Come to CAR Magazine’s news aggregator as we round up the daily stories in the auto industry. Top tip: news summaries are added from the top hour-by-hour
Tuesday 31 May 2011
• Canada will look to sell their 1.7% share in Chrysler to Fiat, but will be biding their time to see what the US goervment obtain for their own share first. (autonews.com)
• Nissan’s St Petersburg, Russia assembly plant will shut down for five days due to lack of engines. The plant, which builds the X-Trail, Murano and Teana midsize saloon models, receives its engines from Japan. Supplies have been affected by the March 11 earthquake, causing a shutdown from 30 May to 3 June 2011 (Automotive News Europe)
• Ford Chairman Bill Ford warns of global gridlock as he visits the UK to celebrate Ford’s centennary of sales and production here. Predicting an increase from the current global parc of 800m vehicles to between two and three billion vehicles worldwide by the middle of this century, Ford believes that increased mass transportation and smarter vehicles able to communicate with other cars and the transport infrastructure will counter increasing congestion (BBC News)
• Hyundai has sold its five millionth vehicle in Europe. The Korean carmaker began selling cars in Europe in 1977, with the Hyundai Pony. It took Hyundai 19 years to sell its first million vehicles, hitting that milestone in 1996. Since then sales growth has come much quicker, with the two million mark passed in 2001, three million in 2005 and the four millionth Hyundai sold in Europe during 2008. The five millionth car sold was an i30 family hatchback. The UK is Hyundai’s second-largest market in Europe after Germany, with a total of 661,328 units sold since 1977 and the most popular model sold in the UK has been the i10, which has sold over 60,000 units since 2008 (Hyundai)
• Toyota has begun a process of decentralising its vehicle development process, with Toyota USA to gain authority to sign-off on development of vehicles for its markets without requiring to seek approval and oversight from Toyota in Japan. The move comes in response to an external report commissioned byToyota commissioned in the wake of the unintended acceleration recall crisis of 2009, and aims to ensure more effective decisionmaking and responsiveness to market conditions (Automotive News)
• Volkswagen is believed to be considering production of its Tiguan compact crossover SUV in North America. The move would make the Tiguan the fourth model to be produced in the region, joining the Passat, Jetta and Beetle. Volkswagen is seeking to triple its US sales volume as part of its plan to become the top-selling global carmaker by 2018 (Reuters)
• It’s the Carlos and Carlos show at the top of Renault, as Carlos Tavares ascends to the role of Chief Operating Officer from his current role leading Nissan’s operations in the Americas. Tavares replaces Patrick Pelata, who resigned in April in the aftermath of the Renault industrial espionage affair. Tavares assumes his duties on July 1, and is succeeded in part by Colin Dodge, who will assume leadership of the Americas division in addition to Europe, Mid-East and Africa on June 13; and in day-to-day operations by Bill Krueger, who was VP for manufacturing in Nissan Americas and becomes vice-chairman for Nissan Americas (Automotive News)
• Sources indicate that GM has shelved plans to release a plug-in hybrid version of its Cadillac SRX crossover SUV. The project was cancelled due to cost and profitability concerns, along with the timeframe for developing and launching the hybrid in the current SRX’s product lifecycle (Reuters)
• SAIC has outlined its plans for the revived MG and Roewe (formerly Rover) brands. Roewe is being kept as a China-only brand selling small saloons, while MG will be an international brand with exports to Europe, Africa and South America. The next new MG to reach the UK after the MG6 will be the MG3 supermini, launched in China earlier in 2011, and then the MG5 family hatchback in 2013. 2014 sees an MG crossover SUV, and a new MG7, using the GM Epsilon II platform shared with the Vauxhall Insignia, new Chevrolet Malibu and Saab 9-5. A sports car is penciled-in for 2016, depending on how MG performs in the UK and Europe (Automotive News Europe)
• CAR online resumes news coverage after the UK Bank Holiday weekend (CAR)
Friday 27 May 2011
• French radio station BFM has reported that Renault sales in France for the month to date are down 35% on 2010 figures. Renaul has refused to comment on the report, which also indicated dealers were offering discounts of up to 40% on certain models to stimulate demand following the end of France’s scrappage scheme (Automotive News Europe)
• Jaguar Land Rover have opened their first assembly plant in India, based at the Tata Motors complex in Pune, near Mumbai. The plant’s first product will be the Land Rover Freelander, assembling kits imported from the UK. Local production will allow JLR to bypass a 100% imported vehicle levy planned by the Indian government (Bloomberg)
