European sales continue to grow with a near 10% increase, and the best Jan in a Decade.

• European car registrations totalled 1.2 million units in January, which is an increase of 9.4% and constitutes the second highest January result in a decade
• 24 out of 29 European markets posted an increase in registrations in January
• SUV launches continued to drive growth – with 38,000 of the units registered last month being new models

The European car industry has continued to grow in January 2017 – with new car registrations for the month totalling 1.2 million units, a 9.4% increase when compared to January 2016. 

This is the second highest result for January in a decade, with the automotive market benefitting from an increased number of promotions and incentives across the 29 markets analysed.

All of Europe’s largest five markets posted an increase in registrations, with Germany experiencing the highest increase of 10.5%. This can be attributed to improved economic conditions and consumer sentiment, combined with lowered interest rates. 

France came in second, posting a healthy increase of 10.4%. This is due to there being two more working days in the month, increased sales to rental companies, and brands registering stock vehicles in January, in order to sell them later in the year – a common practice used to achieve objectives and take advantage of bonus season. Meanwhile, Spain, Italy and the UK all posted increases of 8.4%, 10.1% and 2.9% respectively. 

The strong performance in the UK may be due to consumers rushing to make purchases before the Brexit process gets underway, amidst claims that prices will rise due to the sinking pound. 

The UK’s performance is particularly notable ahead of the introduction of the new VED (Vehicle Exise Duty) car tax rules which are likely to influence the decision-making process of consumers from April onwards.

Among the 29 markets analysed, the Netherlands experienced a significant 26.6% increase in registrations. 

This was partially due to a shift in tax policy, with many dealers registering cars last month, to benefit from the new lower tax rate of 22% which came into effect in January 2017 (compared to the previous tax band of 25%).

“The positive results in January show that the boom of 2016 has continued into 2017. Increased incentives and stronger promotions are pushing consumers to purchase now. 

In the UK, anticipation of increased prices post-Brexit and the impending VED tax changes are driving growth, whilst in Germany lower interest rates are beginning to take effect. 

A range of economic and socio-political factors are benefiting the automotive industry and it will be interesting to see if the sector can improve upon the strong results of 2016,” commented Felipe Munoz, Global Automotive Analyst at JATO Dynamics.

Volkswagen led the brand ranking, although it is growing at a slower rate than the market average as the brand’s traditional models, such as the Golf and Polo, were overtaken by newer rivals. The Tiguan, Europe’s best-selling SUV, helped boost the brand’s performance.

The Volkswagen Golf maintained its lead, and sales remained stable, but the model is losing ground to its rival - the Astra. However, Volkswagen's recently updated Golf is expected to revitalise its sales over the upcoming months.

In its 75-year history, Jeep never has been in better shape than it is right now.

In its 75-year history, Jeep never has been in better shape than it is right now.

The reason? Current owner Fiat Chrysler Automobiles has accomplished what a succession of previous owners only dreamed of: truly globalizing one of the world's most storied automotive brands.

Worldwide, Jeep's deliveries in 2015 topped 1.2 million vehicles, its fourth consecutive record year for global production and sales.

Jeep Renegades are now built in Europe (Italy), South America (Brazil) and Asia (China) for sale in those regional markets. By the end of the year, production of the replacement for the Jeep Compass will begin in Brazil and China, as well as Mexico. Jeep-branded vehicles also will soon begin rolling into India, with local production slated to begin in 2017.

Meanwhile, sales in Jeep's largest and most profitable market, the United States, are up 17 percent through June over record 2015 sales.

Jeep's lineup also is expanding. Brand head Mike Manley said last month that luxury full-size SUVs under the storied Wagoneer and Grand Wagoneer names will return with the development of a redesigned Jeep Grand Cherokee in 2019. On the other end of the size spectrum, a micro-segment Jeep, smaller than the Renegade, is under strong consideration, primarily for markets outside North America. 

Meanwhile, FCA is expanding production capacity of its profit-rich Wrangler by at least 50 percent, allowing the brand to fulfill what it sees as unmet domestic and international demand. The added capacity also will allow for the return of a pickup to the Jeep lineup for the first time since 1996. 

CEO Sergio Marchionne says Jeep is the engine that keeps his company going, no matter how tough the economic circumstances become. 

