Overall output for first three quarters rises 10.5% as exports grow 12.2% to hit 1,000,642, even with a decline at home.

UK CAR MANUFACTURING (data for September 2016)

• UK car manufacturing volumes increase by 0.9% in September with 159,726 vehicles produced.
• Overall output for first three quarters rises 10.5% as exports grow 12.2% to hit 1,000,642.
• Overseas demand drives production, up 5.0% to 123,119 units, while home market falls -10.6%.

UK car manufacturing reported steady growth in September, with production rising by 0.9%, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT). Exports rose 5.0% to reach 123,119 units, offsetting a -10.6% decline in production for the home market.

Overall year-to-date output increased 10.5% to 1,292,453 units, as production for global markets grew for a 14^th consecutive month. 

Export demand rose by 10.5% to take volumes past one million in the first three quarters for the first time on record.

Mike Hawes, SMMT Chief Executive, said, “British-built cars are in demand across the world as demonstrated by the double digit growth in exports this year, resulting in more than a million cars produced for international markets. 

The vast majority of cars manufactured here in the UK are destined for abroad and future growth will depend on securing our international competitiveness and the barrier-free access to major global markets that has enabled UK Automotive to thrive.”

Jaguar counts on XE, first crossover to reach ambitious sales goal

Jaguar is counting on the new XE compact sedan and a forthcoming crossover to help boost Jaguar Land Rover’s global vehicle sales to 750,000 by the end of the decade, up from an all-time high of 425,000 last year.

Jaguar showed an image of the XE during the Geneva auto show last month.

The production version of the Audi A4 rival will debut in October at the Paris auto show and will go on sale globally next year. The XE is Jaguar’s first mid-sized premium sedan since it discontinued the Ford Mondeo-based X-Type in 2009 (THE MONDEO WAS BASED OFF A JAGUAR FLOORPAN, THE DEVELOPMENT WAS JAGUAR AND FORD "BORROWED" IT FOR THE MONDEO, THE XT WAS SUPPOSED TO BE LAUNCHED BEFORE THE MONDEO, WITH THE TAG LINE, MONDEO, WITH JAGUAR ENGINEERING). The XE will be the first model underpinned by JLR's aluminum spaceframe. The architecture also will be used for the crossover, which will take styling hints from the C-X17 concept Jaguar unveiled last autumn. 

Andy Goss, JLR group sales operations director, declined to share the volume targets for the XE and crossover. He did, however, tell Automotive News Europe that JLR’s recently announced plant expansions hint at a total installed capacity of about 600,000 units for the automaker by later this decade. That is in line with a previously announced sales goal from Jaguar Land Rover Canada President Lindsay Duffield, who said last June that the automaker is targeting global sales of 750,000 units by the end of the decade, with an eventual target of 1 million units.

Next year, JLR plans to start production at its new China plant, which has a capacity of 130,000 units. JLR will invest 10.9 billion yuan (1.3 billion euros) to add the factory. It is part of a joint venture with China’s Chery Automobile that includes an r&d center and an engine plant in the eastern city of Changshu. Within two years JLR will also begin making vehicles in Itatiaia, Brazil, for South America. The 240 million pound (287 million euro) plant’s initial capacity will be 24,000 units a year growing quickly to 40,000 units. Plant construction is scheduled to start in a few months with the first cars rolling off the line in 2016.

“Our plants in the UK are working flat out, on three shifts five days a week,” Goss said. “The new plants overseas will free capacity in the UK for global supply of our new products.”

REPORT HERE

Volvo aims for 1 million car sales

Volvo Cars targets annual sales of more than 1 million vehicles in the long term, co-owner and chairman Li Shufu told a Swedish newspaper.

Volvo, bought by China's Zhejiang Geely Holding Group from Ford Motor in 2010, aims for annual sales of 800,000 cars by 2020, almost double the level last year, helped primarily by growth in China. 

"The long-term target beyond 2020 is above a million cars," Shufu was quoted a saying in an interview in Brussels with Swedish business daily Dagens Industri published today.

Shufu reiterated Volvo's 8 percent operating margin goal, from 1.6 percent in 2013. 

He also said the carmaker's strategy was in place and that future top-level discussions would focus on "fine tuning."

Volvo reported operating profit of 1.92 billion crowns ($296 million) last year from 66 million in 2012, thanks to stronger sales and cost management.

REPORT HERE

USA - Nissan recalls nearly ONE MILLION vehicles in N.A. because airbags might fail to deploy.

Nissan Motor Co. said it will recall 989,701 vehicles including its latest Altima sedans in North America to fix a software problem that could deactivate the airbags.

The software may incorrectly classify the passenger seat as empty, when it is occupied by an adult, according to a filing with the National Highway Traffic Safety Administration by Nissan. This may lead to a failure of the airbag to deploy during a crash and could increase the risk of injury to the passenger, according to the document. 

Nissan has received no report of accidents related to the problem, said Noriko Yoneyama, a company spokeswoman. The recall will only affect vehicles sold in the United States, Canada and Mexico, she said.

