Autoblog

Fiat contemplating sub-brand to compete with Dacia, Datsun

Jonathon Ramsey — Tue, 05 Feb 2013 08:46:00 EST

Filed under: Budget, Fiat

You can add Fiat to the admittedly short list of automakers considering a low-cost brand to rival Dacia. The inexpensive Eastern European brand from Renault-Nissan has performed on the balance sheet like a premium model line, and the money the alliance is taking off the table is encouraging other players to deal themselves in. Pretty soon Nissan's Datsun sub-brand will join the Dacia party, going on sale in Russia, Indonesia and India and will claim even more rubles, rupiahs and rupees for the parent company. Volkswagen recently said it will make a decision this year on a budget line for the Chinese market. With the euthanasia of Lancia and plans to move the Fiat brand upmarket, company CEO Sergio Marchionne wonders aloud to Automotive News Europe whether there could be room for a new budget brand underneath Fiat.

We're told that the initiative has been in the idea box for five years and even moved to the stage of name considerations, like Innocenti, but worries about profit kept it from realization. If such a range were to be developed, Marchionne says it couldn't be built in Italy and stay within budget, and the company is "analyzing its manufacturing capacity outside of Europe to see if a low-cost brand is viable."

Fiat contemplating sub-brand to compete with Dacia, Datsun originally appeared on Autoblog on Tue, 05 Feb 2013 08:46:00 EST. Please see our terms for use of feeds.

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Renault planning a Tata Nano rival. Again.

Jonathon Ramsey — Wed, 28 Nov 2012 09:31:00 EST

Filed under: Car Buying, Budget, Nissan, Renault, India, South America

Four years ago, Renault confirmed that it would partner with India's Bajaj Auto to develop a rival to the Tata Nano. At the time, as everyone waited for the Tata Nano to arrive, you could have used a Richter scale to measure the tremors the executive suites of any automaker with an interest in the low end of emerging markets. Then the Nano, still the cheapest car in the world, didn't sell so well - at the end of last year its sales were just six percent of its most conservative projections - and everyone seemed content to let Tata spend the money to figure out if there really was a market for the cheapest car in the world.

Renault believes there is, kind of. Automotive News Europe reports that it will partner with Nissan to build two low-priced cars for emerging markets, one for €3,000 ($3,888 U.S.) and another for €5,000 ($6,400 U.S.). The price of the least expensive offering is nearly $1,400 more than a Nano, which costs $2,500, and that can't be considered a small sum in comparison. But one of the hindsight knocks on the Nano has been that even in emerging markets buyers don't want a car whose biggest lure is that it is cheap; they'd rather give their aspirations a bit more of a workout.

Renault's offerings are scheduled to hit the non-Western market in late 2014, which is coincidentally the same year that will see the return of the budget-minded and emerging-market-specific Datsun nameplate. They'll be built in Renault facilities in Chennai, India, with no mention made of Bajaj this time around.

Renault planning a Tata Nano rival. Again. originally appeared on Autoblog on Wed, 28 Nov 2012 09:31:00 EST. Please see our terms for use of feeds.

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Report: Mazda latest automaker to mull plant in Mexico

Jeremy Korzeniewski — Wed, 01 Dec 2010 09:01:00 EST

Filed under: Plants/Manufacturing, Mazda, South America

According to The Wall Street Journal, Mazda is seriously considering a new plant in an emerging market, with Mexico being mentioned as the most likely target in order to have a base to enter additional markets in South and Central America. Of course, a plant in Mexico might also be used to supply vehicles to the United States by virtue of the North American Free Trade Agreement.

If Mazda does indeed build a new plant in Mexico, it's likely to partner with SumitomoCorp, which holds three percent of the Japanese automaker's shares. Ford, from whom SumitomoCorp acquired those shares, is also thought to be a possible, though seemingly less likely, partner on the project.

[Source: The Wall Street Journal]

Report: Mazda latest automaker to mull plant in Mexico originally appeared on Autoblog on Wed, 01 Dec 2010 09:01:00 EST. Please see our terms for use of feeds.

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REPORT: Suzuki CEO indicates joint projects with VW to start in January

Jeremy Korzeniewski — Thu, 17 Dec 2009 09:00:00 EST

Filed under: Budget, China, Suzuki, Volkswagen, India

Volkswagen and Suzuki won't waste anytime at all in getting started on their assorted joint projects. Well, unless you count the holidays, which we'll let slide. At the launch of the new Suzuki Alto, CEO Osama Suzuki told reporters that the newly tied-at-the-hip automakers will begin "Actual, detailed execution - with our people going there and their people coming here... after January."

That first project will be a new small car that will be sold in developing countries, which may or may not be outsourced from Suzuki's Indian Maruti operations and is rumored to cost between $4,300 and $5,400.

Volkswagen has much less experience in building small cars than Suzuki, which is a leader in Japan's tiny Kei car class, and in making money with such low prices.

