Volkswagen’s European 2015-2018 product plan

 

Volkswagen brand presented its new European product plan for 2015-2018.

In the second half of 2015, VW will launch the second generation of the Tiguan (SUV from segment C) that will be produced in Wolfsburg and Hanover (Germany).

In the first half of 2016, it will launch the sixth generation of the Polo (sedan segment B) that will be produced in Pamplona (Spain), where it is currently being produced.

In the second half of 2016, it will launch:
§The first generation of the Canyon (SUV from segment B), whose name is a provisional one that will probably be produced in Pamplona (Spain).
§The second generation of the CC (D segment sedan) and will be produced in Emden (Germany) alongside the Passat.

In the first half of 2017, it will launch the third generation of the Touareg (SUV from segment E) which will be manufactured in Bratislava (Slovakia), where the current generation is manufactured, alongside the Audi Q7.

In the second half of 2017 it will launch the second generation of the Phaeton (sedan from segment F) that will be manufactured in Dresden, where the current generation is manufactured.

Finally, in the second half of 2018, it will launch the eighth generation Golf (sedan from segment C) that will be produced In Wolfsburg and Mosel, where the current generations are manufactured.

 

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In Russia, the share of SUVs rose in 2014

 

While Nissan starts the production of the Qashqai in Russia (this model was previously imported from Great Britain), it is interesting to analyse the current position occupied by SUVs on the Russian market. While this category represents 20% of sales in Europe in 2014, what proportion do these vehicles account for in Russia?

According to the calculations of Inovev the SUV market is flourishing even more in Russia than in the rest of Europe, because their market share was over 30% in 2014 (against 20% in 2009 and 10% in 2004). Thus sales of SUVs reached 800 000 units in Russia in 2014, the same as in 2013, while the overall market (all categories of vehicles) fell by 10%.

The 10 best selling models in Russia are as follows: Renault Duster monopolizes the first place (80 000 sales), well ahead of the LadaNiva (51 000 sales), Chevrolet Niva (46 000 sales), Toyota RAV4 (38 000 sales), Hyundai iX35 (37 000 sales), Nissan Qashqai (35 000 sales), Toyota Land Cruiser (33 000 sales), Kia Sportage (32 000 sales), Mitsubishi Outlander (31 000 sales), Mazda CX5 (25 000 sales). The Qashqai is currently in sixth place in the SUV market.

By brand, Nissan is the market leader (84 000 sales), ahead of Renault (82 000 sales), Toyota (71 000 sales), Mitsubishi (54 000 sales), Lada (51 000 sales), Hyundai (49 000 sales) Kia (46 000 sales), Chevrolet (46 000 sales), Ssangyong (43 000 sales) and Suzuki (39 000 sales).

 

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Seoul Motor Show 2015

 

The 10th Seoul Motor Show (SMS) was held between April 4 and 12, 2015. This time a total 57 locally-made and imported models were unveiled of which seven were world premieres, nine Asia premieres and 41 Korea premieres. In addition to concept vehicles of local carmakers, many of the displayed models are scheduled to be launched in Korea in 2015. The exhibition of HEV, PHEV and other eco-friendly models, which meet strengthened Korean and international environmental regulations, also drew attention.

Hyundai held world premiere of two automobiles, of which one model was a small CUV concept, the Enduro. Looking at eco-friendly vehicles, apart from the Asia premiere of the Sonata PHEV (Sedan, D-segment), the Sonata HEV, Grandeur HEV (Sedan, C-segment) and Tucson FCEV (SUV, C-Segment) were exhibited.

Kia also held world premiere of two models, of which one was a compact coupe concept (named Novo). The other model was the fully-remodeled version of the mass-produced K5 (D-Segment). GM Korea held world premiere of the fully-remodeled version of the Chevrolet Spark small hatchback (A-Segment), which is planned to be sold in 40 countries including Korea. As for Ssangyong Motor, it displayed the XAV small SUV concept (B-Segment).

Looking at other displayed items, the exhibition of powertrains and new technologies by major automakers was also striking. Hyundai, which aims to improve fuel efficiency 25 percent by 2020 compared to the 2014 level, unveiled 1.4L and 3.3L class T-GDI engines and a FWD 8-speed AT. In addition, for the first time, Renault Samsung also unveiled downsized engines for the local market.

 

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The future Moroccan PSA plant should produce 75 000 vehicles per year

 

The PSA group which has made China and Latin America its top international priorities intends to increase its presence in Africa and the Middle East, where it only achieved 5.8% of its global sales in 2014, 170 000 sales (against 730 000 sales in China). To achieve these objectives, PSA is considering local production of vehicles matching the demand for this region. One option is to manufacture the Peugeot 301 and Citroën C-Elysée in a new plant located in Morocco, at Kenitra.

Both models already benefit from significant demand in Northen African countries , and the fact of manufacturing them locally will improve their presence in this market.

If this option was chosen, the Moroccan PSA plant would start operations in 2019 with an annual production of about 75 000 vehicles per year, ie a production volume comparable to that of the Renault plant in Oran which manufactures the Dacia Logan under the Renault badge . The Moroccan PSA plant would be the third plant in the country alongside the Casablanca and Tangier ones.

 

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Inovev expects less than 50 000 Ford Galaxy / S-Max per year for a full year

 

While the European market for large MPVs becomes marginal (1% of the market in 2014 against 1.5% in 2008 and 2% in 2004), Ford intends to remain in this vehicle category by launching the third generation of the Galaxy.

This model is derived from the recent S-Max introduced earlier this year. It will therefore incorporate the whole front part of the S-Max, but differs in the length and the height to accommodate seven people.

The Galaxy was still located in the fourth position in 2014 on the market for large MPVs, behind the Volkswagen Sharan, Ford S-Max and Seat Alhambra, but ahead of the Mercedes V Class and Renault Espace.

2015 may see a change  in this ranking due to the arrival on the market of new generation Renault Espace, Ford S-Max and Ford Galaxy. The question is whether these new models will boost the market for large MPVs, since a large number of customers now purchase compact MPV or even increasingly popular SUVs. Ford hopes to sell 40 000 new Galaxy every year, against 20 000 in 2014. Inovev expects a cumulative production of 50 000 units of Galaxy / S-Max in a full year.

The new Galaxy is equipped with a 1.5 EcoBoost petrol engine of 160 hp and 240 hp 2.0 EcoBoost and 2.0 diesel TDCI 120/150/180/210 hp. This model will be manufactured in the Spanish plant of Valencia, alongside the Mondeo and S-Max that share the same platform (CD4 code), and alongside the Transit Connect and Kuga that share another platform (C1).

 

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