Mazda analysis – Production (3/3)
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Mazda analysis – Production (3/3)
- Mazda's production strategy is mainly an export oriented strategy from Japan. Thus, the first market (USA) is supplied by Japan and more recently by Mexico. The European market is also supplied from Japan. However, like other carmakers, in China, Mazda produced locally in a joint venture with a Chinese partner Changan.
- Thailand is used by Mazda as a production base for pickup vehicles (BT-50), this country is specialized in the production of this type of vehicles. Other Japanese carmakers also produce pickup on site (Toyota, Nissan, Mitsubishi, Isuzu).
- Finally one plant in Russia carmakers the CX-5 SUV in a joint venture with Sollers, responding to the policy of the Russian authorities who want less import of vehicles and wish to increase local production Mazda remains above all a Japanese exporter of vehicles.
- The progression of Mexican and Russian plants for local and regional markets should not reduce the volumes produced in Japan since other areas will remain energized by Japan. China will remain a local manufacture producing for the local market.
- Worldwide, Mazda's goal is to increase sales by 5% (in a global market that is expected to grow 3.5%). In Europe (excluding Russia), Mazda expects an increase in sales, but hasn't given any specific figures.
- Inovev expects it to increase by 4% in 2015 compared to 2014.
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Renault will also produce the Logan and Sandero in Argentina
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Renault will also produce the Logan and Sandero in Argentina
- Today, nine countries produce or assemble Logan, Sandero, Duster, Lodgy and Dokker models either under the Renault brand (630 000 units in 2014) or under the Dacia brand (550 000 units in 2014): Romania, Morocco , Brazil, Colombia, Russia, India, Turkey, Algeria and Iran.
- In 2014, in Brazil, out of the 240 000 vehicles produced at the Curitiba plant 200 000 were Sandero, Logan and Duster models and 40 000 were Renault Master, Nissan Navara and Livina models. This plant has a capacity of 300 000 units a year. These vehicles are for the local market but are also intended for export to other countries in South America (excluding Colombia).
- In 2014, in Argentina, Renault-Nissan produced in the Cordoba plant 80 000 Renault Clio, Kangoo and Fluence. This plant has a capacity of 150 000 units a year. Vehicles manufactured in this plant are also destined for the local market and for export to South America (excluding Colombia).
- The arrival of a pickup version based on the Duster will result in transfers of models between the Brazilian and Argentine plants. In fact the Renault-Nissan plant in Brazil will not have sufficient capacity to accommodate this future models (which could be produced at 10 000 units / year). To free up extra capacity, the Renault-Nissan group decided to transfer part of the production of Logan and Sandero models from Brazil to Argentina (which can be estimated at 40 000 units).
- The Brazilian plant will hence produce a pickup for the local market (which is the South American leader in the pick-up category ) and for exports. Argentina will produce the Logan and Sandero for its own market. Renault-Nissan's goal is to saturate the Brazilian and Argentine plants but also intend to bring these models closer to the most sought after segments in this markets.
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Mexican production ranks 7th globally in 2014
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Mexican production ranks 7th globally in 2014
- With 3,2 million units produced (+ 9,3% compared to 2013), Mexico currently ranks seventh in the world , behind India and ahead of Brazil, while in 2005 it was only twelfth. The production volume of Mexico surpassed that of Canada since 2008 and as a whole represents 9% of the volume of the US market (6% in 2005), while Canadian production represents 11% of the market (10% in 2005 ).
- Mexico has gradually become an important drop off zone for the relocations of US manufacturers, before becoming a relocation zone for all other manufacturers wishing to sell both in North America and South America.
- Mexico has exported 2 617 477 vehicles in 2014, representing 82% of its production. This country exports to both the United States that still remains its main customer (over 55% of Mexican exports), but also to Europe and South America.
- Given current investments, we can already say that Mexican production will further increase over the coming years. Audi, BMW, Mazda, Mercedes, Infiniti and Kia have decided to establish a lasting presence in this market by building new plants. Volvo, Jaguar and Land Rover are also considering establishing themselves in Mexico.
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Brazilian production fell behind that of Mexico in 2014
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Brazilian production fell behind that of Mexico in 2014
- Brazilian automobile production, unlike many other countries, saw its best years between 2008 and 2013 (and not before 2008).
- Hence, 2014 was significantly worse than in previous years, and fell back to 2007 levels, a level close to 3 million PC + LUV, a decrease of 14% compared to 2013
- A slow local market (-7% in 2014) and dropping exports (-41%) are accountable for this negative trend in production. The level of exports is mainly due to Argentina (first Brazilian exporting country), which in turn suffered a decline in its domestic market (-28.6% in 2014) and whose customs agreements with Brazil were unstable.
- So, Brazilian production decreased last year and arrived behind that of Mexico that benefited from its exports to the United States, a market that is experiencing strong growth at the moment.
- A stabilization of the agreements between Argentina and Brazil is expected in 2015 to significantly improve the level of exports. Also a positive effect on Brazilian production is expected due to the government's plan to set up during the 2nd half of 2014 and aims to support the Brazilian automotive industry by providing purchasing amenities for Brazilian consumers of locally produced vehicles.
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2015 Geneva Auto Show: Kia
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2015 Geneva Auto Show: Kia
- Kia Sportspace
- This concept car annonces the next D segment sedan, the Optima (K5 in Korea).
- The Optima / K5 is Kia's best selling vehicle in the USA.
- This concept was developed in Frankfurt in Kia's European design center.
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