The recall will include the 2014 Infiniti Q50 sedan and QX60 crossover, the 2013-14 Pathfinder SUV, Leaf electric car and Sentra compact, according to the statement. 

Nissan said on Sept. 26 it would recall 910,000 vehicles globally, including the Serena minivan and X-Trail SUV, over an accelerator fault. That recall was part of the reason the company cut its profit forecast by 15 percent in the year ending March 31, it said.

REPORT HERE

ŠKODA 2013: Growth Strategy Successfully Implemented

› ŠKODA delivered 920,800 vehicles to customers in 2013 (2012: 939,200) 

› Record year with eight new or completely revised models 

› Second best sales year in ŠKODA’s history 

› Sales revenue once again over ten billion euros: €10.3 billion 

› Solid operating profit: €522 million

› New ŠKODA Octavia a massive hit: Double-digit growth rates 

› ŠKODA model and design campaign continues to the next stage in 2014 

› ŠKODA to produce a new model at Kvasiny plant

› Best start to the year ever: 151,100 deliveries to customers by the end of February 2014

​In 2013 ŠKODA AUTO continued to successfully implement the company’s growth strategy, despite it being a challenging year for the automotive industry. The Czech carmaker achieved the second-best sales year in its 118-year corporate history, delivering 920,800 vehicles (2012: 939,200 deliveries; down 2.0%). Following the model launches in the first half of 2013, ŠKODA’s deliveries increased later in the year. ŠKODA’s 2013 sales revenue amounted to €10.3 billion; well over the 10-billion-euro mark for the third year in a row. In a period of high investment, the company achieved a solid operating profit of €522 million. Investments amounted to €741 million. The Czech carmaker’s model campaign continues to the next stage in 2014, where ŠKODA will be focusing on a more emotional and expressive design language. At the same time, the company will also be strengthening its international sales activities. 

​“2013 was both an intensive and successful year for ŠKODA. We demonstrated strength in a challenging environment,” says ŠKODA CEO, Prof. Dr. h.c. Winfried Vahland. “With the record number of eight new or completely revised models, we launched more new cars than ever before and continued along our path of growth. Despite the above-average number of product launches and often challenging situations on the markets, we achieved the second-best sales figures of all time. Although cumulatively our delivery results were slightly down on 2012, we once again recorded growth in the second half of 2013 following the successful product launches. This positive trend has continued, with high growth rates recorded in the first months of 2014.”

After the first half of 2013, which was characterised by the difficult market situation in Europe, as well as the numerous production start-ups and associated low production volumes, ŠKODA picked up a lot of pace during the second half of the year with the full availability of the new models. This positive trend has continued to this day. As of the end of February 2014, ŠKODA deliveries had increased to 151,100 vehicles – up 10.6% over the same period last year. This is a record result for the first two months of a year. “Our model campaign is now showing all its might. The strong start to the year, the encouraging number of orders coming in and the increasingly positive signals from the European markets give us reason to be optimistic for 2014. However, we still need to keep abreast of uncertain market developments,” explains Dr. Vahland.


2014: ŠKODA growth campaign continues with new models

The ŠKODA model and design campaign is moving into the next stage in 2014. The manufacturer presented the spectacular ‘ŠKODA VisionC’ design study at the Geneva Motor Show at the beginning of March. The emotionally-designed, five-door coupé highlights the dawn of the brand and is leading the next step in the evolution of ŠKODA’s design language. At the same, time the study shows the possibility of innovative ŠKODA body concepts.  

Additionally this year, ŠKODA will be bringing out two fantastic new versions of the revised ŠKODA Octavia. The new ŠKODA Octavia Scout is a true scout in every sense and features a robust look, innovative all-wheel drive technology, and handles excellently both on and off the road. ŠKODA is also continuing the company’s CNG campaign, releasing the new ŠKODA Octavia G-TEC. The first series-produced CNG-Octavia offers clean mobility at an affordable price. Running on compressed natural gas, the car produces CO2 emissions of only 97 g/km. On CNG alone, the vehicle can travel up to 410 km without refuelling. Distances of up to 920 km can be travelled on petrol. This gives the Octavia G-TEC a total range of 1,330 km in combined cycle after one stop at the petrol station.

These two new versions of the Octavia – by far the company’s strongest model line – are paving the way to ŠKODA’s growth. The Octavia is the heart of the brand. The third generation Octavia, introduced in early 2013, is proving to be a massive hit. In Western Europe, the company has seen double-digit growth in sales of this car every month since August 2013. The new ŠKODA Octavia is available as a saloon, combi, combi 4x4 and the powerful Octavia RS. ŠKODA is winning over an increasing number of consumer groups with this, the third generation Octavia. 

2013: Growth in Western & Central Europe 

ŠKODA delivered a total of 920,800 vehicles in 2013; a slight decrease of 2.0% on 2012 (939,200 deliveries).