"One of the things that we've always faced in the United States in the production of Jeeps is to make this unfortunate Sophie's Choice about whether we sell in the U.S. or whether we sell overseas," Marchionne explained this year. "In the last probably three or four years especially, we've been forced to make choices about which markets get allocated product. 

"Even if there were to be a contraction of the U.S. market, there is unexplored potential in terms of outside U.S. markets, especially where we have not established local production," he said. 

"Anything which relates to either a Cherokee or a Grand Cherokee and eventually a Wagoneer or Wrangler will have additional means of expression in international markets."

Larry P. Vellequette

Automotive News Europe

REPORT HERE

Fancy drifting in a Morris Marina, well, this 18 year old does and it can really shift.

An 18-year-old car enthusiast has ensured that at least one of the 1.2 million Morris Marinas and Itals built can cut it on today’s streets and if needed, on track. Patxi Beasley’s ‘Mutant Marina’ retains the predictable lines that was familiar transport for many families in the 1970s but underneath the fading Brooklands Green paint and period dealer stickers resides an altogether different beast.

Affectionately known as ‘Myrtle’, it’s now a hybrid of Ford and British Leyland.

By planting a Ford Mondeo Zetec engine and Sierra gearbox in the 900kg car as well as redesigning the suspension set up, a criticism often levelled at the Marina by contemporary road testers, together with fitting modern Falken Sincera tyres, Beasley has created a lively alternative to the Corsas and Fiestas that most young drivers opt for. 

Much maligned in recent times, former Top Gear presenter Richard Hammond once described the Marina as ‘drab and dreary’ but the tweaks make this example, one of around 300 Marinas left on the road, a very different car to the ones produced during British Leyland’s most turbulent times.

“Everyone seems to go for the same cars and I just wanted something different. This came up and with a few tweaks, it made a lot of sense!” says Patxi Beasley who is an apprentice at an independent Land Rover garage. “Slotting in the Ford engine has made it more reliable and now I can use it every day.”

The upgrades have made the Mutant Marina Myrtle an unlikely drift car with Falken’s multiple drifting champion James Deane recently enjoying a slide in the 120bhp car at Rockingham. “It’s lacking a bit of power compared to my 750bhp Nissan S14 so you need to keep it nailed,” says Deane. “I started drifting in a Sierra and it takes me back to that. It’s old school but cool, though I’ve got no plans to ask Patxi to borrow it, well not just yet!”

Specification

• Morris Marina 1800cc Super
• Ford Mondeo Zetec engine and ECU
• Ford Sierra Type 9 gearbox
• Lowered with switch to coil over rear suspension
• Welded differential
• Falken Sincera tyres
• Upgraded cooling system

The UK has it's best year in a decade for car production, and the export of cars has also grown to record levels.

• UK car manufacturing reaches 10-year high, growing 3.9% to 1,587,677 vehicles.
• More cars exported than ever before, up 2.7% on previous year at 1,227,881.
• Domestic production surges 8.1% to 359,796 to meet increasing demand for British-built cars. 
• EU demand grows 11.3%, with 57.5% of exports destined for the continent.
• US overtakes China as UK’s largest export destination, with demand up by a quarter.

British manufacturers made more cars in 2015 than any year since 2005 when 1,595,697 vehicles were produced, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT). Production increased 3.9% on 2014, with output at 1,587,677 overtaking pre-recession levels for the first time.¹

A record number of cars – representing 77.3% of total production – was for export, with 1,227,881 units leaving the UK, up 2.7% on 2014 levels. Challenges were experienced in some global markets such as China, where demand fell by 37.5%, and Russia, where export volumes declined 69.4%. However, the economic recovery in Europe, the UK’s biggest trading partner, boosted demand for UK-built cars considerably by 11.3% in 2015. The region now accounts for 57.5% of all UK car exports.

Appetite for British-built cars grew significantly in other key and emerging regions, demonstrating the strength and diversity of UK manufacturing and product. In the US, demand rose by more than a quarter (26.5%), making it the UK’s biggest trading destination outside the EU, ahead of China. Meanwhile, notable growth was also seen in Australia, South Korea, Turkey and Japan with volumes up 53.7%, 55.2%, 41.1% and 35.4% respectively.

