Industry News
News for 19th May 2008
Lotus acquires chassis supplier Holden Lightweight Structures
Group Lotus plc announced on 15th May the creation of Lotus Lightweight Structures, following its acquisition of Holden Lightweight Structures Ltd. Lotus Lightweight Structures, which employs 120 skilled engineers, technicians and sales staff, will be based at the former Holden Lightweight Structures Limited site in Worcester, UK and will continue to manufacture light weight aluminium and composite structures and components for its client base as well as supplying Lotus.
Lotus Lightweight Structures will continue to assemble the Lotus Elise, Exige and Europa aluminium chassis as well as the all new chassis for the forthcoming Lotus Project Eagle car to be launched at the British International Motor Show.
Mike Kimberley, Chief Executive of Group Lotus plc, said, “With this facility, we will continue to expand and lead the world in lightweight vehicle research, development and production to help our global client base find ways to reduce the weight and cost from their vehicles. Weight reduction is one of the most attainable ways to lowering CO2 emissions in vehicles today, as well as improving fuel economy and performance, and we have a duty to share our technology with the world’s car makers for everyone’s long term benefit.”
Kimberley confirmed that the Worcester facility and team would not substitute for any of the operations in Norfolk.
Delphi sues Appaloosa Management L.P. and other plan investors
Delphi Corp. filed complaints last week against Appaloosa Management L.P. and eight other plan investors and related parties who on April 4, 2008 refused to honour their equity financing commitment of up to $2.55 billion and refused to participate in the closing that would have led to Delphi's successful emergence from Chapter 11 last month.
"We believe that the plan investors breached their obligations under the Equity Purchase and Commitment Agreement ("EPCA") that was the financial foundation for our Court-approved plan of reorganization," said David Sherbin, Delphi vice president, general counsel and chief compliance officer. "The plan investors vigorously pursued a prominent role in our restructuring, received over $60 million in fees for their commitments and positioned themselves to reap substantial profits after consummation of the Plan," Sherbin added. Delphi's court filing alleges that the plan investors schemed to avoid their obligations rather than fulfill them.
Defendants named in the complaints are:
- Appaloosa Management L.P.;
- A-D Acquisition Holdings, LLC;
- Harbinger Del-Auto Investment Company, Ltd.;
- Pardus DPH Holding LLC;
- Merrill Lynch, Pierce, Fenner & Smith Incorporated;
- Goldman Sachs & Co.;
- Harbinger Capital Partners Master Fund I, Ltd.;
- Pardus Special Opportunities Master Fund L.P.; and
- UBS Securities LLC.
Delphi asserts claims for breach of contract and fraud, and asks the bankruptcy court to enter a judgment of specific performance requiring the plan investors to provide equity funding in an amount up to $2.55 billion pursuant to the EPCA and to pay compensatory and punitive damages in an amount to be determined at trial.
Commissioner Verheugen advocates concessions to manufacturers on CO2 limits
The European Commissioner for Enterprise and Industry Günter Verheugen has told the German financial paper Handelsblatt that the European automobile industry is unlikely to meet the Commission’s target of reducing new car CO2 emissions to an average of 120g/km by 2012.
He said that while supporting the Commission objective, the “industry will [only], in my opinion, be able to meet the target without great difficulty from 2015. Even the Commission knows that
not all new cars will meet these standards by 2012”. Verheugen added that “There are already calls from the Parliament to extend the deadline to 2015. The Commission has to get it into its
head that we have to reach a sensible compromise.”
Draft opinions from the European Parliament’s Industry Committee and the Transport Committee, as well as the report by lead rapporteur Guido Sacconi MEP. are being translated and will be published shortly.
(http://euobserver.com/9/26123)
MEPs propose 1st October 2013 as start date for Euro V1 emissions limits
European Parliament's Transport Committee adopted an opinion on Euro VI noxious emissions limits for heavy vehicles. The Committee proposed 1st October 2013 as the implementation date for Euro V1 for newly registered vehicles, whereas the European Commission had proposed April 2013 as the implementation date for new vehicle types and 2014 for all new registrations. The lead European Parliament committee concerned with the legislation is expected to adopt a report on the subject on 15th July. (Source: European
(www.europarl.europa.eu/activities/committees/homeCom.do?language=EN&body=TRAN)
First-quarter UK used car sales were down 0.45% - SMMT
Figures released by the SMMT show that first quarter 2008 sales of used cars and light commercial vehicles were down only marginally on the same period of 2007, at -1.1% and -0.5% respectively. Used car sales in January-March this year totalled 197,965.
