KIA Sales in the U.S. Market Has Increased

Kia, the South Korean car manufacturer, is targeting to reach the U.S. market share of around four percent this year. This target is the highest ever set.

Kia Motors America saw sales of cars has increased over the last two years. Over the past 24 months, sales have reached record levels. Michael Sprague, Executive Vice President, Marketing and Communications at Kia Motors, said the target is higher than the previous year by 3.8 percent.

Kia plans to introduce seven new car models in 2013. The Forte model will be redesigned and Sorento types that have been updated will appear in the event Los Angeles Auto Show. "It's going to be a very busy event," said Tom Loveless, Executive Vice President Sales of Kia Motors America.

Jim Hall, an analyst at 2953 Analytics LLC, said the new products that have been updated will help Kia improve existing perceptions about the brand. "Kia need to determine why Kia is a Kia and Hyundai is not," said Hall.

Hall called compact cars Kia Soul named to compete in a slim car segment with Scion xB and Nissan Cube. Kia Soul launches every year since its debut in 2009. This year Kia Soul will launch the latest type and exploit its popularity to sales growth.

Soul sales in 2009 reached 31,621 units. This year, targeted sales will grow to 112 thousand units. This compact car not only attract young consumers, but also consumers of all backgrounds and ages.

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Ford Fiesta has been Preparing "Cheap" Cars

Ford Motor Company (FMC) announced again preparing a new model was developed from the Fiesta platform, filling the segment beneath with cheaper price. As stated by the Chief Executive Officer of FMC, Alan Mulally, that reported by Autonews (09/09/2012) that the vehicle was not wearing a new trademark for a low cost car such as made ​​by Renault with Dacia.

"We continue to travel the world looking for the opportunity to offer a car with cheaper price than the Fiesta," said Mulally. The new car is called the model "value B" eventually going to have the same dimensions with the Fiesta, but have a more competitive production costs. Unfortunately Mulally still has not mentioned this low cost car later would be in production and sold where prime.

In Europe, Ford Ka compact car had taken off that is the product of collaboration with Fiat in Poland. The difference, Ka produced using the same platform with the Fiat 500. In addition, the smaller dimensions Ka deemed inappropriate as a global product. Because not all markets fond cars that are too compact.

"We have no definite plans at this time (for a global model of Sub-B), but to be competitive in every market it's very important," said Mulally. One way of reducing the cost of production on the car is to use the global design and relying on supplies of components of the whole world.

World Trends

Start saturated markets in developed countries make a lot of automotive principals continue to spread its wings in new markets. To be able to reach the market in a third country, would require the right product at a more affordable price.

Renault has begun to create independent brand to work on the low cost car segment in 2004 with the launch sedan Logan. Furthermore, other models followed, including hatchback, wagon, minivan to a small SUV. French car manufacturer that targets this year to sell 1 million units of Renault and Dacia low cost cars in the global market of 813,000 units in 2011. By working on this new segment, according to analysts, Renault claimed bagging bigger profits up 9 percent.

Still from France, PSA Peugeot-Citroen plans to introduce low cost car in the event the Paris Motor Show later this month (September 2012). Not to forget, Nissan has announced revive the Datsun brand is prepared to work on a new country markets such as India, Indonesia and Russia.

Back again to the Ford plan, relating to LOW COST CAR GREEN (LCGC) who was proclaimed the Government of Indonesia. Would this be an early indication of Ford's investment commitments in Indonesia to build a low cost car factory?

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October, Daihatsu Operate New Plant

PT Daihatsu Astra Motor will execute a plan to increase the supply of products next month. According to President Director of Astra Daihatsu Sudirman Maman Rusdi, the plan could be realized due to a new plant in Karawang has been completed and ready for operation.

"In October, the plant will produce 500 units of the car," he said in Jakarta, Thursday, September 6, 2012.

The factory with an investment of up to IDR 2.1 trillion, it has a production capacity of 5 thousand units per month. According to Sudirman, the production plant area of ​​70 thousand hectares will be assembling low car Multi Purpose Vehicle Toyota Avanza and Daihatsu Xenia.

"Most of the products will be allocated to the domestic market," he said.

Before the plant was built, Daihatsu only rely assembly area in Sunter, North Jakarta, which has a maximum capacity of 330 thousand units per year. Sudirman said limited land make scale factory production cannot be developed.

"While demand for our products is quite high," he said.

