What is the current situation of Chinese partners of PSA-FCA?
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What is the current situation of Chinese partners of PSA-FCA?
- With the future merger of PSA and FCA, it could be interesting to remind us the current status of their respective Chinese partners.
- Dongfeng who was the Chinese partner of PSA for the Peugeot and Citroën brands. Weakened by the poor performance of the French group over the last three years, Dongfeng had to stop the production of two production plants factories in joint venture with Peugeot and Citroën, as the factories from the Dongfeng-PSA JVs are only at 22% of their current capacity. PSA's management has however announced that it intends to boost the sales of these two brands in China over the next decade and that it will not abandon the Chinese market. The merger of FCA and PSA could be a way for Dongfeng to use its production capacity in the future.
- Consequently, GAC, which was FCA's Chinese partner, is unlikely to continue to be the partner of the new PSA-FCA group, regarding FCA brands. As for PSA, FCA suffered a collapse of its sales in China in 2019, and by contrast GAC, is growing with its own Trumpchi models, which put FCA as a marginal partner.
- Changan, which was PSA's Chinese partner for the DS brand, was the first to stop the cooperation with the French group.
The Changan-PSA plant is running at only 1% of its capacity due to extremely low DS sales. It will soon be out of business and future DS models sold in China are expected to be transferred to Dongfeng.
The Changan-PSA plant is running at only 1% of its capacity due to extremely low DS sales. It will soon be out of business and future DS models sold in China are expected to be transferred to Dongfeng.
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Inovev expects 350,000 units a year from the new Skoda Octavia
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Inovev expects 350,000 units a year from the new Skoda Octavia
- Skoda unveiled the new generation of the Skoda Octavia (sedan from C / D segment). This model has become over the years the best-selling car of the Czech carmaker range, as it now represents more than 30% of Skoda's worldwide sales. In 2019, there were just over 330,000 units of this model produced in the world, including 210,000 in the Czech Republic, 100,000 in China and 22,000 in Russia, excluding CKDs destined for India and of Ukraine.
- The Octavia more produced than the Fabia (less than 200,000 units in 2019) and Kodiaq (less than 200,000 units in 2019). Its replacement is therefore a critical operation for Skoda, which is why the new generation adopts a style very close to the old one, as for Volkswagen Golf.
- The new Octavia will still be produced in three main countries, the Czech Republic (MladaBoleslav), China (Shanghai) and Russia (Nizhny Novgorod). Inovev expects 350,000 units produced worldwide each year, most of them in the Czech Republic, where the Octavia is also the best-selling model in this market.
- The new Octavia will be equipped with petrol engines 1.0 TSI 3-cylinder of 110hp, 4 cylinders 1.5 TSI of 150hp, 4 cylinders 2.0 TSI of 190ch and diesel 4 cylinders 2.0 TDI of 115ch, 150ch and 200ch. During the summer of 2020, will appear new plug-in electric versions (PHEV - which already exists on the Superb) of 204hp and 245hp. The new Octavia will still be available as a station wagon, which is the best-selling station wagon in Europe.
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Can global SUV sales growth be curbed?
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Can global SUV sales growth be curbed?
- SUV sales growth continues in 2019, in most countries around the world. Carmakers' offer for this type of vehicle continues to grow, even though these models are heavier and more expensive than their sedan counterparts, and therefore emit more emissions, which is an ecological problem. But for carmakers, SUVs represent an unexpected value because these vehicles sold are more expensive than sedans in the same segment.
- Today, SUV sales account for nearly 40% of the global automotive market (PV + LCV), with 37% in Europe, 44% in China and 52% in the United States. Some 200 million SUVs currently drive around the world on 1 billion vehicles (VP + LCV), or 20% of the global car fleet, whereas this proportion was close to zero 25 years ago.
- Can SUV sales growth be curbed? Governments are putting in place in some countries higher and higher penalties that primarily target SUVs. This policy to reduce the influence of SUVs could put an end to the development of SUV sales, but only in the countries that will start this policy.
- For instance, the United States, this type of measure is highly unlikely, while sedans from American carmakers are on the brink of extinction. Ford has just stopped the production of its latest sedan, the Fusion (Mondeo), which shows a lot about the strategy adopted by the American carmakers.
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VW started the production of the Jetta brand in China
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VW started the production of the Jetta brand in China
- The Volkswagen Group decided in February 2019 to create a new low-cost brand for the Chinese market. Using the name of a well-known Volkswagen model and well sold in China, Jetta, the German carmaker has made this brand to target primarily 100% Chinese carmakers. Indeed, they manage to keep their market share on the Chinese market due to a lower price policy than those practiced by foreign carmakers. They now have 33% of the Chinese passenger car market and almost all of China's utility vehicle market.
- The Jetta brand has been launched with three models in 2019, which are closely redesigned from Seat models sold in Europe (the Toledo sedan, the Ateca SUV and the Tarraco SUV). Production began at the FAW-Volkswagen plant in Chengdu in the summer of 2019. After three months, production volume reached 40 561 units, with 6 840 units in August, 18 323 units in September and 15 398 units in October.
- The production of Jetta therefore begins and the volume of production remains naturally lower than other brands of the group present for a longer time, as Skoda. In 2019, Jetta's production volume will remain marginal compared to the 3.7 million vehicles produced by the Volkswagen Group in 2019.
- Eventually, the Jetta brand could take on the Skoda brand market share but also on the entry-level models of Volkswagen.
The group's strategy may eventually be to refit the entry-level models of the Volkswagen brand, under the Jetta brand, and to maintain the middle and upper range models under the Volkswagen brand.
The group's strategy may eventually be to refit the entry-level models of the Volkswagen brand, under the Jetta brand, and to maintain the middle and upper range models under the Volkswagen brand.
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Inovev forecast 25,000 units a year for the new Ford Mustang Mach E
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Inovev forecast 25,000 units a year for the new Ford Mustang Mach E
- Ford USA unveiled at the Los Angeles Show its first 100% battery electric model – BEV - (the Focus BEV version had only few number of sales) called Mustang Mach E, with the objective to show that this new model is part of the Mustang range. However, the Mach E is the opposite of the Mustang. The Mustang is a sporty-looking two-door coupe or cabriolet equipped with thermal engines, while the Mach E Mustang is a four-door, BEV SUV.
- It is also interesting to note that while this new SUV is unveiled, Ford does not produce sedan anymore. Ford's new American range is made up of SUVs, pickups, vans and the Mustang.
- The new Mustang Mach E (which obviously does not replace the Mustang coupe/cabriolet) has dimensions close to a Jaguar I-Pace 100% electric (4.71m length, 1.88m wide, 1.60m high) which will be one of its main competitors.
- Another of its competitors will be the Tesla Model Y, which was recently introduced but has not yet been put in production at the Tesla plant in Fremont, California.
- According to information from Ford, the batteries placed under the floor of the Ford Mustang Mach E allows him a range of 450km to 600km depending on the versions and according to the WLTP cycle. Based on the GE2 platform (and not yet the MEB platform of Volkswagen), also used by the recent Focus and Escape (Kuga), the Mustang Mach E will be produced on the Mexican plant located in Cuautitlan, at the rate of 25 000 units per year according to Inovev.
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