PSA Kenitra plant will start operations
The new plant that the PSA Group has built in Kenitra (Morocco), between Rabat and Tangier, is scheduled to start operating in July 2019. This plant, with an initial production capacity of 100,000 vehicles per year, will supply the Moroccan market, but also the entire African and Middle East markets.

In a second phase, the production capacity of this plant will be doubled (200,000 vehicles per year) and Europe will then be part of its export zone. This second phase should take place at the very beginning of the 2020s.

The models, planned for the first phase, will be the new generations of the Peugeot 301 and Citroën C-Elysée, which should be unveiled in a few weeks. The current generations of these entry-level models have been manufactured at the Vigo site in Spain since 2012. They will be stopped next summer. The Kenitra plant is expected to produce between 15,000 and 20,000 units in 2019 and between 90,000 and 100,000 units in 2020 and subsequent years.

The models which will be added for the second phase, will be based on the brand new CMP platform shared by the PSA group and the Chinese Dongfeng group, such as the new Peugeot 208 unveiled at the last Geneva Motor Show.

At that time, the Peugeot 208 will no longer be produced in France, but almost exclusively in Slovakia and therefore also in Morocco. The Kenitra plant could produce between 50,000 and 100,000 units per year, starting in 2021, some of which will be exported to Europe. It should be noted that the engines equipping these models will be produced on site.


    
 

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Nissan will not produce more than 5 million vehicles in 2019
The Nissan group, which includes the Nissan, Infiniti and Datsun brands ,and is part of the Renault-Nissan group, has experienced a significant drop in sales in most countries over the past few months. Among its largest markets, Nissan fell by 12.1% in the United States (30% of sales) in the first quarter of 2019 compared to the first quarter of 2018, by 9.6% in Japan (15% of sales), -25.1% in Europe (11% of sales) and -10.9% in Mexico (6% of sales).

Nissan saves the day in China (22% of its sales) where its sales grew by 6.1% and in Russia (2% of its sales) where they grew by 4.9%. In total, however, the Nissan group's sales fell by 11.5% in the first quarter of 2019.

At this rate, it should not sell more than 5 million vehicles over the year as a whole, compared to 5.65 million in 2018 and 5.82 million in 2017. The drop in sales is therefore severe and the Renault-Nissan group could fall back to third place worldwide. Nissan's sales decline actually dates back to the summer of 2018. Inovev believes that the non-replacement of the Juke (whose origins date back to 2010), the Note, the Pulsar, as well as lesser success than expected, of the Micra and  of Infiniti, have handicapped the manufacturer in Europe, at the very moment when the automotive market was turning around. It is likely that in 2019 Renault's sales volumes will be brought closer to those of Nissan, which should give a new look to the Renault-Nissan group.


    
 

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Honda opens its seventh assembly plant in China
Like VW or Toyota, Honda is one of the manufacturers that has managed to remain stable on the Chinese market despite the sharp decline over the past  ten months. The Japanese manufacturer increased its sales by 10.7% in the first quarter of 2019, while at the same time, the Chinese passenger car market declined by 13.8%. Already, in 2018, Honda  sales increased  by 2.5% (to 1.475 million vehicles) in a Chinese passenger car market that was down by 4.1%.

Honda therefore needs new capacity to meet demand, unlike other automakers who have decided to reduce their capacity in the country due to lackluster sales. That's why Honda has built a new factory in China, located in Wuhan, the industrial centre of the Chinese manufacturer Dongfeng.

Honda currently has two partners in China (GAC and Dongfeng)., Honda previously had three plants with GAC and two plants with Dongfeng. A sixth plant located in Guangzhou is 100% owned by Honda. It manufactures and exports the  Honda Jazz, particularly to Europe (about 50,000 units per year).

The seventh Honda plant in China has just started operating (this is the third plant in partnership with Dongfeng). It will initially be able to produce 120,000 vehicles per year, then 240,000 per year. No information concerning the model names has been provided by the manufacturer. The Wuhan region is one of the most industrialized regions in China, with Honda, PSA, Nissan and Renault plants already operating in the region, for a volume of more than one million vehicles in 2018.


    
 

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British automotive production falls sharply in 2019
The decline in passenger car production in the United Kingdom is accelerating in 2019. It fell by 14.4% in March (to 126,195 units), down for the tenth consecutive month, and by 20.4% in the first quarter (to 350,524 units). Production of cars for the British market fell by 18.1% and production of cars for export by 13.4%.

The SMMT (British Motorcar Manufacturers' Association) estimates that a hard Brexit (without an agreement with the European Union) could lead to a decrease in car production in the United Kingdom by about 30%, to 1.1 million units per year by 2021 (which would be a return to the volumes produced in the mid-1980s). On the other hand, if the negotiations between London and Brussels lead to a favourable agreement and a transition period maintaining the status quo, British car production could reach 1.36 million units in 2019 and 1.42 million units in 2021, compared to 1.52 million in 2018 and 1.67 million in 2017. Before the vote in favour of Brexit in 2016, the British car industry was on track to produce two million cars per year by 2020.

On the other hand, the production of commercial vehicles in the country continues to increase. It stood at 27,513 units in the first quarter (+41.2%), including 9,098 units in March alone (+24.5%). Since most of the commercial vehicles produced in the United Kingdom are exported, it is understandable that sales of these vehicles continue to increase, especially as the European LCV market remains on a positive trend.


    
 

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Opel stops production of Corsa at the Eisenach site
PSA group has decided to stop production of the Opel Corsa, at the same time as the discontinuation of Opel Adam production at the Eisenach site in May 2019. The Corsa had been produced in Eisenach since 1993, when the GM group had just bought the plant. Historically, the Eisenach plant had manufactured Wartburg models between 1949 and 1990. Before the Second World War, this factory had been owned by BMW, which had to sell it to the Soviets in 1945.

The Opel Corsa is currently manufactured mainly in Spain, at the Zaragoza site, alongside the Opel Crossland, Opel Mokka and Citroën C3 Aircross. In 2018, for example, 180,000 Corsa units were manufactured in Zaragoza compared to 70,000 units in Eisenach. In 2020, the new generation Corsa should be manufactured entirely in Zaragoza.

It should be recalled that as of now the Eisenach plant will manufacture the Opel Grandland SUV, which was previously produced at the Sochaux site in France, which will prevent the site from being closed. The PSA group hopes to produce 100,000 units each year. This forecast is on the way to being achieved or even exceeded as Opel Grandland sales reached 29,000 units in the first three months of 2019, up 35% over 2018.

In 2020, Corsa production concentrated on the Zaragoza site will be made possible by the transfer of the Opel Mokka from Zaragoza to the French site in Poissy. The Zaragoza site, in operation since 1982, has a production capacity of 480,000 units per year.


    
 

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