Industry News
Week Commencing 28th November 2005
2nd December 2005
1st December 2005
30th November 2005
29th November 2005
28th November 2005
Ferrari F1 Chief Designer Honoured
Rory Byrne, the chief designer of the Ferrari Formula One team has been awarded an honorary doctorate in engineering by the University of the Witwatersrand in Johannesburg, South Africa.
The award was made during an engineering graduation ceremony addressed by Byrne, a native of Pretoria, who himself graduated from the university in 1964 with a degree in chemistry and applied mathematics.
Byrne's contract with Ferrari expires in February 2007 after which he will retire to live in Thailand.
(Source: engineeringnews.co.za)
Record number of new model launches due next year - EurotaxGlass’s
According to EurotaxGlass’s, publishers of the Glass’s Guide to Used Car Values, more than 120 all-new car ranges will be launched in the UK in 2006 - almost double the previous record tally of 66 during 2005. The area that will see the biggest growth in choice will be SUVs, with 25 new ranges. A further 32 will join the sports car, coupé and convertible segments. While the launch frenzy will improve choice for buyers, it could ultimately spell bad news for the residual values of some models.
Despite the significant increase in new car choice, EurotaxGlass’s does not foresee any imminent increase in registrations. “Most of the sales of these new niche ranges will be at the expense of existing models, so new car market expansion is, in our view, unlikely in 2006,” says the firm's analyst Alan Cole.
Of the 122 new ranges already confirmed, 14 are from budget brands, 55 from volume manufacturers and 53 from premium marques. Key launches in 2006/early 2007 are:
- City cars and superminis - Hyundai Getz, Volkswagen Fox, Peugeot 207, Toyota Yaris, Fiat Punto Grande, Nissan Note, new MINI
- Upper-medium sector - Ford Mondeo, Mercedes-Benz C-Class, Volkswagen Jetta, Alfa Romeo 159 and Kia Magentis
- Executive and luxury sectors - Lexus LS, Citroen C6, Saab 9-5 and Volvo S80
- SUVs - Toyota RAV-4, Land Rover Freelander, Suzuki Grand Vitara, Jeep Commander, Jeep Patriot, Jeep Compass, Dodge Caliber, Audi Q7, BMW X5, Mercedes-Benz GL-Class, Honda CR-V, Nissan X-Trail, Hyundai Terracan, Fiat Sedici, Suzuki SX4, Volkswagen Golf-based SUV (name TBC), Vauxhall Antara
- Sports, coupé and convertibles - Vauxhall Astra Twin Top, Peugeot 407 Coupe, Renault Laguna Coupe, Volkswagen Eos, Audi TT coupe and roadster, Volvo C70, Honda S200, Jaguar XK Coupe and Convertible, Porsche Cayman
- MPV - Volkswagen Sharan, Ford Galaxy, Mercedes-Benz R-Class
(glass.co.uk)
US Dept. of Energy export to be keynote speaker at Warwick Materials for Lean Weight Vehicles conference
Dr. Joseph Carpenter Jr of the US Department of Energy, a specialist in lightweight materials and technology, is to be a keynote speaker at a conference on Materials for Lean Weight Vehicles at the University of Warwick’s International Manufacturing Centre on 7-8 December.
Dr Carpenter is the Technology Development Manager for the US Department of Energy (DOE) Automotive Lightweighting Materials effort, a joint initiative between DOE and the US automotive and energy-supply industries. He is best known in the US for his work with the FreedomCAR project, a partnership involving GM, Ford, DaimlerChrysler, oil companies and the US government with the aim of developing cleaner, more efficient vehicles.
Before the conference researchers from the SMMT Foresight Vehicle programme will report on progress on a raft of projects, including:
- APPLE - (Advanced Polymeric Composite Panels with Low Environmental Impact) - using specially formed plastics to make body panels.
- ROADLITE- (Research, Development and Demonstration of a Lightweight, Chassis-less Composite Semi-trailer) using reinforced plastics to build truck trailers as strong as traditional metal trailers. They would last longer, be easier to recycle, cheaper to build, cause less damage in accidents and reduce CO² emissions.
- EGSHEV - (Engine/Generator Sets for Hybrid Electric Vehicles) - a device to replace heavy starter motors and flywheels on hybrid vehicles.
SMMT Foresight Vehicle is an industry-backed initiative involving more than 400 UK companies and universities. It is managed by the Society of Motor Manufacturers and Traders. (www.foresightvehicle.org.uk)
Subaru UK ‘are exploiting a loophole over warranty provision’ – Motorpoint
Buyers of new Subaru models from Motorpoint, the car supermarket group, will have their first 12 months’ warranty package honoured by the company in the event of a legitimate claim. The offer follows the announcement by International Motors, importers of Subaru models, that cars sold by a third party vendor would not be eligible for a warranty claim, even though they might have the correctly stamped paperwork.
