Dongfeng buyouts 40% of Fujian Auto in order to own the Souest brand

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Dongfeng buyouts 40% of Fujian Auto in order to own the Souest brand
 

- The Chinese government has repeatedly urged Chinese carmakers to come together in order to fight against the world's leading carmakers such as Toyota, GM, Volkswagen, Renault-Nissan and Hyundai-Kia (see "The Chinese groups' multi-brand strategy called into question"). Currently, China has a hundred different carmakers, some of which include a number of specific brands.


- A few years ago, we saw Nanjing MG come under the control of SAIC, but the Chinese are still few groups, each carmaker trying to preserve its own prerogatives in a growing market that has not yet fixed the sale volume per brand. Each brand is trying to be among the most widespread, before even considering the purchase of a smaller company or other Sino-Chinese partnerships.


- Today, Dongfeng (the third Chinese automaker including the JV with foreign carmakers) took the initiative to buy 40% of Fujian Motor, the owner of Souest. Souest sold 80,000 cars in China last year and could sell 100,000 this year (35,000 in the first four months of 2013). Its market share is less than 1% of the whole Chinese market. The Dongfeng carmaker sold 370,000 cars under its own brand in 2012 (2.5% market share) and over 2 million cars thanks to a partnership with Nissan, Kia, Honda and PSA.


- With Soueast, Dongfeng could approach 5% market share in China while having a new plant with a capacity of 150,000 vehicles per year.

13-20-9

 

Chinese brands are moving into Russia

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Chinese brands are moving into Russia
 
- Although in the European Union (27 countries), Chinese brands have never managed to win so far, despite some unsuccessful attempts and despite the arrival of Great Wall as a car producer in Bulgaria (2012) since 2010 they have had a great success in Russia.

- Sales (PC + LCV) increased from 20,000 units in 2010 to 40,000 units in 2011, 80,000 units in 2012 and probably 90,000 units in 2013. Six brands account for the majority of these sales: Great Wall, Geely, Lifan, Chery, FAW and BYD.

- The success of Chinese cars on the Russian market is most certainly due to the fact that they correspond to the local demand. These cars at very low prices are the direct competitors of the Lada, but with a fresher style and perhaps even more attractive looking.

- It is possible that Chinese car sales in Russia will exceed 100,000 units in 2014 or 2015, and that would be the first country outside China to register as many Chinese cars.

- Let us recall that the Chery launch with the Qoros is scheduled for 50,000 sales per year in Europe, and therefore it is clear that Russia remains the main gateway to the European continent for Chinese brands.

13-20-7

 

Avtovaz is still the leader in the Kazakhstan VP market

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Avtovaz is still the leader in the Kazakhstan VP market
 

- Kazakhstan (former USSR republic which became independent in 1991) enjoys a favorable economic environment:                 the country which has 17 million inhabitants has an economy mainly based on oil exports, which account for 56% of its exports. This fast developing country (5% average since 2010) holds 3% of global oil reserves and aims to become one of the top five exporters in the world.


- The automobile market (PC) of Kazakhstan has doubled between the first quarter of 2012 and the first quarter of 2013, from 13,464 to 25,382 units of passenger cars. Over the whole year 2013, it could raise up to 150,000 units in 2013 and 280,000 units in the medium term. In 2012, the market represented 95,313 vehicles (PC), two times more than the previous year.


- Avtovaz (Renault-Nissan group), which owns 40% of the market, is well ahead of its competitors, especially because the carmaker assembles vehicles locally.


- Three models hold more than one third of the market: the LadaPriora and the Lada Samara and the Daewoo Nexia. Fourth, there is the LadaGranta, followed by the LadaNiva, the Hyundai Accent (made in Russia), the Toyota Camry (made in Russia) and the Kia Cerato (Made in Russia).

13-20-6

 

From 2014 Opel will make the Zafira in the Rüsselsheim plant

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From 2014 Opel will make the Zafira in the Rüsselsheim plant
 
- GM has chosen the Rüsselsheim plant to produce the Zafira minivan after the closure of the Bochum plant in 2014.

- It must be remembered that the Rüsselsheim plant is the main Opel plant which currently produces the Opel Insignia and some Astras. The production of the Astra in Rüsselsheim is still scheduled to be stopped in 2014 or 2015 and transferred to Gliwice in Poland. This makes sense: premium models (Insignia, Zafira) are and will be produced in Germany, where costs are higher than those of Poland.

- Advanced scenarios two months ago on the Inovev website, concerning the transfer of the Zafira production to Gliwice (GM) or Rennes (PSA plant in France) have not been confirmed by Opel’s management.

- Transfer to Gliwice made sense as between 2005 and 2011 the Zafira was previously made on this site, but the management of Opel  thought the Astra and the Cascada would be enough to run the plant in Gliwice (200,000 units per year).

- Transfer to Rennes also made sense as the next Citroën C5 was initially meant to migrate to Rüsselsheim, but since this option was abandoned a month and half ago (after the new platform separation policy between upscale PSA models and those of GM Europe), there was no reason for the Zafira to migrate to Rennes.

13-20-8

 

The Iranian market affected by the embargo in 2012

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The Iranian market affected by the embargo in 2012
 
- Iran's automobile market has made a strong progress during the years following 2000 (it rose from 1.1 million units in 2005 to 1.6 million in 2011) now experiencing the effects of the embargo and has strongly reduced in 2012, to 1 400,000 units (PC + LCV).

- PSA, whose production in Iran was designed exclusively for the local market, abandoned during the year the manufacturing, representing 260,000 units in 2006, 360,000 units in 2009 and 460,000 units in 2011. The French manufacturer only made 145,000 vehicles in Iran in 2012. Fortunately, the vehicles from its foreign plants accounted for 132,000 sales.

- With 277,000 total sales in 2012, the PSA is in second place in the Iranian market behind the Hyundai-Kia group that registered 428,000 vehicles sold last year.

- Local Iran Khodro Group sold 250,000 vehicles followed by Renault-Nissan, with 108,000 sales (mostly locally assembled Dacia Logans) and another local group SAIPA, with 85,000 sales.

- The Chinese carmaker Chery is in 6th place with 20,000 sales. It should be noted that Chinese manufacturers make an excellent score on the market, with 27,000 sales.

- GM, Ford and Fiat-Chrysler groups are not present in the Iranian market because of the embargo.

13-20-4-113-20-4-2

 

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