The Volkswagen Polo is now produced in South Africa
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The Volkswagen Polo is now produced in South Africa
- In a previous Auto Analysis, we announced the end of production in Europe of the Volkswagen Polo (B-segment sedan) at the beginning of July 2024, while the car still found 136,000 customers last year on this market and 67,000 over the first half of 2024.
- The carmaker has announced that it wants to continue deliveries of the Polo but from its South African factory in Kariega (formerly Uitenhage) which already produces this model for the local market as well as for Europe but in reduced quantities.
- From now on, this factory founded in 1951, which produced 101,557 Polos in 2023 compared to 108,422 in 2019, will become the production site dedicated to the production of the Polo for all African and European markets.
- This site will therefore have to increase its production capacity to be able to absorb the annual sales of the Polo in Europe (which should gradually decline), in addition to the 50,000 annual sales made in South Africa.
- As for the Spanish plant in Pamplona where the Polo was assembled until now, it will continue to produce the B segment SUVs with thermal engine (Taigo and T-Cross) and will receive two new battery electric models in 2026: the SUV version of the future Volkswagen ID2 (perhaps named ID2 X) and its Skoda derivative known as Epiq. The Pamplona factory will therefore become a factory fully dedicated to SUVs from 2026. Remember that the future Volkswagen ID2 sedan (considered by VW as the real replacement for the Polo) will be assembled in Martorell (Spain), as for its Skoda and Cupra derivatives.
Production of the Renault Twingo ceased in August 2024
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Production of the Renault Twingo ceased in August 2024
- These last few years, almost all A-segment models have gradually disappeared from European automobile production, when the market represented less than 10% of total car sales in Europe over the last twenty years. After the Ford Ka (2008-2016), the Opel Adam (2013-2019), the Seat Mii (2011-2021), the Skoda Citigo (2011-2021), the Smart Forfour (2014-2021), the Citroën C1 (2014-2022), the Peugeot 108 (2014-2022), the Volkswagen Up (2011-2023), the Smart Fortwo (2014-2024), the Fiat 500 (2015-2024), it's the Renault's turn Twingo (2014-2024) to fade away and only being replaced in 2026.
- The Renault Twingo III which has just disappeared was the result of a cooperation between Renault and Mercedes, for the purpose of sharing costs. Based on the same platform, the Renault Twingo III and Smart Forfour were assembled in the Renault Novo Mesto plant in Slovenia. The Smart Fortwo was based on this same shortened platform, which Renault will not use for its own account. The Fortwo, unlike the Forfour, was assembled in France, on the Smart site in Hambach.
- Renault wanted to launch a replacement (thermal and electric versions) of the Twingo last year, in cooperation with Volkswagen, but this project failed. In March 2024, at the Geneva Motor Show, the president of Renault, Luca de Meo, aware of the need to launch small, moderately priced electric cars in Europe, called for the creation of an “Airbus of the small car electricity” in order to pool costs, but for the moment this wish remains unanswered, despite the Chinese threat which imposes itself in a significant way.
Stellantis permanently stops production of the thermal Fiat 500
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Stellantis permanently stops production of the thermal Fiat 500
- Against all real logic since European customers are demanding cheaper cars, and possibly smaller and ligher ones, European car carmakers have gradually phased out all their small A segment cars. The official reason given by the carmakers is the low potential in sales of these models, and by their low margin.
- After the Ford Ka (2008-2016), the Opel Adam (2013-2019), the Seat Mii (2011-2021), the Skoda Citigo (2011-2021), the Smart Forfour (2014-2021), the Citroën C1 (2014-2022), the Peugeot 108 (2014-2022), the Volkswagen Up (2011-2023), the Smart Fortwo (2014-2024) and the Renault Twingo (2014-2024) it is the turn of the Fiat 500 (2015-2024) to fade away without being replaced, at least in the near future.