[Source: Automotive News - Sub. Req'd]

REPORT: Suzuki CEO indicates joint projects with VW to start in January originally appeared on Autoblog on Thu, 17 Dec 2009 09:00:00 EST. Please see our terms for use of feeds.

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REPORT: GM-SAIC pondering Tata Nano fighter?

Jeremy Korzeniewski — Tue, 15 Dec 2009 17:32:00 EST

Filed under: Budget, China, GM, India, Rumormill

Though the minuscule Tata Nano hasn't even been on the market for a complete year, the impact it's had on the automotive world may be exactly inverse to its size and price. In other words, it's had a huge effect, proving to the world that it's possible to build a business plan around selling super cheap cars in rapidly expanding markets.

You can reportedly add the Shanghai Automotive Industry Corporation (SAIC) and General Motors joint venture to the list of automakers that have taken notice of the Nano. According to reports rolling in from China and India, the 50:50 JV is considering a vehicle that would be positioned below the Chevy Spark/Daewoo Matiz that would sell for as little as $3,500.

So far, GM/SAIC isn't commenting on the reports, but has indicated in the past that it plans to build small vans, SUVs and cars for emerging markets like China and India.

[Source: WheelsUnplugged | Image: Mark Ralston/AFP/Getty Images]

REPORT: GM-SAIC pondering Tata Nano fighter? originally appeared on Autoblog on Tue, 15 Dec 2009 17:32:00 EST. Please see our terms for use of feeds.

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REPORT: AutoShanghai show bucks trend to show record attendance figures

Jonathon Ramsey — Fri, 01 May 2009 07:58:00 EST

Filed under: China, Earnings/Financials, Shanghai Motor Show

In the introductory videos for the Bertone Mantide, designer Jason Castriota says "There's a reason we introduced the car here," in Shanghai -- and the performance of the Shanghai Motor Show appears to justify that kind of thinking for nearly every automaker there. The show was physically larger than the last one (two years ago), with 600,000 people arrived to view the gleaming wares of 918 cars (602 of them from China) and 582 component makers from all over the world.

Nor did the show skimp on the financial numbers as well: Lifan took $170 million in international orders for its MINI-derived Lifan 320 (pictured), Bentley 15 cars -- including all of its display vehicles -- and expected to close several more deals after the show closed its doors, and Rolls-Royce moved 18 models. China's economy may not be burn like a supernova anymore, but there is still plenty of heat left in it.

[Source: Gasgoo]

REPORT: AutoShanghai show bucks trend to show record attendance figures originally appeared on Autoblog on Fri, 01 May 2009 07:58:00 EST. Please see our terms for use of feeds.

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Russia expected to be third largest global market by 2012

Jonathon Ramsey — Wed, 21 Jan 2009 11:27:00 EST

Filed under: Etc., Europe, Earnings/Financials, Russia

Russia has long been included under the "emerging markets" umbrella that carmakers have been saying would lead to future industry growth. The economic fallout put an end to those predictions, with Russia suffering just as badly - and if you include the oil sector, some would say even worse - as any other economy. But even though sales are down, Frost & Sullivan predicts that Russia could rebound to be the world's 3rd largest auto market by 2012, behind the U.S. and China.

The prediction is based on steps Russia is taking to strengthen its automotive sector: it is increasing import tariffs and limiting the importation of used cars. The new importation law, similar to one recently passed by Bolivia, reduces the maximum allowable age of an imported car from 7 years to 5. Russia is also reviewing bank lending practices, since the money it flushed into the economy hasn't really had an effect on loan availability yet (not unlike the U.S.).

Lending and the size of the import tariff that Russia imposes seem to be the most important factors in making this prediction come true. But one thing not mentioned in Frost & Sullivan's forecast was oil. When the world economy gets off its knees, the price of oil is going to head for the moon again, and "expensive" oil means more Russians with money, and that could mean a return to more sales, provided the country's oil barons share the wealth. You can read the full press release after the jump.

[Source: Frost & Sullivan]

Continue reading Russia expected to be third largest global market by 2012

Russia expected to be third largest global market by 2012 originally appeared on Autoblog on Wed, 21 Jan 2009 11:27:00 EST. Please see our terms for use of feeds.

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Rendered Speculation: Honda to create mini-hatch for emerging markets

Jonathon Ramsey — Fri, 09 Jan 2009 19:58:00 EST

Filed under: Budget, Tokyo Motor Show, Hatchback, Honda, Rendered Speculation, Rumormill

Lost in the jeers following Honda's move to cancel the NSX - a car it could probably sell based solely on its ridiculously wonderful exhaust note - is news that the Big H is planning an A-segment car for markets outside of Japan. Now that the microcar segment is what's cooking, and the smart fortwo isn't doing so bad on its American voyage, cars like the Toyota iQ, Volkswagen up!, and Hyundai i10 are getting lots of attention.