In 2011, Daihatsu Sunter factory producing 373,395 units of vehicles for brands Daihatsu and Toyota. Of that amount, 14 percent is marketed abroad. As of August 2012, sales reached 106,605 units Daihatsu, up 83.4 percent over the same period in 2011 some 89 thousand units.

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Nissan Maneuvers in China to Compete with GM

Nissan Motor Co. (NMC), the largest Japanese car manufacturer in China will build a plant in Dalian City is located northeast of the country's bamboo curtain. According to one who knew about the plan said, Nissan will invest 785 million U.S. dollars.

The plant in Dalian is part of Nissan's investment in China with funds already budgeted 30 billion yuan are disbursed in stages until 2015. The maneuver is aimed to compete with GM and other automakers as well as a giant in the Asian market is growing rapidly.

Interestingly, the foreign manufacturers to enter China are not concentrated in one area of ​​industry, but spread over five regions. They built the plant in partnership with local companies.

Such as Volkswagen AG has stuck nails are so strong in northern China with a local company with FAW Group and the east with SAIC Motor Corp. They left the South's market filled with Japanese products, but VW is building its first factory in the southern province of Guandong. Interest was triggered by increasing market share of 15.8 percent in November 2011 from 12 percent was achieved two years ago.

30 new Nissan models

Nissan factory in Dalian cooperation with Dongfeng Motor Group Co with an initial production capacity of 25,000 units in 2014. The next year, increased again to be 120,000 units and 240,000 units in 2017. The models are produced, ranging from upscale SUV, coupe and MPV. While the first stake-planting ceremony held at the end of this month.

The executive of Nissan and Dongfeng could not be reached for comment. "Nissan has a more diversified portfolio in China and have many variants than rivals. In addition to bringing many new models, Nissan also broaden the appeal of the new plant," said John Zeng, Consulting Director of LMC Automotive Asia Pacific.

Nissan CEO Carlos Ghosn has announced Nissan's sales target in China to 2.3 million units announced in July last year. And to achieve growth targets, Nissan China plans to launch about 30 new models in the period, including electric vehicles under the Venucia, explained Ghosn.

Aware of the great maneuvers Nissan, GM is already over a decade was in Shanghai, recently announced plans green field facility in downtown Wulan, who also became a base Nissan and Ford. While candidates Nissan factory in Dalian - the richest beach town in the northeastern - according to the analyzer will provide easy access to regional markets, such as experienced by Toyota Corolla and VW with the Jetta.

"With the new factory in North China, Nissan will be the main competitors Volkswagen and Toyota. Delivery to regional markets will be faster than in Wuhan, because Dalian is a major port city not far from Japan," said Ye Sheng, Director of China Greater Research Association the consultant Ipsos.

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Chevrolet will Production Spin MPV in Indonesia

Indonesia is increasingly becoming a target of the investment world's automotive manufacturers. After Honda Motor Company, General Motors now turn would assemble cheap cars in Indonesia.

As quoted by Antara news agency, General Motors will assemble a small passenger car (low MPV) Chevrolet Spin in Pondok Ungu factory in Bekasi West Java in 2013. In the company's annual meeting in Detroit the United States, Chief Executive Officer of General Motors, Dan Akerson, said it would pour investments worth U.S. $ 150 million or around IDR 1.4 trillion to open a new assembly facilities covering an area of 11 hectares. This plant has a production capacity of 40 thousand units per year and absorb 800 workers. 

Martin Apfel, President of General Motors Southeast Asia, said that Indonesia became the first country in the world's production quota assigned to the all-new Chevrolet Spin. "Chevrolet Spin vehicles will be the pride of Indonesia," he said, Wednesday, June 13, 2012. 

Chevrolet Spin is small MPV the only one that offers a six-speed automatic transmission. The car that has a capacity of five to seven seats it offers the flexibility of handling like a coupe, the ability to transport goods in bulk and economical use of fuel. Although not mention the estimated selling price, Apfel said it would establish Spin at an affordable price.

Previous investment to manufacture low-cost car by Honda Motor Co. disbursed. Through PT Honda Prospect Motor, an investment fund to be made to reach U.S. $ 329 million to build a factory in the industrial area Mitrakarawang, West Java. According to the President of Honda Motor Co. Asia, Hiroshi Kobayashi, the new plant to boost production capacity of 60 thousand units per year to 180 thousand units.

"Honda will make Indonesia as one of the main factory in addition to Thailand and India," he said on March 15, 2012.

The factory area of ​​95 hectares will produce new models of Honda, among MPV and hatchback Brio. The car is claimed to have a local component content of 80 percent is going to priced at Rp 150 million.

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