Used truck transactions (over 3.5 tonnes) were up 12.5% for the first three months of 2008, following a similar trend of new truck registrations announced earlier in the month. Buses and coaches fared less well in the used market – down almost 29% for the same period.
- the auctioneer BCA’s sales data for April shows that average used car values moved very little in the month. Across the board, April values averaged £5,406 - virtually unchanged from March, which recorded an average of £5,400 - on stock that was of a similar age and mileage profile. However, performance against guide values slipped as CAP valued the same basket of stock £120 higher on average, which resulted in a reduction in CAP percentage from 95.4% to 93.5% (down 1.9 points).
ACEA: April new car registrations rose 9.6% in EU27 + EFTA to 1.42m
In April, most European countries benefited from 2-3 additional working days compared with last year, which helped most national markets to post growth in new car registrations despite the US financial crisis and further increases in fuel prices. The ACEA reported that car demand in the EU27+EFTA rose by 9.6% compared with last year. In total, 1,420,944 vehicles were registered over the month. Expressed in cumulative figures, European markets were stable from January to April (+1.0%).
Registrations in Western Europe were up 9.6% in April and stable (+0.1%) over the first four months of the year. With 198,558 units, France recorded 15% higher registrations thanks to two more business days. Adjusted for working days, the rise was 4.6%, in line with the 4.8% growth observed from January to April compared with the same period last year. The German market is recovering from a weak performance in 2007, posting a 20% increase compared to the same month last year. Registrations of 317,960 new cars were supported by an improving labour market and recovering consumer confidence.
In the first four months of the year, new registrations of cars rose by 7.3% to 1,053,874 units. In Italy, the downturn trendin new-car demand continued with a decrease of 2.9% compared to 2007 volumes. Adjusted for working days, the deceleration was 12%. However, Italy remains the second largest market in Europe and its April results were in line with the monthly average of the last five years. Year-to-date figures show an 8.2% contraction of the market, or 867,207 new cars registered in the first four months of the year.
The Spanish market posted growth of 1.5% in April. Forecasts, however, have remained unchanged, predicting an overall fall from 7% to 9% in the number of new registrations in 2008. From January to April, 471,303 cars were registered, 11.5% fewer than for the same period last year.
The new EU member states recorded a similar rise in April (+11.3%) as noted in Western Europe but also an increase (+13.1%) in demand over the first four months of the year. Poland improved its April figure by 13.8% and its cumulative results by 15.8%, being the only national market among the new EU member states to have registered over 100,000 vehicles from January to April. It is closely followed by Romania with 96,971 new cars.
Some manufacturers posted significantly increased registrations compared to the same period a year earlier. Smart was up 55.9%, Dacia up 35.4%, BMW up 26.0%, Nissan up 19.5%, Mercedes up 19.3%, Volkswagen up 12.6%, and Ford up 10.4%
Shares in the year-to-date market mirrored the increases seen in April, with Volkswagen up 3.2%, Fiat up 5.2%, Mercedes up 5.5%, and BMW up 11.7%.
The Volkswagen Golf reclaimed its place as Europe’s top-selling new car in April with 45,785 units registered, ahead of the Peugeot 207 with 42,207 units, the Renault Clio (34,286 units), Opel/Vauxhall Corsa (34,225 units), Ford Focus (34,076 units), Opel/Vauxhall Astra (32,687 units), Fiat Punto (30,307 units), Ford Fiesta (26,902 units), VW Polo (26,205 units), and the VW Passat (25,078). In the year to date, the Golf continued to outsell all other models in Europe (up 23.3% YtD), followed by the 207 (up 7.3% YtD), Focus, Corsa, Astra, Clio, Fiesta, Punto, Polo (up 3.6% YtD) and Passat.