• Honda UK has announced its production plant in Swindon will return to regular production levels during September 2011. The plant has been operating at 50% capacity due to parts supply disruption caused by the March 11 earthquake and tsunami in Japan (Honda)
Thursday 26 May 2011
• Ferrari has opened it first Indian dealership, a two-storey showroom in New Delhi. India becomes the 58th market for the Prancing Horse, but despite having no official presence until now, Ferrari already has around 50 clients in the country (Ferrari)
• Fiat has increased its stake in Chrysler, following Chrysler’s repayment of its debt to the US and Canadian governments. In exchange for $1.2bn in cash, Fiat has taken control of a further 16% of Chrysler; later this year Fiat plans to increase its holding in Chrysler to 51% (Fiat)
• Tata Motors, owner of Jaguar and Land Rover, has seen its profits triple. Tata made £1.3bn (after tax) in the last 12 months, up 266% over last year, thanks to £1.1bn made by JLR, a part of the business that barely broke even in the 2009-2010 tax year (BBC)
Wednesday 25 May 2011
• Nissan’s Leaf EV has received a five-star rating in the Euro NCAP crash test programme, matching its earlier ‘top safety buy’ rating from the US Insurance Institute of Highway Safety. The Leaf’s lithium-ion battery pack survived all crash tests intact, and the battery isolation system worked as expected (Nissan)
• Volkswagen CEO Martin Winterkorn said that VW’s newly-opened Chattanooga, Tennessee production plant in the US may be expanded depending on demand for the new Passat, Jetta and Beetle models in the US during 2011/12. The plant’s opening capacity is 150,000 units annually, but could easily be doubled to 300,000 units through expansion of the existing site. Volkswagen plans to significantly raise its share of the US market as part of plans to become the global No.1 carmaker in 2018 (Detroit News)
• 3100 riot police were mobilised to disperse a sit-in strike by 500 employees of Yoosong, the Korean supplier of engine components to Hyundai/Kia and other manufacturers based in Korea. The police moved in with warrants to arrest two union leaders and disperse the striking workers for illegal occupation of the Yoosong plant, after nearly a week of strike action. No major clashes between police and protesters was reported (Yonhap News Agency)
• Fiat CEO Sergio Marchionne hosted a ceremony to mark the repayment of US and Canadian government loans at Chrysler’s Sterling Heights, Detroit plant on Tuesday. The next steps in Fiat’s plans for Chrysler are integration into a single group (Fiat earnings reports will include Chrysler earnings from the second quarter of 2011 in June), planning for an initial public offering of shares and homologation of a new compact car for Chrysler based on Fiat’s small-car architecture, to be launched in the first quarter of 2012 and assembled in the US (Automotive News)
• Carlos Tavares, Nissan executive vice-president for the Americas, is emerging as a likely candidate to become chief operating officer at Renault. The post was vacated in April, following Patrick Pelata’s resignation over the Renault industrial espionage/fraud scandal. Tavares, 52, is Portuguese and worked for 23 years at Renault in engineering and product planning roles before joining Nissan in 2004 as a programme director. A formal announcement on the position may occur next week (Automotive News Europe)
Tuesday 24 May 2011
• Toyota has collaborated with US internet company Salesforce.com and Microsoft to developed a social networking system called ‘Toyota Friend’. The system will allow Toyota vehicles such as the Prius plug-in hybrid, to send automated messages to the vehicle’s owner for servicing reminders, EV charging and other status updates. The messages can be kept private or shared through the Toyota Friend platform, Twitter or Facebook (Detroit News)
• Volkswagen’s US plant in Chattanooga, Tennessee will officially open today. the plant will employ 2000 staff, and begins production of the US market VW Passat. Volkswagen sees the new plant as the cornerstone of its plans to triple US sales to 800000 vehicles by 2018 (Detroit News)
• Toyota’s North American Quality Advisory Panel, a group established by Toyota in the wake of the 2009 unintended acceleration recall crisis, has completed its investigation into the affair. In its report, the advisory panel highlighted overly-centralised decision making, a lack of a clear management structure for managing safety issues, and the potential for Toyota to align itself more closely with regulatory bodies than industry lobby groups (Automotive News)
• Chrysler will repay its US government loans today. Paying off the loans saves Chrysler $300m per year in interest payments and allows Fiat to increase its stake in Chrysler to 46%. Fiat CEO Sergio Marchionne says that Fiat expects to increase its share in Chrysler to 51% by the end of the year. (Bloomberg)
Monday 23 May 2011
