The Fiat plant in Serbia suffers from the success of compact SUVs
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The Fiat plant in Serbia suffers from the success of compact SUVs
- The Fiat 500L launched in 2012 was supposed to play the role of a station wagon or MPV version of the Fiat 500 launched in 2007. It was also supposed to saturate the production capacity (150 000 units)of the Fiat plant in Kragujevac ( Serbia) acquired by the Italian manufacturer in 2010 (the plant was previously owned by the Serbian car manufacturer Zastava).
- In 2013 the Fiat target of 110,000 vehicles manufactured in Kragujevac was reached. In the same year, 180 000 units of the Fiat 500 were also produced at Tichy (Poland) and 53 000 at Toluca (Mexico).
The Fiat 500L then represented a third of the sales of the entire range 500.
The Fiat 500L then represented a third of the sales of the entire range 500.
- In 2014, Fiat launched the 500X and the Jeep Renegade, both designed under the form of compact SUVs, and these vehicles were produced in Melfi (Italy). These models have immediately met a great success (200,000 sales in 2015 and 280,000 in 2016, according to forecasts of Inovev), which impacted customers of the 500L more connoted as MPV and station wagon.
- 500L sales decreased from 100,000 in 2014 to 82,500 in 2015 and 80,000 in 2016, according to forecasts of Inovev.
At the same time, Fiat has decided to increase the production by operating in 2-shift instead of 3-shift.
It means that the plant in Kragujevac will dismiss one-third of its workforce, pending the possible arrival of a new model on its lines assembly.
At the same time, Fiat has decided to increase the production by operating in 2-shift instead of 3-shift.
It means that the plant in Kragujevac will dismiss one-third of its workforce, pending the possible arrival of a new model on its lines assembly.
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BMW will transfer part of the production of the 3-Series to Mexico
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BMW will transfer part of the production of the 3-Series to Mexico
- BMW will launch the next generation of the 3-Series at the end of 2018, and production should start at early 2019.
Unlike the current generation that is exported to North America from plants in Germany, the next generation marketed in North America will come from the Mexican plant that BMW is currently building in San Luis Potosi.
Unlike the current generation that is exported to North America from plants in Germany, the next generation marketed in North America will come from the Mexican plant that BMW is currently building in San Luis Potosi.
- The first models are expected to be produced in the Mexican plant at the beginning of 2019 (as in Europe).
This production will be sold in Mexico, Canada and the United States. BMW's objective is to produce 150 000 3-Series per year in its Mexican plant, quantity which matches the maximum capacity of the plant.
This production will be sold in Mexico, Canada and the United States. BMW's objective is to produce 150 000 3-Series per year in its Mexican plant, quantity which matches the maximum capacity of the plant.
- In 2015, BMW sold 110,000 3-Series in North America broken down into 95,000 in the US, 10,000 in Canada and 5,000 in Mexico,. BMW bets on a steady increase in sales of 3-Series from now to 2020 to reach 150,000 units of this model in North America by 2020 . This target is ambitious because the US market is a cyclical market that looks to be at a peak in 2016 and might go down in 2017.
- In addition, from 2020, these 150 000 units will lack at the German sites where the BMW 3 Series are currently manufactured. MW will have to compensate this transfer of production.
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BMW produced 12,500 vehicles in its Brazilian plant in 2015
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BMW produced 12,500 vehicles in its Brazilian plant in 2015
- Built in 2013, the Brazilian BMW plant in Araquari (in the south Brazil) started production on schedule in October 2014 from CKD from South Africa.
- The 3 Series was the first model to be manufactured at this site. Then in November 2014, the X1 SUV came to support the 3 Series. In February 2015, the two models were joined by the 1 Series and in September 2015 by the X3 SUV. These four models are currently manufactured at this site with the aim to sell them in the Region (Brazil and neighbouringcountries).
- In 2015, the production volume of the site Araquari reached 12 500 units (for a capacity of 30 000 units), against 2500 in 2014. In the first five months of 2016, the production volume of the site reached 5000 units, representing a production rate almost identical to that of 2015, when the Brazilian market was down by more than 27% over this period (compared to the first five months of 2015).
- The BMW plant in Brazil works therefore now only at 40% of its capacity.
But the manufacturer strongly believes in the potential of this market, especially for premium vehicles (sales resulting from the enrichment of the middle class).