(www.jato.com, www.acea.be)
Morgan LIFECar to debut at The Co-operative Insurance Eden Project Sexy Green Car Show
Based upon the design of Morgan’s Aero-8 roadster, the LIFECar fuel cell roadster to be featured among exhibits at the Eden Project’s forthcoming car show was the brainchild of Morgan and Hugo Spowers of RiverSimple, a specialist company investigating new ideas in environmentally sound transport.
Morgan and Spowers say it has an energy consumption equivalent to 150 mpg on petrol, can reach 0-60 mph in just seven seconds, and offers a top speed of up to 85 mph and an average range of 250 miles.
The LIFECar’s bank of ultra capacitors can absorb and release energy more efficiently and quickly than batteries - up to half the energy used in brakint can then be re-used to accelerate and the fuel cell can have a low power outpu without affecting acceleration.
Spowers said: “This has been a wonderful project to be involved with. The lessons we have learned from developing this car are proving extremely useful to RiverSimple in the development of our next project - an urban car which will revolutionise the efficiency and cleanliness of the way we travel in towns around the world and will take us a major step towards sustainable solutions which suit us - the traveller – and bring benefit to our atmosphere.”
Spowers will be speaking at The Co-operative Insurance Eden Sexy Green Car Show about the future of travel and how alternatives to fossil fuels do not mean the end of our love affair with the car.
Built in Malvern, Worcestershire, the LIFECar has been co-created by a partnership of UK-based companies and universities with funding from the Department for Business Enterprise & Regulatory Reform (BERR). Spowers co-ordinated the design concept and integration, with the involvement of Morgan, Cranfield University in producing system simulation and powertain control, Linde for the refuelling system, QinetiQ for the manufacture of the fuel cell system, and the University of Oxford for the electric motors and power electronics.
EURO Car Parts joins ATR international buying and marketing group
the aftermarket parts distributor Euro Car Parts has become a member of the ATR International parts buying and marketing group, a consortium of companies from across Europe, formed in 1999. ECP is also planning to expand, with five new branches this year. Sites earmarked for locations include Stoke, Stockport, Brighton and Ipswich. Plans are currently being developed to build two or three distribution warehouses in England to supply local ECP branches more quickly.
(Aftermarket magazine)
Kwik-Fit Insurance agrees deal with SSP to deliver online certificates
Kwik-Fit Insurance has acquired a secure electronic delivery solution called SDX that is designed to offer secure messaging technology to support the delivery of motor insurance e-certificates. The solution is supplied by SSP, who specialise in IT solutions for the financial services and insurance industries was agreed in a three-year deal.
The move is in response to proposed legislation, which is expected to be introduced in 2009 that will permit the secure electronic delivery of car insurance certificates. SDX ensures that motor insurance certificates via e-mail are safe from unauthorised access and have the ability to be fully tracked.
While there are benefits of electronic delivery of insurance certificates both the Financial Services Authority (FSA) and other stakeholders in the insurance sector are increasingly concerned about identity theft and fraud. A recent review of data security systems by the FSA across a number of financial services companies stated that more must be done to ensure that customers' personal data does not fall foul of identity theft in the UK.
Kwik-Fit Insurance estimate that online car insurance revenue accounts for approximately 70% of all car insurance policies bought through the company.
JAMA publishes 2007 Japanese car market trends survey
The Japan Automobile Manufacturers Association (JAMA) has published the results of its passenger car market survey conducted in fiscal 2007 (ending March 31, 2008). Targeting households nationwide, JAMA passenger car surveys are conducted in odd-numbered years to determine ownership and user trends as well as future demand structure.
Based on 3,666 responses, survey results indicated that:
- Household passenger car ownership stood at 79.2%, roughly equal to the 78.8% recorded in the previous passenger car survey (fiscal 2005).
- Multiple passenger car ownership stood at 33.5%, down from 38.3% in 2005.
- The average period of ownership of a passenger car was 7.1 years, an increase of 0.3 years from 2005, underlining the continuing trend of longer periods of individual car ownership.
