Fiat may give up the name Punto in 2016 in favor of 500 Plus

We had to wait a long time the decision of the Fiat-Chrysler group regarding the replacement or not of one of its best-selling model in the last twenty years, the Fiat Punto.

More than 500,000 Puntos were sold per year between 1994 and 2001 (it was the best selling car in Europe in 1997), before experiencing an unstoppable decline from 2001 (110,000 units sold in 2013).

The Fiat Punto, a model launched in 2005 and getting aged, has trouble to develop in a hyper competitive B segment face to other Fiat models (500, 500L) much more fashionable.

Wishing to ride on the wave of  its favorite model “500”, Fiat could therefore give up the name Punto in favour of 500 Plus.
The
500 name would be a generic name for a family of models covering the A-B segments: sedans (500, 500 Plus), SUV (500 X) and MPVs (500L and 500L Living).

Fiat will produce this new model in Poland, in Tichy plant where the Fiat 500 is currently assembled. The two other models produced by Fiat In Tichy, the Ford KA and the Lancia Ypsilon will achieve their lifesoon (Ford KA in 2016)

Fiat plans to produce 180,000 units per year of the future 500 Plus, out of which 96% will be exported. The Punto is currently produced in Melfi, Italy and the plant capacity released will be assigned to the SUVs Jeep Renegade and Fiat 500X .

 

14-17-3  

 
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Jeep wants to double its global sales by 2018

Jeep has set a goal of doubling its global sales by 2018, at 1.5 million units per year (against 732,000 in 2013), by taking advantage of a growth that it expects strong in Europe, South America and China.

Currently, the brand sells its vehicles mainly in North America (490,000 in the U.S., 45,000 in Canada and 20,000 in Mexico, 555 000 vehicles in total).

Benefiting from the introduction of the new Cherokee (D segment) and Renegade (B segment) models, Jeep could sell more than one million vehicles in 2014, in particular by developing the European, South American and Chinese markets where its existence is fragile.

Jeep production capacities would therefore double (from 750 000 to 1.5 million units per year) with production in new plants that will be dedicated to the brand, Italy (Melfi), Brazil (Pernambuco) and China (Guangzhou).

The new entry range model Renegade will be a key model for the Jeep growth in the world. The smaller vehicle of the brand will be produced from June 2014 in Melfi for Europe. In the second half of 2014, the Renegade will be produced in Brazil, in a new plant in Pernambuco, for the whole South American market.

Production of Jeep models Cherokee and Renegade will start in China in 2015, under a joint venture with GAC. These  models will be only produced for the local market in a first phase.

 

14-17-1  

 
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Opel expects a slight increase in its share of the European LCV market

Opel expects the European LCV market to grow by 60% by 2022 but for now, Opel only hopes for a slight increase of its market share ranging between 5% and 6%. For Opel, this represents a sales target of 150 000 units in 2022, against 80 000 units sold in 2013 (i.e. an 8% increase per year for the next nine years).


In the first quarter of 2014, the European LCV market rose by 9.6% after falling by nearly 37% between 2007 and 2013 (from 2.30 million to 1.45 million units). Opel hopes for a reboot of the European LCV market from 2014 to 2022, according to the manufacturer by this deadline the market should reach its 2007 levels.


Inovev also foresees a growth in the LCV market by 2022, but lower than that put forward by Opel: the market should not exceed 2 million units in 2022, thus not quite regaining its 2007 levels.


Opel announced it will strengthen its presence in the Eastern Europe LCV market and increase its sales across the European continent without expanding the range of its LCV (three models, including two originating from the Renault brand - the Vivaro and Movano - and a third model - the Combo - originating from Fiat). Last year, Opel accounted for approximately 5% of the European LCV market, ranking itself in seventh position in a market dominated by PSA (28%) and Renault-Nissan (24%). In a market where rankings are stiff, Opel's goal is wise and it seeks a stable market share for its LCV.

14-16-10  

 
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Analysis of measures accompanying PSA plan

PSA unveiled its new  development plan for the group. Here underneath these measures and their analysis:


1.Sell one million vehicles in China from 2017-2018, under partnership with Dongfeng and Changan.
If PSA achieves this objective, China will remain the second largest market of the group, but however only with a minor increase  of its share of Chinese market (according to our forecasts this share should progress from 3% in 2013 to 4% in 2014).
Besides, the cumulative capacities of Dongfeng and Changan (about 900,000 units early 2015) will not match the future demand. PSA will  have therefore to either increase the capacity of current plants (existing or under construction) or build a new plant.


2.Creation of a specific DS brand in Europe.
The strategy of creating a DS premium brand in the PSA group in Europe (as it exists already in China) is close to strategies which have been developed by VW (Audi), Toyota (Lexus) and Renault-Nissan (Infiniti) over the last decades. A question is whether in the future one or more plants will be only dedicated to DS (as Audi) or DS production lines will be shared  with Peugeot and Citroën (such as Toyota and Lexus models). Another point is: will DS have its own design and Engineering departments or will the models continue to be developed by engineers skilled in entry-range and medium-range design?


3.Range concentration: around 26 models instead of 45.
PSA range  includes small-volume (C-Zero, ION), end of life and not to be replaced (807-C8, 4008) models, as well as older models no more sold in Europe but still alive in other world areas (206-C2 China, 207) or duplicate  models (old and new Berlingo / Partner. The announced concentration plan  is therefore a natural rearrangement of the PSA range.


4.Launch 8 new models each year at a global level.
This announcement does not come into contradiction with the previous announcement since many models have naturally to be replaced.
From 2014, only in Europe,  an average of 3 models per year will arrive at the end of their life cycle.


 

14-17-2  

 
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Last attempt to save the Lincoln brand

The Ford Group has implemented a last attempt to save its luxury brand Lincoln, whose survival proves difficult even after the sale of Volvo, Jaguar, Land Rover, Aston Martin and the demise of the Mercury brand that might have been a competitor to the Lincoln brand. However, this hasn't changed anything.


Lincoln ranks in tenth position among world premium brands, far behind Cadillac (7th), Infiniti (8th) and Acura (9th). The Ford luxury brand has fallen gradually from 200 000 annual sales in the years 1998-1999-2000 to only 100 000 in the years 2011-2012-2013, with most of its sales originating from North America.


Several plans have been implemented to revive the Lincoln brand in the last fifteen years. All have failed.


A new bailout was decided in 2014 to settle permanently in the Chinese market, the worlds first automobile market (in terms of growth) and soon to be the first premium car market. At first the models will be exported from the USA and in a second time, they will be made in China.


For this purpose a new model was unveiled at the Beijing motor show in April 2014. a concept foreshadowing the new generation MKX crossover (segment D) was presented. The latter was only sold in North America and was launched in 2006 and restyled in 2010. This is currently the best selling Lincoln model after the MKZ sedan.


14-16-8  
 
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