BMW has decided to build a second plant in North America

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BMW has decided to build a second plant in North America

- BMW imports from Europe to the U.S. reach between 200 000 and 300 000 cars each year (300 000 in 2013) and this volume could rise up to 350 000 over the next two years. Among this total, the Series 3 represent between 100 000 and 150 000 imports each year (120 000 in 2013).

- The position of BMW in the USA is expected to strengthen in coming years, with sales growth due to a broadening of its range. However, BMW plants in Europe and the U.S. are close to saturation and there has been no mentioning yet of importing to the USA, BMW vehicles from Chinese plants. Thus the German carmaker has decided to build a new plant in North America dedicated to the 3-Series sold in this region which will be effective in 2016.

- Situated in Mexico, the plant will have a capacity of 150 000 units per year. The Bavarian manufacturer has the same strategy as Mercedes that has decided to produce its new C-Class at its U.S. plant in Tuscaloosa (Alabama), and as Audi that now produces the Q5 in Mexico, for the needs of U.S. customers but also for European customers. In addition, BMW will expand its plant in Spartanburg (South Carolina). The production capacity of the U.S. plant will reach 450 000 units per year by 2016, in order to produce the SUVs X3, X4, X5, X6 and a future X7.   


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World production 2013/2012: Increases and decreases

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World production 2013/2012: Increases and decreases

- Global automobile production has increased by almost 4% in 2013 to 87 million vehicles. However, all countries are not receiving equal treatment.

- Those who have progressed: China and the U.S. have experienced the strongest increase in terms of volume, driven by the growth and scope of their domestic market. Latin America and ASEAN were helped by both the growth of the domestic market and their growth in exports. Germany, Spain and the UK have benefited more from their exports than from their domestic market. Finally, Romania and Morocco have greatly benefited from exports of Dacia vehicles.

- Those who have declined: Japan and Korea in 2013 suffered both from a national market decline and stagnant exports due to localized production. Most countries of Eastern Europe suffered in 2013, as well as some Western European countries, because of a European market decline. Russia and India have suffered from a decline in their domestic market. Finally, Iran and Australia have suffered from more specific factors: the embargo in Iran and the scheduled end of car production in Australia.

- In 2014, in view of the rebooting of the European, Japanese, Korean, Iranian and Indian markets, most manufacturing countries should see their production volumes grow. Only Australia will continue to reduce its production.   


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Renault-Nissan is going to launch a Datsun this summer for the Russian market

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Renault-Nissan is going to launch a Datsun this summer for the Russian market

- Renault-Nissan is going to launch a new Datsun this summer for the Russian market. This model, named on-Do, will use the platform of the Lada Granta launched in 2011 and not the B0 platform used for the Dacia Logan, Sandero and Duster.

- The new Datsun uses the bodywork (sedan) of the Lada Granta, with a Datsun grille. This model is part of segment C. Its engine is a Lada 1.6 petrol 90, 100 and 120 hp already fitted on the Granta.

- The new Datsun on-Do will be produced on the same assembly lines as the Lada Granta, in Togliatti. This will be the first model of the brand to be produced in the plant of Togliatti. In addition to the Lada Granta, this plant currently produces the Lada Kalina, Priora Niva, Largus (Dacia Logan estate), as well as the Chevrolet Niva and Nissan Almera. The production of the former Lada Samara should stop soon.

- The Lada Granta is now the most sold vehicle in Russia (154 000 units in 2013), and one of the cheapest in the market. Not much more expensive than the Granta, the Datsun on-Do should experience quite a success on the Russian market, competing with Korean models, Hyundai Solaris (2nd on the market, with 107 000 units in 2013) and Kia Rio (3rd on the market, with 87 000 units), also manufactured in Russia.    


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Avtovaz plans to produce 484 000 Lada in 2014

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Avtovaz plans to produce 484 000 Lada in 2014

- In Russia AvtoVAZ produces the Lada, Chevrolet (Niva) and Nissan (Almera), and produces a few Lada in Ukraine and Kazakhstan. The Russian manufacturer recently bought by Renault, plans to produce 484 000 Lada worldwide in 2014 ( Inovev expects 480 000 units to be produced in 2014), against 506 000 in 2013. If we include the models assembled for Chevrolet, Nissan and Renault, AvtoVAZ will produce almost 600 000 vehicles this year.


- AvtoVAZ estimates that its sales on the Russian market will amount to 460 000 units in 2014, against 456 000 in 2013, which corresponds to a market share of 19%. However, the manufacturer intends to increase its market share to over 20% as from 2015 and intends to maintain this rate until 2020.


- To achieve this goal, AvtoVAZ will launch 5 new models and market 6 restyled models between 2015 and 2020. By 2015, it will launch the Vesta (a C-segment model replacing the Priora), followed in 2016 of an off-road restyled Lada, the LadaVesta hatchback, a crossover from segment B and the LadaGranta hatchback and a restyled sedan (segment B).


- Car sales in Russia fell by 5.4% in 2013 to 2.78 million units, and 3.6% in the first two months of 2014, with a drop of 19% market share for the Lada. The Ministry of Industry expects a decline in sales of cars in Russia this year between -3 and -7%, however Inovev expects a stable market.



14-13-9  

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Chery plans to build a plant in the Philippines

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Chery plans to build a plant in the Philippines

- The Chinese carmaker Chery plans to build a plant in the Philippines. This will be its third plant in Southeast Asia, along with the ones it has established in Malaysia and Indonesia. These three countries are part of the ASEAN region, which has become one of the world's most dynamic economic regions. At first, the plant is expected to produce 20 000 Filipino vehicles per year, while the total production of the country remains under 60 000 units in 2013. Chery currently markets eight models in the Philippines, all imported from China. But its market share in the country remains under 3% (about 5 000 units). With this new plant Chery hopes to quadruple its sales in the country.

- In 2013, sales of vehicles in the Philippines (all brands) have indeed reached 212 000 (52 000 PCs + LCV 160 000) levels higher than expected (initially set at 200 000 units). The Department of Trade and Industry of the country emphasizes that the sector is beginning to attract foreign investors. Four major world manufacturers (unidentified) have recently announced their intention to invest in the Philippines between 2014 and 2016.

- The Department of Trade and Industry expects a 20% increase in the local car market in 2014 and believes that this growth will continue throughout the decade, thanks to the enrichment of the middle classes and low motorization rate of this country.


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  1. The French car market grew in the first quarter of 2014
  2. Honda is going to reduce its production capacity in Swindon
  3. Features of the European top 10 PC and LCV market in 2013
  4. Renault will launch the successor to the Laguna in 2015
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