+++ ALPINE and Lotus will team up on the development of a new electric sports car that will serve as the successor to the Alpine A110. The new car is 1 of 3 planned models confirmed for Alpine, which is being reinvented by parent firm Groupe Renault as an electric-only premium brand with a focus on ‘avant-garde’ models. The firm has also confirmed that it will launch a new hot hatch and a C-segment crossover. Renault revived the Alpine brand in 2017 with the reimagined lightweight A110 two-seater. While that model has been a huge hit, the firm has yet to follow it up with a new model and the brand’s future had been in doubt. However, new Groupe Renault boss Luca de Meo has given his backing to long-time plans to reinvent Alpine as the group’s performance arm. New Alpine boss Laurent Rossi said that the firm would focus on developing “exclusive innovative sports cars”. He added: “Alpine is a true brand with heritage and pedigree, arguably the epitome of French motoring”. Group Renault and Geely-owned Lotus have signed a memorandum of understanding (MoU) to work together in a number of areas, including the joint development of the new sports car. The companies will now undertake a “comprehensive feasibility study” for the potential car. It will be developed using expertise from both Lotus and Alpine, which now incorporates the old Renaultsport division. While no details of the machine or timeline have been given, the Alpine version will likely serve as the successor to the current A110 as the brand is transformed into a fully electric line-up. Lotus is also expanding its EV line-up, and the joint development will help the two firms to offset the high costs that will likely result from developing a dedicated lightweight electric sports car platform. Group Renault boss Luca de Meo said that while a final figure hadn’t been set, the target was for the new machine to “stay on the level of pricing” of the current petrol-powered A110, although he noted that it would likely have a higher purchase price due to the EV powertrain. Both Alpine and Lotus has placed an emphasis on lightweight vehicles with nimble handling and will try to ensure that these are traits of any future electric sports car, despite the weight required for the car’s batteries. Alpine and Lotus will also look to develop a number of joint services to combine their engineering abilities and ways of ‘leveraging’ Alpine’s motorsport projects. Rossi said: “The signing of this MoU with Lotus shows the lean and smart approach we’re implementing as part of the new Alpine brand strategy. Both brands have an amazing legacy, and we’re most excited to start this work together, from engineering tailored solutions to developing a next-generation EV sports car”. Lotus boss Phil Popham called the agreement “the first step in what is set to be a hugely rewarding collaboration between our iconic brands”. He added: “Our companies have much in common, from a pioneering pedigree in lightweighting to championship-winning sports cars which perform as impressively on the road as they do in the motorsports arena. It’s a natural fit in many ways, and the co-development of an EV sports car is hugely exciting for our companies, our fans and customers around the world”. Alpine will also develop an electric hot hatch and an electric mid-size crossover, although it has yet to reveal details, names or timelines for either. The hot hatch will be a B-segment car built on the existing CMF-B platform and will likely be similar in size to the current Renault Clio , although it will be a new Alpine model, rather than a rebadged Renault. The C-segment crossover will use the new Alliance CMF-EV electric platform and will likely be similar in size to the forthcoming Renault Mégane eVision crossover that’s based on that architecture. +++
+++ BMW said that it aims to double its sales of fully-electric vehicles this year as the German carmaker and rivals race to release new models to comply with CO2 emissions targets and chase market leader Tesla. BMW also said that including plug-in hybrids, it aims for a 50 % increase in sales of electrified vehicles versus 2020. It did not give sales volumes for its fully electric vehicles but in 2020 data said it sold close to 193.000 electrified vehicles (fully electric and plug-in hybrid) last year. Tesla delivered just under 500.000 vehicles, all fully electric, to customers in 2020. The BMW Group currently produces 13 electrified models (either fully electric or plug-in hybrid) sold in 74 markets. BMW said that its global EV sales rose 31.8 % in 2020 and accounted for 15 % of its sales in Europe, helping the company meet its European Union emissions targets for last year. By 2023, BMW said it would almost double its line-up of electrified vehicles to 25 models, with more than half of them fully electric. As well as emissions targets, a growing number of countries will ban the sale of new fossil-fuel vehicles starting in 2030, adding pressure on carmakers to develop electric vehicles.+++
+++ The BMW GROUP ’s worldwide sales fell by 8.4 % in 2020, with strong performance from its M division, premium BMW models and electrified cars helping reduce the impact of pandemic disruption. The German manufacturer sold 2.324.809 vehicles across its BMW, Mini and Rolls-Royce brands; fewer than 2019, as with other car firms hit by the impact of the pandemic and associated lockdowns. The group’s sales did recover later in the year, with the 686.069 vehicles sold in the final quarter of the year marking a 3.2 % increase on the same period in 2019. The 2.028.659 sales of BMW models represented a 7.2 % year-on-year decline, but BMW noted that the overall decline was tempered by growth in 2 key areas. Sales of its most profitable luxury models (the 7 Series, 8 Series and X7) rose by 12.4 % year on year to 115.420 units. BMW M, the firm’s rapidly expanding performance division, achieved its best-ever sales, with the 144.218 units it delivered up 5.9% year on year. BMW