Industry News
News for 1st October 2007
BMW to outsource MINI SUV variant assembly
BMW Group plans to build the forthcoming BMW X1 compact SUV in one of its European BMW plants, but to outsource the MINI 4x4 to a third party assembly supplier, according to Automotive News Europe from a Reuters report quoting CEO Norbert Reithofer. The BMW X3 SUV is assembled for BMW by Magna Steyr in Graz.
Rolls-Royce Motor Cars to launch production version of 101EX coupé next year
Rolls-Royce Motor Cars has confirmed that a series version of the two-door, four-seat experimental car, 101EX, will be launched in 2008. Production is scheduled to begin next summer at Goodwood. This model will complete the Phantom family line-up alongside the Phantom, Phantom Extended Wheelbase and Phantom Drophead Coupé.
The new car will be a two-door, four-seat coupé, will use an all aluminium construction similar to the rest of the Phantom family, and will be promoted as “the world’s foremost transcontinental tourer”.
Outright power will be identical to the other Phantom models –453bhp and 720Nm of torque – however the coupé will be tuned with more emphasis placed on the driver. The body will be shorter than that of the Phantom saloon and there will be revisions to the suspension and chassis set-up.
Rolls-Royce Chief Designer, Ian Cameron, said, "With this car we wanted to emphasise the performance potential of the 6.75 litre V12 engine and the effortless experience that it delivers." The new coupé will be priced between the Phantom and Phantom Drophead Coupé.
IMI will focus on five 'big wins' as the new motor retail Sector Skills Council
Achieving a major cultural change in how the retail motor industry thinks about skills will help it deliver significant business improvements, says the Institute of the Motor Industry (IMI), in its new role as the Sector Skills Council (SSC) for the retail motor industry, having been granted the Government licence last week.
In setting out its stall to assist employers in generating demonstrable improvements in productivity and performance through a workforce which is better trained, qualified and recognised, the IMI will be focusing on five 'big wins', which are also aimed at enhancing the perception of the sector in the eyes of consumers and those seeking a career.
Activity will concentrate on the following areas:
- 14 -19 year old provision - Working with schools, colleges and training providers to encourage high academic achievers into the industry through automotive-specific vocational qualifications, including the launch of new 'engineering diplomas' in 2008.
- Adult learning - Engaging employers to assist staff in improving basic skills, as well as opportunities to acquire new skills and knowledge, wherever possible through access to public funding, such as Train to Gain and Women in Work.
- Careers - Making the sector a desirable career option by educating key audiences and implementing career paths. Working with employers and stakeholders to improve staff retention and apprenticeship completion rates respectively.
- Management and leadership - Equipping managers with skills which will deliver improved bottom line performance through access to industry specific practical and economically valuable training.
- Sector Qualification Strategy - The development and implementation of an employer led framework of qualifications and accredited training which is fit for purpose in the retail automotive sector.
Ensuring a clear distinction between the IMI's work as an SSC and its subsidiary awarding business, IMI Awards Ltd, the IMI will continue to utilise the Automotive Skills brand in its work relating to future National Occupational Standards, workforce development, labour market intelligence research and quality improvement.
In order to deliver its objectives effectively, the IMI is recruiting a number of new staff. Most recently appointed is National Manager for Scotland, Sandy Burgess, current President of the Scottish Motor Trade Association, who is based at its offices in Edinburgh. Overseeing the IMI group's activity is a new Executive Board, headed by Steve Nash, formerly IMI Chairman of Council.
Members of the IMI's Executive Board are:
- Martin Austin, Managing Director, Corby Motor Group
- Martin Betts, co-Chairman, Fleet Auction Group and Chairman, Marcol
- Gerry Braddock, Field Executive, VBRA
- Sue Brownson, Managing Director. Bluebell BMW
- Garry Brumfitt, Director of Government and Regulatory Affairs, Harley-Davidson Europe
- Edward Clark, Chairman, IMI Awards Ltd
- Chris Jeffries, Chairman, Automotive Distributors
- Marc Matthew, Chairman, Lifestyle Europe
- Steve Nash, Aftersales Director, BMW Group UK
- John Rowse, National Officer, Transport and General Workers' Union
- Sarah Sillars, Chief Executive, IMI group of companies
- Allan Tyrer, Company Secretary and Finance Director, IMI group of companies
Lombard delivers first 140 hybrids to BSkyB
Lombard Vehicle Management (LVM) is delivering the first batch of cars to BSkyB as part of a contract to provide the media company with a more environmentally responsible fleet. The 140 Toyota Prius and Honda Civic petrol-electric hybrids, both of which produce less than 110g/km of CO2, will be driven largely by BSkyB employees who are being switched out of vans. The vehicles will be run on three-year, full-maintenance contract hire.