But the manufacturer strongly believes in the potential of this market, especially for premium vehicles (sales resulting from the enrichment of the middle class).
- It is however to be noted that the Brazilian market has fallen very low (2 million units in 2016, against 3.75 million in 2013), and a real recovery of this market is needed for the Araquari plant to to operate at full capacity.
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Land Rover has started production at its Brazilian plant
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Land Rover has started production at its Brazilian plant
- According to the program announced in 2013, Land Rover started in spring 2016 in its Brazilian plant in Itatiaia (State of Rio de Janeiro) production of two models: Land Rover Evoque Sport and Discovery.
- The Land Rover Evoque Sport and Discovery are the cheapest models in the range of the brand specialized in SUVs.
But the range could expand in the coming months.
The plant has a capacity production of 24,000 units a year, while the volume produced in 2016 will be less than 10 000 units (according to the manufacturer).
But the range could expand in the coming months.
The plant has a capacity production of 24,000 units a year, while the volume produced in 2016 will be less than 10 000 units (according to the manufacturer).
- The Evoque Sport and Discovery are the two most popular models of the manufacturer in Brazil, since the British subsidiary of Tata Motors group sold 7,431 units in 2015 (a total of 8533 sales).
- Furthermore, although the Brazilian market fell by more than 27% over the first five months of 2016 (compared to the first five months of 2015), sales of Land Rover were up at the same time by 11%.
- Finally, Land Rover is the market leader in the mid-range SUV in Brazil, with 30% of total segment sales.
- This is why the manufacturer is confident in the potential of the Brazilian market.
However it is difficult to imagine that, from 10,000 annual sales in 2016 or 2017, Land Rover would produce 24,000 vehicles per year in Brazil, unless it exports massively overseas or a bet on a strong recovery of the Brazilian market is won.
However it is difficult to imagine that, from 10,000 annual sales in 2016 or 2017, Land Rover would produce 24,000 vehicles per year in Brazil, unless it exports massively overseas or a bet on a strong recovery of the Brazilian market is won.
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Read more... Land Rover has started production at its Brazilian plant
Fiat Fiorino is renewed while PSA Nemo and Bipper disappear
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Fiat Fiorino is renewed while PSA Nemo and Bipper disappear
- Production of the Fiat Fiorino under its current form began in 2007.
This vehicle was born at time of a partnership between the Fiat Group and the PSA group, aiming at sharing the costs of a new range of small utility vehicles.
This vehicle was born at time of a partnership between the Fiat Group and the PSA group, aiming at sharing the costs of a new range of small utility vehicles.
- At Fiat, the Fiorino was a model more compact than the Doblo.
At PSA, the Citroën Nemo and Peugeot Bipper were models more compact than Citroën Berlingo and Peugeot Partner.
The Fiorino, Nemo and Bipper were manufactured in the same Fiat plant (Tofas) located in Bursa, Turkey.
At PSA, the Citroën Nemo and Peugeot Bipper were models more compact than Citroën Berlingo and Peugeot Partner.
The Fiorino, Nemo and Bipper were manufactured in the same Fiat plant (Tofas) located in Bursa, Turkey.
- However, sales were under targets of both companies.
The success did not last, the customer companies buying rather larger vehicles.
Thus, the cumulated sales of the three models fell from 210 000 units in 2010 down to 100,000 in 2015.
At PSA and Fiat , the same decrease over 50% of these models in five years has occurred (while the European light utility vehiclesof market rose ov same period by %).
The success did not last, the customer companies buying rather larger vehicles.
Thus, the cumulated sales of the three models fell from 210 000 units in 2010 down to 100,000 in 2015.
At PSA and Fiat , the same decrease over 50% of these models in five years has occurred (while the European light utility vehiclesof market rose ov same period by %).
- In 2016, the agreement between Fiat and PSA for such models has ceased, and production of the Citroën Nemo and Peugeot Bipper was stopped in May. At the same time a restyled version of the Fiat Fiorino (produced in Bursa) was launched in order to attempt to regain market shares of all three models (100,000 sales per year or 5% of the LCV market).
At PSA, the successors of the Citroën Nemo and Peugeot Bipper are not yet known.
At PSA, the successors of the Citroën Nemo and Peugeot Bipper are not yet known.
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Read more... Fiat Fiorino is renewed while PSA Nemo and Bipper disappear
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