Skoda Czech Republic Production Overview
Skoda (a subsidiary of the Volkswagen group) has been operating in the Czech Republic since the beginning of the 20th century, when  it was still called Laurin&Klement.

Skoda now has two factories in its home country, the largest being located in Mlada Boleslav (the brand's historic factory) and the other in Kvasiny.

In 2018, Skoda broke its world production record, with a volume of 1.25 million vehicles produced, including 875,000 units assembled in its two plants located in the Czech Republic, accounting for 70% of its global production.

Of the 875,000 vehicles manufactured in the Czech Republic in 2018, 664,236 are Skoda vehicles (Fabia, Rapid, Octavia, Superb, Karoq, Kodiaq) and 101,260 are Seat vehicles (Ateca, Toledo).

Finally, a volume of 108,922 Skoda brand vehicles are sent  CKD to the Russian sites in Kaluga and Nizhny Novgorod, which assemble Volkswagen and Skoda brand models for local demand. The Mlada Boleslav site sent 77,389 CKD Skoda models to these Russian factories and the Kvasiny site sent 31,533. In total, in 2018, the MladaBoleslav plant assembled 428,693 Skoda and 8,128 Seat models, and shipped 77,389 CKD, while the Kvasiny plant assembled 235,543 Skoda and 93,132 Seat models, and shipped 31,533 CKD.


    
 

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Analysis of Mercedes A-Class production in Europe
Since the launch of the new generation Mercedes A-Class (C-segment sedan) in spring 2018, this model has been manufactured at three different sites in Europe: the German site in Rastatt, where it has been manufactured since the launch of the first A-Class in 1997, the Finnish site in Uusikaupunki, which has assembled part of the A-Class since the launch of the 2012 generation, and the Hungarian site in Kecskemét, which has assembled part of the A-Class since the launch of the new 2018 generation.

In 2018, the Rastatt site produced 186,303 Class A (including 82,618 of the older generation). The Uusikaupunki site produced 23,921 units and the Kecskemét site 64,518 units.

In total, therefore, 274,742 Class A were produced in Europe in 2018, which is its highest score since the model was introduced. This model competes with Premium C-segment sedans, such as the Audi A3 and BMW 1 Series. In 2018, the A-Class overtook its two competitors, with the Audi A3 not exceeding 225,000 units and the BMW 1 Series 210,000 units.

The Rastatt site has a production capacity of 250,000 vehicles per year, a volume equivalent to that of Kecskemét and twice that of Uusikaupunki, which belongs to the subcontractor Valmet.

The Hungarian site in Kecskemét also produces C segment minivans called Class B, which share their platform with Class A, as well as CLA coupés, which also share their platform with Class A. Class B was produced at 85,389 units at this site in 2018, and the CLA at 64,910 units.


    
 

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Inovev forecasts 400,000 new Toyota Highlanders per year
Toyota has unveiled the new generation of its E-segment SUV, the Highlander, which is positioned in the manufacturer's range above the RAV4 but below the Sequoia, (which is unknown in Europe). In terms of dimensions (4.85m long), it is located at the same level as a Land Cruiser, but with a more modern body.

The previous Highlander was built in 2013. This model is important in the manufacturer's range because it sold up to 400,000 units in 2018, compared to 325,000 in 2016 and 225,000 in 2011. It is therefore a model with high sales potential and strong growth.

Highlander's main markets are the United States (245,000 sales in 2018) and China (105,000 sales in 2018). These two markets accounted for 350,000 Highlander sales last year, or nearly 90% of its worldwide sales.

This is why Toyota has gradually abandoned the manufacture of Highlander in Japan and transferred it to its two main markets, the United States and China. In 2018, for example, the United States manufactured nearly 300,000 Highlanders (at the Princeton, New Jersey site) and China more than 100,000 units (at the Tianjin site).

Highlander benefits from the growth in SUV sales, but also from the transfer of part of the customer base from RAV4, which remains one of the best-selling SUVs in the world. The new Highlander is equipped as before by a 3.5-litre petrol V6 engine, and a hybrid version, Inovev expects 400,000 sales per year of the new Highlander.


    
 

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The PSA Ellesmere Port site could reduce its capacity by half
The Opel Astra is currently produced at two production sites: Ellesmere Port (UK) and Gliwice (Poland).

The PSA group could consider reducing production capacity at its Ellesmere Port site in the United Kingdom, pending the implementation of Brexit. The Ellesmere Port plant is one of two British plants of the French manufacturer acquired with the Opel and Vauxhall brands in 2017, along with the Luton plant dedicated to commercial vehicles.

The Ellesmere Port plant manufactures the Opel/Vauxhall Astra sold locally and some of those exported to other countries outside the region. It therefore produces both left-hand drive and right-hand drive models. PSA's plan would be to limit the production of this plant to the right-hand drive Astra, which would mean a volume of between 30,000 and 60,000 units depending on the year.

In 2018, 32,000 right-hand drive Astras were sold worldwide, compared to 50,000 in 2017 and 60,000 in 2016.

This change is expected to occur with the arrival of the new generation of the Astra in 2021. It would mean that the Ellesmere Port plant would  lose half its capacity at that time.

The left-hand-drive Astra models previously produced at the Ellesmere Port site will not be transferred to the PSA site in Gliwice (Poland), which has a very low labour cost, but to the Rüsselsheim site (Germany), which will lose production of the Opel Zafira at the end of 2019. This transfer will not require any increase in capacity at the Rüsselsheim site, since the number of Astra units transferred will correspond approximately to the number of Zafira units assembled there. The Opel Astra will therefore be produced at three sites in Europe.


    
 

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2018 European Automotive Production Evolution by Country
European automotive production (PC+LCV ) in the 29 countries + Turkey, fell by 2.7% in 2018, to 19.41 million units from 19.95 million in 2017.

Among the top eight producing countries in Europe, Germany was the most impacted by this decline in European production, losing 9% compared to 2017. This drop is explained by the fact that some German OEMs have been handicapped by the upgrading of their models to the new WLTP standards, while othersexports declined, particularly to the United States and China.

Spain remains in second place, well ahead of France, while these two countries remain buoyant, up 2% and 4% respectively. Great Britain ‘s production dropped  (-9%), due to the uncertainties related to the implementation of Brexit. Turkey follows close behind, despite losing 8% compared to 2017, mainly due to a depressed domestic market.

In sixth place, the Czech Republic is stable (+0.2%), mainly due to its saturated production capacities. That is why Skoda will build a factory to increase its capacity. The Czech Republic is ahead of Italy and Slovakia, which are at the same level of production, but while Italy has lost 5%, Slovakia has increased by 7.5%.

The other producing countries achieve lower volumes, they are in descending order, Poland, Romania, Hungary, Belgium, Portugal, Sweden, Slovenia, Austria, the Netherlands and Finland.


    
 

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