By 2014 Honda could stop exporting the Jazz from China to Europe

The Japanese carmaker Honda could stop importing its Jazz models to Europe (segment B) from 2014 onwards due to lower sales of this model and the imminent launch of the new generation that will be produced in the British plant of Swindon.

Since the end of 2013, the monthly production of the Jazz manufactured in Britain is equivalent to the volume of sales of this model on the European continent, hence it is no longer necessary to import these vehicles from China.

Honda chose China as a production country for the Jazz because production costs are lower in China than in Japan and Britain. But the decline in sales of the Jazz in China has pushed Honda to export this model to Europe, in order to upkeep its production levels in this country.

Honda imported from China its B-segment model to Europe, while Toyota was manufacturing the Yaris in France and Nissan was manufacturing the Micra in Britain and then in India. Mazda produced the Mazda 2 in Japan and the Mitsubishi Space Star was produced in Thailand (after producing the Colt in the Netherlands). Suzuki produces its Swift model in Hungary.

Honda now has the opportunity to produce all its Jazz models for the European market in Britain and no longer has to produce some in Britain and some in China.

14-12-2  

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Fiat is planning a vast program to re-vitalise the Alfa-Romeo brand

Alfa-Romeo is one of the Premium subsidiaries (with Lancia and Chrysler) of the Fiat-Chrysler group (FCA). In Europe, the group is struggling to keep both the Alfa Romeo and Lancia brands, because of their similar positioning. The management of FCA has recently announced that the Lancia brand would soon disappear, except in Italy. This strategy will be accompanied at the same time by the re-boosting of the Alfa-Romeo brand. The group has announced a major product launch plan with the goal of achieving 500 000 sales in 2020 (against less than 100 000 in 2013).


FCA will present seven new Alfa Romeo models between 2014 and 2018: a Spider based on the Mazda MX5 roadster will be launched by 2016, a sedan and an estate Giulia (segment D) in 2017, a sedan and an estate Alfetta (segment E) in 2018.


In addition two SUVs based on a Giulietta will be launched, a compact car in 2017 and an elongated version in 2018. Alfa-Romeo will take over the Maserati platform for these models that will all be made in Italy (probably in Mirafiori).


Furthermore, Fiat doesn't plan to replace the Mito and Giulietta, although these models could help reach global targets, by accounting for up to 100 000 units per year. It is quite surprising when one compares the Alfa strategy to the Audi, BMW and Mercedes ones who have also developed their range on these segments.


It will be very difficult for Alfa to achieve such high goals, because of the strong competition of Premium German manufacturers who have monopolized the market for decades.


14-12-1  

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VW is going to build a new plant in Poland at Września

This is evidence that the Volkswagen group is among those who aren't suffering from overcapacity in Europe today, this carmaker is going to build a new plant in Europe, which has become rare, since 2010, only Mercedes has built a plant in this region (in Hungary), while six factories have closed since that date (Antwerp, Termini, Born, Trollhättan, Southampton, Aulnay) and two others will close in 2014 (Bochum, Genk).

BMW,  intends to build a plant in the coming years in Europe, but has not yet decided the location. BMW, Mercedes and Volkswagen are manufacturers that do not suffer from overcapacity in Europe today.

Volkswagen is going to build a plant for commercial vehicles in Września, near Poznan (Poland), in order to produce the new Crafter based on a new VW platform (called MNB) dedicated to commercial vehicles. Indeed, the current Crafter, sold only in Europe, is produced in Germany (35 000 to 40 000 units per year) in the Mercedes plants of Düsseldorf, as part of an agreement with Daimler, which will expire in 2016 . The Crafter is based on the Mercedes Sprinter.

The construction of the future Polish Volkswagen plant is expected to begin late 2014 and production is expected to start late 2016. The Września plant will produce 100 000 units per year for the global market. Volkswagen already has a plant for commercial vehicles in Poland, Poznan, where it assembles the Caddy.

14-11-8  

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EU exports rose by 5.4% in 2013

Europe exported a total of 2 835 000 vehicles in 2013 to regions outside of Europe, against 2.69 million in 2012, representing an increase of 5.4% from one year to the next.

The three main regions are the USA, China and Russia that represent over 70% of total exports. They increased from 1 435 000 units to 2 017 000 between 2009 and 2013:
-USA: increased from 651 000 to 968 000 in four years (+49%).
-China: increased from 270 000 to 550 000 in four years (+104%).
-Russia: decreased from 514 000 to 499 000 in four years (-3%).

The growth in the U.S. and China can be explained by the volume increase of these markets in four years (+36% and +74% respectively), but also by an even stronger increase in domestic sales of European cars, mainly German.

In Russia, the decline in the overall market in 2013 (-5.4%) and the Russian government incentives so that clients purchase vehicles manufactured in Russia has caused a decline in European exports in 2013.

Note that 40% of EU exports in 2013 to regions outside of Europe came from Germany but 80% are from German manufacturers (Volkswagen Group, Daimler and BMW).

14-11-10  

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Confirmation of the decline in sales of diesel cars in Europe in 2013

The Rate of diesel vehicles (share of diesel cars in total sales) in Europe continued to decline in 2013 and 2012. Indeed,  since 2012 sales of diesel cars have started to decline in Europe, brining the market share of these vehicles down (compared to petrol, hybrid engines and the electric cars).


The share of sales of diesel cars in European sales as a whole hadn't stopped increasing since the 90s, except in 2009, when the rate fell to 47.5% due to scrappage schemes that promoted throughout Europe the sales of petrol cars from segments A and B.


The rate of diesel vehicles in Europe has risen from 22.3% in 1996 to 55.7% in 2011 and fell back to 55.2% in 2012 and to 53.3% in 2013. All countries saw the rates of diesel cars decline in 2012 and 2013, except for Portugal, Italy and Greece.


The decline in the share of diesel cars in most European countries is due to several factors: the decrease in kilometres travelled by drivers, the reduced gap between the price of petrol and diesel fuels, the decision made by carmakers to gradually abandon diesel engines on cars from segment A, the introduction of tougher pollution standards leading to a rise in the price of diesel cars compared to petrol cars and finally the technological advances that have improved the yields of petrol engines.


14-11-9  

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