News

2020-02-25

Opel Bets on Russia

This article initially appeared in the February 2020 issue of PowerTALK News.

Opel is back in Russia, and the company appears to be betting the Russian market can provide a significant opportunity for business diversification.

Maxim Sakov
Maxim Sakov

In 2019, company sales declined as the business was reorganized, and Opel cut its model portfolio.

According to reports, 96% of Opel sales are concentrated in Europe. This fact has determined a focus point for sales increase. In 2022, Opel expects to be in 20 new export markets. After 20 years of financial losses, the very first year within the Peugeot SA structure was quite profitable for Opel (plus 859 million Euro for 2018).

Meanwhile, the Russian PSA plant in Kaluga has begun final preparations for production of Zafira Life and Vivaro minivans.    

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PSR Analysis: It appears that Opel has decided to start with minivans in the Russian market, and it is targeting the LCV niche where the chances for success are better than in passenger cars. While individual consumer demand is declining for LCVs, the companies making the vehicles locally can receive State and municipal orders for vehicles.

Last year, the State placed big orders for ambulances and school buses, sharing the orders between the GAZ Group and other local OEMs. At the same time, new models of passenger cars produced abroad, like Opel Crossland X, did not post good sales in the Russian market. PSR

Maxim Sakov is a Market Consultant in Russia for Power Systems Research

Dieselzipservice Starts Producing M401D Engines

This article initially appeared in the February 2020 issue of PowerTALK News.

Dieselzipservice has started mass production of the M400D and M401D marine diesel engines it has developed. These propulsion engines are installed on hydrofoil ships and speedboats for river and sea use.

Maxim Sakov
Maxim Sakov

The tech features provides increased power with reduced fuel consumption and improved ecological performance.    

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PSR Analysis: The group of companies identified as Dieselzipservice is an engine marinizer and marine engine repair company. Marine propulsion engine production is a new business for the company. Still, it has a good chance for success because this market niche in Russian has a lot of room for newcomers. Top world players, like Volvo, Mercury, MTU and others have limited their presence in the market with Western sanctions, the local product is still undeveloped, and engines from China often are reliable. PSR

Maxim Sakov is a Market Consultant in the Russian operation of Power Systems Research.

New India Budget Disappoints Auto Industry

This article initially appeared in the February 2020 issue of PowerTALK News.

Source: Business Today   Read The Article

Ritvik Kulkarni
Ritvik Kulkarni

PSR Analysis: The Indian Automotive Industry was largely left disappointed with the budget after no direct steps were taken to arrest the decline in automotive sales. Although keeping long term benefits in mind, the budget did introduce measures to boost the rural economy, which in turn will directly benefit the commercial vehicle industry which is an important driver for the economy.

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Auto Expo 2020 Misses Majors But Shows Many New Products

This article initially appeared in the February 2020 issue of PowerTALK News.

Ritvik Kulkarni
Ritvik Kulkarni

The 15th edition of the biennial Auto Expo 2020 in New Delhi posted a record turnout of visitors. Despite missing out on mega launches and lukewarm participation by many OEMs, and absentees like Honda, Toyota, Fiat-Chrysler, Ford, Nissan, Audi, Hero Moto Corp, TVS Motors, Bajaj Auto and Royal Enfield the auto show presented many futuristic concepts and cleaner vehicles.

Source: ET Auto.com  Read The Article

PSR Analysis: With the entire country gearing up for the imminent transition to cleaner emission norms in BS6, and the uncertainty over the recovery of a bad 2019, it was impressive that the Auto Expo 2020 registered a record attendance.

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Colombia 2019 Car Sales Increase

This article initially appeared in the February 2020 issue of PowerTALK News.

Fabio Ferraresi
Fabio Ferraresi

Despite the poor performance of auto sales in Latin America countries such as Mexico and Argentina, Colombia keep growing sales of cars as Brazil, with 2.7% growth with 263,700 units in 2019. Colombia also leads in EV/HEV sales gains. The forecast for 2020 is that sales will continue growing at the same rate.