The Motorpoint offer applies to all Subaru models currently on sale at the company’s four UK locations as well as those sold by Motorpoint in the past 12 months. Motorpoint will also arrange to provide an extended warranty package at a ‘competitive’ cost on Subaru models it supplies.
“It seems to us that Subaru UK are exploiting a loophole in the EU regulations on the provision of warranties for buyers,” said Motorpoint sales director Paul Winfield. “This really works against the best interests of the buyer and we believe in offering our customers the best possible service and so, as a consequence of the action taken by Subaru UK, we will honour the first 12 months warranty on any Subaru car we sell."
Motorpoint has four supermarket sites across the UK in Derby, Burnley, Glasgow and the latest, a new 10 acre site at Newport, South Wales. The group has annual car sales of around 30,000 cars.
Cranfield University launches first psychometric driver risk assessment tool
Cranfield University and driver training specialist Peak Performance have combined to launch an online driver risk assessment developed specifically for company car and emergency services drivers, based on psychometric principles.
Called the Driver Risk Index™ (DRI), the new product is based on 20 years of academic research into the psychology of driver behaviour and uses psychometric principles for the first time to predict how company car and other drivers are likely to behave behind the wheel of a car.
The new DRI has been developed by driver behaviour expert, Dr Lisa Dorn, presenter of BBC One’s “Road Rage” series, and director of the Driving Research Group at Cranfield University. Dr Dorn is also research director of DriverMetrics, a new company set up by Cranfield to handle its launch and implementation.
(www.drivermetrics.co.uk)
Volvo expects to launch Driver Alert system within two years
Volvo has released details of a safety innovation – Driver Alert – which aims to reduce the number of accidents caused by drivers falling asleep at the wheel. The system uses a camera installed between the windscreen and the rear view mirror, with a number of sensors and a processor, to constantly monitor the distance between the car and the road markings. If the vehicle is moving in an uncontrolled way, the system will alert the driver with an audible alert and message on the car's information display panel before he, or she, falls asleep.
The Driver Alert system also works if the driver loses concentration for some other reason, such as focusing too much attention on the navigation system, audio system or children in the car.
“We have chosen to monitor the car’s progress on the road instead of steering wheel input or the driver’s eye movements,” explains Dr Wolfgang Birk, Driver Alert project manager at Volvo Car Corporation. “This gives us a more reliable indication if something is likely to go wrong, allowing the system time to alert the driver before it is too late. We do not monitor human behaviour – which varies from one person to another – but instead the effect of that behaviour – so there is less risk of false alarms.”
“During our tests on simulators and in real-life, the Driver Alert system never failed to spot a driver who was falling asleep at the wheel,” says Dr Wolfgang Birk. “Nonetheless, we will continue to test and fine-tune the system before Driver Alert is offered to Volvo’s customers, but we hope it will be available within two years.”
Updated reference source for automotive interior designers
Turret Group, the British organiser of the bienniel InterAuto exhibition in Cologne, has announced details of the 10th edition of the Automotive Interiors International Directory and Buyers' Guide. The fully revised directory features over 500 companies referenced by product, trade name and alphabet, providing details of suppliers of over 350 categories of interior components, including airbags, in-car entertainment, air conditioning, electrics and trims and fabrics.
The guide, intended for product engineers and designers, is priced at £55 for UK customers and £60 overseas (inc P&P). The order line telephone number is +44 (0) 1895 454 561.
The 2006 InterAuto show takes place in Cologne on 14-16th November 2006
(www.turretgroup.com)
Magna to buy roof systems business from Porsche
Magna International Inc. announced yesterday that it has signed an agreement with Dr. Ing. h.c. F. Porsche AG to acquire its CTS Fahrzeug-Dachsysteme GmbH subsidiary, for about €170 million in cash, subject to regulatory approvals.
Siegfried Wolf, co-CEO of Magna, said his company intended to exploit growing demand for roof systems both by broadening the current CTS customer base and by expanding geographically. CTS produces soft tops, hardtops and modular retractable hardtops. In addition to Porsche, its customers include DaimlerChrysler, Ferrari, Peugeot and General Motors.
In 2004, CTS reported sales of approximately €400 million. CTS has six facilities in Europe and two in North America, and about 1,100 employees.