says that growth was driven by SUVs, such as the X6 M. That growth could continue in 2021, with the new M3 saloon and M4 coupé due on sale shortly. Mini sold 292.394 cars in 2020; a 15.8 % year-on-year decline. That total included 17.580 examples of the new Mini Electric. Its John Cooper Works performance models also performed strongly, with the 20.565 sold representing a 20.8 % year-on-year increase. Rolls-Royce sales fell 26.4 % to 3.756, with the firm attributing the decline in part to the bestselling Ghost saloon being off sale while the recently launched Mk2 version was introduced. The BMW Group also recorded encouraging growth of its electrified models, including electric BMW i models, various i Performance-branded plug-in hybrids and the Mini Electric. The 192.646 electrified BMW and Mini models sold in 2020 represented a 31.8 % year-on-year increase, with EV sales up 13 % and PHEV sales up 38.9 %. The success of BMW’s electrified models ensured the firm was able to meet its European Union fleet-average CO2 emissions targets, avoiding potential penalties. BMW sales boss Pieter Nota said the company “over-fulfilled” its targets and was “even able to go below the mandatory limit by a few grams”. +++
+++ It’s hard to look ahead when you are fighting fires, but for years now, across the automotive industry, yesterday’s crisis has been merging into tomorrow’s crisis, every perfect storm somehow becoming yet more perfect. The pattern is set to continue. Take a step back and it’s interesting to note which manufacturers have had the foresight, resources and brain capacity to invest in communicating their strategy out to the theoretical furthest point, whatever it may be: ELECTRIFICATION , certainly; autonomy and connectivity, too; but also as far out as modelling worlds in which we don’t own cars but hire them, or potentially don’t even allow cars into city centres, or anywhere at all. You might argue that all this change is unimportant until it becomes a money-making reality. A live case study to ponder is whether Nissan, Renault or BMW will enjoy any long-term benefit from moving early on electrification. The investment in the Leaf, Zoe and i3 (plus spin-off vehicles) runs to billions, but it’s hard to pinpoint any advantages, either in brand perception or profits. Maybe in time. Perhaps the key to success here is offering a singularly distilled vision. In some cases, that’s simple: Tesla is the world’s most desired electric car brand because all it does is make desirable electric vehicles. Most rivals are beholden to profits from ‘legacy’ combustion-engined cars, their heritage suddenly a millstone. Mixed messages abound. But even then, a coherent vision can reap dividends, and Volvo is the most prominent example of the quantum leap that can be made with such forward thinking. Back in 2014, when the XC90, the first of its new-generation cars, was launched, Volvo was marooned somewhere between premium and mainstream brands, a fringe player with a set of unfocused objectives selling around 400.000 cars a year. A succession of new, quality cars has been central to its renaissance but so, too, has its ability to colour in its own road map. Its claims in 2017 to make its entire range electrified by 2020 (neatly overlooking that this included mild-hybrid systems) landed it perception-shifting headlines. Likewise, its oft-stated vision to ensure that nobody is killed in or by one of its cars. Today, it is selling around 800.000 cars a year. People don’t just buy cars for what they can do for them today, but rather what they will say about them into the future. It’s remarkable how few car makers are willing to tell that story, but just as clear that the smartest car makers are doing just that. +++
+++ Plans to phase out internal-combustion-engined cars could be scuppered by the location and supply of some key materials required to produce electric vehicles. The European Commission voiced concerns about the EU’s capacity to gather resources in a report called Critical Raw Materials Resilience: Charting a Path Towards Greater Security and Sustainability. Published in September 2020, it highlighted EUROPE ’s lack of natural substances compared with other areas of the world, especially China, which is the biggest supplier of 10 such materials to the EU. China is the second-largest global producer of cobalt and lithium, both of which are required for EV batteries, accounting for 7 % and 37 % of their production volumes. The Democratic Republic of the Congo (DRC) and Chile are the world’s biggest producers of cobalt and lithium as well as the EU’s biggest suppliers. DRC supplies 59 % of global cobalt and 68 % of that sent to the EU, Chile a respective 44 % and 78 % of lithium. China is the world’s biggest supplier (69 %) of natural graphite, which is also used in EV batteries, and heavy rare-earth elements (86 %) that are used in permanent-magnet motors. It accounts for 47 % of the EU’s main supply of the former and 98 % of the latter. The EU has calculated that to meet its targets for EV batteries and energy storage, it will need up to 18 times more lithium and five times more cobalt in 2030 and almost 60 times more lithium and 15 times more cobalt in 2050, all while global demand for rare earths could increase tenfold. “If not addressed, this increase in demand may lead to supply issues”, it said. The report concluded that “the stakes are high” and suggested the EU needs to “reduce dependency and strengthen diversity and security of supply” in order to secure a broader and more stable access to materials. “The DRC isn’t the only place you can get cobalt”, said Isobel Sheldon, chief strategy officer for Britishvolt’s planned battery gigafactory in Northumberland. “Canada is one of them and there are other deposits in Africa. We’re digging lithium out of the ground in Cornwall, you can get natural graphite from Norway and Sweden and the best synthetic graphite in the world comes from North Lincolnshire. There are a lot of nickel reserves in Canada and, don’t forget, we have Europe’s second-largest nickel refinery based in Clydach, south Wales”. +++