• Controversial former vice-chairman of General Motors Bob Lutz has launched his memoir and management book ‘Car Guys vs. Beancounters: The Battle for the Soul of American Business’ in the US. The book focuses on Lutz’s time at GM, where ‘Maximum Bob’ is credited by fans with improving GM’s product design, recognising Holden’s engineering work on low-cost rear-wheel drive vehicles and introducing enthusiast-friendly vehicles such as the Pontiac G8 and Chevrolet Camaro. Critics would counter that moves such as the creation of the Hummer brand, and Lutz’s failure to recognise the importance of alternative fuel vehicles and hybrids earlier in his tenure led in part to GM’s downfall. ‘Car Guys vs. Beancounters’ goes on sale in the UK in July (Automotive News)
• Spyker Cars NV, parent firm of stalled carmaker Saab, has decided against listing its shares on the Stockholm exchange, at its shareholder annual meeting on 20 May. Chairman Victor Muller was confirmed as acting CEO of Saab following Jan Ake Jonsson’s retirement, and a name change to from Spyker to Swedish Automobiles NV was approved. (Bloomberg)
• Hyundai/Kia production has been disrupted due to parts issues, but this time it isn’t due to the Japan earthquake. A strike at supplier Yoosong Enterprise Co, major supplier of piston rings and other engine parts, has caused parts shortages affecting production of the Hyundai Santa Fe, Tucson and Veracruz and the Kia Carnival. Chevrolet and Samsung (Renault) production in Korea may also be affected due to the strike at Yoosong, where workers are staging a sit-in strike on the production line due to a disagreement over wage and shift system changes (Automotive News)
• Rolls-Royce has opened its first showroom in Malaysia. Rolls-Royce’s 18th showroom in the Asia-Pacific region is located in the Petaling Jaya district of Kuala Lumpur (Automotive News Europe)
• Renault has set a target of 100,000 sales a year by 2013 as it returns to India with the Fluence saloon. Renault sold its joint-venture stake in Dacia Logan production to partner Mahindra, which will rebrand the budget saloon as the Mahindra Verito. Renault is relaunching in India with the Fluence and Koleos crossover, assembled from imported kits at the Nissan plant in Chennai. Renault will increase local content as it expands the Renault range in India to a hatchback, another SUV and another saloon. (Bloomberg)
Friday 20 May 2011
• The Japanese Automobile Manufacturers’ Association (JAMA) have announced changes to their working week in order to fit within Japan’s reduced energy output after the March 11 earthquake. Plants will close on Thursday and Friday, and work Saturday and Sunday, taking advantage of off-peak power usage and easing demand on the power grid (BBC News)
• Daimler group is in discussions with Renault over collaboration on EV battery production. The plan would see Renault joining Daimler’s Li-Tec joint venture with chemical firm Evonik. Possible Li-Tec links with NEC, which currently collaborates with Renault partner Nissan on EV batteries are also part of the discussions (Reuters)
• Ford is investing $350m (£216m) to build a transmission plant in Chongqing, China with its joint venture partner Changan Ford Mazda Automotive. The plant will begin production in the fourth quarter of 2013, building six-speed automatic transmissions and with a capacity of 400,000 units annually. The transmission plant will be joined in 2013 by an engine plant with similar annual capacity. Production on the $500m (£308m) engine plant begins later this year, as Ford attempts to raise its current market share in China to match rivals GM and Volkswagen (Automotive News)
• Saab moves closer to restarting its production plant in Trollhattan. Production director Gunnar Brunius confirms progress with supplier payment negotiations as some suppliers agree to restart parts deliveries. Whether Saab reaches the hoped-for restart ‘next week’ this time around remains to be seen (Reuters)
• Chrysler has confirmed the details of its refinancing plan, as reported yesterday. With new private sector financing secured, Chrysler will repay the higher-interest loans from the US and Canadian governments on May 24. (Reuters)
Thursday 19 May 2011
• Citroen is recalling over 20,000 C3 Picasso mini-MPVs after reports that front seat passengers can inadvertantly activate the car’s brakes through pressure on front footwell. Citroen uses a cross-shaft to convert the C3 Picasso’s brakes to RHD from the existing braking mechanism on the left side of the car, and an investigation by BBC consumer rights show Watchdog found that the existing floor covering failed to isolate the braking mechanism from passengers (BBC News)
• General Motors will expand production of its Chevrolet Volt plug-in hybrid hatchback to cater for increased demand. The Detroit-Hamtramck plant will undergo a four-week refit in early June 2011 to expand Volt production. An additional 1000 units will be added in 2011 (16000 units total), with 2012 Volt production expanding to 60000 units, up from the 45000 cars originally planned. (Automotive News)