- A growing trend in favoring smaller cars and greater fuel efficiency is doubtless attributable to increased environmental awareness.
- Recognition of environmentally friendly passenger cars was strongest for hybrid and electric cars.
The main reasons behind the continuing trend of longer ownership of individual cars were that the cars remained in good condition and continued to perform well. The principal factor identified as motivating any eventual vehicle replacement purchase was the replacement vehicle’s superior fuel efficiency performance.
Regarding vehicle preferences of respondents aged 50 years or older, a large number of respondents in this category said they wanted to curb car-purchasing and other car-related expenditures. However, among goods and services they wished to purchase with their retirement benefits, “automobiles” ranked fourth among a total of 19 items.
As for anticipated uses of the replacement vehicle they planned to purchase, large numbers of both male and female respondents cited “casual outings,” “in response to an emergency,” and “pleasure-driving with my partner.” Many women also cited “for greater interaction with friends and acquaintances.”
For both male and female respondents, the most important criteria for a future vehicle purchase were “user-friendliness and easy driving,” “economy and practicality,” and “eco-friendliness, with low exhaust emissions.” For men at the lower end of the age spectrum, the pleasure of driving was greater and vehicle preferences had much to do with self-expression, with “lifestyle compatibility” and “sporty image and high-performance engine” ranking high as factors of appeal.
JAMA has also reported on its surveys of motorcycle and mini-vehicle use in Japan.
(www.jama-english.jp)
CSM Worldwide partners with Power Systems Research to add medium and heavy trucks to forecasts
The US market forecaster CSM Worldwide has partnered with Power Systems Research (PSR), a specialist in the commercial vehicle and powertrain markets, to add Medium/Heavy Vehicle Production and Powertrain Forecast Services to its global forecast portfolio. In parallel with CSM Worldwide, Power Systems Research has also partnered with Feri Rating & Research AG for their economic data.
CSM's new Medium/Heavy Production Forecast, for vehicles above 3.5 tons will provide the first global medium and heavy vehicle forecast to model and powertrain level. The analysis provides detailed assessment of plant capacity, volume risk and economic factors.
Medium/Heavy Vehicle Production and Powertrain Forecast Services from CSM are now available globally or for any of these seven regions: Europe, Greater China, Japan/Korea, Middle East/Africa, North America, South America and South Asia.
Toyota agrees to 30% steel sheet price increase
Toyota Motor Corp. and Nippon Steel Corp. have reached a final agreement to increase the price of sheet steel by some 30 percent per ton, according to the Japan Times. The price hike, which exceeds ¥25,000, will send the price for the steel product over ¥100,000 per ton for the first time, backdated to April shipments.
Other steelmakers, such as JFE Steel Corp., are expected to follow suit and conclude similar agreements with automakers. Japanese steelmakers expect a threefold increase in coal prices and a 65% rise in iron ore prices in fiscal 2008, which began on 1st April.
(Japan Times, 18 May)
- GKN noted in its recent Interim Management Statement that prices for scrap steel, which is surcharged on its steel purchases and forms the base raw material for GKN’s Powder Metallurgy, had risen to record levels in recent months and look likely to remain both high and volatile for the balance of the year.
American Axle and UAW reach agreement
The UAW and American Axle are reported by the Detroit Free Press to have reached a tentative agreement on a new labour contract on Friday 16th May. Pending ratification by union members, the deal marks the end of a near-three-month strike by 3,650 American Axle workers, one of the longest in recent US automotive history, which impacted on supplies to American Axle's former owner GM.
June European automotive block exemption conference
IBC Legal Conferences is mounting a conference in Brussels on the review and recommendations for reform of the EU Motor Vehicle Block Exemption Regulation, on 12th June, following the publication later this month of the EC’s evaluation report on the 2002 BER.
The Commission’s Competition DG’s senior official with responsibility for the BER, Paolo Cesarini, will give the opening address at the conference, which features speakers from law firms, the ACEA, VW and Daimler, the FIGIEFA and CECRA trade federations, Derek Ridyard of RBB Economics and Dr. John Wormald, managing partner of the Autopolis consultancy.
Online booking facilities are at www.ibclegal.com/mvbe.