+++ HONDA has ended production of the HR-V, several months before its radically different successor is expected to be unwrapped. The Nissan Juke rival has been taken off Honda’s website after 7 years on sale, leaving the brand with 4 models (the Civic, CR-V, E and Jazz) in its European line-up until the next HR-V goes on sale, likely late this year or in early 2022. The HR-V was taken out of production late last year in accordance with changes to real-world driving emissions regulations (RDE2) that came into effect from 1 January 2021. New examples are now available only from dealer stock. The HR-V was available with either a 1.5-litre petrol engine or a 1.6-litre diesel engine, neither of which will return for the next-generation car, which will be available with exclusively electrified powertrains in line with Honda’s promise to phase out all ICE-only models in Europe by 2022. Recent spy shots of a prototype point to a dramatic design overhaul for Honda’s small SUV, with a rakish coupé-style roofline and a Civic-aping front end among the most obvious changes. Inside, the SUV can be expected to follow the next-generation Civic in adopting a more minimalist dashboard layout with new driver aids and technology across the line-up. Honda has yet to indicate how many variants of the new car will be available from launch, but the warmed-up HR-V Sport will likely make a return in some form, given a recent market influx of performance-oriented compact SUVs. European sales of the HR-V steadily declined since its mid-life facelift in 2015, dropping from more than 33.000 units in 2016 to 21.747 in 2019. The crossover segment, into which the first-gen HR-V was an early entrant, has swelled in recent years with new arrivals such as the Ford Puma and Skoda Kamiq, and consistent big-sellers including the Juke and Renault Captur have recently been substantially updated. +++
+++ JAGUAR LAND ROVER (JLR) sales fell by nearly a quarter year on year in 2020 due to the impact of the pandemic. The British firm, which is owned by Indian company Tata Motors, sold a total of 425.974 cars worldwide last year; a 23.6 % decline on 2019. The Land Rover brand’s 323.480 vehicle sales were down 18.3 %, while the 102.494 Jaguar models sold marked a 36.5 % decline. As with all cars firms, JLR was badly hit by the impact of Covid-19 and various lockdown measures, but company bosses said they were encouraged by the growth shown during the year. The firm sold 128.469 vehicles in the final 3 months of 2020, which, although down 9.0% year on year, was a 13.1% increase on the previous financial quarter running from July to September. Notably, sales in China in the final quarter of 2020 were up 19.1 % year on year. Sales in Europe were down 16.3 % from October to December, with the UK posting a 8.9 % fall for that 3-month period. JLR also recorded encouraging sales for the electric Jaguar I-Pace, with the 7.807 sold worldwide in the final 3 months of 2020 a 69.3 % year-on-year rise. Land Rover Defender sales in the final 3 months of the year rose 66.0 % compared with the previous quarter of 2020, due in part to the rollout of the short-wheelbase Defender 90. Notably, JLR also said that 53 % of sales in the final 3 months of the year offered some level of electrification, with 6.1 % fully electric, 5.5 % plug-in hybrids and 41.4 % featuring a mild-hybrid powertrain. In total, 43.3 % of the models the company sold in 2020 featured an electrified powertrain. JLR commerical boss Felix Bräutigam said: “Although Covid-19 continues to significantly impact the global auto industry, we’re delighted to end the year with a second consecutive quarter of sales recovery. Our performance in China, the region least impacted by Covid-19 in the most recent quarter, has been particularly encouraging, with our sales there growing on both a year-on-year and quarter-on-quarter basis. Other markets are also showing strong signs of recovery, despite second Covid waves across the globe. We are well-placed in keeping our retailers open for business with online sales solutions, even when their doors are closed through lockdowns”. JLR’s financial year runs from April until March. +++
+++ NISSAN is “satisfied” with the trade deal agreed between the UK and the European Union, according to the firm’s UK managing director. In a letter sent to dealer managers late last week, Andrew Humberstone outlined that the deal “finally gives us some certainty and enables us to plan for the future success of our collective operations across the region”. Nissan’s Sunderland plant was previously described as “unsustainable” In the event of a no-deal Brexit by the company’s global chief operating office, Ashwani Gupra. But the future of the factory, which employs 7.000 people and has recently received a €450 million investment to build the upcoming third-generation Qashqai, now looks more secure. Sunderland “will continue to build cars despite the UK lockdown”, Humberstone revealed, after an overhaul of the factory’s operations during the first lockdown last year. The factory also builds the Juke and Leaf. Humberstone also claims Nissan’s future in Europe is “strong”, countering reports that the Japanese manufacturer will gradually reduce its presence in what is one of the world’s toughest new car markets. “The brand will continue to follow the Nissan Next plan and deploy it in Europe, and any speculations counter to this are baseless and inaccurate”, he wrote. “This strategy is supported by our two pillars of electrification and out crossover line-up”. The managing director went on to list the arrival of the new Qashqai and the Ariya during this year as 2 opportunities to bolster sales. Nissan Next, a three-year transformation plan announced earlier this year, will have the company work to substantially reduce is fixed costs and reduce production capacity by 20% globally. Growth strategies will be focused on Japan, China and North America, with business to be “sustained” in Europe but focused on core model segments: higher-margin models, such as SUVs. +++
