Details

Published: 06 April 2020

• Production
• Germany

Why car production on German soil has lost 20% of its volume in three years?

- The car production in Germany lost 20% of its volume in three years, between 2016 and 2019, from 5.75 million passenger cars in 2016 to 4.66 million in 2019, representing a loss of 1.09 million units over this period. The decrease reached -9.0% in 2019, after a decrease of -9.3% in 2018 and -1.8% in 2017.

- According to Inovev, this volume decline is the consequences of several factors:

1. Lower global sales in 2018 and 2019, which has caused a decline of exports from Germany. These exports went from 4.38 million units in 2017 to 3.48 million in 2019, representing a loss of 900,000 units in three years.

2. The complete or partial transfer of certain models to foreign countries: Mercedes Class A to Hungary, Mercedes Class C to the USA, Audi Q5 to Mexico, BMW 3 Series to Mexico, BMW X1 to Netherlands, Porsche Cayenne to Slovakia, Opel Corsa to Spain. Later than France, Germany decided to transfer some of its models to foreign countries, either for cost price reasons (Slovakia, Spain, Mexico) or for get closer to targeted markets and to through their local constraints (USA, China ) or simply because of under capacity in Germany.

3. The end of production of certain models made only in Germany: Opel Adam, Opel Zafira, Ford C-Max.

- At the end, car production in Germany reached in 2019 its lower level since 2009, which was the worst figure following the financial and economic crisis of 2008.

    

 

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Published: 09 March 2020

• Registrations
• Brazil

The Brazilian market (PC + LUV) increased by 8.7% in 2019

- The Brazilian automotive market (PC + LUV) grew by 8.7% in 2019 to 2.79 million units compared to 2.57 million in 2018, a year that had increased by 14.6% compared to 2017. The Brazilian market growth, discontinued since 2017, is therefore slower in 2019, in a global context of economic slowdown. The 2012 sales peak (3.8 million vehicles) is therefore still a long way off, especially since 2020 is likely to see the market stabilize. In January 2020, the Brazilian market fell for the first time since 2016, by 3.2%. Inovev does not see the Brazilian market reaching 3 million units in 2020.

- By carmaker, the Fiat-Chrysler group has regained its first place on the Brazilian market, with a market share of 18% (+1%), which is unexpected given the fact that the Italian-American group saw its sales fall by 9% worldwide. South America accounts for 13% of the Fiat-Chrysler group's (FCA) global sales and Brazil the largest share of its sales in this region. Consequently, South America remains attractive to the group.

- Behind Fiat-Chrysler, we observe that GM and Volkswagen groups are very close, with 17% of market share each, the American group having lost a point and the German group having gained one. At a third level, since arriving later on this market, the Renault-Nissan (12%), Ford (8%), Hyundai-Kia (8%) and Toyota (8%) groups follow each other closely. It is to note that SUVs represent 19.5% of the Brazilian market in 2019, compared to 18.5% in 2018.

    

 

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Read more... The Brazilian market (PC + LUV) increased by 8.7% in 2019

Details

Published: 09 March 2020

• Production

Global auto production volume fell 3.8% in 2019

- The volume of worldwide production followed the 2019 curve of sales. It decreased by 3.8% in 2019 (-4.2% for world sales).

- Only one region, South America, saw its production increase slightly, thanks to Brazil which was able to offset the drop recorded in Argentina.

- All other regions are felt down, especially Asia, due to the significant drop in production in China (-7.5%) which accounts for almost 30% of worldwide automobile production. The decreases recorded in the other regions are much smaller (between -1.5% and -2%) but the important fact is that these regions are all decreasing together (except South America), which didn’t happened since 2009.

- 2020 was first expected to be stable compared to 2019, however the effects of the Covid-19 will be felt both on sales volumes (demand) and on automobile production by itself (parts supply chain disturbed and availability of production human resources).

    

 

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Read more... Global auto production volume fell 3.8% in 2019

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Published: 09 March 2020

• Production
• Volkswagen
• USA
• Navistar

Volkswagen group will acquire Navistar (Heavy Utility Vehicles)

- The Volkswagen group has a subsidiary called Traton, which covers the brands Scania and MAN. This entity produced and sold 242,000 Medium and Heavy Utility Vehicles (MUV & HUV) in 2019 (compared to 233,000 units in 2018) divided into 142,500 MAN and 99,500 Scania. Thanks to this subsidiary, the Volkswagen group was able to overtake the Renault-Nissan group in 2018, as the world's leading vehicle producer.

- However, this Traton division does not produce enough MUV and HUV to be able to compete against the two leaders of this market, namely the Volvo Trucks group (Volvo Trucks, Renault Trucks, Mack Trucks) and the Daimler Trucks group (Mercedes, Freightliner, Fuso, Western Star, BharatBenz) which each produces around 500,000 vehicles per year.

- This is the reason why the Volkswagen group has been interested since 2016 in the American truck producer Navistar group (with only one brand: International) which sells between 335,000 and 365,000 vehicles per year, including 210,000 to 240,000 Class 8 trucks models (the heaviest). The Navistar group’s main market is North America (United States and Canada), where it is one of the leaders.

- In 2016, the Volkswagen group already put a foot in Navistar by acquiring 16.8% of the capital. In 2020, the German carmaker decided to entirely buy the American truck producer. It will allow Traton to reach a volume of 500,000 UV per year which and become the market leader in trucks ahead of Volvo Trucks and Daimler Trucks. This acquisition would also allow Volkswagen to gain a share of the North American market (where Volvo Trucks and Daimler Trucks are well established), since Scania and MAN are mainly present in Europe and in Latin America but not so much in North America.

    

 

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Read more... Volkswagen group will acquire Navistar (Heavy Utility Vehicles)