Category Blog

Details: Published: 06 September 2022

Hyundai is going to build a fourth factory in China

- The Korean carmaker Hyundai will set up a fourth assembly plant in China. The new site (located in Chongqing, in the centre of the country) will have a production capacity of 300 000 units per year.

- Hyundai today manufactures 1.05 million vehicles annually in China in partnership with the Chinese carmaker BAIC (Beijing) in three different plants located in the surroundings of Beijing (two in Shunyi and one in Yancheng).

- The Korean carmaker sold 1.03 million vehicles on the Chinese market last year (of which 966 000 units where made in China) and has set a target for 2014 of 1.08 million units (of which 1 million units made in China ). But its current production capacity is limited to 1 million vehicles a year.

- The construction of this fourth plant will therefore enable Hyundai to manufacture up to 1.3 million vehicles per year starting from 2015-2016. At that time, its forecast ranged from 1.13 million units to 1.18 million units per year.

- This means that if the growth rate of sales of Hyundai models in China is maintained, it will need a new factory around 2018. The last plant built by the Korean brand in China dates back to 2012. This plant has a capacity of 300 000 units per year.

- The most made Hyundai models in China in 2013 were the Elantra (413 513 units), Verna (202 403 units), iX35 (157 300 units) and Sonata (105 500 units).

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Details: Published: 06 September 2022

The Opel plant in Rüsselsheim will manufacture two new models

- In order to make greater use of its existing production abilities, the Opel plant in Rüsselsheim (Germany) will host the production of two additional vehicles, a Buick model intended to be exported to the United States. It will probably be the American version of the future Opel Insignia due to be launched in 2017.

- Indeed, the GM plant where is currently produced the Buick Regal (U.S. version of the Opel Insignia 2008-2017) is close to saturation (296 743 units manufactured in 2013 for a total capacity of 300 000) due to a U.S. market continuously increasing since 2009, while GM was forced to close several plants at that same time. Regarding the Rüsselsheim plant, it is now operating at only 70% of its capacity.

- Opel did not specify what would be the second model to be assembled in the future Rüsselsheim plant, but it will not be the new generation Astra since the manufacturer has previously decided to transfer the production of the Astra from Rüsselsheim to Gliwice, this transfer will be effective in 2015.

- We also know that the Rüsselsheim plant will produce the Zafira MPV (which was assembled in Bochum so far) from the end of 2014, and its future generation should be manufactured in the PSA plant of Sochaux (France). Manufacturing Buick vehicles should allow Opel to improve the rate of use of its German factories, which were used on average at 70% of their capacity in 2013.

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Details: Published: 06 September 2022

Fisker taken over by a Chinese automotive supplier

- After having become insolvent and placed on auction in October 2013 by the U.S. government, Fisker was finally taken over by the Chinese automotive supplier Wanxiang.

- Fisker was an independent American manufacturer, founded in 2007, four years after Tesla. The only model which was launched ( in 2008) and produced until today was the electric segment F sedan Karma, equipped with two electric motors and a range extender. Its positioning was in direct competition with the Tesla S Model, but Karma did not experience the same success as the S model.

- The Fisker Karma was produced in Finland at the assembly plant of the company Valmet (which used to assemble the Porsche Boxster / Cayman). Nearly 3000 vehicles were produced in 2012, the same year that Tesla produced 3,300 units (but Tesla manufactured almost 24 000 vehicles in 2013).

- Wanxiang is a Chinese automotive supplier. It owns the company A123 Systems, which used to supply the batteries of Fisker’s model .

- By acquiring the Californian carmaker, Wanxiang aims to produce about 2,000 Karma yearly and sell them in the U.S.A.(1 000 per year), Europe (500 per year) and China (500 per year). The question is where these vehicles will be produced. Actually the Valmet factory is now saturated with the production of the Mercedes A Class. Wanxiang, which committed itself to produce in the USA , does not have any vehicle assembly plant. To meet its commitment, Wanxiang will have either to buy an existing plant, or build one (which seems difficult in view of the small quantities to produce), or develop a partnership with a local car assembler (partnership similar to the one planned by Chinese automaker JAC with the American producer GreenTech Automotive).

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Details: Published: 06 September 2022

Chinese carmakers strategies for electric vehicles

- Although electric vehicle sales are still marginal in China (less than 30,000 sales scheduled for 2014 ), the electric vehicle market in China becomes an important issue for carmakers in the country. The vow of the State to address the problems of pollution, especially in large Chinese cities, will be accompanied by incentives and the development of electric vehicle charging infrastructure.

- In this high-potential market, Chinese vehicle manufacturers do not have to be left behind and position themselves in different ways.
Strategies, existing or to come, can be classified into several categories:

- Production of electric vehicles under existing Chinese carmakers own brand, such as BYD E6 Crossover done with his or BAIC with E150.

- Creation of new brands 100% electric, in JV with non-Chinese manufacturers (Venucia , Zinoro , Huaqi ...)

- Buyouts with the target of acquiring technologies, such as the recent acquisition by Geely of Emerald, a British company specializing in converting thermal engine vehicles into electric motor vehicles.

- Acquisition of a carmakers in difficulty(such as the recent acquisition of Fisker by Wanxiang) .

- Outside the domestic market, the partnership with a local producer as JAC with GreenTech Automotive USA.

- And eventually, production in China under JV of an electric vehicle already marketed outside China as the way that VW could produce the e-Up! with a Chinese partner ( FAW ? SAIC ?).

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Details: Published: 06 September 2022

Who is Fengshen?

- This week, the management of PSA (whose Dongfeng holds 14% of the capital) raised the possibility of selling vehicles of Fengshen brand in Europe in the future. But who is Fengshen, this brand unknown in Europe?

- Fengshen is a Chinese automobile manufacturer founded in 2009 and belonging to the Dongfeng Group. The first model of the brand was the 4 door sedan (C segment ) S30, unveiled at the Shanghai Motor Show in April 2009. Marketed in China in July 2009, it was followed in January 2011 by the sedan H30, a five-door derived from the S30.

- Both models are based on the platform of the Peugeot 307, which is produced by Dongfeng JV since 2004.
The models S30 ( Sedan 30) and H30 ( Hatchback 30) are produced alongside the crossover H30 Cross, which displays a more SUV style.

- The A60 sedan (segment D) was unveiled in November 2011 and sold in China in March 2012.
It is based on the platform of the Nissan Sylphy, produced since 2000 by Dongfeng - under a JV with Nissan - under the name Nissan Bluebird.

- Fengshen, manufacturing four models, produced 73,068 vehicles in 2013 (against 65,993 in 2012) and began exporting its cars from September 2012, when the brand was launched in Venezuela.

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