Corsa (launched in 2019) will be produced entirely in Zaragoza and the future Mokka (launched in 2020) will be produced in Eisenach.
- In 2020, the Spanish plant in Zaragoza (capacity: 470,000 vehicles per year) will produce four different models: Adam, Corsa, Crossland (ex-Meriva) and Citroën C3 Aircross (ex-C3 Picasso), while the German plant in Eisenach (capacity: 200,000 vehicles per year) will produce only one model: the Mokka.
- Without this reorganization, the site of Zaragoza would have passed with great difficulty the 500 000 vehicles per year, and the concentration of production of the Corsa on a single site would have been impossible.
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Production achievements (PC+UV): USA 10 months 2016 and forecast 2017
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Production achievements (PC+UV): USA 10 months 2016 and forecast 2017
- In the first 10 months of 2016, automotive production (Passenger Cars + Utility Vehicles) in the USA increased by 2.5% compared to the same period of 2015, whereas it had increased by 4% in 2015 compared to 2014. This is the seventh consecutive increase year since the 2008-2009 crisis.
- The US market remained stable in 2016 (+ 0.1%) after having grown by + 5.8% in 2015.
- Each year, 80% of car production in USA is sold in the USA, accounting for 60% of auto sales in this market. The level of the US market has therefore a great impact on the volume of local production. And this automobile market is dependent on the economic growth of the country.
In 2017, economic growth and the arrival of a new government are two significant factors which will impact the future growth of the US automobile market and production.
Two scenarios can be established:
In 2017, economic growth and the arrival of a new government are two significant factors which will impact the future growth of the US automobile market and production.
Two scenarios can be established:
• A first scenario of a positive market growth (>+ 1%) in 2017.
Such a growth scenario has for basis an assumption of an economic growth in 2017.
OECD projections suggest that fiscal policy should take a more expansionary stance with an increase in public spending and investment, while taxation will decline.
This would boost the economy and therefore the production. However it is to take into account that capacities in USA are currently saturated and it would take time to re-open some plants which were closed around 5 years ago (as a consequence of the crisis).
As a result, automobile production in this scenario is expected to grow moderately (+ 1.6%), according to local market demand assessed in this scenario and the capacities.
Such a growth scenario has for basis an assumption of an economic growth in 2017.
OECD projections suggest that fiscal policy should take a more expansionary stance with an increase in public spending and investment, while taxation will decline.
This would boost the economy and therefore the production. However it is to take into account that capacities in USA are currently saturated and it would take time to re-open some plants which were closed around 5 years ago (as a consequence of the crisis).
As a result, automobile production in this scenario is expected to grow moderately (+ 1.6%), according to local market demand assessed in this scenario and the capacities.
• A second scenario of market stability (+ 0.1%). This scenario takes into consideration the Trump administration's possible future tax measures on imported vehicles (40% of US sales). Setting up such measures will take time. But it may create uncertainty in 2017.
In this scenario, auto production in the US could stabilize in 2017 (+ 0.8%).
In this scenario, auto production in the US could stabilize in 2017 (+ 0.8%).
• Another factor is to note: the possible anticipation of imported cars at a time their prices is not yet impacted by taxes.
However such an anticipation should have only a small effect on 2017 production.
However such an anticipation should have only a small effect on 2017 production.
- It is also to note that Ford announced this Monday (January 3rd) that it would maintain production of the Ford Focus in Michigan (United States) and will no longer produce it in Mexico as announced a year ago. It is yet not certain at all that this measure has been taken consequently to Trump’s announced policy (except on a public relation level). An Inovev analysis of this Ford plant closing will be published soon.
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