British consumer and business demand for British-made cars also contributed to last year’s success, with the home car market rising 8.1% on the previous year. One in seven new cars registered in the UK in 2015 was made in Britain.  

Mike Hawes, SMMT Chief Executive, said, “Despite export challenges in some key markets such as Russia and China, foreign demand for British-built cars has been strong, reaching record export levels in the past year. Achieving these hard fought for results is down to vital investment in the sector, world class engineering and a committed and skilled UK workforce – one of the most productive in the world.

“Continued growth in an intensely competitive global marketplace is far from guaranteed, however, and depends heavily on global economic conditions and political stability. Europe is our biggest trading partner and the UK’s membership of the European Union is vital for the automotive sector in order to secure future growth and jobs.”

Chancellor of the Exchequer George Osborne said, “Backing Britain’s car industry has been a priority for this government and today we see the industry going from strength to strength.

“I am hugely encouraged that manufacturing is at a 10-year high and exports ‎are at a record level. All this means jobs and the security of a pay packet for workers and their families.

“Our plans to rebalance the economy mean we have to continue to build on our great manufacturing strengths in the Midlands and the North of England, and work together to ensure that Britain continues to prosper as a global leader in car production.”

The performance of UK automotive is very different compared with UK manufacturing as a whole, according to Office for National Statistics figures, which show  the average manufacturing output to have slowed in recent months.² Eight brand new car models³ were produced in UK plants in 2015, and with £2.5 billion of fresh investment committed to the sector in 2015, more are set to follow in the coming months.

Manufacturing of cars in the UK – by brand

 Notes to editors

1. SMMT Data: 2007 full year car manufacturing total: 1,534,567.
2. ONS Index of Production, November 2015, published 12 January 2016, shows UK manufacturing output fell 1.2% in the 12 months to November 2015.
3. Bentley Bentayga, Infiniti Q30, Jaguar XE, Jaguar XF, Land Rover Discovery Sport, MINI Clubman, McLaren 570S, Vauxhall Astra.

WORLDWIDE SALES 2015 - JEEP - with in excess of 1.2 Million sales, Jeep celebrates it's 75th in style.

• Jeep® global vehicle sales increase 22 percent in 2015 to highest total in brand’s 75-year history: 1,237,583 units
• 2015 Jeep global sales total surpasses 2014’s previous record of 1,017,019 units
• U.S. sales increase 25 percent to a record 865,028 units
• Sixth consecutive year of Jeep sales increases globally and in U.S.
• Jeep Wrangler, Cherokee and Patriot record best-ever global annual sales
• Wrangler, Cherokee, Compass and Patriot achieve best U.S. annual sales
• December marked the Jeep brand’s best monthly sales ever, globally (127,879 units, up 32 percent) and in the U.S. (89,654 units, up 42 percent)
• Sales of every Jeep vehicle improved in U.S. in 2015
• Sales of Jeep vehicles increased 56 percent in the Europe, Middle East & Africa region and 135 percent in Latin America in 2015 

The Jeep® brand recorded sales of more than 1.2 million units worldwide in 2015 – the highest total in its 75-year history – setting a global sales record for the fourth consecutive year. Sales of 1,237,583 Jeep vehicles improved upon the brand’s 2014 global record of 1,017,019 by 22 percent. 

In the U.S., sales of 865,028 units bettered the 2014 total of 692,348 units by 25 percent.

“2015 marked the second consecutive year of more than 1 million Jeep vehicle sales across the globe, the sixth straight year of Jeep sales increasing globally and in the U.S., and the highest total in the brand’s 75-year history,” said Mike Manley, Head of Jeep Brand – FCA Global. “While we introduced the all-new Renegade, which is delighting consumers across the globe, we’re especially pleased that several Jeep vehicles recorded best-ever annual sales, both globally and in the U.S.

“In 2015, we began local manufacturing in Brazil and returned to local manufacturing in China after an absence of nearly a decade, further globalizing the Jeep brand,” Manley added. “Now, in 2016, we look forward to celebrating the 75th Anniversary of Jeep, and continuing to deliver a full lineup of class-leading capable and efficient SUVs.”

Jeep 2015 sales rose 56 percent in the Europe, Middle East & Africa region and 135 percent in Latin America.

