Ford could stop vehicle assembly in Saarlouis in 2025
Eight years after the closure of the Opel plant in Bochum (the last assembly plant to have closed in Germany), the Ford group has announced that it may stop vehicle assembly in Saarlouis in 2025. Opened in 1966 to manufacture the American manufacturer's C segment sedans, first the Escort then the Focus and its C-Max and Grand C-Max minivan derivatives, the Saarlouis plant which had a capacity of 400,000 vehicles per year remained at this level until 2011, apart from a fall in 2009 and 2010 following the financial and economic crisis triggered in the fall of 2008. But this plant has experienced an uninterrupted fall since 2015, from 375,000 units in 2015 to 260,000 in 2019 and 115,000 in 2021. The reason for this collapse is the collapse of the Focus, to which was added the disappearance of the C-Max and Grand C-Max minivans.

With the future going through the electric vehicle, Ford has decided to produce this type of car in two other factories, that of Cologne (Germany) and that of Valencia (Spain). Ford's first electric vehicle that will take over Volkswagen's MEB platform will be launched in 2023 and manufactured in Cologne. The manufacturer intends to launch seven new models of this type by 2025 and eventually sell 600,000 units, the production volume of which will be divided equally between Cologne and Valencia.

Ford Europe's current range of passenger cars with thermal engines will therefore gradually disappear by 2028. First, the Ecosport, Mondeo and Galaxy/S-Max in 2022, then the Fiesta and Focus in 2024-2025 and finally the Puma and Kuga 2027-2028 SUVs. In 2021, Ford sold 525,000 passenger cars in Europe compared to 655,000 in 2020 and 965,000 in 2019.


 
    
 

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Vehicle sales are picking up (modestly) in Ukraine and Russia
The automotive market in Russia and Ukraine was down slightly in January 2022 compared to January 2021 (-4% in Russia, -7% in Ukraine). The invasion of Ukraine by Russia on February 24, 2022 immediately resulted in a much greater fall in the automotive market in Ukraine, noticeable from February 2022 (-16%) while the drop in new car sales in Russia was of the same order as in January (-5%).

The fall of the two markets was very brutal from March 2022 (-68% in Russia and -94% in Ukraine compared to March 2021), reflecting what generally happens in times of war. In the case of Russia, it is rather the cessation of production of most car factories in the country as well as imports that created this significant drop in the market.

In April 2022, the fall in the market in Ukraine stabilized at -88% compared to April 2021, while in Russia it worsened (-80%).

In May 2022, there is a slight improvement in both markets, since the market decline is only 70% in Ukraine compared to May 2021, and in Russia the market decline is only 74% compared to May 2021.

Admittedly, on the Russian and Ukrainian markets, the fall in the markets remains very significant, but the improvement in the figures in May 2022 could suggest that the situation will improve in the coming months. However, we must remain cautious because Russia is still suffering from the closure of local factories and the cessation of European imports. But Russia could relaunch the activity of these factories on its own initiative and switch to imports from China.


 
    
 

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Egypt wants to produce CKD 25,000 electric cars per year
Egypt is a CKD assembly country (low local integration rate assembly) and not a production country. The Egyptian government, faced with a drop in local automobile production in CKD since 2010, has decided to relaunch this production on new bases, namely the assembly in CKD of electric cars whose sales are increasing sharply all over the world. CKD automobile production in Egypt fell from nearly 76,000 passenger cars in 2010 to 53,000 in 2011, 37,000 in 2012 and 14,000 in 2013, before rising and stabilizing at 20,000 units per year. This drop in Egyptian car production is directly linked to the "Arab Spring" of 2011 and its aftermath.

Since 2019, the new Egyptian regime had been seeking to establish an agreement with a foreign manufacturer to be able to revive local car production. After several years of negotiations, the government signed an agreement with the Chinese Dongfeng to locally assemble the Nasr E70 which is actually a Dongfeng Fengshen E70, a 100% electric medium sedan launched in China in 2018 equipped with a 150 hp engine and a 61 kWh battery, which has sold more than 80,000 units so far, including 15,000 in 2020, 30,000 in 2021 and 20,000 in the first half of 2022.

The Egyptian government plans to produce 25,000 Nasr E70s per year for a full year, then 50,000 eventually, with the Egyptian plant to start production in CKD in July 2022. El Nasr Automotive Company is a subsidiary of the Metallurgical Industries Company dependent directly from the Egyptian Ministry of Public Enterprises. The program aims in particular to replace 11,000 old taxis with 11,000 Nasr E70s converted into taxis.


 
    
 

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Inovev plans 5,000 units per year of the new Lotus Eletre SUV
After stopping production in China in 2017, the British sports car brand Lotus (a subsidiary of the Geely group since 2017) stopped manufacturing its Elise, Exige and Evora models on British territory in March 2022. The manufacturer will now focus on three new models: the Emira, which takes up the philosophy of the three missing models, the Evija, which is a top-of-the-range 100% electric supercar and the Eletre, which is the brand's first SUV and which is also equipped with a 100% electric motor.

The Eletre SUV has just made its debut in China where it is produced at Geely. Remember that Lotus had already manufactured cars in China between 2012 and 2017 (up to 70,000 units per year in 2013) but competition had put an end to this activity, at a time when Lotus was not yet part of the Geely group. but was under the control of the Proton Group. The Lotuses then derived from Proton models were manufactured by the Chinese manufacturer Jinhua Youngman Vehicle Corporation.

The Geely group now wants to revive Lotus on the Chinese market, thanks to a range of models better suited to demand, in particular by marketing 100% electric vehicles. The Eletre SUV is equipped with two permanent magnet electric motors delivering 905 hp and its battery has a capacity of 100 kWh. Lotus has announced that the Eletre will soon be followed by an all-electric four-door coupe, an all-electric compact coupe and another all-electric model, all made in China.

Inovev expects 5,000 sales per year of the new Lotus Eletre SUV.


 
    
 

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Mercedes interested in producing CKD electric cars in Egypt

Mercedes expressed interest in producing electric cars in CKD in Egypt, saying that this country constitutes a promising market in the region, due to a large population, the emergence of a middle class, a rate motorization which is still very low (100 vehicles per 1,000 inhabitants) and the age of the local car fleet.


Mercedes is today one of the major producers of electric vehicles in Europe, offering a wide range of models equipped with this type of engine, such as the EQA (segment C), EQB (segment C), EQC (segment D), EQE (E-segment), EQV (E-segment), EQS (F-segment), as well as the e-Citan, e-Vito and e-Sprinter, not to mention the new Smarts which will be launched in a few weeks and replace the old EQs Fortwo and EQ Forfour.


Mercedes wants to establish itself in Egypt but it is not yet known which model the German manufacturer wants to produce there. The EQ range seems ill-suited to production intended for Egypt and emerging countries close to Egypt, due to very high prices for local consumers.


There are therefore several possible scenarios: either produce a brand new 100% electric entry-level model, but nothing like this is planned today at Mercedes, or produce the future Smart in Egypt in addition to China, but it would require Geely's agreement, or produce existing models and try to export them in the region (to Israel in particular). None of these scenarios is preferred today.



 
    
 

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