Jeep Pickup, Jeep Compass and Jeep Renegade: All The Things We'll Probably Hear Tomorrow From Sergio
On Wednesday, Fiat Chrysler Automobiles CEO Sergio Marchionne will update investors on his long-term plans and fourth-quarter profits — namely, how many Jeeps it sold — during his scheduled earnings conference call.
It’s widely expected that Sergio will address the near-certainty that Jeep will build a pickup based on the Wrangler, as well as the future for the Jeep Compass that’ll likely survive from the Patriot/Compass twin billing, and Jeep’s potential to keep afloat fledgling FCA brands such as Maserati and Alfa Romeo.
Analysts say FCA’s ambitious target of $5 billion profit by 2018 would be almost unattainable at this point.
“‘Ambitious’ is not really an adequate word to describe it, ‘fantasyland’ might be more appropriate,” Bernstein’s Max Warburton told Automotive News.
A year ago, TTAC broke news of back channel overtures being made towards Iran on behalf of General Motors. A number of Chevrolet Camaro Convertibles made their way to Iran via a complicated logistics network and the importations were of dubious legality. But the event highlighted a sentiment in the auto industry that few are willing to openly discuss: the BRIC countries, once the darlings of the emerging markets, have already been exhausted. The search for new markets is on, and that means places like Africa and Iran. And Cuba could be next.
According to this Brazilian site, this is the list of the 10 most sold cars in the history of Brazil. Some of them are just for us, while others have been sold in other countries, even in the First World, even if under a different brand, or a different company altogether. Do you think you have a clue? Don’t worry if you don’t, even I was surprised by some.
The Russian government said that it will spend up to 271 billion rubles ($8US billion) over the next three years to subsidize the country’s struggling auto industry. A government web site said that the subsidies will underwrite research & development, jobs and costs related to more stringent emissions standards. Car sales in Russia in 2013 fell by 6% to 2.78 million units and 2014 looks like another weak year as the Russian economy stutters, according to the Association of European Businesses.
Nissan last sold a car branded as a Datsun in 1981, but it’s bring the brand back for emerging markets like Indonesia, India, Russia and South Africa. The low cost brand will be launching in April in Russia with a starting price below RUB400,000 ($12,100) and go on sale there in late summer or early fall. Nissan is hoping that the new/old brand will attract consumers that had been considering used cars.
“The main objective (in Russia) is to be a serious alternative to the used car market – this is where we want to compete,” Jerome Saigot, director of Datsun’s operations in Russia, told Reuters.
Recently, as to the attention given by TTAC to the spy shots of what might be or not a future Ford Ka sedan in southern Michigan, commenter Kenmore asked, “Has any other sad little runt of an econocar ever received so much attention on TTAC?”. Since you asked, I’ll offer up a brief pictorial explanation.
Emerging markets have been a big theme at TTAC for the past few years, with our coverage going beyond the cursory articles on automotive developments in the BRIC countries. Our articles on places like North Africa and Indonesia aren’t always the most popular, but we keep an eye on them for a very important reason. These countries are the final frontier for growth in the automotive sector.
According to Wards Auto, global auto sales through May hit 32.62 million units, up 6.0% from the year-ago number. But as the chart above shows, the rate of growth in global deliveries has slowed dramatically over the past year-and-a-half, falling below five percent the last several months. So what’s the problem? At this point, what isn’t the problem? The US and Japan have been hit hard by the Japanese tsunami, while the once-blistering-hot markets of China and India are shrinking and growing more slowly respectively.
Collectively, markets in the Asia/Pacific region accounted for 2.35 million vehicle deliveries, equating to 37% of world sales, the region’s lowest global market share since May 2009.
In the U.S. and Canada, sales of Japanese vehicles slipped precipitously below the rest of the market in May due to supply shortages, pulling North America’s year-over-year performance 2.3% below like-2010 on a volume basis, despite an 11.7% increase in Mexico.
So where’s the good news? After a forgettable few years, Europe is back… and South America is staying strong.
Overall deliveries in Europe rose 14.2% in May, to 1.85 million units. The resulting 29.2% share of world sales was the region’s highest take since June of last year…
Double-digit growth in many of South America’s smaller markets lifted regional sales in May 27.6%, compared with year-ago, for a 7.9% share of global deliveries – a 9-month high.
Hyundai and Kia are on a tear in the European market, having recently passed Toyota to become the best-selling Asian automaker in the EU (at 605,386 units, some 50k away from Daimler’s 2010 sales). And with its first Europe-centric product coming online, aimed at the heart of Europe’s 896k unit midsize segment, it hopes to keep the growth coming. In service of that goal, Hyundai is moving European production of its iX35 (Tucson) CUV from Kia’s plant in Zilina, Slovakia, to its own factory in Nosovice, Czech Republic, and adding an extra shift according to the WSJ. And unlike many of its European competitors, Hyundai is keeping its Euro-zone production capacity on the slim side, importing the forthcoming i40 from South Korea and the i10 from India, helping to keep the Korean automaker out of the overcapacity trap that plagues its competitors. Though Hyundai has good prospects for growth in Europe, production capacity expansions are being targeted at the developing markets that show more promise for growth.
Scotia Bank in Toronto has an insightful and resourceful car analyst, Carlos Gomes. Whatever he writes is worth reading. He expects car sales to rise and the “United States and the euro zone to climb out of their deep hole.” He also expects that the developed nations are ripe to be plucked and eaten by an upstart, roughhewn crowd:
“In 2011, new car sales in China and the other BRIC nations (Brazil, Russia, India and China) will surpass the combined volumes of Western Europe and Japan, and account for roughly 30 per cent of global car sales.”
Here is his case:
A report about the automotive industry in the BRIC countries, released by the Boston Consulting Group, throws cold water on the low cost production story:
“In manufacturing, companies are generally paying a premium of 5 to 15 percent to manufacture in the BRIC countries, mainly because of diseconomies of scale and higher quality-assurance costs than they incur in the more developed markets; only in Brazil do they actually save money on manufacturing.”
Apart from this astounding revelation, the rest of the report is full of platitudes and comes 20 years too late:
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- TheMrFreeze This new 500e is selling really well in Europe, but here in the US the demographic that would be interested in a car like this is definitely in the minority. At $33K for this upscale model is a tough sell but hopefully incentives will come into play to make this a much more appealing option for those looking for a funky daily driver or a practical second car for the family
- ToolGuy "EVs tend to be less efficient at higher speeds on highways than commuting around town. It’s also important to note that where you live and how you drive can have an outsized impact on range, as people with lead feet or those living in colder climates may find a significant drop in range."• Let's not forget elevation changes!Signed, Captain Obvious 🙂
- Probert The EPA estimate is just that. Of course weather and driving habits affect the range. This is not news. The EPA tests on a combined cycle, so just running at 70 is not what the EPA numbers reflect. That said, my EV - a humble KIA Niro, freequently exceeds estimates, even on long highway runs. If most of your driving is local and stop and go, you can expect a range around 20% above estimates. The important thing is that the range estimation that the car gives you, is accurate, as it reflects your actual driver habits. Also, even with winter drops, or high speed runs, an EV is about 400% more efficient than an ICE.
- ToolGuy Telluride killer