This initial batch is being delivered ahead of further changes to BSkyB’s company vehicles which have recently undergone part of a comprehensive transport review at the company which includes the UK’s first commercial trial of B30 biodiesel vans. Sky is currently developing a comprehensive environmental fleet solution which will be announced later this year and LVM will support the implementation of this scheme. LVM beat a field of 13 tendering companies to secure the landmark deal.
LVM has already delivered over 1000 vans to BSkyB this year as part of its contract to supply at least 1700 vans over a three-year period. The vehicles comply with the Euro IV diesel emissions standard and some are being run on B30 bio-diesel in the UK’s first large-scale bio-diesel fleet trial. The fuel produces 20% lower CO2 emissions than conventional Euro IV diesel engines. The BSkyB deal is the second high-profile environmental fleet contract secured by LVM this year, having switched existing customer IKEA into an all-hybrid car fleet.
Lombard is the UK’s largest asset finance company and part of The Royal Bank of Scotland Group. Its specialised vehicle management business operates fleet of over 115,000 cars and light commercial vehicles
Global Insight ponders new full-size GM hybrid SUVs' fuel savings
General Motors released more details about its 2008 hybrid electric full-size sports-utility vehicles (SUVs) at the Texas State Fair at the end of last week. The hybrid versions of the Chevrolet Tahoe and GMC Yukon will feature the two-mode hybrid electric system jointly developed by GM, BMW, and DaimlerChrysler. When equipped with the system, GM's full-size SUVs will officially achieve U.S. EPA fuel economy ratings of 21 mpg city, 22 mpg highway for the rear-wheel-drive (RWD) version (20/22 city/highway for the four-wheel-drive versions). The 50% improvement in city fuel economy makes the huge 5,500-lb., 332-hp, 6.0-litre V8-equipped SUVs as fuel-efficient in city driving as a four-cylinder Toyota Camry, and more efficient than the V6 Camry by 2 mpg. By comparison, Ford's Expedition full-size SUV achieves 12 mpg city, 18 mpg highway.
General Motors released more details about its 2008 hybrid electric full-size sports-utility vehicles (SUVs) at the Texas State Fair at the end of last week. The hybrid versions of the Chevrolet Tahoe and GMC Yukon will feature the two-mode hybrid electric system jointly developed by GM, BMW, and DaimlerChrysler. When equipped with the system, GM's full-size SUVs will officially achieve U.S. EPA fuel economy ratings of 21 mpg city, 22 mpg highway for the rear-wheel-drive (RWD) version (20/22 city/highway for the four-wheel-drive versions). The 50% improvement in city fuel economy makes the huge 5,500-lb., 332-hp, 6.0-litre V8-equipped SUVs as fuel-efficient in city driving as a four-cylinder Toyota Camry, and more efficient than the V6 Camry by 2 mpg. By comparison, Ford's Expedition full-size SUV achieves 12 mpg city, 18 mpg highway.
The two-mode system enables the SUV to travel under electrical power only up to 32 mph for 10 minutes before starting the engine. It also features GM's cylinder deactivation technology, allowing the V8 to operate as a four-cylinder under low load highway cruising conditions. Other modifications include improved aerodynamics and lightweight body panels. The SUV still maintains a 6,200 towing capacity for the RWD versions.
GM will be the first to market with the GM/BMW/DCX two-mode hybrid system, of which it hopes to sell roughly 10,000 a year. Pricing has not yet been announced, but the Gary White, GM vehicle line director for large vehicles, tells Global Insight that it will be "neither the most expensive nor least expensive" trim level. Automotive News figures about US$40,000-45,000.The system will also be featured on GM's full-size pick-ups in 2009, as well as the Dodge Durango, Chrysler Aspen, Mercedes-Benz ML, and BMW X6.
Global Insight’s automotive analyst Aaron Bragman notes that the SUV segments in the U.S. have been taking a big hit with the increase in fuel prices, with the once-popular models now facing drastic production cuts as buyers opt for crossover-utility vehicles (CUVs) that are generally more fuel efficient, handle better, and in the case of the largest CUVs, have comparable if not superior interior space.