+++ PEUGEOT is considering expanding its range in 2023, with a small, premium model and a larger flagship among the options being considered by boss Jean-Philippe Imparato. “We’re obviously looking at the next steps for the Peugeot line-up in 2023, yes”, said Imparato. He added: “Do we add on top, or below? That depends on studies and discussions on this. It’s not a question of dimensions but positioning. You can go below in dimensions but up in terms of content. That’s one direction we could choose”. Peugeot’s line-up has been much improved in recent years as the firm has shifted its image and made its models more desirable. Indeed, one third of sales of all Peugeot models are now of the top-spec models in any given range, while almost half are sold with automatic gearboxes. “I wouldn’t have believed that 2 or 3 years ago”, said Imparato. The Peugeot range now includes the 108, 208, 2008, 308, 3008, 508 and 5008, which all compete in more traditional segments. The new addition to the Peugeot would likely not sit in a traditional segment to act as a bold design and technology flagship for the brand, but as a smaller, likely electric small car to rival the likes of the Fiat 500 and reborn Renault 5 or a larger flagship. The next new Peugeot to be launched will be the new 308, which Peugeot will reveal in March. It will offer petrol and diesel engines and an electrified powertrain (a plug-in hybrid). Peugeot is also preparing to reveal a 10-year plan in the coming weeks. The new 308 will mean that the 508 (introduced in 2018) will be the oldest car in the Peugeot range, aside from the 108 city car. Imparato was non-committal on the future for that car, because electrifying it isn’t an option at the moment, due to the added cost it would bring. “Add in electrification, connectivity, 5G and NCAP safety requirements, and a €10,000 car becomes a €30,000 one”, said Imparato. +++
+++ The rebirth of the RENAULT 5 as a compact electric supermini doesn’t have immediate implications for the survival of the Clio and Zoe, according to the company’s design bosses. The 5 is one of the bold new models (alongside the Dacia Bigster and Mobilize EZ-1) that will underpin Renault’s radical ‘Renaulution’ transformation strategy, but the company’s designers claim that the production version won’t supersede the similarly positioned electric Zoe nor the conventionally powered Clio. “Now is the time to challenge what exists at this point. This isn’t meant to replace the Clio as such, but there are questions about the Clio and the Captur: what they stand for, what energy source they should use depending on the regulations of each country, and this is changing every month”, explained new Renault brand design boss Gilles Vidal. “You need to be able to adapt to whatever happens with your global product strategy and energy solutions. We don’t know for sure if this will replace anything, but if you look at the B-segment, there will be maybe too many at some point, so some will disappear. I can’t say which at this point”. Laurens van den Acker, executive vice-president of Groupe Renault, made a similar commitment to the survival of the Zoe EV: “Is it the end of the Zoe? The answer is no, because the Zoe is the best-selling EV in Europe. So, it would be silly to stop vehicles that are best-selling in their segment”. Technical details of the production 5 have yet to be confirmed, but its compact size and 5-door shape make it a likely candidate to replace Renault’s big-selling EV hatchback, which entered its second generation in 2019 so will be up for renewal around 2025. The Clio is less than 2 years into its current generation and was recently made available with an E-Tech hybrid powertrain for boosted eco credentials. However, any future fully electric version would likely compete, both in terms of size and functionality, with the Zoe and 5. Van den Acker went on to hint at Renault’s sales ambitions for the 5: “The mission with the 5 is to make the popular electric car of the future, and it really needs to be a popular car. This is where Renault is very strong”. If the Zoe is to continue beyond the middle of the decade, it will likely undergo a significant design overhaul, both in line with the brand’s commitment to “embodying modernity and innovation” and to mark it out from the 7 new electric models Renault will launch by 2025. 2 of those new models will be B-segment hatchbacks in the vein of the new 5, arriving in 2023. Rumoured to be on the cards but not yet officially confirmed is a similarly conceived revival of the older 4 economy car. +++
+++ The RENAULT GROUP has unveiled a major new strategic plan, the ‘Renaulution’, which is designed to spark the firm’s recovery and future growth. It includes 24 new vehicles by 2025 including a major expansion in Renault’s electric vehicle range, a widening of budget brand Dacia’s line-up and the reinvention of Alpine as a fully electric performance brand. The 24 new vehicles will be split across Group Renault’s various brands (Renault, Dacia, Alpine, Lada and new mobility brand Mobilize) and will be focused on the profitable and popular B- and C-segments. 