Source: Andemos     Read The Article

PSR Analysis:  Pent up demand for vehicles coupled with a strong economy is expected to keep the car market in Colombia growing. The currency devaluation in 2019 affected the market, since a significant portion of vehicles are imported or assembled in Colombia under the CKD model. It is an important time for exports from Brazil, that went through currency devaluation as well and for local producers such as GM Colmotores and Hino.   PSR

CASE IH Posts Record Sales for Sugar Cane Harvesters in South America

Fabio Ferraresi
Fabio Ferraresi

CASE IH celebrates positive results in 2019 with 649 sugar cane harvesters sold in Brazil in 2019 being 50% made by CASE. Case points the share growth to the improvements made at the model A8000 that can make up to 15% on operational cost savings and robustness for those machines that operates over 4,000 hours per year.

Source: M&T     Read The Article

PSR Analysis: Agricultural business remains strong. Despite lower sales of small tractors dedicated to small business due to lower credit, heavy production equipment sales remain strong because of record production of grains and other agricultural products. PSR

2020-02-04

Near Term Recession Fears Recede in North America

SUMMARY.  The North American economy remained stable in 2019 and pure economic conditions as well as fundamentals in the region were favorable. Most industries performed very well, and the short-term outlook remains stable to flat for most market segments. However, we see many new developments that could suggest a shift in the trend.

Yosyf Sheremeta
Yosyf Sheremeta

Consumer confidence declined slightly in December, following a moderate increase in November.  The Conference Board’s Consumer Confidence Index stood at 126.5 in December, 1.4 points higher than in September 2019. 

Per Lynn Franco, Senior Director of Economic Indicators at The Conference Board: “While consumers’ assessment of current conditions improved, their expectations declined, driven primarily by a softening in their short-term outlook regarding jobs and financial prospects. While the economy hasn’t shown signs of further weakening, there is little to suggest that growth, and in particular consumer spending, will gain momentum in early 2020.”

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2020-02-03

Boot 2020 Wraps Up Successful Boat Show

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Natasa Mulahalilovic is PSR MarineLink Product Manager

Emiliano Marzoli is Senior Business Development Manager – Europe

Dalibor Sablic is Senior Business Development Manager – Europe

SUMMARY: The general mood at Boot 2020 this year was very positive. Most builders said they had a very successful nautical 2018/2019 year, and most said they are looking forward to a good year in 2020. The show drew 240,000 visitors who had an opportunity to meet 1,900 exhibitors from 71 countries.

The Sailing boats segment is coming back on track, motorboats of all sizes are doing well, the super yachts segment remains strong, and inflatable boats and tenders have gained in popularity.  The optimistic view for 2020 is based on good year-end results, continuous investments in new technologies, materials, equipment, design and exciting new boat concepts.

Natasa Mulahalilovic
Natasa Mulahalilovic

Modern designs, completely new looks, use of light and solid material, work on multi-functionality and openness of the boats is visible everywhere and in all segments.  Boats are open more than ever, providing more space and light, and bringing riders closer to the water.

The environmental awareness is growing, and a new generation of boaters is looking for cleaner solutions, not just comfort. That’s why the sailing segment is gaining ground, electric boats are appealing to the general curiosity, and small and medium motorboats are more attractive than in last 10 years when the trend was towards bigger motor yachts and super yachts.

17 Halls of Boats, Boats and More Boats

Duesseldorf, Germany–The Power Systems Research (PSR) team spent several days exploring the 17 halls at this year’s Boot 2020 Show, reviewing products and talking with pleasure boat builders, traders and other industry professionals about the latest achievements, innovations and trends.

The 51st edition of Boot 2020, Europe’s largest boat show, wrapped up January 26, after drawing attendance of 240,000 for the nine-day event. People came mainly from Europe, but they came from all over the world, as well.  

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2019-12-20

TUPY Acquires Teksid from Fiat Group for €210 million

SOURCE Tupy S.A. Read The Article

Tupy S.A., a Brazilian-based manufacturer of engineered cast iron structural components, today said it has agreed to acquire FCA’s global cast iron automotive components business, which is operated through FCA’s subsidiary Teksid S.p.A.

PSR Analysis: With the acquisition of the Italian cast iron foundry, the Brazilian company will have almost 10% of the global sales in the segment with a combined revenue in the range of 7 billion Reais (approximately $ 1.8 billion USD. PSR

Tupy says this deal will expand its presence in key segments of the global capital goods industry and will expand its potential for growth in machining and engineering services.

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