ŠKODA recorded growth in Western Europe, where the brand developed significantly better on the market that was generally in decline. Deliveries increased by 3.1% to 369,600 vehicles (2012: 358,400). ŠKODA’s market share grew to 3.2% (2012: 3.0%). In Germany, the company strengthened its position as the largest import brand.

ŠKODA also grew in Central Europe in 2013 with 126,500 deliveries to customers, representing an increase of 2.0 % (2012: 124,000). The brand’s share of the Czech market rose to over 19%. In the company’s home market, the Czech Republic, in Poland and also in Slovakia, the ŠKODA brand was the clear number one.

The manufacturer achieved 125,400 deliveries in Eastern Europe (2012: 137,100), where ŠKODA’s market share stood at just under 4%. ŠKODA delivered 87,500 vehicles to customers in Russia (2012: 99,100). 

China was again ŠKODA’s strongest individual market for 2013. The manufacturer achieved a total of 227,000 deliveries on the Chinese market (2012: 235,700). The new Octavia is all set for its launch in China in mid-2014. 22,600 ŠKODA vehicles were delivered in India last year. The Czech brand recorded strong growth in Israel (14,400; +11.7%), Turkey (12,800; +23.2%) and Algeria (9,100; +85.3%).

Success with new models 

With a total of 359,600 deliveries in 2013, the ŠKODA Octavia was once again the top-selling ŠKODA model by far (2012: 409,600). The decrease of 12.2% was due to the model changeover. Sales increased after the new Octavia began running again at full production capacity in the second half of the year.

The ŠKODA Fabia achieved sales of 202,000 units last year. 240,500 of this model were sold in 2012. The launch of the brand new ŠKODA Fabia is set for Autumn 2014.

The new ŠKODA Rapid performed extremely well in its first full sales year. ŠKODA recorded a four-fold increase in sales of the Rapid over the previous year, with 103,800 units in 2013 (2012: 24,700) This makes the Rapid – available as Spaceback and saloon – ŠKODA’s third strongest model just two years after its market launch. The ŠKODA Rapid Spaceback, presented in mid-2013, was brands’ first compact hatchback. It was with this car that ŠKODA entered the highest volume segment in Europe.  

In 2013, the ŠKODA Superb achieved 94,400 deliveries to customers (2012: 109,100). The brand's flagship was extensively revised in mid-2013. The new ŠKODA Superb features new ŠKODA designs, fresh interiors and state-of-the-art technology. The fuel consumption and emissions of the engine range have been reduced by up to 19%.

82,400 of the ŠKODA Yeti were delivered in 2013 (2012: 87,400). ŠKODA's popular compact SUV also received a major overhaul in terms of technology and design. The vehicle is now available for the first time in two versions: the elegantly-stylish ŠKODA Yeti for the city and the adventurous ŠKODA Yeti Outdoor. Both versions feature dynamic designs, the highest functionality and excellent handling on and off the road.

The ŠKODA Citigo – the smallest member of ŠKODA’s model range – has also done exceptionally well since its release in 2011. In 2013 deliveries increased by an impressive 51% to 45,200 (2012: 30,000). The ŠKODA Roomster won over 33,300 customers from around the world (2012: 38,000 deliveries).


ŠKODA’s 2013 financial figures

ŠKODA achieved a solid financial performance in 2013. Sales revenue totalled €10.3 billion; down slightly on the previous year due to lower volumes (2012: €10.4 billion). Operating profit stood at €522 million (2012: €712 million). The operating margin was 5.1% (2012: 6.8%). “Despite the difficult economic conditions in Europe and high expenditures to expand the model range, we were able to maintain the operating profit at a solid level. This was possible, primarily due to our cost reductions,” says ŠKODA CFO, Winfried Krause. The company's investments in 2013 amounted to €741 million (2012: €832 million). Profit before tax amounted to €536 million (2012: €713 million). Profit after tax stood at €455 million (2011: €611 million).

ŠKODA plans further growth, investments in the Czech production plants

Over the coming years, ŠKODA plans to grow, and increase worldwide sales to at least 1.5 million vehicles per year. To this end, the company will be introducing a new or revised model every six months on average.

To support the plan, ŠKODA is continuously investing in the expansion of its Czech production plants. The Mladá Boleslav plant was thoroughly modernized and expanded to make way for the production of the new Octavia and its many variants, as well as the Rapid and Rapid Spaceback range.

ŠKODA has also invested in the production capacities at the Kvasiny plant in line with the launch of the Yeti and Superb facelifts. On the occasion of the visit of the Czech Prime Minister Bohuslav Sobotka in Wolfsburg, it was also announced that a decision has been made to manufacture an additional ŠKODA model at the Kvasiny plant.

As part of the model and design campaign the company is strengthening its marketing activities on the European and international markets. In addition to expanding the company’s solid position in Europe, the Czechs are focusing on the growth markets of China and Russia. The new ŠKODA Octavia is going to be launched in China in spring 2014. The production of the new ŠKODA Rapid in Russia started just a few weeks ago.