• US media are reporting that Buick will get a version of Vauxhall’s upcoming Astra GTC three-door hatchback. This would fit with Buick’s current model line, which includes the Regal (Vauxhall Insignia) and upcoming Verano, an Astra-based saloon not sold in Europe. (Automotive News)
• Aston Martin CEO Dr. Ulrich Bez confirms the importance of China and other developing markets for Aston Martin, and talks about the new Cygnet city car in this TV interview (BBC News video)
• BMW board member Susanne Klatten’s investment firm Skion has increased its stake in carbonfibre specialist SGL to 27.3%, with an intention to reach 29% within the next 12 months. The move is perceived as a blocking tactic following VW Group’s purchase of an 8.18% share in SGL during February 2011. BMW is working with SGL on carbonfibre components for its upcoming BMW i vehicles among other projects. (Automotive News Europe)
• Chrysler’s revamped refinancing package appears to have met approval with potential investors, as sources expect Chrysler to announce the final structure of the plan today, and repay US and Canadian government loans early next week (Detroit News)
Wednesday 18 May 2011
• In the Saab news cycle, we are now at the stage where Saab says they are hoping to restart production ‘next week’. ‘Our ambition is to start production some time next week, but it is very hard to make a prognosis’ says production chief Gunnar Brunius as Saab starts negotiating payments with its suppliers. Again. (Automotive News Europe)
• As predicted yesterday, Chrysler has restructured its refinancing proposal after feedback from the finance sector. It will now seek the majority of it $6bn (£1.5bn) funding through bond sales, reducing the level of institutional lending to $2.5bn (£1.5bn)(Financial Times)
• Consulting firm AT Kearney is predicting over 200,000 sales could be lost by faltering Japanese car makers in the US market, following disruption caused by the March 11 earthquake. US and Korean car makers stand to profit from their rivals’ misfortune (BBC News)
• Great news for Porsche fans, sales are up 52.3% to 11,741 vehicles in April 2011. Bad news for purists though: the sales growth is being driven by the Cayenne and Panamera. 911 and Boxster/Cayman sales are down 2.9% and 8.7% respectively on 2010 figures. (Porsche)
Tuesday 17 May 2011
• Toyota Europe have announced that they will be back to regular production levels on June 1, following the resolution of component supply disruption due to the March 11 earthquake in Japan. Toyota’s European sales are down 3% for the first four months of 2010. However April 2011 sales were almost identical to 2010 figures, at 47,314 vehicles, 28 units down on 2010 sales (Automotive News Europe)
• Renault and PSA Peugeot-Citroen posted April sales declines of 13% and 18% respectively, leading a European market down 3.8% compared to April 2010. Volkswagen countered the trend, posting a 3.7% rise in April sales. Phased withdrawal of scrappage incentive schemes across Europe is cited as primary cause for the decline (Bloomberg)
• Hyundai is investing $173m (£107m) in its Montgomery, Alabama engine plant to expand production by 300,000 units annually. Hyundai’s US sales are up 31% for the first four months of 2011, driven primarily by strong sales of the Elantra and Sonata (Reuters)
• Toyota has lost a bid to dismiss lawsuits in the US from customers who claim the unintended acceleration recall problems in the US resulted in economic loss due to falling value of their Toyota vehicles. (Bloomberg)
• Chrysler is reportedly considering adjustments to the structure of its refinancing proposal. The plan involved a combination of private bond sales and loan capital in order to pay back US and Canadian government loans from Chrysler’s bankruptcy reorganisation. Investor feedback is reportedly positive on bond sales, but hesitant on the terms of the loan funding (Automotive News)
Monday 16 May 2011
• The German government has announced it will provide an additional 1bn (£620m) of state research and development aid towards EV projects. Further measures on battery production and charging infrastructure are included in the strategy, which aims to support German development of EVs and 1 million EVs on German roads by 2020 (Bloomberg)
• Spyker Cars N. V has signed a Memorandum of Understanding with Pang Da Automotive for distribution and manufacturing in China. More information in our story ‘Saab announces new China joint venture‘ (Spyker)
• Used car values continue to rise in the US as dealers scramble to secure stocks of near-new vehicles to counter supply shortages due to the March 11 earthquake in Japan, and a rise in fuel prices causing buyers to shift to smaller, more fuel-efficient vehicles (Automotive News)
• Fisker Automotive has raised another £62m in funding following its £93m investment round in March 2011. The firm started contract production of the Fisker Karma plug-in hybrid sports saloon at Valmet Automotive’s plant in Finland during March (Automotive News Europe)