10 of the vehicles, including 7 Renault models, will be fully electric. The first models revealed under the new plan include a reinvented Renault 5 EV, a Dacia Bigster C-segment SUV, a revived Lada Niva for the Russian market and plans for 3 fully electric Alpines: a hot hatch, a crossover and an A110 successor developed with Lotus. The strategic plan has been devised by new company boss Luca de Meo, who has called it a “profound transformation” of Renault’s business model, with the Renault Group’s focus shifting from maximising volume to increasing the value (and profitability) of vehicles. There will also be a heavy focus on electric and electrified vehicles. The new plan builds on the group’s ongoing recovery and growth plan and will feature three phases. The ‘resurrection’ phase will run until 2023 and focus on increasing the firm’s margins and cash generation while the ‘renovation’ phase, which runs until 2025, will include a focus on renewing the line-ups of the group’s key brands, in order to boost profitability. Once those goals are achieved, the ‘revolution’ phase will run from 2025 onwards and switch the firm’s business model to a focus on “tech, energy and mobility”, with an emphasis on electrification and new mobility schemes. The Renault Group says that, under the new plan, it will shift its focus from maximising its market share and sales to profitability, the ability to generate revenue and its investment effectiveness, with the goal of reducing investments in research and capital expenditure and boosting its operating margin by 2025. De Meo noted that half of the Renault Group’s profits came from 5 European countries and that almost half of its line-up was made up of local-market vehicles. He also observed that, in some markets, the Dacia and Renault brands have become too close. The new plan will involve the Renault Group switching from 6 to 10 platforms, with 80 % of its volume built on the new Renault-Nissan-Mitsubishi alliance platforms, and switching from 8 powertrain families to 4. All of the brand’s future models based on existing platforms will be launched within the next 3 years. At present, the firm offers 3 petrol, 1 EV, 1 hybrid and 3 diesel powertrain families, but in the new plan, by 2025 it will focus on one petrol powertrain that can allow hybrids, one electric powertrain, one hydrogen powertrain and one diesel unit, with the diesel for light commercial vehicles (LCVs) only. The company’s focus on profitability rather than volume will involve reducing its manufacturing output from 4 million units in 2019 to 3.1 million by 2025. The 24 models due by 2025 include 6 commercial vehicles, half of which will be electric. There will be 5 new C-segment Renault models, starting with the new Arkana launching later this year and including 2 new electrified models. Renault will also launch 2 new electric B-segment cars in 2023 (like the new Renault 5) and 2025, along with two new D-segment large models in 2023 and 2024. There will also be 3 new B-segment models from other Group Renault brands in 2021 and 2022, with a new C-segment model launched by the group in 2025. Here’s what the Renaulution strategy involves for each of the Renault Group’s 3 key brands. Renault: Under the plan, de Meo wants the Renault brand to become a leader in electrification by 2025, including establishing an ‘electro pole’, likely in northern France, as the group’s key EV manufacturing site. It will also launch a new hydrogen joint venture with American firm Plug Power, with the aim of gaining a 30 % share in the European light commercial fuel cell vehicle market. “Renault will embody modernity to offer solutions in the core of the market”, according to de Meo. “It will push the envelope on EVs and hybrids, tech and services to attract mainstream buyers”. On the hydrogen side, De Meo claims the initial plan is to focus the technology on the light commercial sector in the form of an EV using a fuel cell range extender, which has the “biggest potential” to replace diesel (currently 95 % of the sector) in the mid-term future. “We do not want to put big 90 – 100 kWh batteries in light commercial vehicles. By having a hydrogen range extender we can have a smaller battery and charge it on the move”, he said. By 2025, Renault has pledged that half of its European model launches will be pure-electric vehicles and it has also committed to hybrid powertrains accounting for 35 % of its total sales, with EVs accounting for 30 %. The firm will unveil 7 electric models by 2025, including the production version of the new 5 Prototype. Renault has also pledged to boost its segment mix with a “C-segment offensive” to improve its position in the European market, and to focus on profitable segments in the Latin American and Russian markets. The brand will be given a renewed focus on “embodying modernity and innovation”, even beyond the car industry. Renault is aiming to become a “key player” in technology including “big data” and cyber security, and a major player in the French “circular economy”, which relates to EVs and associated energy services. Alpine: As previously reported, Alpine will be reinvented as the Renault Group’s motorsport and performance arm, with a fully electric vehicle line-up. The sports car sub-brand will encompass the Renault Sport cars and motorsport division, including the Renault Formula 1 team (which has been rebranded Alpine F1). Alpine will have a “100 % electric product plan”, developing EVs built on the Renault-Nissan-Mitsubishi alliance’s CMF-B and CMF-EV platforms. So far, the brand has confirmed plans to launch an electric hot hatchback and a C-segment SUV. It will also co-develop a “next-generation EV sports car” with Lotus, which will serve as the replacement for the current A110. De Meo described the repositioning of the brand: “Alpine will move from a nostalgic position to our tool to play with the motoring avant garde. It will allow us to target the early adopters”. The Alpine F1 team will be “at the heart” of Alpine, which will expand to offer a “global manufacturing footprint” and distribution arm. The Renault Group intends for Alpine to become profitable by 2025. Dacia and Lada: The Renault Group’s budget brands will remain focused on budget models, although they will expand their line-up into the larger C-segment. Dacia will be given a new “super-efficient” business model, under which it will streamline its current line-up by moving from 4 current platforms to 1, and from 18 body types to 11, and increasing the production volume of each unit. De Meo said: “Dacia will stay Dacia, offering accessible products based on affordable