To keep the cost down, Honda is expected to stick to traditional materials and probably focus on packaging. The powerplant is rumored to be a 1.4- or 1.5-liter turbodiesel with anywhere from 60 hp to 100 hp. But before you get excited, this car isn't automatically destined for America. Of course, none of this would-be Honda's competitors are headed this way yet either, and until the microcar trend is firmly established in the US - either by smart or another vehicle - we wouldn't advise holding your breath.

[Source: Paul Tan]

Rendered Speculation: Honda to create mini-hatch for emerging markets originally appeared on Autoblog on Fri, 09 Jan 2009 19:58:00 EST. Please see our terms for use of feeds.

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PSA/Citroen to launch low-cost car for emerging markets

Michael Harley — Mon, 13 Oct 2008 19:04:00 EST

Filed under: Budget, Europe, Renault, Citroën

Following the approach taken by rival Renault, PSA/Peugeot-Citroen is working on an entry-level car set to debut in emerging markets in 2011. The Renault Logan has done well in Russia and Romania, which has prodded this interest and action from PSA. The new five-passenger vehicle will be assembled in Turkey or Poland and sold in eastern and central Europe, Russia, Turkey, and North Africa wearing both Citroen and Peugeot badging. If successful, sales would also expand to include China and South America. Even if the vehicle sells well, PSA/Peugeot-Citroen CEO Christian Streiff maintains there are no plans to sell the new car in western Europe - regardless of Renault's strategy.

[Source: Automotive News, subs. req'd]

PSA/Citroen to launch low-cost car for emerging markets originally appeared on Autoblog on Mon, 13 Oct 2008 19:04:00 EST. Please see our terms for use of feeds.

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Russia now Europe's biggest automotive market

Jeremy Korzeniewski — Mon, 14 Jul 2008 18:04:00 EST

Filed under: Trends, Europe, Earnings/Financials

Russia has just passed Germany as Europe's largest market for new car sales -- for the first half of the year, at least. In fact, Russian consumers managed to snatch up 41% more cars for the first half of this year as compared to the previous year. Not only that, but the vehicles being sold in Russia are more profitable than before as well, with the record $33.8 billion in sales so far an increase of 64%. Top marques are General Motors and Hyundai, which replace last year's first and second place finishers, Ford and Toyota. Russian brands? Not so much.

Don't expect the sales figures to cool down any time soon, as the economy in Russia is still booming and it's the middle-class that is seeing the biggest benefit. Older cars will continue to be taken off the road as consumers purchase new replacements which will allow automakers to find an estimated 20-percent of the entire industry's growth in the Russian market over the next several years.

[Source: Inside Line]

Russia now Europe's biggest automotive market originally appeared on Autoblog on Mon, 14 Jul 2008 18:04:00 EST. Please see our terms for use of feeds.

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Automakers turn eyes East and its explosive opportunities

Joel Arellano — Mon, 27 Mar 2006 18:30:00 EST

Filed under: Trends, China, Plants/Manufacturing

Businessweek (BW) provides a detailed description of the conditions in the emerging automotive markets of China, India and Russia.

According to the business journal, Chinese demand for automobiles grew between 60% to 70% per year between 2001 through 2004, only to be slowed down when the government increased interest rates. BW predicts the average growth to be at least 10%-15% per year with Global Insight Inc. suggesting the Middle Kingdom will be the second largest marketplace after the U.S. by the year 2013.

[More after the jump]

[Source: Business Week]

Continue reading Automakers turn eyes East and its explosive opportunities

Automakers turn eyes East and its explosive opportunities originally appeared on Autoblog on Mon, 27 Mar 2006 18:30:00 EST. Please see our terms for use of feeds.

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Toyota struggling in emerging markets

Stuart Waterman — Tue, 14 Mar 2006 20:00:00 EST

Filed under: Trends

Toyota Motor may be eating other automakers' lunch in North America and Europe, but it's having problems developing a successful strategy for emerging markets in Brazil, Russia, India and China.

Established automakers around the world are rushing to plant a flag in these markets of the future, but Toyota finds itself handicapped by the strategy that led it to success elsewhere - a focus on quality and safety. The problem is that Toyota has made market-leading quality a cornerstone of its corporate identity, a strategy that plays well in established markets with sophisticated buyers, but one that just doesn't resonate with cost-conscious customers in emerging markets.

As a result, Toyota's most successful models are priced out of reach for the majority of emerging market consumers, and the company admits it badly needs a new, cheap, no frills compact model to pump up sales volume in countries like India, where price is king.

A partnership with small-car specialist Daihatsu is an obvious solution, but Daihatsu wants to grow its own brand in overseas markets, independently of Toyota.

However Toyota solves this problem (and I wouldn't bet against them), the result should be the fuel for countless B-school case studies in the next five years.

Toyota struggling in emerging markets originally appeared on Autoblog on Tue, 14 Mar 2006 20:00:00 EST. Please see our terms for use of feeds.

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