• Nissan CEO Carlos Ghosn says that less than 20 of Nissan’s Japanese component suppliers remain in critical condition following the March 11 earthquake, and that production levels at Nissan should return to pre-quake levels in October (Automotive News Europe)
Friday 13 May 2011
• Volvo has announced a significant rise in first quarter profits, to £62.3m, up from £27.3m in 2010. This is the first quarter of financial results since the company was bought by Zhejiang Geely, and the positive result reflected increased sales volumes in all territories, lead by strong sales of the X60 SUV and other new products (Automotive News)
• The US Alliance of Automobile Manufacturers (AAM), an industry body representing US-based vehicle manufacturers, has asked the Obama administration to disregard a proposal from 18 US senators and environmental groups for a mandated 74mpg (62 US MPG) fuel economy standard in the year 2025. The AAM said that fuel economy standards ‘should not be arbitrary numbers, chosen before the relevant analyses are completed’ (Automotive News)
• Seven of Louis Renault’s grandchildren are seeking redress from the French government over the 1945 nationalisation of Renault. The company was nationalised following its founder’s imprisonment without trial on charges of collaboration with Nazi Germany during the occupation of France. Lawyers representing the Renault family claim that the nationalisation of Renault was the only case of its kind following the end of World War Two, including cases where company executives were found guilty of collaboration after trials. The French Government still retains a 15% stake in Renault. (BBC News)
• With Saab once again failing to secure financing to restart production, it’s that time in the news cycle where Russian banker Vladimir Antonov confirms that he is still eager to invest in Saab, pending approval from relevant parties (Automotive News Europe)
• The US Treasury Department has opted to delay selling further shares in General Motors, in order to increase taxpayer return the company’s improved financial performance (Bloomberg)
Thursday 12 May 2011
• Saab returns to the headlines. The deal with Hawtai Motor Group has reportedly collapsed due to a failure to obtain requires statutory approvals. Chinese SUV manufacturer Great Wall has been mentioned as an alternative, as Saab Chairman Victor Muller seeks another financial partner (Reuters)
• UK pricing for the Renault Twizy EV microcar has been announced. Available in Urban (£6690) or Technic (£7400) spec. That price gets you the Twizy, but the battery is provided on a £40 per month lease on a 36 month/4,800 miles per year agreement. Order reservations (with a £20 deposit required) are being taken at www.renault-ze.com for delivery at the start of 2012. (Renault)
• Nissan has posted a 30.8bn Yen (£233m) profit for its fourth quarter, beating analysts’ estimates and also posting a higher profit that Toyota for the quarter. Nissan estimates it will be back to pre-quake production levels by October (Bloomberg)
• Vehicle production is now South Africa’s largest manufacturing sector, after 4.2bn of in investment iover the last decade by Ford, BMW, toyota and Daimler. the South African new car production grew 26% in 2010 to 472,049 (239465 of which were exported) and the government has set a target of 1 million new vehicles by 2020. However the expansion of automobile manufacturing, supported by government subsidies, has failed to dent South Africa’s unemployment rate, which has risen to 25% in the past year (Bloomberg)
• Following its 77% fall in fourth quarter profits, Toyota has accelerated efforts to restore production levels in the US market. Toyota now claims that it will restore production at its US plants to 70% of pre-quake levels by the end of June, three months sooner than originally predicted (Automotive News)
• Suzuki has suffered an 81% drop in its fourth quarter profits from 13.42bn yen to 2.57bn yen as it struggles to recover from the effects of the March 11 earthquake. (Automotive News) Hyundai plans a radical expansion of its sales network and additions to its product line in India in order to combat market share losses to Ford and VW Group. Although Hyundai sales grew 14% in India in 2010, the overall market grew by 30% and Hyundai’s overall market share slipped from 21% to 18%. Hyundai will be seeking sales opportunities in rural India with up to 1000 new dealerships outside urban centres envisaged. (Bloomberg)
• Saab’s attempts to reorganise its finances to the satisfaction of government stakeholders continue, as the Swedish National Debt Office (NDO) raises further questions about Hawtai Motor Group and Gemini Investment Fund. Daniel Barr, project leader for the Saab case at the NDO, says, ‘We have asked Saab questions about the new owners which we have not yet received answers to… How long [approval of the recovery plan] takes depends on when we get a response, the quality of the answers and how many follow-up questions the responses may raise” (Reuters)