The mid-size SUV segment alone is expected to fall from its high of 3.0 million units a year peak in 2005 to just 1.5 million units in 2012. Full-size SUVs have fared somewhat better, but still face significant declines in the wake of the onslaught of the CUVs. GM's big GMT900 based trucks (Chevrolet Tahoe and GMC Yukon) are practically competing with their new unibody Lambda-platform CUVs (GMC Acadia, Saturn Outlook, Buick Enclave, and an anticipated Chevrolet version as well), which feature better fuel economy, more interior space and all-wheel-drive for comparable money.
But for some buyers, only a true body-on-frame truck will do. For all the CUV's admirable traits, a percentage of buyers still need V8 power and the ability to tow large loads. For those buyers, the two-mode hybrid system is practically a godsend. A 50% improvement in city fuel economy and best-in-class highway mileage for a price not terribly unfamiliar to full-size SUV buyers, while still retaining all of the truck traits of a full-size SUV could be a very big winning combination for GM and all of the companies planning to offer the system.
Beyond trucks, however, the system also shows promise in smaller applications. At a technology showcase earlier this summer, GM showed off a smaller version of the two-mode system destined for front-drive applications like the Saturn Vue CUV and Saturn Aura mid-size saloon. The consortium of GM, BMW, and the former DCX have invested over US$1 billion in the two-mode technology, and will need to spread the technology through as many applications as possible if they are to recoup their investment.
RMIF advises retail motor sector on minimum wage changes
Some staff in the retail motor sector should see a pay increase from today, Monday 1 October due to a rise in the national minimum wage, as well as an increased holiday entitlement, according to the Retail Motor Industry Federation (RMIF). The national minimum wage will rise by 17p to £5.52 per hour for adult workers aged 22 and over. The development rate for young people aged 18-21 will become £4.60 per hour, an increase of 15p. On the same day, the minimum wage for 16 and 17 year olds will go up 10p to £3.40 per hour. The minimum national leave entitlement will also increase, from 20 days to 24 days.
Škoda to build Yeti compact SUV in Czech Republic
Škoda has announced that it will manufacture the Yeti SUV in its Kvasiny plant in the Czech Republic. Production of Škoda’s fifth model line is due to start in 2009 and many new jobs will be created in the firm’s home country following this announcement. The Kvasiny facility, along with Škoda’s other plant in Vrchlabí, will be extensively modernised and expanded in order to meet the board’s aim of having three full-scale Czech factories by 2010.
Mladá Boleslav, Škoda’s main plant and headquarters, will continue to produce the Fabia and Octavia, while the Volkswagen plant in Bratislava will increase its own contribution to production of the Octavia.
Detlef Wittig, outgoing chairman of Škoda’s, said: “Thanks to the growing demand for the Octavia we are looking for suitable manufacturing capacities elsewhere that will enable us to quickly react to the enormous interest shown by customers in our model range."
Johnson Controls launches new brand i.d. under new CEO
With a new CEO, Stephen A. Roell, at the helm, Johnson Controls, Inc. has launched a new brand communications platform and a new logo. A new slogan, 'Ingenuity Welcome,' is designed to have two meanings: first, that the company recognises that people welcome innovation in products and services, and second, that Johnson Controls is a company looking for people with great ideas.
A new corporate advertising campaign is to start in 2008.
ARQUES completes acquisition of Woco Michelin AVS
A German private equity investment company and turnaround specialist, ARQUES Industries AG, Starnberg has completed the takeover of the Amsterdam-based automotive supplier, Woco Michelin AVS, which makes anti-vibration systems in 13 locations in Europe, America, Asia and South Africa. Woco’s revenues total some €250 million.
The Woco Michelin AVS product range includes chassis components, aggregate storage, exhaust system hangers as well as decoupling elements and mass dampers. Apart from automotive OEMs (e.g. Volkswagen, Renault, Peugeot/Citroen, Daimler and Ford), the company’s customers include the railway industry and other industrial sectors. Woco Michelin AVS employs approximately 2,400 employees globally.
In the current financial year, ARQUES has acquired companies with a sales volume of significantly over €3 billion. Annualised ARQUES group revenues have increase to €4 billion through the acquisition of WOCO Michelin AVS.
Tata’s base model Rs 1-lakh car will have CVT
India’s Economic Times today reports more details on Tata Motors’ forthcoming Rs 1-lakh (£1,250) car than have been available to date, albeit without official confirmation. the base model will be fitted with continuously variable transmission, whereas only premium models in India and elsewhere are similarly equipped. The engine will be rear-mounted (and reportedly a small capacity diesel developing some 30 hp, as did the French basic car, the Citroën 2CV).