and proven technologies”. The 2 brands will then expand their line-up substantially, with 7 new models launched by 2025, including 2 in the C-segment above the current Duster range-topper, like the Bigster Concept and new Lada Riva off-roader. It is not yet clear how many of those models will be Dacia and how many Lada, which focuses on the Russian market. Dacia will also revive some “iconic models” and will boost its CO2 efficiency with an emphasis on LPG and E-Tech hybrid systems. Mobilize: The Renault Group will also launch a new business unit, branded Mobilize, aimed at developing its interests in data, mobility and energy services, including car sharing schemes. The aim is for Mobilize to account for 20 % of group revenues by 2030 and to “allow Renault to go beyond automotive”, according to de Meo. As part of this plan, the group will develop 4 purpose-designed mobility vehicles: 2 for car sharing, 1 for ride hailing and 1 for ‘last-mile’ deliveries. Mobilize will also focus on developing new subscription, leasing and pay-as-you-go businesses, maximising the time a car is used for and boosting residuals. +++
+++ A global shortage of SEMI CONDUCTOR COMPUTER CHIPS continues to disrupt the automotive supply chain, with Toyota and Volkswagen among the latest crop of manufacturers forced to restrict production. Semiconductors (a crucial component for modern infotainment systems, driver aids and various electrical components) are in particularly high demand because of a pandemic-driven surge in demand for consumer electronic devices, including games consoles, laptops and tablets. Honda will pause production at its Civic factory in Swindon next week, due to a lack of the components; the third time in 2 months that the brand’s British production line has been forced to halt by supply bottlenecks. It currently plans to restart production on Friday 22 January. Toyota’s Chinese production lines were hit earlier in the week, while Audi and Volkswagen are reported to have reduced the working hours of nearly 19.000 German workers in light of the shortage. A Volkswagen spokesman told: “So far, we haven’t quantified the full volume impact as we continue to work intensively with our suppliers to minimise shortages. However, we expect the ramifications to continue at least in the first quarter, with potential to recover any lost volume later in the year. Another issue we’re dealing with is the second wave of the Covid-19 pandemic and how it’s affecting not just our manufacturing operations but also the crucially important supply chain. Where employees or supplier staff are shielding or ill, that is of course resulting in pressure on productivity and supply, although of course our main focus is on protecting our own and our suppliers’ staff. Like many UK companies, we made intensive preparations for Brexit, including ensuring a healthy quantity of stock in the country to cover any short-term logistic issues”. Meanwhile, in the US, Ford’s plant in Louisville, Kentucky, was idled earlier this week as the manufacturer was forced to pause production of its Escape (Kuga) and Lincoln Corsair models. Fiat Chrysler Automobiles took similar measures at its factories in Mexico and Brampton, Canada. The problem is being exacerbated by the fact that global car sales are recovering from a dramatic dip as a result of the pandemic in 2020, when semiconductor manufacturers (themselves forced to largely close for several weeks at the same time) ramped up supply to other industries as global lockdowns were eased. Consumer electronics producers are higher-value customers for semiconductor manufacturers as they place higher orders than car manufacturers. The site estimates that a billion smartphones alone are produced each year, compared with fewer than 10 million cars. +++
+++ The planned merger between Fiat Chrysler Automobiles (FCA) and the PSA Group has been officially completed, creating a new industry giant called STELLANTIS . The new company takes its name from the Latin ‘Stello’, meaning ‘to brighten with stars’. Set to produce about 8 million vehicles a year, with promised revenues of over €160 billion, Stellantis will become the 4th largest car firm in the world. Stellantis will combine a total of 14 brands, containing a mix of volume sellers, mostly provided by PSA, and more premium ranges, such as FCA’s Alfa Romeo and Maserati. Some of these brands are more Europe-centric and some are more focused on the US. The full list of brands housed under Stellantis is: Peugeot, Citroen, DS, Opel / Vauxhall, Alfa Romeo, Fiat, Lancia, Maserati, Dodge, Jeep, Chrysler, Ram and Abarth. According to spokespeople from PSA and FCA, the merger will eventually save the companies €3.6 billion through a mixture of synergies and economies of scale. The new umbrella company is owned 50/50 between FCA and PSA, but since PSA’s CEO Carlos Tavares is the leader of Stellantis and the board comprises a majority of PSA members, the French firm is effectively in control. The deal was provisionally struck in October 2019 and formally agreed by shareholders from PSA and FCA 2 weeks ago; it was voted through almost unanimously, with an approval rating of around 99 % by the boards of directors of both firms. The European Commission gave regulatory approval to the merger earlier this month. While Stellantis is now an official company, shares in the firm will not be tradable until January 18, when Stellantis releases common shares to be exchanged in Paris and Milan and floats on the New York Stock Exchange the day after. In addition to the world’s 4th largest car firm, Stellantis is a huge van maker. Traditionally a strength of both PSA and FCA, sales of vans including the Citroën Jumper and Fiat Ducato, were expected to be over 500.000 in the first half of 2020 before the coronavirus pandemic. At the end of last year, PSA announced the launch of electric versions of its Citroen Berlingo, Peugeot Partner and Opel Combo vans for 2021.The other key strength for the new company will be SUVs. Last year PSA revealed plans for a new electrified eVMP platform to underpin its larger vehicles. While PSA has not commented whether the new platform will be used by FCA brands under Stellantis, it is likely that some platform sharing will occur to drive down costs. +++