• The United Auto Workers (UAW) union is confident that Chrysler will be expanding its workforce to cover extra demand for its vehicles in 2011. UAW Vice-President General Holiefield (yes his first name is General) believes Chrysler will add shifts to its US plants meaning up to 3000 new jobs at the recovering US carmaker (Bloomberg)
Wednesday 11 May 2011
• Japanese microchip manufacturer Renesas, supplier of 41% of the automotive industry’s microcontroller chips, has accelerated the re-opening of its earthquake-damaged Naka Plant to 1 June, with overall output returning to pre-quake levels by the end of July thanks to production at Naka and other Renesas plants (Automotive News)
• Toyota’s profits for its fourth quarter have dropped 77%, from 105bn Yen (£793m) to 24.5bn Yen (£185m), due primarily to disruption caused by the March 11 earthquake in Japan (Bloomberg)
General Motors will invest £1.2bn in upgrading 17 of its US production plant in the next three years, to cater for sales growth and introduction of new models. The investment should result in the creation or preservation of 4000 jobs (Automotive News)
• Subaru has a new president. Yasuyuki Yoshinaga, 57, is current executive vice-president of Subaru parent company Fuji Heavy Industries and has a background in sales and marketing. Yoshinaga will also become chief operating officer of Subaru. Current president Ikuo Mori will become Subaru’s chairman and CEO (Automotive News)
• Fiat Auto has outlined a plan to rapidly increase its stake in Chrysler to 70% by buying the US treasury’s remaining share in the US carmaker within the 12 months following repayment of the US and Canadian government loans. The plan was mentioned in a statutory report to the US Securities and Exchange Commission (SEC) and relies on private financing and investment from Chrysler’s post-bankruptcy initial public offering of shares, planned for late-2011 or 2012 (Bloomberg)
• In other Chrysler news, April global sales are up 20% on 2010 to 160,380 vehicles, due largely to increases in Canada (16%) and Mexico (18%) (Bloomberg)
• Saab Chairman Victor Muller says Chinese manufacturers could be selling cars in the US and Europe via established dealer networks such as Saab, including Saab partner Hawtai Motors. As for Saab’s plant re-opening? ‘Next week’ says the report. Again (Automotive News)
Tuesday 10 May 2011
• Former GM CEO Robert ‘Bob’ Stempel has died on Saturday in Florida, age 77. Stempel was the first engineer to lead General Motors as CEO from 1990 to 1992, following management of Oldsmobile, Chevrolet and Opel. Stempel approved the development of the EV1 electric car during his time as GM CEO, and became chairman of Energy Conversion Devices, a company making nickel-metal hydride batteries and solar panels. RIP (Automotive News)
• Chinese car and battery manufacturer BYD has been approved to sell shares on the Shenzhen stock exchange. BYD is currently listed in Hong Kong, and is planning to issue up to 79m shares on the Shenzhen market, to boost investment in automotive projects (Bloomberg)
• The NHTSA has upgraded an investigation into electric power steering failures on 2004-2005 Minis sold in the US. 60,000 cars are involved in the investigation, following receipt of 415 complaints and 5 minor accidents believed to have been caused by a loss of power assistance in the Mini’s steering system. The outcome of the investigation wlll determine if a recall is required (Reuters)
• With Chrysler’s first quarter 2011 profit and projected annual profits larger than Fiat Auto’s figures, the consolidation of the US manufacturer’s finances with Fiat’s in the second half of 2011 would enable Fiat to make its projected profit targets (Automotive News)
• Hertz, the world’s largest rental car company, is fighting with Avis-Budget to buy Dollar-Thrifty, the fourth largest rental car group. The US-based firms would require federal approval for the purchase, which would further consolidate an industry where the top four companies control 81% of the US market. (Bloomberg)
• BMW’s strong sales performance will require additional staff. CEO Norbert Reithofer says that BMW will hire up to 2000 more staff across the company than originally expected in 2011, with half of the new employees working outside Germany (Reuters)
• Japanese electricity supply to industry has been affected by the closure of another nuclear power plant. Regulators have asked Chubu Electric Power to shutdown its Hamaoka power plant in central Japan due to high risk of possible damage in the event of an earthquake. Alternative power sources are being provided, but the Hamaoka power plant includes 9 Toyota factories, 4 Suzuki plants, Mitsubishi and Honda factories among its existing customers (Automotive News)
• BMW UK has opened ‘BMW Direct’ on ebay UK. The online store will offer BMW parts, accessories and merchandise direct to the public. BMW UK will manage the e-commerce store front, and orders will be processed through the BMW Park Lane dealership, with free postage and packaging (BMW)
Monday 9 May 2011
