PSA has committed itself to 1 million cars in France in 2016
 

Early 2013, Renault decided not to close factories in France and revive its manufacturing operations in the country in exchange for agreements on competitiveness within the company. The manufacturer thus committed to producing in France at least 710 000 vehicles in 2016 (against 533,000 in 2012 and 987,000 in 2007).


Today, the PSA Group istaking on a similar initiative by committing to a production of one million cars in 2016 (against 1 116 000 in 2012 and 1 425 000 in 2007) in exchange for agreements on competitiveness in the company.


But observing the figures, we see that this commitment is to a minimal standard since it is based on a production volume  below that of 2012 and well below the numbers of 2007. Only the year 2013 will be even worse, since Inovev has calculated a production of 900,000 vehicles produced by PSA in France, extrapolation made from the figures of the first eight months of the year.


Given the current overcapacity of the group particularly in France (according to Inovev, they would be well above 30%, even without including the Aulnay plant), it will be difficult not to close another plant before 2016, another commitment made by the group.


PSA now has five plants, if one disregards the Aulnay plant which will cease its activity by the end of October 2013 , and is committed to maintaining these five factories in working order in 2016, with specific production targets for each of them. These objectives are provided below.

 
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The mexican Nissan-Daimler plant will start by 2016
 
Nissan and Daimler have decided to unite themselves in the making of the compact models of their respective high-end brands (Infiniti and Mercedes), a new Nissan-Daimler factory (JV 50/50) in Mexico.

The plant number 2 Aguascalientes, scheduled to open in early 2016 will produce the new Infiniti Q30, compact four-door model that will share its engine and chassis elements with the Mercedes Class A, Class B and GLA.

The GLA, a compact SUV that will be launched next spring in Europe and a few months after the United States, is also one of the models likely to also be produced in this plant.

The Q30 and GLA were presented at the Frankfurt Motor Show in September 2013, the first, a concept version and the second, a final version (the first Mercedes GLA will be produced in the Rastatt plant in Germany).

Daimler will decide on the production of other models in collaboration with Nissan in Mexico by the end of the year. These would include recent Class A and Class B.

The number 1 plant of Aguascalientes, which is 100% owned by Nissan, currently manufactures the Nissan Versa Tiida (compact sedan of segment C) at a rate of 250,000 units per year. Let us recall that Nissan has another plant in Mexico, located in Cuernavaca, which manufactures cars from segments B and C (Micra Sentra Tsuru) and a pick-up (Frontier).
 
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Toyota will produce the RAV4 in Russia for the local market
 
Toyota announced that it will produce its 4x4 RAV4 in its Russian plant in St. Petersburg as from 2016. The Russian site, which currently manufactures the Camry with a capacity of 50,000 units per year will produce 100,000 vehicles per year from 2016 (50,000 Camry and RAV4 50,000).

The Toyota RAV4 SUV is the model the most sold in Russia currently with 27,000 units sold between January and August 2013 (approximately 40,000 over 12 months). The RAV4 are currently produced in Japan.

Toyota assembles the Vladivostok Land Cruisers at the rate of 1,000 units per month (12,000 per year). Toyota sold 168,700 vehicles in Russia in 2012, an increase of 26.7% compared to 2011. In the first eight months of 2013, it has managed to limit the decline in the country to 3% (111,635 units) in a total market down 6.7%.

Toyota also announced that it would increase the capacity of its plant in Argentina to increase its production of the Hilux pickup and Fortuner suv. The plant in Zarate (Buenos Aires province), and its capacity will increase from 90,000 units per year at present to 140,000 units in 2015. The vehicles are destined for the Argentine market but also to other Latin American markets, including Brazil. One objective of the manufacturer is to achieve half of its sales in emerging markets by 2015.
 
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Renault-Nissan is mooving into Burma
 

The Renault-Nissan Alliance seeks to establish itself on a maximum of developing markets. The Alliance was launched in markets such as China, Mexico, Brazil, Argentina, Indonesia, Russia and African countries (it considers itself to already be the second largest motor group in Africa).Today, Nissan announced the start of the production of cars in Burma, an automobile market that opens itself after half a century of military dictatorship.


The Japanese automaker said in a statement that its Malaysian partner Tan Chong Motors would build the largest automobile manufacturing site of Burma. The new plant should open in 2015 in the region of Bago and produce the Nissan Sunny (10 000 vehicles per year initially).


Since the dissolution of the junta in March 2011 and the reforms initiated by the new government, most Western sanctions were lifted and foreign investors have flocked to the country, which remains today one of the world'spoorest countries. The Renault-Nissan group still thinks that this country has a great potential.


Under the junta, buying a car was out of reach of most Burmese, due to prohibitive prices, especially related to very high import taxes, but the recent political changes and lower taxes led to an increase in vehicle demand

 
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Renault brand announces its return in Indonesia
 

The Renault brand, announced on September 18 its return to Indonesia via an agreement with the local builder Indomobil, targets a market share of 5% in the country. Renault say it will launch in 2015 several models specifically adapted and assembled locally by Indomobil.


Indonesia, the fourth largest country in the world in terms of population, is an important automobile market with 1.2 million vehicles sold in 2013, the carmaker see a very high growth potential in this country. The penetration rate is still very low, with 46 cars per 1 000 inhabitants (less than India: 50 cars per 1 000 inhabitants).


Renault has set itself the goal of becoming by 2016 the leading European brand in Indonesia. Currently, the Indonesian market is 90% dominated by Japanese carmakers and Europe is mainly represented by German carmakers.


A single model holds in the country more than 15% of market share(100,000 units sold in the first half of 2013), it is the small Toyota minivan Avanza (7 seater), far ahead of its competitor the Suzuki Ertiga (5 % marketshare). Dacia Lodgy 7 seats that could be rebadged under the Renault name in this market would be a good alternative, as the new Datsun Go + a 7 seater variant of the urban Go, which was presented this summer.

 
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