Thirty world and North American debuts to headline 2006 LA Auto Show
More than 30 world or North American new model premieres will help give the final January LA Auto Show a big send-off on media days, 4-5 January, 2006, before the show moves to its new dates in November 2006.
GM will launch six new vehicles seen nowhere else before, while Volkswagen will give its 2007 Volkswagen Eos two-door, five-seater hardtop convertible its North American debut, while Toyota will conduct the world premiere of its second generation Yaris. Mazda’s Mazda CX-7 crossover will get its world premiere.
Ford names twelve more suppliers for ‘Aligned Business Framework’ agreements
Ford Motor Company yesterday named another 12 preferred Tier 1 suppliers with which it will enter into new ‘Aligned Business Framework’ agreements to strengthen collaboration and develop a sustainable business model to drive mutual profitability and technology development.
These suppliers join 12 others named since September 29, 2005 which Ford says have the capability to provide technological innovations and show a commitment to quality, costs and delivery performance.
More will be named in the near future – but overall, the plan involves a reduction in Ford’s Tier 1 supplier numbers. Ford expects to wrap-up the first phase (i.e., naming the two, three or four strategic suppliers providing 100% of the global procurement for each of 20 high-impact commodities) by mid-2006. While certain suppliers haven't been identified, the company says it doesn't necessarily mean they won't become one of Ford's family of strategic suppliers.
Two UK-owned firms, GKN and Johnson Matthey feature in the list to date: Autoliv, Delphi, Johnson Controls, Lear, Magna, Visteon, Yazaki, DuPont, Foster, Hella, Dana, Getrag Brose, Chassis Systems (Dana/GKN JV), Dicastal Wheel, Englehard, Hankook, Johnson Matthey, Kierkert, Pirelli, Superalloy, Thai Summit, Tokico, and Umicore
November US sales drop hits Ford and GM
Ford Motor Company's U.S. sales totalled 201,711 units in November, down 15 percent compared with a year ago, though they represented a one percent improvement on October, and were 5 percent up month on month at retail. Ford has cut its Q4 2005 and Q1 2006 production plans, the latter by 23,000 units or 2.5%: The company plans to build 885,000 vehicles (320,000 cars and 565,000 trucks) in its North American assembly plants in the first quarter of 2006.
In the first quarter of 2005, the company produced 908,000 vehicles (264,000 cars and 644,000 trucks). In the fourth quarter of 2005, Ford plans to build 790,000 vehicles (245,000 cars and 545,000 trucks), down 20,000 units (all trucks) from the previously announced plan.
US Land Rover dealers reported record November sales with the new Range Rover and LR3 (aka Discovery), but Jaguar’s US sales were down 40.7 percent at 1,937 units, and are now down 34.1 percent for the eleven months January-November, at 42,458 units. Ford earlier this week said a report that Jaguar production would be cut next year was entirely speculative.
General Motors sold 281,288 new cars and trucks in the US in November, down 11 per cent year on year. Its car sales were down 3 percent and truck sales down 16 percent. Total sales were up 14 percent compared to October 2005, however.
DaimlerChrysler's sales fell more modestly than either Ford’s or GM’s, at 2.7%. Several European brands saw sales decline, including Ford’s PAG brand Volvo, but Toyota and other Asian brands continued to gain ground.
US fund manager threatens to sell VW holding over Porsche bid
Tweedy Browne, the US fund manager, is so concerned by the state of corporate governance at Volkswagen AG that it is considering scrapping or scaling back its investments in Germany, reports the Financial Times from Frankfurt today.
Tweedy Browne is said to have started talking to other VW shareholders to mobilise them to try to force out VW’s non-executive chairman and former CEO, Ferdinand Piëch.
Mr Piëch is one of the controlling shareholders of Porsche, VW’s new largest investor with an 18.6 per cent stake, and is accused of provoking conflict within VW’s supervisory board by backing a union candidate as VW’s new labour director against the wishes of management and most non-executive directors representing shareholders.
Tweedy Browne’s primary demand is said to be that Mr Piëch should resign, but it is also planning to vote against Porsche executives sitting on VW’s supervisory board.
Porsche intends to nominate its chief executive and chief financial officer at or before May’s annual meeting at VW and sees board representation as one of the most important results of its €3.3bn ($3.86bn) investment. A JPMorgan report commissioned by VW this year recommended that Mr Piëch should resign and that no Porsche manager should join the VW board.
Mr Browne of Tweedy Browne told the FT: “I don’t think there is another country in the world other than maybe China where this would happen. There is no way Mr Piëch can be impartial and represent shareholders because of his economic interests (through Porsche).”