December marked the highest monthly sales ever for the Jeep brand, both globally (127,879 units) and in the U.S. (89,654 units).

Jeep vehicle sales were led globally and in the U.S. in 2015 by Cherokee (295,081 global; 220,260 U.S.), Grand Cherokee (277,236 global, 195,958 U.S.), Wrangler (255,283 global; 202,702 U.S.), Renegade (158,351 global; 60,946 U.S.), Patriot (143,003 global; 118,464 U.S.) and Compass (108,626 global; 66,698 U.S.).

2015 marked the sixth consecutive year of increased Jeep sales, both globally and in the U.S. The previous five years saw increases of 39 percent global/41 percent U.S. (2014), 4 percent global/3 percent U.S. (2013), 19 percent global/13 percent U.S. (2012), 41 percent global/44 percent U.S. (2011), and 24 percent global/26 percent U.S. (2010).

Jeep enters it's 75th year with 2015 sales estimated to hit 1.2 million units, it's best year ever, and only the start.

Fiat Chrysler will kick off Jeep's year long 75th anniversary this week on a high note: with freshly minted U.S. and global sales records for what has been one of the industry's hottest brands.

The records are in the bag -- Jeep topped last year's record global and U.S. sales totals in early November -- but where they will end up won't be known until December sales are reported this week.

In 2014, the brand reported 1,017,019 global sales, the first time Jeep had topped 1 million sales. In a presentation to investors in early December, FCA said global sales had been running up more than 20 percent through much of 2015 and that the company expected to finish the year around 1.2 million Jeeps. In the brand's largest market, the U.S., sales through November were up 23 percent to 775,374.

But several recent developments are likely to push Jeep's 2016 global sales past 2015's. The brand has an aggressive growth curve planned to reach 2 million global sales by 2019.

Jeep began producing Renegades in a massive new plant in Pernambuco, Brazil, in the first quarter of 2015, and has been ramping up production there to sell the subcompact SUVs across South and Latin America. FCA said the plant -- which produced about 52,000 Renegades in 2015 and will also build two other vehicles for local sale -- won't be fully ramped up until late 2016.

In October, Jeep began producing Cherokees in a joint venture factory in Changsha, China. Full production at the plant is expected to ramp up through 2016 and expand to include the Renegade.

For 2016, Jeep will replace the Compass and Patriot with a single vehicle it calls the C-SUV. According to spy photos, that vehicle shares a platform with the subcompact Renegade.

This year marks the 75th anniversary of the brand's birth: the U.S. War Department's awarding of a production contract on July 31, 1941, to Willys-Overland Motor Co. to build the Willys MB. (The name Jeep came later.) To mark the occasion, Jeep plans to unveil a series of anniversary models, according to its 2014 product plan.

The brand will also freshen its Grand Cherokee flagship this year. It is developing a three-row luxury Grand Wagoneer SUV for 2019 that will share the Grand Cherokee's platform.

Larry P. Vellequette

REPORT HERE

USA RECALL - MAZDA - 1.2 million cars recalled for possible issues with the Ignition switch.

Mazda Motor Corporation will conduct a Safety and Emission Recall Campaign for certain models that have a quality and performance issue leading to the potential failure of the electrical thermal base of the ignition switch.  

The electrical thermal base is the specific part of the component that may fail.

Once the vehicle is running, this situation does not directly affect vehicle drivability or operation, or the operation of any safety devices or features in the vehicle.  As a result, there have been no reports of accidents or injuries related to this issue.

Due to an excessive amount of grease at the contact points inside the ignition switch during production, as a result of time and use, the grease may carbonize and accumulate between the contact points, reducing the electrical insulation performance inside the switch. As a result, continuous use may lead the contact points of the thermal base of the switch to become conductive, which may overheat the switch.  Should this occur, the resulting effect is smoke from the switch, and, in the worst case, a fire.

Approximately 1.2 million vehicles in the U.S. are affected.

Affected models are:

• 1990-1996 323/Protégé
• 1989-1998 MPV
• 1993-1998 626
• 1993-1995 929
• 1993-1997 MX-6
• 1992-1993 MX-3

Mazda plans to conduct this recall in the U.S. in December 2015.