• The ‘Phoenix Four’ (Peter Beale, John Towers, Nick Stephenson and John Edwards) who were directors of MG Rover when it collapsed in April 2005, have been disqualified from acting as company directors. The term of disqualification varies for each director: Beale is disqualified for six years, Towers and Stephenson for five years, and Edwards for three years (Department for Business, Information and Skills)
• Japan’s Nikkei business newspaper is reporting that Toyota will make plug-in hybrid technology standard on the Prius by 2014. The plug-in Prius goes on general sale in 2012, following existing pilot lease and fleet programmes (Automotive News Europe)
• Jaguar Land Rover is in talks with government representatives over potential support to locate its planned £750m engine plant in the UK. Two sites in the UK and one in India are shortlisted for the new factory. (Sunday Telegraph)
• US senators from Michigan have raised concerns that conditions surrounding Chinese government subsidies for hybrid and electric vehicles may be prejudicial against exports of the Chevrolet Volt plug-in hybrid to China. Conditions in China’s New Energy Vehicle development plan offer subsidies for the sale of alternative fuel vehicles, but include requirements for local production, joint venture collaboration and technology transfer that the lawmakers described as discriminatory. The two nations enter their annual national strategic and economic dialogue meetings in Washington DC this week (Detroit News)
• Toyota insists it will continue to build the majority of its vehicles in Japan in spite of disruption caused by the March 11 earthquake and tsunami. Toyota produces 60% of its annual production in Japan, with half of its domestic output exported. In contrast Nissan produces 30% of its vehicles in Japan, and Honda produces 25% (Automotive News)
• The US National Highway Transport Safety Administration (NHTSA) has expanded an investigation into the 1997-2001 Ford F150 pickup truck, due to complaints over corrosion and failure of fuel tank mounting straps on the vehicles. The NHTSA has upgraded its investigation to further determine the severity and scope of the problem, before deciding on whether a recall is required. A recall could affect 2.7 million vehicles (Detroit News)
• Two-thirds of UK towns with populations over 150,000 currently lack EV charging infrastructure. The Department of Transport has set a goal of installing 9,000 charging points by 2013, but only 704 have been installed to date. (BBC News)
Friday 6 May 2011
• The SMMT has released UK new car registration figures for April 2011. 137,746 vehicles were registered in the month, down 7.4% on April 2010. Although fleet and business sales rose 6.5% and 12.2% respectively, private sales dropped 23.5%, returning to levels prior to the introduction of the car scrappage incentive scheme. (SMMT)
• Jaguar has announced its intention to launch a new hybrid supercar, based on the 2010 Jaguar C-X75 concept. For the full story read CAR’s report (CAR)
• China’s Commerce Ministry has claimed that several importers of US-built cars, including Chrysler, GM, BMW and Mercedes-Benz, receive an unfair competitive advantage due to US federal and state subsidies (Reuters)
• General Motors has set a first quarter 2011 profit of £1.95bn, its fifth successive profitable quarter after bankruptcy reorganisation in 2009. Increased sales in China, improved profitability in Europe and a product line better-suited to rising fuel prices in the US were cited as key factors in the financial performance (Automotive News)
• The German government is considering tax incentives to encourage use of electric vehicles (Reuters)
Thursday 5 May 2011
• Tesla posted a net loss of £29.6m for the first quarter of 2011, up from £17.8m in the same period in 2010, but lower than analysts expected. Revenue for the quarter doubled to £18m, due to improved sales of the Tesla Roadster and EV battery packs to Toyota and Daimler, but ongoing development costs for the Model S saloon mean that a profit is not projected for several years (Bloomberg)
• As speculated yesterday, GM will invest in its Bowling Green, Kentucky plant ahead of production of the next-generation C7 Corvette. £79m will be invested overall, and 250 new jobs added to the plant. Current year-to-date sales of the C6 Corvette are up 22% in 2011, at 4293 vehicles. (Automotive News)
• GM has announced a recall of 154,112 Chevrolet Cruze cars sold in the US, to check that intermediate steering shaft covers and automatic transmission shift linkages are correctly installed. there have been no reported incidents or complaints to the NHTSA safety agency to provoke the move (Detroit News)
Fiat CEO Sergio Marchionne has won concessions from labour unions at the Grugliasco plant, guaranteeing a £450m investment by Fiat at the former Bertone factory to produce a new Maserati saloon in 2012. The plant, which has 1100 staff, has been idle since Fiat acquired it in 2009 from the bankrupt manufacturing arm of Bertone group (Bloomberg)