(ft.com, 2 December)
Hyundai and JPMorgan in talks on joint bid for Mando
The Financial Times reports that Hyundai Motors is in discussions with JPMorgan Partners on a prospective joint bid for Mando, South Korea’s biggest Tier 1 supplier, which is part-owned by JPMorgan Partners. Mando’s second largest shareholder and former controlling owner is a Korean group, Halla Engineering & Construction, which is thought unlikely to be able to match whatever JPMorgan and Hyundai Motor may eventually bid.
JP Morgan Partners and Affinity Capital formed a joint venture to buy a 73 per cent stake in Mando for US$446m in 2000. JP Morgan has a two-thirds interest in the venture and Affinity one-third. Their hopes of selling Mando to overseas bidders were ended when Hyundai, which accounts for some 70 percent of Mando’s turnover, put in a lower than hoped for bid. The withdrawal of foreign bidders drove down the expected selling price, with Hyundai believed to be prepared to offer only about US$700m.
Halla responded to the reports of a potential Hyundai/JPMorgan bid by saying it would “take any action, including legal action”, to protect its own right to bid for a controlling share of Mando.
Neither Hyundai nor JPMorgan has yet confirmed the discussions reported.
Renault-Samsung Motors involved in legal action
Creditors of Samsung Motors, now acquired by Renault Group and called Renault-Samsung, are reported to have threatened to sue the Samsung Group and its chairman for damages of as much as 4.7 trillion won ($4.5 billion), alleging that the chairman and group failed to compensate creditors for Samsung Motor’s insolvency in the late 1990s as had been promised.
Speculation is said to persist in Korea that some Renault officials want to ditch Renault-Samsung, citing its ‘poor sales’ and the legal disputes between part-owner Samsung and its creditors.
Samsung Group is still involved in Renault-Samsung; Samsung Card, the group’s consumer finance business, holds a 19.9 percent stake and is the second-largest shareholder after Renault’s 70.1 percent stake; 16 Samsung Motors creditors including Woori Bank, Korea Development Bank and the Seoul Guarantee Insurance Corp. hold a joint 10 percent stake.
They would have to sue Samsung before next January if at all, or their claims will be ruled ineffective through the lapse of time since Samsung Motors’ collapse.
The Samsung Group had proposed that creditors could recover their losses by floating its life assurance business, but the latter declined to meet the Korean regulator’s requirements for a listing.
(koreatimes.co.kr)
IBM/Michigan University study shows how the Chinese see their automotive future
The University of Michigan Transportation Research Institute's Office for the Study of Automotive Transportation (UMTRI-OSAT) and the IBM Institute for Business Value have undertaken a study of the Chinese automotive industry, Inside China: The Chinese view their automotive future, focusing on the opinions of leaders in Chinese industry and government, as well as academic experts.
Automotive manufacturers and suppliers view China as the largest combination of automotive market and low-cost manufacturing and supply base to appear in decades. North American companies are deluged with information about the potential opportunities in China, but typically know very little about what the Chinese themselves think about their automotive future. The steady influx of automotive manufacturers and suppliers over the past ten years has provided the Chinese with first hand experience of what the impact of a world-class, high-volume automotive industry can mean to a country.
The study indicates reason for caution in respect of some forecasts of China’s impact on global automotive markets as an exporter with the world’s future largest domestic market. "Most of the interviewees expect it will take two decades for Chinese manufacturers and suppliers to close the product and process gaps with the world class counterparts," the study says, while providing detailed evidence of the way the Chinese auto industry is still grappling with some basic questions about how to sell and service vehicles.
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Chinese sales of new vehicles are expected to grow steadily but not exponentially. Other hurdles faced by the Chinese industry include adapting to the demands of a market economy, and the increasing cost of petroleum. Parking is also a major issue, as a report on the Chinese industry’s aftermarket by KPMG has just observed.
The Chinese government, while rapidly building roads, also has yet to come up with a strategy for taxing fuel and controlling air pollution, the IBM/Michigan University report says. It can be downloaded in pdf form from IBM Business Services’ website:
(www-1.ibm.com/services/us/index.wss/ibvstudy)
Widney buys VTPA pressings business out of administration
The Birmingham-based Widney plc has acquired the business and assets of Vickers Pressings (in administration) from the administrator of VPTA Ltd, at a discount to the business’s £2.3 million asset value. Vickers operates from a 100,000 sq. ft. plant in Newcastle upon Tyne and a 78,000 sq ft plant in Wolverhampton and has 250 employees. In the six months to July 2005 Vickers had sales of £9,726,000 and gross profit of £1,841,000 according to unaudited management accounts. Vickers’ customers include Ford, Bentley, Honda and GKN.