A higher-end version will feature manual gears and air-conditioning, power windows and power steering. However, given the stakes involved and the fact that this is a project which is being personally overseen by Tata Group chairman Ratan Tata, the Economic Times admits full details are hard to come by, with suppliers preferring to keep mum. “Around 55 prototypes are already being tested in varied conditions around the country and the first car will arrive in the show-rooms by September next year,” according to one of the car’s suppliers quoted.
September vehicle sales drop in Japan and Korea
Sales of new cars, trucks and buses fell 9.5% year on year in Japan in September, to 328,363 units; this was the 27th straight month of declining vehicle sales, with higher petrol prices and a preference for new digital goods to car purchases dampening demand, according to data released by the Japan Automobile Dealers Association today.
Sales of new cars, trucks and buses fell 9.5% year on year in Japan in September, to 328,363 units; this was the 27th straight month of declining vehicle sales, with higher petrol prices and a preference for new digital goods to car purchases dampening demand, according to the Japan Automobile Dealers Association today.
Japanese car sales in September fell 4.9% to 285,633 while sales of commercial vehicles fell 31.4% to 41,699; bus registrations fell 38.2% to 1,031 units. In the first half of the current fiscal year to September, Japanese car sales have fallen 8.8% to 1.588m.
In Korea, too, September has been a bad month for carmakers, according to figures from the Yonhap news agency this morning. Hyundai’s September vehicle sales declined 23.5% from a year earlier to 188,629 units. Its exports fell 26.5% to 140,026 units while domestic sales dropped 13.4% to 48,063 units. Its sister brand Kia Motors’ overall sales last month fell 0.9% on-year to 110,635 units; domestic sales declined 24.6% to 20,356 units, but exports rose 6.6% to 90,279.
GM Daewoo Auto & Technology Co., South Korea's third-manufacturer, saw sales fall by 10.5% y/y to 68,084 units. Ssangyong sales dropped 31.5% y/y to 9,577 units.
Nissan adds diesel hybrid and CNG models to Atlas H43 truck line-up
Nissan develops fourth-generation safety concept in Japan
Nissan Motor Co., Ltd. has developed a fourth-generation Advanced Safety Vehicle, known as the Nissan ASV-4. Based on the Advanced Safety Vehicle (ASV) Promotion Plan by the Ministry of Land, Infrastructure and Transport, the vehicle is designed to help reduce accidents by employing advanced vehicle-to-vehicle communications. Nissan will use the Nissan ASV-4 to test various technologies in preparation for commercial application.
The Nissan ASV-4 warning system employs vehicle-to-vehicle communications to alert the driver to take defensive actions in situations where an on-coming vehicle is not yet visible, but poses a potential threat to road safety. While the system will be tested using real-time navigation information, it currently has some limitations because it is dependent on information received from vehicles equipped with the Nissan navigation system, therefore participating drivers must remain alert to other vehicles on the road that the system is unable to detect.
The preventive safety technologies deployed on the Nissan ASV-4 were developed to address specific high-risk scenarios that account for approximately 60% of traffic accidents in Japan.
Cumulative data on traffic accidents reveal that most accidents occur in the following circumstances:
- Two vehicle collisions at blind-intersections
- A right-turning vehicle hit by on-coming vehicle from the opposite direction at an intersection
- Broadside of a motorcycle or bicycle by a left-turning vehicle
- Rear-end collision
The driver can both hear and see the warnings issued by the navigation system when a potentially dangerous situation has been identified.
Nissan is also leading an ITS (Intelligent Transportation System) project in Kanagawa prefecture, involving customers’ vehicle participation, where the system is fed traffic data via links to traffic infrastructure (e.g. using beacons).
Another on-going project employs telematics via cellular phones to improve traffic flow and reduce traffic congestion. To help reduce vehicle-pedestrian accidents, Nissan has developed an ITS system based on cellular communications between pedestrians and drivers, and is refining its information system to allow the driver to receive an alert on an unseen pedestrian.
Nissan’s safety objective is to halve the number of traffic fatalities or serious injuries involving Nissan vehicles by 2015 compared with the level in 1995.
Hyundai to start fuel cell car output from 2012
Hyundai Motor plans to begin mass production of its fuel cell car model from 2012 at the earliest, a company official told Reuters last Thursday. "We will start mass production of a fuel cell model, like the i-blue (unveiled at this year’s Frankfurt Motor Show), from 2012 at the earliest, or from 2015 at the latest," an unnamed Hyundai official said, asking not to be identified. The same source indicated that Hyundai plans to start mass production of a hybrid version of its Elantra range in 2010.