+++ TOYOTA ’s Gazoo Racing banner is set to buck the electrification trend with the upcoming GR Corolla. Although it has yet to be confirmed and is unlikely to be launched until 2023, Toyota filed a trademark for the GR Corolla name last year. Insiders have told that such a car will “inevitably” be offered alongside the rally homologation special GR Yaris, introduced last year to critical acclaim, and the GR Supra. This would make it the second Japanese manufacturer to skip electrification for a new performance model, with Honda set to retain a high-output turbocharged petrol engine for its next Civic Type R. A hot Corolla would also allow Toyota to leverage its substantial investment in the bespoke chassis and powertrain used in the GR Yaris, which makes use of some platform elements from the Corolla. If that is the intention, expect the 1.6-litre 3-cylinder turbo unit to return with a similar (and reportedly understated) 265 hp claimed output and a 4-wheel drive system with rear-biased torque distribution. Limited-slip differentials on both axles could also be an option. It remains to be seen if such a car would be priced in line with full-on 4WD hot hatch rivals such as the Golf R, given the high-spec version of the GR Yaris already tops €50.000. Another direction Toyota could take, to allow the car to compete on price with cars such as the Ford Focus ST, would be to ditch the rear driven axle and retune the chassis and sophisticated multi-link suspension of the existing Corolla. This would make it slower than its sibling but reduce complexity and boost both profitability and customer affordability. While some car makers are scaling back their combustion-engined performance operations to avoid CO2 fleet average fines, Toyota’s strong hybrid sales mix has enabled it to reduce its average emissions. This, Toyota Europe executive vice-president Matt Harrison previously told, allows it to make more “CO2-heavy” cars that serve the brand by adding desirability and performance credentials. +++
+++ VOLKSWAGEN is set to update its venerable Polo with a series of mid-life revisions for the 2022 model year. The Ford Fiesta rival has been on sale since 2017 and is due a life-extending revamp. It will follow the platform-sharing Seat Ibiza, which is tipped to be facelifted first this year and go on sale in the summer. The Polo, on the other hand, is likely to be revealed in the latter part of the year and won’t land in showrooms until 2022. The facelifted edition take heavy inspiration from the new Golf for its front end, with enlarged air intakes, reshaped headlights and a tweaked grille. All-LED lights feature, too. At the rear, faux twin tailpipes will be reserved for higher-end models. It will feature T-Roc-style light panels encroaching over the bootlid. The 2022 Polo’s interior is yet to be seen, but we can expect some of the design and technology overhaul demonstrated in the Golf to be present. Features such as ambient lighting, a wider array of driver assist systems and the reduction of switchgear in favour of screen and voice-based control are anticipated. It remains to be seen how much the engine range will adapt. Expect the 1.0-litre 3-cylinder turbo petrol unit to continue as the main engine, with both naturally aspirated and turbocharged versions offering different levels of performance. The main change is likely to be the inclusion of a more efficient 48 Volt mild-hybrid eTSI variant. Expect more details of the 2022 Polo to emerge in the coming months prior to its expected unveiling closer to the end of this year. +++
+++ The VOLKSWAGEN GROUP have released their 2020 financial results, detailing the impact of the coronavirus pandemic on global sales. Most recorded a sharp decline, in line with global trends, although the impact was less profound for more premium-oriented marques. Audi: Audi sold more than half a million cars in one quarter for the first time in 2020, delivering 505.583 cars to customers in the final 3 months of the year. Overall, however, the brand was significantly impacted by the pandemic, delivering 1.692.773 units globally for a year-on-year decline of 8.3 %. That was despite record sales in China, Audi’s biggest global market, where it sold 727.358 cars; a 5.4 % year-on-year increase. The brand attributes its strong end-of-year performance to “experience gained during the first wave of coronavirus in spring”, when global sales and production operations were largely shut down in an effort to contain the spread of the disease. Expansion of its digital sales and service offerings has helped compensate for dealerships being closed. Demand for the e-Tron surged 79.5 % in 2020, with the 47.324 examples sold overall making it “the global top-seller among electric vehicles made by German premium manufacturers”, according to Audi. The SUV was recently revealed as a key factor in Norway becoming the first country in the world where the majority of new car sales are of electric cars, accounting for more than 10 % of all new EVs sold in the country. The conventionally powered Q3 also recorded strong growth, with an 18.1% year-on-year sales increase, while the A6 executive car received an 11.8 % increase in demand and Audi Sport models had their best year on record, selling 29.300 units for a 16.1 % year-on-year increase. Audi’s European deliveries declined 19.5 % in 2020, but it said: “In the fourth quarter, an upwards trend was already evident again, despite increasing restrictions resulting from the coronavirus pandemic”. Bentley: In contrast to other Volkswagen Group brands, Bentley sold a record number of cars worldwide in 2020, despite the pandemic. The British luxury marque delivered 11.206 