Vickers produces floor panels, door assemblies, door skins, trunk lids, hoods, fenders and roof panels for the automotive sector from a wide range of large single and double action, transfer and hydraulic presses. It has robotic and manual welding, laser cutting cells, sheet metal finishing and produces heavy fabrications.
The AIM-listed Widney told its shareholders that the higher added value content of the Vickers business means that Widney has more than recovered the added value that will be lost from the third quarter of 2006 as a result of the sale of its Caterpillar tele-handler division to JLG, announced earlier.
- Widney was the winner of this year’s Birmingham Chamber of Commerce Business of the Year Awards.
Corus reports Q3 2005 results
The Anglo-Dutch steel maker Corus Group plc has reported a third quarter operating profit of £103m and profit after tax of £50m in “challenging market conditions”. Underlying operating profit for the nine months was £603m, an improvement of £217m over 2004. The group’s ‘Restoring Success’ restructuring programme delivered approximately 75% of this improvement. Profit after tax for the first nine months was £387m, and net debt, including £268m involved in the adoption of IAS 32 and 39 from January, was reduced by £170m in the third quarter.
Corus says reduced steel production throughout Europe during the third quarter, combined with lower imports, has gradually restored the balance between supply and demand, and apparent demand has improved during the fourth quarter. Selling prices have therefore stabilised and are beginning to recover. This improvement is expected to continue into the first quarter of 2006.
(www.corusgroup.com)
Wagon plc reports results for six months ended 30 September
Wagon plc, the European automotive components group, has announced its interim results for the six months ended 30 September 2005. Sales from continuing operations were down by 7.4% to £204.2 million. Sales from manufacturing were 3.1% lower at £192.7 million, reflecting lower volumes, as Wagon had anticipated.
Operating margin before non-recurring items increases from 5.3% to 5.4%, in spite of expected volume reductions. Operating profit before non-recurring items reduced by 6.0% to £11.0 million. After these, it dropped by 9% to £10 million. Net debt proved lower than expected at £34.7 million - excluding participating preference shares (£14m of £21m classified as debt under IFRS).
Among operational highlights Wagon reported order intake higher than the equivalent period in last year's record bookings, and a strong impact from the ‘Wagon Management System’ driving operational, margin and working capital improvements.
Wagon disposed of its Engineering Consultancy business in August. The company’s acquisition of the German FKT company to expand its Innovative Solutions business was the subject of a separate announcement made today. Wagon says its operational developments in Spain, Italy, Czech Republic and China are all proceeding on schedule.
A confident Pierre Vareille, Group Chief Executive, noted some uncertainty over European automotive volumes in the near term, particularly in France, but expressed confidence in being able to deliver long-term growth for shareholders.
(wagonplc.com)
Wagon plc buys FKT GmbH
Wagon plc has announced its acquisition of FKT GmbH, an Inglostadt-based company that designs, manufactures and markets automotive sun blinds and cargo management systems complementary to those developed at Wagon's Innovative Solutions plant in Bressuire, France.
In common with Wagon's Bressuire business, certain FKT product lines have patent protection. Its customers are predominantly German automotive OEM's.
FKT employs 115 people at one facility in Pforring, near Ingolstadt. Turnover in the year ended 31 December 2004 was £6.7m, and pre-tax profit £0.3 million; Turnover and pre-tax profit (unaudited) in the six months to 30 June 2005 were £3.9 million and £0.3 million respectively. Gross assets acquired are £1.4 million.
The initial consideration paid by Wagon is £4.0 million in cash plus £0.2million in Wagon shares, and there is a three-year earn out for the owner-managers (Josef Karrer and Michael Feigl), capped at £3.5 million and payable in Wagon shares. Karrer and Feigl will remain with the business following acquisition. The acquisition is expected to be earnings accretive in the first full year.
(wagonplc.com)
Avon Rubber plc preliminary 2005 results show £2.8m pre-tax loss
Wiltshire-based Avon Rubber plc has reported preliminary pre-tax profit before exceptional items of £6.1m for the year ended 30 September, compared to one of £9.4m a year ago.
An exceptional charge of £8.2m brought a pre-tax loss of £2.8m, which compared to a pre-tax profit of £8.7m) in 2004.
Group turnover barely increased, to £239.7 million from £239.2 million in 2004, though automotive sales grew by 5.5% to £185m, supported in part by new products, despite ‘unrelentingly difficult’ automotive market conditions.