Porsche Consulting to help with Think City battery car
In November the revived Norwegian car maker Think will start production of its model Think City battery-electric car, with Porsche’s engineering consulting arm engaged to help. “Porche will help us when we start production, check out every element of our production, to help us see how we may increase quality,” says Think CEO Jan-Olaf Willums. Think hopes to increase production to 10,000 cars annually within two years.
(Norway Post, 27 September)
Superfuels are not so super, says What Car?
As the 2p/litre fuel duty increase comes into effect today, drivers who fill their cars with expensive ‘superfuels’ and expect to see big economy gains should think again, according to a report by What Car?. In tests carried out for What Car? by the AA’s former senior research engineer, Peter de Nayer, high-octane premium fuels including BP Ultimate, Shell V-Power, Esso Supreme and Total Excellium performed little or no better than their cheaper equivalents, in spite of costing around 7% more per litre.
What Car? editor, Steve Fowler, said, “The verdict is still out on whether superfuels prolong engine life, as fuel manufacturers claim. Nonetheless, even using the fuel companies’ own figures, you’re unlikely to travel 7% further on a tank of fuel for a 7% increase in your fuel bill.”
The top-performing fuel in What Car?’s tests was Sainsbury’s 97-octane fuel, which delivered 0.5 mpg more than its 95-octane fuel ¬ in real terms that means just 6 miles more per tank.
Datamonitor reports on prospects for CNG
The Landscape for CNG as an Alternative Fuel is a new research report from Datamonitor that provides a review of the different levels of natural gas vehicles' penetration of the European car parc and CNG's presence within the refuelling network. Assessing the support for CNG at a political level and from the automotive manufacturing industry, the report provides an an insight into the reasons why CNG vehicles have been more popular in markets outside Europe, including Argentina, Brazil and Pakistan.
A comparison of the usage of competing alternative fuels such as biofuels and autogas and reasons behind success is also provided.
Datamonitor is offering customers who order the report before 12th October a discount price of $2,515, against its regular price of $2,795.
(Datamonitor.com, September)
Industrial farming methods for biofuels crops “increase global warming”
Most crops grown in the U.S. and Europe to make "green" transport fuels actually speed up global warming because of the NOx emissions related to fertilizer inputs, according to a study by the Nobel prize-winning chemist Paul J. Crutzen. The findings, reported by Reuters’ Planet Ark service, suggest alternative fuels derived from rapeseed could produce up to 70% more greenhouse gases than conventional diesel. NOx is the principal culprit (and about 300 times more powerful as a greenhouse gas than CO2), connected to the fertilizer used for rapeseed.
The study suggests scientists and farmers focus on crops which required less intensive farming methods to produce better environmental benefits.
The results, published in "Atmospheric Chemistry and Physics Discussions," were based on the finding that fertiliser use on farms was responsible for three to five times more such greenhouse gas emissions than previously thought.
The report (see (www.atmos-chem-phys-discuss.net/7/11191/2007/acpd-7-11191-2007.pdf)
suggests biofuels derived from sugar cane, as in Brazil, produce between 0.5 and 0.9 times as much greenhouse gases as gasoline, whereas maize used in the United States produces between 0.9 and 1.5 times the global warming effect of conventional petrol.
The study does not account for the extra global warming effect of burning fossil fuels in biofuel manufacture, or for the planet-cooling effect of using biofuel by-products as a substitute for coal in electricity generation.
Barclaus Private Equity supports £66m MBO/MBI of Camden Corporate Fleet Services Ltd
Barclays Private Equity has acquired a majority stake in Camden Corporate Fleet Services Ltd, investing £27m alongside the existing management team and current shareholders. Ian Wardle, who joins CCFS as Chief Executive, is also investing in the deal. The investment will be used to support CCFS’s growth plans in the sector. A £42m banking facilities are being provided by Landsbanki Islands hf and National Australia.
Established in 1996, CCFS is a provider of services to large fleet customers, such as car rental firms and insurance courtesy cars; services such as vehicle delivery, taxation and registration, in-life management, refurbishment and re-marketing of ex-fleet vehicles. CCFS also operates a number of new and used car dealerships representing Ford, Vauxhall, Nissan and Renault.
In June this year CCFS acquired rival fleet services provider Inchcape Automotive Ltd.
Ian Wardle, newly-appointed chief executive of CCFS, was formerly EMEA Chief Executive at Vanguard, which operates the Alamo and National car rental brands.