- The current Fiat 500, heir to the famous Fiat 500 of the ‘60s, was nevertheless one of the most popular A-segment cars on the European market for several years. There is still the Fiat Panda to represent this segment in Europe but the model is seriously threatened since the launch of the Fiat Grande Panda a few weeks ago and which is located in B-segment. The old Fiat Panda reaches another clientele than the Fiat 500, being a less expensive five-door than the Fiat 500.
- The end of the Fiat 500 will be a big loss for the Polish factory in Tichy where it was produced at 120,000/130,000 units per year since 2020. The future of the factory now rests on the Fiat 600, Jeep Avenger and Alfa-Romeo Junior. The Lancia Ypsilon produced there is at the end of its life and is not expected to survive beyond 2024. Its replacement will be produced in Zaragoza, Spain.
Renault launches its first Geely-based model in Korea
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Renault launches its first Geely-based model in Korea
- Renault and Geely have become partners, notably in the development of thermal and hybrid engines (through the JV Horse), and in Renault Korea, the new name of Renault-Samsung (Renault having bought Samsung Motors in 2000). The Chinese carmaker Geely now owns 34% of Renault Korea (of which Renault previously owned 100%) which produces the Renault Arkana (67,540 units in 2023) and their Korean counterparts XM3 (38,142 units in 2023), as well as the Renault QM6 (20,474 units in 2023) which are the Korean counterparts of the old Renault Koléos whose sales were stopped in Europe last year. All the sedans which had retained their names from Samsung Motors (SM3, SM5, SM6, SM7) have disappeared.
- The important event of 2024 is the launch last June of the new Renault Grand Koléos, which abandons the XM designations but above all comes directly from the Geely range, since it is the slightly modified Monjaro SUV. This is the first time that a Renault model has come from the Geely range, but according to our information, this new model will not be exported to Europe but only marketed in South Korea and neighboring countries.
- The Renault Grand Koléos is 4.78 m length, exceeding the old Koléos by 11 cm, which places it in the E-segment and no longer in the D-segment like the old Koléos. Renault believes that moving upmarket is the best strategy for the development of Renault Korea, with a factory operating at less than 50% of its capacity. The Grand Koléos is equipped with a 2.0 turbo petrol engine of 211 hp (155 kW) or a hybrid engine of 245 hp (180 kW) which combines a 1.5 turbo four-cylinder of 144 hp (106 kW) and two motors electrical. These engines come from the cooperation of Renault and Geely in Horse.
Stellantis temporarily halts production of the Fiat 500 e
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Stellantis temporarily halts production of the Fiat 500 e
- Due to a lack of sufficient orders, the Stellantis group is once again interrupting the production of the Fiat 500 e (battery electric) for a month and a half from September 13 to November 1, 2024. Sales of this model which reached 42,000 units in Europe in 2021 (3,500 per month on average) and 66,000 units in 2022 (5,500 per month), had fallen slightly in 2023, with 63,000 units (5,250 per month), but since January 2024, they have been collapsed to 26,000 units over eight months (3,250 per month), which augurs a volume of less than 40,000 units for the whole year.
- Two factors worked against the model: firstly its high price for an A-segment model (30,000 to 34,000 euros) and secondly the end of subsidies in Germany, although this country was the first customer of the Fiat 500 e ( 13,000 sales in 2021 and 30,000 sales in 2022). In 2023, sales of the model in Germany fell to 23,000 in 2023 and 6,000 in the first eight months of 2024 (or 9,000 sales for the whole year).
- Even Italy, its country of origin, quickly abandoned this model: 11,000 sales in 2021, 6,000 in 2022, 5,000 in 2023 and 2,000 over the first eight months of 2024 (i.e. 3,000 sales over the whole year). France became its first customer in 2024, with 13,000 sales over eight months (or 20,000 over twelve months).
- The Fiat 500 e nevertheless had the advantage of being the only battery electric two-door city car since the withdrawal of the Smart Fortwo, but that has not changed anything. Consequently, the carmaker announced that it would launch in one year a Fiat 500 hybrid derived from the Fiat 500 e which will be produced at the Italian Mirafiori site, like the Fiat 500 e.
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