Reported 2006 production cut is ‘just an option’, says Jaguar spokesman
Jaguar Cars spokesman Ken MConomy told just-auto.com yesterday that 2006 production cut plans reported by the Wall Street Journal Europe this week were merely options. “Jaguar has a solid production base in the U.K. and is positioning itself to strengthen its business in an industry that grows increasingly competitive”, said McConomy.
"We are busy working through our recovery plan at the moment and as you know conditions for our industry are getting even tougher and of course we do have to look at options like this, but that is it at this stage, just an option.”
The Wall Street Journal Europe had said Ford was considering a 6 - 7 per cent production cut for Jaguar in 2006, representing a reduction of some 5,000 units from this year’s 85,000. Jaguar is meanwhile consulting unions – and briefing a group of MPs today – over its plans to vacate and sell its Browns Lane plant, used since earlier this year only for woodshop operations.
Court approves Delphi plans to renegotiate supplier contracts
The New York bankruptcy court responsible for Delphi’s Chapter 11 bankruptcy protection has given the company’s management permission to renegotiate over 8,000 individual contracts with its suppliers, while putting safeguards in place to ensure that Delphi will not gain inordinate control over their businesses.
Delphi has also been permitted to pay some overdue pre-bankruptcy invoices from suppliers that agree to contract extensions, so as to maintain supplies to Delphi’s key customers, including most notably GM.
The plan was supported by Delphi's major creditors, the two unions that represent most of its employees and by GM, its former parent and biggest customer. Delphi has about 11,000 supplier contracts that expire at the end of December, more than 8,000 of which it wants to renew.
- According to bankruptcy court documents seen by the Detroit News, Delphi engaged five separate law firms to represent it in the Chapter 11 process, with the approval of the court, each of which charges its partners at an average of over $500 per hour, representing a cost that attracted strong criticism from the UAW, whose Delphi members are facing a Dephi demand for a reduction in hourly wages from some $27 to $12.50.
One of Delphi’s lawyers, Skadden, Arps, Slate, Meagher & Flom, was paid $9.85 million in legal fees before Delphi even filed for Chapter 11 on 8 October. The investment banking firm Rothschild & Co. reportedly negotiated a $250,000-per-month fee for assisting Delphi in financial matters, and is said to be seeking a $15 million fee for assisting Delphi to complete its plan for Chapter 11 reorganization. Such arrangements have to be approved by the court.
Kia Motors’ $10bn exports win award from South Korean government
Kia Motors Corporation, manufacturer of what has recently been Europe's fastest-growing car brand, has received the $10 Billion Export Tower Award from the Korean government, its exports having surpassed $10 billion in value for the period from July of 2004 to June of the current year.The award was presented yesterday by South Korean President Roh Moo-Hyun to the President and CEO of Kia Motors, Euisun Chung.
VW launches ‘Crafter’ heavy LCV as LT series’ successor
Volkswagen today announces the new replacement for the LT model, the Volkswagen Crafter. The new heavy van completes the renewal of the Volkswagen light commercial vehicle range which began with the new Transporter in 2003 followed by the new Caddy. UK sales of Volkswagen commercial vehicles have risen from 16,478 units in 2002 to a forecast 23380 for 2005, a growth of 41 per cent.
Four versions of Volkswagen’s five cylinder TDI engine are available for the Crafter, delivering 89 PS, 109 PS, 136 PS and 164 PS. The new unit is now equipped with a diesel particulate filter. The Crafter comes with a 6-speed manual gearbox as standard - an automatic transmission will be optional.
Nuvera, Fiat Powertrain Technologies, and Centro Ricerche Fiat form fuel cell engine partnership
Nuvera Fuel Cells, the US designer, developer and manufacturer of fuel cell power systems, has signed a multi-year agreement with Fiat Powertrain Technologies and Centro Ricerche Fiat to research and develop a high-efficiency hydrogen fuel cell propulsion system for fuel cell vehicles. Together, the partners will be the exclusive supplier of the new fuel cell powertrain to the Fiat Group, including Fiat Auto, IVECO, and Case New Holland. The partnership will also be open to discuss possible supplies to other OEMs.
According to Centro Ricerche Fiat and Fiat Powertrain Technologies, Nuvera’s Andromeda II technology represents “one of the most promising fuel cell stacks available today”. The core technology, along with Nuvera's low cost, non-coated metallic stack architecture and Centro Ricerche Fiat's simplified plant architecture, is expected to allow OEMs to introduce viable fuel cell vehicles more quickly than once thought possible.
