Category Blog

Details: Published: 06 September 2022

The new Skoda product plan (2014-2018)

- The Czech brand Skoda (a subsidiary of the Volkswagen Group) currently offers seven vehicle ranges: a supermini from segment A (Citigo), a city-car from segment B (Fabia), a Crossover from segment B (Roomster), an SUV from segment B (Yeti), a sedan from segment C (Rapid), a sedan from segment D (Octavia) alongside a sedan from segment E (Superb).

- Škoda sold last year 920 000 cars globally and expects to reach 1.5 million annual sales by 2018. To achieve this, Skoda will start by unveiling the third generation Fabia for its world premier at the Paris Motor Show in September 2014. A estate variant of this model is expected to be launched in 2015.

- In 2015, Skoda plans to launch the new generation Superb in a sedan version (in March at the Geneva Motor Show) and an estate version (in September at the IAA). The Superb will be available in a hybrid rechargeable version. This will be the first Škoda to be equipped with this type of engine.

- In 2016, the Czech subsidiary of the Volkswagen group should market a new segment C SUV (based on the VW Tiguan), followed in 2017 by the new Roomster and Yeti. Finally, Skoda is preparing for 2018 a small segment A SUV (based on the VW Taigun). Skoda's Product plan is thus to renew the existing models and expand its range of SUVs to segments A and C. The Skoda range will therefore have nine model ranges in 2018, instead of seven in 2014, and most will have been launched between 2014 and 2018. By this time, the Rapid and Octavia will be the most ancient models in the range (launched in 2012) and should therefore, according to our estimates, be replaced in 2019.

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Details: Published: 06 September 2022

Renault increased its global sales by 4% over the first five months of 2014

- Renault (Renault, Dacia, Samsung) has increased its global sales by 4% (PC + LCV) in the first five months of 2014 compared to the first five months of 2013, reaching 1 093 000 units (against 1 050 000 in 2013). The manufacturer could well surpass the 2.6 million units throughout the year (against 2.5 million units in 2013).

- The Renault brand (851 000 units) is ahead of Dacia (212 000) and Samsung (30 000 units), representing 78% of total sales, but many Renault vehicles are actually rebadged Dacia vehicles (for markets where Dacia does not exist). These models represent 30% of the Renault brand sales in the first five months of 2014 (258 000 units).

- Models from the "Entry" range (Dacia + Renault rebadged Dacias) would therefore represent 470 000 units over this period, accounting for 43% of all Renault group sales (against 40% last year), thus confirming their success.

- By model, Renault and Dacia together, the Clio range is ahead of the Duster, Sandero and Logan. However the position of the Clio is threatened by the "Entry" range models but also by the progression of the Captur (SUV based on the Clio IV).

- The region where the Renault group increased the most in the first five months of 2014 was Europe (+17%). China and Korea (with the Samsung brand) are also making progress but volumes remain low (7 000 units in China and 28 000 in Korea). In other areas, Renault suffered from lower sales in Russian, Ukrainian, Indian and Argentine markets.

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Details: Published: 06 September 2022

BMW is going to build a plant in Mexico

- In 2013, BMW's global production reached 2 million units (including Mini and Rolls Royce). This production is distributed over 15 plants worldwide, 4 in Germany (55% of world production of BMW) and only 1 in the USA.

- While the top three global markets by volume for BMW are the USA (425 000 units), China (362 000 units) and Germany (265 000 units), the models produced for these markets come mainly from Germany (44% of BMW production is exported from Germany). In order to better allocate the production in the world and move closer to its main markets, BMW has announced the construction of a new plant in Mexico.

- This plant, will be located north of Mexico City (in the state of Hidalgo) and will start production in 2017, it will have a capacity of 200 000 units. BMW has not yet announced which models will be produced there, but we can imagine that it will be models that are very successful in the U.S. (the main export area for the future plant), models that are currently produced in Germany. It would hence be the Series 3 and Series 5, the Mini or the X1. These four models were sold at over 270 000 units in the U.S. in 2013. In addition to the U.S., the models produced in Mexico will be exported to South America, but also sold locally, whereas Europe will not be receiving any.

- BMW's strategy follows that of other Premium German manufacturers that have also announced the production launch in Mexico, by 2015 for Mercedes (Aguacalientes) and Audi (San José Chiapa). In 2014, Mexico will produce 3.2 million vehicles (PC+LCV), ranking it ahead of Brazil. By 2020, the Mexican production will reach between 3.5 and 4 million units per year.

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Details: Published: 06 September 2022

Brazil: Production PC + LCVs is falling sharply in 2014

- During the first half of 2014, car production (PC + LCVs) in Brazil fell by 16.8% compared to the same period last year. Production stood at 1 566 000 units and now ranks Brazil just behind Mexico (1 598 000 units). All manufacturers are affected except Hyundai (+36% reaching 86 000 units) and Renault-Nissan (+15% reaching 108 000 units), while Toyota stayed stable (58 000 units).

- While Mexican production is mainly driven by exports (83% of production), the drop in Brazilian production is the result of the decline of the local market and the decrease in exports.

- Indeed, in the first half of 2014, vehicle registrations fell by 7.6% to stand at 1 663 000 units. The low economic growth and rising inflation impacted the market. The arguments advanced by the ANFAVEA (National Brazilian Association of Manufacturers) on the effects of the World Cup and the number of days worked are however more difficult to measure.

- As for exports, the decline in the Argentine market ( Brazil's first export country) as well as instability in customs agreements between the two countries have also had a negative impact. Hence exports are down 35.4%.

- For the second half of 2014, production forecasts may be better as a result of the entry of new customs agreements between Argentina and Brazil that will improve exports and even more so if the new government's plan to boost the purchase of vehicles produced in Brazil meets the aimed success. This plan provides for the establishment by public banks of credits and loans For the acquisition of locally produced vehicles (which may cover up to 90% of the price).

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Details: Published: 06 September 2022

Opel unveils the new Corsa

- Opel has unveiled the fifth generation of the Corsa (segment B), which merely re-uses the updated Corsa 2006 platform (shared at the time with the Fiat Punto), instead of the platform of the Peugeot 208 (following the end of the agreement between PSA and GM). The GM group’s European urban vehicle will be powered by two new petrol engines: A 3-cylinder 1.0 DISI (90 or 115 hp) and a 1.4 Turbo (100 hp). Both engines will be completed by current 1.2 and 1.4 engines. Concerning diesel vehicles, Opel will continue using the 1.3 CDTI (75 hp or 95 hp). The Opel Corsa evolves in a hypercompetitive segment, segment B and must not only deal with market leaders such as the Ford Fiesta, VW Polo and Renault Clio, but also with the development of « premium » competitors such as the Audi A1 and Mini. More sedan bodies are now challenged by the development of SUVs (Opel Mokka , Renault Captur, Peugeot 2008 ...).

- Besides a possible development of segment A, which should attract traditional B-segment customers for whom the higher prices and larger vehicle dimensions no longer meet their needs.

- Segment B remains a key market for Opel, accounting for 30% of its European production. However, the Corsa model has been declining in recent years, from 400 000 sales in 2007 to 230 000 in 2013. The new Corsa will therefore attempt to boost Opel's sales of urban vehicles since the manufacturer is aiming 300 000 annual sales in Europe, one third of which will be produced in the Eisenach plant (Germany) and two-thirds in the Zaragoza plant (Spain).

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