Kia to build a new plant in Mexico

The Korean carmaker Kia (Hyundai-Kia group) announced the construction of a new plant in Mexico, at Monterey. • The plant will start producing vehicles in the first quarter of 2016 and will have a capacity of 300 000 units.

Building a plant in Mexico will initially enable Kia to supply the United States market, accounting for nearly 80% of Kia sales in the Americas (North and South), where the manufacturer has doubled its sales between 2004 and 2013, from 270 000 units to 535 000 units. Secondly, Kia wants to expand in major Central and South American markets, where it currently has a very limited presence (Chile is the largest market in South America with just over 30 000 units sold in 2013 ).

Kia has not yet disclosed the models that will be produced at the plant, simply stating that it would be compact cars (from segments B and C). However, one can deduce that it will be the best selling compact models sold in the USA and currently produced in South Korea, namely the current or alternate models of the Soul (MPV from segment-B), Forte (sedan - segment C), Rio (sedan - segment B) and Sportage (SUV - segment C). These four vehicles were sold in 2013 to almost 330 000 units across the Americas, which fully justifies the capacity of the future plant.

In 2013, the Kia manufacturer produced nearly 2.8 million vehicles worldwide with capacity of just over 3 million units. By 2016, Kia will have 11 plant - excluding CKD plants: three in China, two in Russia, one in Slovakia, 3 in South Korea, 1 in the USA and soon 1 in Mexico.


14-25-5  


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Volvo launches the new XC90 SUV

Following the 2002 launch of the first generation of the XC90, the Swedish manufacturer Volvo, which was bought in 2010 by Geely, launched in 2014 the second generation of its segment F SUV . It is expected to be marketed early 2015.

The second generation of the XC90, based on a new platform called SPA, will be equipped with four engines: one gasoline (four-cylinder in 2 different powers), 2 diesel engines (four-cylinder) and a plug-in hybrid with a gasoline 4 cylinder engine combined with an electric motor. No 100% electric version has been announced yet.

Worldwide, sales volume of this model have moved from 90 000 units in 2005 (sales peak) to less than 20 000 units in 2013. Inovev estimates full-year production of the future XC90 at 30 000 units, but sales could overstep this mark if the success of the model is confirmed. Among its European competitors, the Mercedes M-Class has been produced at almost 120 000 units and the BMW X5 at over 100 000 units.

Production of the new Volvo will begin early 2015, in the same factory as the previous generation, in Gothenburg, Sweden. In 2014 the plant produced segment E estate cars :  V70 / XC70 (63 438 estimated units ), the V60 a segment D estate (55 000 units), the S80 a sedan from segment E (18 000) and of course the XC90 (19 000 units ). A total of 155 000 units for a production capacity of 300 000 units. Volvo displays an estimated 9% worldwide growth in 2014. The group aims for higher growth in 2015, thanks to the new XC90.


14-25-4  


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Skoda launches the new Fabia

After the launch of the second generation Fabia in 2007, the Czech manufacturer will market the new generation Fabia (segment B) at the beginning of 2015.


The new Fabia will be equipped with three engines, two gasoline (three and four-cylinders) and one diesel engine (three cylinders). No electric or hybrid versions have been announced yet.


According to the manufacturer this Skoda will weigh 65 kg less than the previous generation i.e. a bare weight of 980 kg . The wheelbase of the new Fabia has been expanded by 9cm and the car also was lowered by 3cm.


Worldwide, the production volumes of this model went from 279 699 units in 2011 (production peak) to 220 254 units in 2013. In the European B segment, the Skoda Fabia is behind the Ford Fiesta (705 000 units ), the WV Polo (547 000 units), the Opel Corsa (481 000 units), the Renault Clio (395 000 units) and Peugeot 208 (360 000 units).


Production of the new Skoda will begin in late August 2014, in the usual Czech plant of MladáBoleslav. In 2014 the factory produced the Octavia (210 000 units), the Rapid (74 000 units) the Seat Toledo (21 000) and the Fabia-2 (130 000 units) with total production reaching 435 000 units for a production capacity of 500 000 units. Inovev estimates 2015 production of future Fabia at 180 000 units.


We do not know yet if the new Fabia will be produced in the other factories that currently produce the Fabia 2 (China, Russia, India).


In 2014 Skoda displays an estimated 18% growth in Europe and 19% worldwide.

 

14-25-2  


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Kia unveils the new generation Sorento SUV

Kia has unveiled its new segment D SUV, the Sorento, which will be presented at the next Paris Motor Show and marketed early 2015, this Korean vehicle will retain the overall proportions of its predecessor (L: 4.78m / l: 1.89m / h: 1.68m) and will be available with four different engines (variable depending on the country): three petrol versions, a 2.4l four-cylinder direct-injection engine, a 2.4l four-cylinder and a 3.3l six-cylinder multipoint injection; a four-cylinder version diesel version in 2.2l and in 2.4l.


The Kia Sorento is sold mainly in the USA, Europe and South Korea. This vehicle is positioned on the SUV segment D market among mainstream manufacturers. The Korean manufacturer has set a target to sell 270 000 Sorento worldwide in 2015, of which 50 000 in South Korea. The previous Kia Sorento (released in 2009) was produced at up to 280 000 units in 2011 and in 2013 it was the second most produced segment D SUV worldwide (with 241 000 manufactured units).


The Kia Sorento is currently produced in three plants: in the USA (West Point), in South Korea (Hwasung) and Russia (Kaliningrad). It is in direct competition with another model of the Hyundai-Kia group, the Santa Fe (produced at 405 000 units in 2013) and is also in competition with the Mitsubishi Outlander (188 000 units in 2013).


The production of these vehicles has grown by nearly 26% worldwide between 2005 and 2013. The Kia Sorento SUV and Hyundai Santa Fe represent 9% of the world production of Hyundai-Kia. While volumes have nearly doubled between 2005 and 2013, their share within the group has remained constant.


14-25-6  


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Hyundai unveils the new i20

Hyundai introduced early August the new version of its B segment sedan : the i20. In Europe, the new model will be produced in the same Turkish plant (Izmit) as its predecessor, alongside the Korean manufacturer's i10 model. No announcement has been made about the time the i20 produced in India at Chennai will be replaced.


In 2013, the i20 accounted for almost 23% of the European production of the Hyundai brand. In addition to its Turkish plant, Hyundai also manufactures models in the Czech Republic, such as the i30 a C segment sedan (29% of its European production), the and ix35 (29% of its European production).


According to the manufacturer, the new Hyundai i20 is based on a new platform and measures 4.03 m long and 1.73 m wide, which places it among the largest B-segment vehicles in Europe, like the Renault Clio .


The details concerning engines will be known during its official presentation at the auto show in Paris this October.


No sales target has been put forward for Europe, but the Hyundai i20, which sold at over 80 000 units in Europe in 2013 will not reach the volumes of the best-selling B-segment vehicles (Ford Fiesta, VW Polo, Renault Clio ...).


However, a realistic goal would be to achieve sales volumes of between 100 000 and 120 000 units, and thus compete with vehicles like the Skoda Fabia (126 000 units), the Dacia Sandero (123 000 units), the Citroen C3 (114 000 units), the Seat Ibiza (110 000 units) and the Fiat Punto (104 000 units).


14-25-3  


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