The partners’ system has been developed with an air delivery system that was specifically designed to match the requirements of the fuel cell stack. By designing the air system completely around the fuel cell stack, the purpose-built compressor delivers exactly what the fuel cell system requires across the entire operating range, allowing the highest efficiency and lowest cost, compared to other currently available compressor technologies.
The new fuel cell system operates at low pressure and without external humidification, which allows simplification of the plant's architecture. The reduction in parts also reduces parasitic power losses and simplifies the control of the system.
(nuvera.com, fiatgroup.com, crf.it)
US Big Three’s new incentive programmes ‘have nominal impact on retail sales’
General Motors', Ford's and DaimlerChrysler's retail market share has increased only marginally since their latest sales incentive programmes began, according to the Power Information Network (PIN), which analyses monthly US retail car sales data.
The combined retail market share for the domestic US manufacturers was 48.8 percent for the first 27 days of November - a slight increase from their combined market share during the first 13 days of November (47.7%).
GM's "Red Tag Sale," which went into effect on 13 November, has raised the company's retail share from 18.8 per cent in the first half of the month to 19.9 per cent through to 27 November. In contrast, Ford Motor Company's retail share has declined from 15.3 per cent to 15.1 percent, despite the introduction of their "Keep It Simple" incentive programme, which was announced on 16 November. DaimlerChrysler, which launched its "Miles of Freedom Plan" on 21 November, saw an increase in retail share from 13.6 per cent in the first half of the month to 13.8 per cent through to 27 November.
Total US retail sales from 1 November to 27 November declined by 15 per cent year on year. Retail sales for five of the six major manufacturers declined in November, while American Honda's sales remained flat. Ford, GM, DaimlerChrysler and Hyundai Corp. were down considerably, and Toyota Motor's retail sales declined by 3 per cent.
"One reason for these declines is that automakers have cut back on the use of incentives, with interest rate subvention expenditures down 67 per cent versus a year ago," said Tom Libby, senior director of industry analysis at PIN.
"This November, the average interest rate on a loan for a new vehicle was 7.9 percent, which is up considerably from 6.4 per cent during November 2004."
Retail market shares for the major Asian manufacturers declined slightly during November, though remaining historically high. Toyota's share was 17.4 per cent, down from 17.9 per cent through the first 13 days of the month.
PIN's reports are based on the collection and analysis of daily new- and used-vehicle retail transaction information from more than 10,000 automotive dealership franchises in North America.
(www.powerinfonet.com)
Aftermarket companies next in line to benefit from China boom – KPMG report
Automotive parts suppliers and aftermarket companies are next in line to benefit from the growth of the Chinese car market as the first generation of Chinese-owned cars head for the repair shops, according to a report from KPMG in China. While car sales growth has finally begun to slow, several years of rapid growth have resulted in a sizable car parc which requires care and maintenance.
A compound annual growth rate (CAGR) of 17.6 percent is now expected for the Chinese aftermarket and accessories segment – with many parts manufacturers switching their focus to this segment and away from the more cluttered and uncertain OE supply segment.
The latest KPMG report on the state of the Chinese automotive sector reports on this shift in focus in the context of an overall Chinese car parc which KPMG expects to increase from 28.4 million units in 2004 to 116.9 million in 2020. It also reports on a used car market which – although still small – should grow with an estimated CAGR of 20 per cent until 2010, helping fuel the replacement demand for aftermarket parts.
Commenting on the report’s findings, Mike Steventon, Head of Automotive at KPMG in the UK, said: “As well as the initial growth spurt in the Chinese car market – which effectively created the current car parc virtually from scratch thanks to several years of double digit growth – there are four key factors driving the growth of the aftermarket segment. They are a rapidly aging car parc, strong sales of small cars which create a higher demand for accessories, the emergence of the used car market and improved quality and reliability of distribution channels.”
“China’s aftermarket and accessories segment is still small, compared to that of other overseas markets. By 2004, China’s aftermarket had a sales value of US$3.2 billion, accounting for less than ten percent of the total parts segments; a fairly small percentage compared to the 60 and 40 percent registered by the US and Germany respectively. That is likely to soon change, however, with more parts manufacturers turning their attention to the aftermarket to diversify earnings, improve margins and to sustain sales growth.”
Leveraging China’s cost advantages to become part of the global supply chain for OEMs and parts manufacturers now appears a distinct possibility, especially as many companies have been investing significantly in technology to help enhance their product quality levels, allowing them to become more competitive over time in the more high-tech, sophisticated end of the market.
For many global parts manufacturers, focusing on R&D and branding while outsourcing low-tech and labor intensive parts manufacturing to China can certainly be a tempting proposition as the potential savings of such a model may deliver significant savings.