• BMW has posted record first quarter earnings for 2011, and operating profit margin rose to 11.9%, versus 2.7% for the same period in 2010. Quarterly net income nearly quadrupled to £1.1bn, driven primarily by sales of 5-series and X3 (Bloomberg)
• Renault is cutting 520 jobs and reducing production shifts at its Novo Mesto, Slovenia plant due to shortages of electronic components supplied from the tsunami-affected zone in Japan. The plant produces the Renault Twingo and Clio, and is scheduled to produce the new four-seater Smart model and new Twingo replacement in cooperation with Daimler group in 2012 (Automotive News Europe)
Wednesday 4 May 2011
• Chrysler has earned credit ratings from Standard & Poors (B+) and Moody’s (B2) following its first profitable quarter in 2011. The ratings, lower than those for domestic rivals Ford and General Motors and still considered non-investment grade or ‘junk bond’ level, are another sign of progress towards financial recovery and public re-listing of shares following Chrysler’s 2009 bankruptcy reorganisation (Detroit News)
• General Motors North American president Mark Reuss is expected to announce a £61m upgrade to the Corvette plant in Bowling Green, Kentucky when he visits today. The next generation C7 Corvette is expected to debut in late 2012 as a 2013 model (Detroit News)
• Saab is planning a global public relations tour led by Chairman and acting CEO Victor Muller and including representatives of new partner Hawtai Motors and investor Vladimir Antonov. Once final approval for its Hawtai collaboration and investment deals with Antonov are confirmed, Saab intends to begin the PR campaign, aimed at countering the negative press caused by its financing crisis which idled production last month (Automotive News Europe)
• General Motors is poised to retake the global no.1 position in vehicle sales from Toyota. New and improved products for current market conditions in the US and a strong presence in China are two of the main reasons that GM is stronger following its 2009 bankruptcy reorganisation, while Toyota has declined due to adverse publicity from vehicle recalls, production disruption from the March 11 earthquake in Japan and a relatively weak performance in China. Volkswagen Group plans to beat both GM and Toyota to global sales leadership by 2018 (Bloomberg)
• New car sales in France dropped 11.2% in April, due mainly to the end of France’s scrappage scheme. Light utility vehicle sales dipped 6% in the same period. However, overall sales in France for the first four months of 2011 are up 4% for cars, and 4.6% for light utility vehicles. (Reuters)
• New York City has selected the Nissan NV200 van as its Taxi of Tomorrow, beating submissions from Ford and Turkish firm Karsan. Critics of the deal cite the NV200’s lack of standard accessibility for disabled passengers and the vehicle’s production in Mexico as shortcomings of the decision. CAR would add the NV200’s unfortunate aesthetics to the list of grumbles following the selection of the next generation of taxi for the city (New York Times)
• Thanks to readers Sam the Eagle and AReader for submitting earlier comments on GM’s sales performance and the NYC taxi selection process (CAR)
Tuesday 3 May 2011
• Further details have emerged on Saab’s collaboration agreement with Hawtai Motor Group. Hawtai has signed an agreement to invest £135m in Saab, £117m will go towards a maximum 29.9% equity stake in Saab parent Spyker Cars N.V and the remaining £18m will in the form of a six-month loan. Hawtai-Saab collaboration will involve manufacturing, technology and distribution (Automotive News)
• US new car sales are predicted to remain high in April before dipping due to the after-effects of the March 11 earthquake. Sales in the US had been trending towards a projected annual total of over 13 million vehicles, up from the 11.6 million vehicles sold in 2010 (Bloomberg)
• Honda has warned its US dealer network to expect constraints on the numbers of Fit, CR-Z, Insight and Civic Hybrid available to order until later in 2011 due to ongoing production disruption caused by the March 11 earthquake in Japan. The planned autumn 2011 launch of the redesigned CRV crossover SUV has also been delayed at least one month. (Automotive News)
• Analysts estimate that Toyota and Nissan will forecast half-yearly losses for the first time since the 2009 financial crisis, due to production disruption caused by the March 11 earthquake and tsunami (Bloomberg)
• Saab is to announce a strategic partnership with China’s Hawtai Motor Group today. Hawtai, based in Rongcheng, Shndong Province, produces SUVs based on the previous-generation Hyundai Santa Fe and Hyundai Terracan, and launched the B11 saloon at the 2011 Shanghai motor show. Saab also secured a six-month loan of €30milion from Gemini Investment Fund in order to solve short-term cashflow issues and hopes to restart its idle production line in Trollhattan within a week (Automotive News)
• Chrysler has posted a $119m net profit in the first quarter of 2011, its first quarterly profit since 2006. The firm posted a $197m net loss in the first quarter of 2010. (Detroit News)