Volkswagen plans to open seven new plants in China

 

The Volkswagen Group plans to open seven new plants in China in the years to come, one more than originally planned. In total, nineteen plants will therefore be available for the Volkswagen group production in 2018. In addition, the group plans to build three more plants in the world (India, Russia, Mexico), including two Audi ones. Currently, the Volkswagen Group benefits from 100 plants worldwide.


The construction of seven new plants should allow the Volkswagen Group to achieve its goal to increase its production in China by half by 2018, to 4 million vehicles (against 2.63 million in 2012).

 

The first three new plants in China - Urumqi, Foshan and Ningbo- should be operational by the end of 2013. The following three ones should open between late 2014 and late 2015. The seventh one should be operational by the end of 2016. The seven plants will each have a production capacity of 200,000 vehicles per year (1.4 million in total).


Thanks to these new plants, Volkswagen will increase its  production capacity to more than 4 million vehicles a year in China in 2018. Such a capacity exceeds the sales planned in China in the same year.


Volkswagen group Chinese production accounted for 28% of its global production last year.


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The Belgian market has remained stable since a dozen years

 

The Belgian market has weathered the crisis of 2008-2009. The volume of registrations (passenger cars), accounted for 525 000 vehicles in 2007 and 536,000 vehicles in 2008. It fell down to 476,000 vehicles in 2009 but rebounded in 2010 (547,000 vehicles) and 2011 (573,000 vehicles). It decreased unfortunately again in 2012 down to 487,000 vehicles.
 
The Belgian market actually peaked in 2011, a rare phenomenon in Europe. On the other hand, if we consider the period 2000-2012, this market is finally remained stable (around 500 000 units per year).
 
This market is characterized by a high proportion of medium-sized cars (C-segment) in best sold vehicles. Thus, in 2012, Renault Megane (25,000), VW Golf (14 000) and Opel Astra (10,000) occupied the top three positions and  the Ford Focus, Nissan Qashqai and BMW 1 Series are also part of the top 10.

Considering carmakers, the Volkswagen Group is the market leader ahead of PSA and Renault-Nissan. American groups GM and Ford come then before the Korean group Hyundai-Kia.


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BMW plans to build a plant in Slovakia

 

 

BMW plans to build a new plant in Slovakia and explores possible construction conditions in the country. Slovak Ministry of Finance, Peter Kazimir, and Slovak Ministry of  Economy, Tomas Malatinsky should discuss the project during an official visit to Germany scheduled in late March.

"Slovakia is one of the countries that BMW targets for a new investment," confirmed StanislavJurikovic, spokesman of the Slovak Ministry of Economy. In addition, the BMW Group also considers applications from the Czech Republic, Hungary, Slovenia and Croatia.

The German carmaker has operated in Europe at 100% capacity for the last two years and its U.S. plant operates in similar conditions. The only available option for BMW to meet its ambitious sales targets 2014-2018 is to build a new plant in Europe. Slovakia is known for the skill of its workforce and competitive labor costs. The Volkswagen group, PSA, Hyundai-Kia are already present in this country of 5.5 million inhabitants.

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The Western Europe imported 3.3 million cars in 2012

 

 

The Western Europe imported vehicles in 2012 mainly from Eastern Europe (2.3 million units), which makes sense since this neighboring region is the main area of relocation of manufacturers located in Western Europe. The Western Europe has imported many vehicles from Romania, Slovakia, Czech Republic, Poland, Hungary and Slovenia.


The Western Europe also imported in 2012, but in smaller quantities, vehicles from the NAFTA region (Canada, USA, Mexico: 336,000 units), South Korea (312,000 units), Japan (202,000 units) and India (159,000 units). Other countries (such as China or Russia) account for  much less vehicles.


- Imports from Eastern Europe represent 70% of total imports of Western Europe. The total of imports from all countries to Western Europe represent 28.5% of the registrations in Western Europe (71.5% of sales come from plants located in Western Europe).


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The U.S. imported 867,000 vehicles from Europe in 2012

 

- The United States imported 867,000 vehicles in 2012 from Europe, including 643,000 from Germany, 122,000 from Britain, 45,000 from Belgium, 23,000  from Sweden, 22,000 from Slovakia, 10,000 from France and 2,000 from Hungary. Three-quarters of imports in 2012 are therefore of Germany (Audi, BMW, Mercedes, Porsche, Volkswagen).


- Among the five most imported cars are two mid-range Mercedes (Class C and Class E) and two mid-range BMW (3 Series and 5 Series) from Germany, as well as the Mini (owned by BMW) from Britain. The only car imported from France is the Smart Fortwo. But from 2013, the Toyota Yaris for the US market will be imported in the USA from France instead of Japan.


- The level of 2012 EU imports (867 000 units) amounts back to the pre-crisis level of 2007, (873,000 units), after a bad year in 2008 (782,000 units), 2009 (651,000 units ), 2010 (716 000 units) and 2011 (814 000 units).


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