Our interview with Volvo Cars on its electrification strategy was a very popular read this week. We spoke to Lex Kerssemakers, senior vice president, Volvo Cars, EMEA, about the Geely-owned automaker’s plans. It will launch a new diesel engine family this year – but it will be the last diesel it ever makes. Kerssemakers told us: “We are no longer reliant on diesel and we don’t see a long term future for it. Already we have well developed petrol engines and hybrids. Hybrids now account for around 15-20% of our European sales.”
On Volvo’s electrification plans, he admitted people misunderstood the press messages when the company announced its entire range would be electric by 2025. He said: “There is a difference between electrification, as in hybrid or PHEV, rather than full EV. But every refreshment we have from now will have the option of some form of electrification.” We knew that. Polestar 2 – due later this year – will effectively be Volvo’s first fully electric vehicle and equipped to rival Tesla. The EV brand will be sold direct to customers online or through a very small number of boutique-style “spaces”.
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Volkswagen has been making quiet, steady progress in Africa, setting up small scale assembly plants and distribution networks. Its latest move is a memorandum of understanding (MoU) with Ethiopia which should lead to local vehicle assembly using some locally made components. It will focus on establishment of a vehicle assembly facility, localisation of automotive components, introduction of mobility concepts such as app-based car sharing and ride hailing as well as the opening of a training centre. It will also work closely with the Ethiopian higher education and training institutions for skills development and capacity building of local talent. Ethiopia becomes the third country in Sub-Saharan Africa to sign a MoU with VW. It follows Ghana and Nigeria who both signed MoUs in August 2018. In Ghana, VW will establish a vehicle assembly facility and conduct a feasibility study for an integrated mobility solutions concept. In Nigeria, Volkswagen implemented a phased approach of vehicle assembly with long term view of establishing Nigeria as an automotive hub in West Africa. It has built cars in South Africa since 1951 and has assembly operations in Algeria, Kenya and Rwanda.
The global vehicle market was virtually flat in 2018, but the fourth quarter showed a near 5% year-on-year drop on the back of a similarly sized decline posted in Q3. We took a look at the market numbers and considered the outlook for 2019. Our analysis put the global light vehicle market in 2018 at around 94m units, a result that was a shade under 0.1% ahead of the previous year’s tally. A virtually flat picture for the year as a whole hid a deteriorating trend though: the third quarter and fourth quarter were down 4% and 5% respectively. It looks likely that the global market this year will show a small decline, weighed down by lower sales in major automotive markets. The worrying trend in the second half of 2018 can be boiled down to one word and it’s a word that has automotive executives in a sweat: China. The world’s biggest car market has gone into reverse for the first time since 1990. New vehicle sales in China fell by 2.8% to 28.08m units in 2018 from a record 28.88m units in the previous year. It appears the government is planning a range of measures – including subsidies for car purchase – as it seeks to stimulate the country’s slowing economy
Kia models seem to improve greatly with every new generation. Having already sampled the new Ceed earlier, I was mightily impressed with the new ProCeed ‘shooting brake’, not exactly a body style you’d normally associate with the Korean/Slovakian brand. It really is good. Another niche to conquer.
When did you last see a new Subaru? It’s a question we mulled this week. The brand has been lovingly slaying giants in America for more than a decade. Hyundai is the latest to have been dispatched, the Korean brand finding itself pushed down to seventh place last year. The climb has seen Subaru muscling past Ram, Kia, GMC and Dodge too. Why then does it remain a small brand in the world’s other major vehicle markets?
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By GlobalDataFinally, remember the VW Beetle based dune buggies? They may be on the way back, electrified this time. Keep an eye out for VW’s MEB-based concept at Geneva.
Have a nice weekend.
Graeme Roberts, Deputy Editor, just-auto.com
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