Ford renounces importing Focus made in China to the USA
Following the increase in taxes on products imported from China and sold in the United States, increase decided and implemented by US President Donald Trump, the Ford group has decided to abandon the idea (at least for  the period 2018-2022) of importing the new generation of Ford Focus from China to the United States for launch on the American market this year.

Indeed, the price of this model plus import taxes would make the Focus uncompetitive in the US market. Focus will continue to be manufactured in China for the Chinese market and in the United States for the US market. The production site on American soil will probably be Wayne Michigan, not far from  Ford’s historic site at Dearborn. This site has been manufacturing the different generations of Ford Focus for a dozen years.

Some believe that the new generation of the Ford Focus could be manufactured at the Hermosillo Mexican site, where the Ford Fusion and Lincoln MKZ are produced (245,000 units produced in total in 2017), but Ford has already indicated that this site would receive exclusively the manufacture of the future compact SUV, the Bronco II.

In conclusion, while Ford is directly impacted by US government taxes on imports of Chinese-made products, Ford is sole decision-maker for the affectation of its North American production.


    
 

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The PSA group has decided to transfer the future Peugeot 2008 to Poissy
The PSA group has decided to change the allocation of the next generation Peugeot 2008 (B segment  SUV) expected to appear in 2020. The site envisaged for its transfer from the site of Mulhouse (where it is currently manufactured) was initially that of Vigo in Spain. But with the transfer of the Opel Combo from the Fiat site at Bursa (Turkey) to that of Vigo (Spain), the transfer of the Peugeot 2008 to Vigo becomes impossible. For this transfer to be possible, the production of the Citroën C4 Space Tourer should be abandoned. However, it seems that this model will  be continued, and will continue to be manufactured in Vigo, alongside the Citroën Berlingo, Peugeot Partner and Opel Combo.

The site ultimately chosen by the PSA group for the 2008 is Poissy (France) which currently manufactures the DS 3 and part of the Peugeot 208 sold in Europe, and which, starting in 2019, will produce the new DS 3 Crossback which will be presented at the next Paris Motor Show, in October 2018.

- Peugeot 208 production should stop on this site in 2019 ( for the model change ) and therefore the Peugeot 2008 would take its place a year later (for  the model change ). The site of Poissy could then operate with a production volume of at least 300 000 units per year (200 000 Peugeot 2008 + 100 000 DS 3 Crossback) in 2021. The DS 3 Crossback and future Peugeot 2008 will also be sharing the same (CMP) platform.


    
 

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Ford could stop production of several models in Europe by 2020
Ford could cease production of several models in Europe, as part of efforts to make its activities in this region profitable. Inovev has already stated in  previous AutoAnalyses that the US manufacturer could eventually leave the European continent to focus on more profitable markets such as North America and China.

The cooperation announced this summer between the Volkswagen Group and Ford Europe goes in this direction. The next step would be to eliminate the  unprofitable models currently produced in Europe, such as the Ford Mondeo, Ford Galaxy and Ford S-Max, by 2020. These three D segment models are built on the same platform, in low quantities, at the factory in Valencia, Spain, which also manufactures Ford Kuga and Ford Transit Connect.

In 2017, 53,000 Ford Mondeo were produced in Valencia, and 49,000 Ford Galaxy / S-Max , while the Ford Kuga has exceeded 155,000 units and Transit Connect the 90,000 units.

Valencia could therefore lose 30% of its volume in 2021, with the removal of the Mondeo, Galaxy and S-Max, unless the future Kuga was even more successful than the current Kuga. It could notably be available in an unprecedented 7-seater version that could take S-Max ‘s place at in the Ford Europe range.


    
 

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The BMW product plan (2018-2023)
The BMW group, which has recently announced that it will build a plant in Hungary, near Debrecen, has communicated its product plan for the period 2018-2023. By the end of 2018, the new generation of the 3 Series (D segment) and the new X7 SUV, which will crown the brand's SUV range , will be launched. This new SUV (F segment) is expected to take over the platform of the recent Rolls-Royce Cullinan SUV. It should therefore be even larger than the X5 and X6. The Z4 roadster (which shares its platform with the Toyota Supra) should be launched at the same time.

In 2019, the 8-series (4-door) version ( F Segment ) and the new generation of the 1-Series (C-segment), which is expected to adopt front-wheel drive for the first time, should be launched. The new X6 SUV (E segment) should follow, as well as the 8 Series in its cabriolet version.

The new generations of the 4 Series Coupe and Cabriolet (D-segment) are expected to appear in 2020, before the launch of the 4-door version the following year. A large SUV Coupé  called X8 could be launched in 2020.

The new generations of the 2 Series Coupé and Convertible (C-segment) are expected to appear in 2021 and 2022, respectively, while the Active Tourer minivan will be replaced in 2021 and the Gran Tourer in 2022. An electric i4 is scheduled for 2021. Finally, the new generation of the Series 5 (E segment) should be launched in 2023.


    
 

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FAW-Dongfeng-Changan Merger Encouraged by Chinese Government
The Chinese government is encouraging partnership or even a merger between FAW, Dongfeng and Changan. Negotiations have already taken place between the three manufacturers.

In 2017, FAW, Dongfeng and Changan manufactured a total of 9 million vehicles, which would put this group (if it was created) at the top spot in China ahead of SAIC (6.6 million) and especially among the very first manufacturers worldwide, alongside the Volkswagen, Renault-Nissan and Toyota groups.

FAW, Dongfeng and Changan produce mostly foreign licensed cars, as FAW manufactures Audi, Volkswagen and Toyota, Dongfeng manufactures Nissan, Infiniti, Honda, Kia, Citroen, Peugeot and Renault, Changan manufactures Ford, Mazda, DS and Suzuki, so in all  7 million vehicles out of  the total 9 million in 2017.

Indeed FAW, Dongfeng and Changan also have their own brands, which account for the other 2 million vehicles in 2017. Changan alone accounts for half of this volume, or 1 million units.

The aim of a partnership between the three Chinese manufacturers would be notably to set up common platforms, common electric motors, common logistics and joint R & D policy, in short to share the costs to obtain very significant economies of scale.


    
 

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