units to customers; 2 % more than in 2019 and the highest figure since it was founded 101 years ago, despite a 5-week factory shutdown in the spring and 9 weeks of running at 50 % normal capacity after that. Bentley attributes the growth to a “comprehensive” redesign of its production line in light of the pandemic, which allowed it to continue operating in accordance with social-distancing protocols. A swift market recovery in China played an important part in the sales increase, as did strong demand for the facelifted Bentayga and new Flying Spur. Cupra and Seat: Strong growth for the Cupra performance brand wasn’t enough to offset significant losses for Seat, with the Spanish brand’s overall sales down 25.6 % in 2020. After selling 574.078 units in 2020 for its best year on record, the firm delivered 427.000 in 2020, with company president Wayne Griffiths attributing the drop to “the paralysis caused by Covid-19 in the spring”. More than a quarter (109.500) of Seat and Cupra sales were in Germany, while 73.300 were in their native Spain (where Seat topped the sales charts for the third year running). The brand saw dramatic sales drops in each of these markets but nearly doubled its sales in Turkey and achieved a new sales record in Israel, which helped to mitigate the overall impact. In its second full year on the market as a standalone brand, Cupra recorded an 11 % sales boost, with its second model, the Leon hot hatch, selling 13.300 units compared with the Ateca’s 10.500. The new Formentor crossover, launched in the final quarter, has already sold 3.600 units. The brand expects a recovery in 2021, but Griffiths cautioned: “We expect the first quarter to be complicated, because of restrictions in the supply of components due to the effects of the pandemic”. New electrified models including the Seat Leon eHybrid and Seat Tarraco PHEV, as well as the Formentor, will be “key” to future growth, Griffiths said. Lamborghini: Lamborghini’s global sales took a 9 % hit as a result of the pandemic, but it managed to set a 6-month sales record in the second half of the year. Some 7.430 Lamborghinis found homes worldwide in 2020, down from a record 8.205 in 2019 as a result of a 70-day production shutdown in the spring. The US market accounted for the most sales, at 2.224 units, while 607 were sold in Germany, 604 in China, Hong Kong and Macau, and 600 in Japan. The Urus claimed well over half the brand’s global sales, with 4.391 examples delivered to customers, while Hurácan sales were up 3 % at 2193 units, and 846 Aventadors were sold. Porsche: Porsche sales were down a relatively low 3 % compared to 2019, when the performance brand recorded its strongest sales on record. Like other Volkswagen Group brands, Porsche was forced to pause production for 6 weeks as the pandemic took hold, but strong demand for the new Taycan helped to minimise the impact. A total of 20.015 electric saloons were delivered throughout the year, nearly equalling the successful 718 Boxster/Cayman sports car, which sold 21.784 units. It was the Cayenne that topped the sales charts, however, with 92.860 units sold, while the 911 accounted for 34.328 sales. Porsche sold 272.162 units worldwide, with a 4 % sales boost across the Asia-Pacific, Africa and Middle East regions helping to offset slumps in Europe and the US. Skoda: Skoda recorded a 19.1 % global sales drop in 2020 but still sold more than 1.000.000 cars for the 7th year in a row. A total of 1.004.800 Skoda models were delivered during the year, despite a 39-day shutdown of the brand’s Czech production facilities during the first wave of the pandemic. Skoda sales were most profoundly impacted in China, its biggest global market, dropping 38.7 % to 173.000 units. Despite the drop, Skoda still sold just over 11.000 more vehicles there than in Germany, its second-biggest market. Like Seat, Skoda recorded strong growth in Turkey (56.3 %), plus it gained in Egypt and Russia, but a 16.5 % drop across Western Europe to 434.500 sales (and similar declines in Central and Eastern Europe) had a significant impact on the global figures. The Octavia was by far the biggest global seller, selling 257.400 units (a 29.2 % year-on-year drop), compared with the second bestselling Karoq’s 137.200 units (a 10.1 % drop). Skoda CEO Thomas Schäfer said: “Delivering over 1 million vehicles worldwide is a great success for Skoda, especially against the backdrop of the corona pandemic and the resulting 5-week production shutdown during the first wave in spring. “I would like to thank the sales team, importers and dealers for this joint effort. An equally big thank you to our colleagues from production, quality management and all other Skodians who fought for every Skoda. The entire team has shown stamina, resilience and real passion in these challenging times. We can now look ahead with confidence: Skoda has many new products in the pipeline, and I have high expectations for them. Nevertheless, we remain vigilant, and we’re keeping a close eye on further developments in the markets”. Volkswagen: Volkswagen sold 15.1 % fewer cars globally in 2020, but it highlighted the strong performance of its new ID 3 electric hatchback as an indication of its recovery prospects. Overall, Volkswagen global sales dropped to 5.328.000 units, compared with 6.279.000 in 2019. The harshest declines were in Western Europe (-23.4 %), South America (-20.2 %) and Asia excluding China and Hong Kong (-19.3 %). Electric and plug-in hybrid models accounted for 12.4 % of the brand’s European deliveries; up from 2.3 % in 2019. The ID 3, launched in September, sold 56.500 units and was the bestselling electric car in Finland, Slovenia and Norway in December. The now-discontinued e-Golf sold 41.300 units in 2020 and the plug-in hybrid Passat GTE sold 24.000. Looking ahead, Volkswagen notes that the ID.4 electric SUV is “right in line with customer trends”, given the success of its conventionally powered Touareg, Tiguan and T-Cross SUVs. +++