Mike Steventon continued: “It’s not that long ago that parts manufacturers would have simply ignored the aftermarket, dismissing it as too small and bedeviled by knock-off parts. Now however, we even have foreign players such as Bosch and AC Delco taking much more of an interest in the segment. We also have the prospect of China becoming a major parts exporter. It is already the fifth largest supplier of auto parts to the US and is experiencing 30 per cent growth in its export volumes.”
“In fact, it’s a fascinating time to be involved with any business which is related to the Chinese car sector. The upswing in car sales growth was sudden and explosive. Now that this has abated, several other auxiliary services need to be developed rapidly. Car finance is the obvious one and is expected to offer huge potential in the long term, with GM, VW, Daimler Chrysler and Toyota all having established their own auto financing companies.
"Another such area is the car parking business, as the shortage of legal parking spaces is so severe that it is actually starting to undermine potential buying interest. In the US, car parking is a U.S.$26 billion industry which has created one million jobs. In China there is less than one legal parking space for every five cars so the opportunity for growth – as with so many aspects of the Chinese auto industry – is immense.”
Aftermarket collision repair parts represent growing threat to US OE parts sales – Frost & Sullivan
The use of collision repair components are growing at a rate double that of most automotive wear replacement components, according to a new report on the US aftermarket from Frost & Sullivan.
The establishment of aftermarket certification organizations such as CAPA and MQVP Inc. have boosted the fit, quality, and durability of aftermarket components, and following recent rulings in a court case concerning the right to fit non-OE parts in repairs (Avery versus State Farm), lower cost aftermarket component sales have flourished.
In key collision replacement product categories, aftermarket channel sales that include both aftermarket and aftermarket certified products, are growing as a percentage of both units and revenues. Repairers have traditionally favoured OE components because of their ease of installation and higher sales margins, but certification programmes have improved aftermarket parts’ quality and reduced their prices by 20-30% on equivalent parts.
Frost & Sullivan's new 'U.S. Automotive Collision Repair Shop Analysis' shows that aftermarket component manufactures have successfully penetrated the collision repair distribution channels through their ability to provide high quality parts at significantly lower costs with “impeccable” service.
Insurance companies in the US still have a great deal of influence on whether OE or aftermarket parts are used on a vehicle, and their validation of independent aftermarket components has “opened the floodgates”.
Collision repair jobs are on the decline in the US as in the UK, but research indicates that component costs and the average cost of repairs are rising. Vehicle manufacturers are testing a variety of pricing strategies designed to lower prices, but with aftermarket distributors focused on the high volume parts and improving their service levels, Frost &Sullivan says price will not be enough to bring customers back to the OE channel.
‘U.S. Automotive Collision Repair Shop Analysis’, part of Frost & Sullivan’s 9801 North American Automotive Aftermarket subscription, provides an overview and outlook for the market.
(www.frost.com)
Cars provide basis for predatory lending - US consumer study
Loans consumers secured on their cars are the latest form of extremely expensive high risk credit targeting ‘cash-strapped’ consumers, according to a new report from Consumer Federation of America. Car title lenders charge consumers as much as 25 per cent a month or 300 per cent annual interest for small cash loans secured by the title to cars owned free and clear. Loans are for a fraction of the car’s value, but failure to pay in full at the end of the month can lead to late-night repossessions by lenders holding a duplicate set of keys, says the Consumer Federation.
A survey of title lenders in eleven US states and online found almost half of the states permit predatory title lending. The industry is accused of pushing for state laws to legalize title loans without rate caps or adequate protections.
Chinese policy body considers benefits of diesel cars
In what might herald a more positive attitude to diesel power in Chinese government circles, the China Daily has reported an official of the Development and Research Centre, which operates as an organ of China’s State Council, saying that China could reduce its oil imports by 10.1 per cent if diesel engines were substituted for petrol engines in 30 per cent of the country’s passenger car parc by 2020. The parc is forecast to have more than tripled to 131.03m units by 2020, from this year’s 33.56m.
The paper notes that from January to September, China imported 93.96 million tonnes of crude oil and 23.23 million tonnes of oil products.Vehicles in China are said by Zhang Xiaoyu, the president of the Society of Automotive Engineers of China, to account for half of the country's total oil consumption.
New Proton MD arrives from Perodua
The new managing director of Lotus Group owner and Malaysian ‘national car company’ Proton Holdings has been confirmed as Syed Zainal Abidin Tahir, 43. Mr Tahir was recruited, as had been rumoured, from Proton’s local rival Perodua, where he was executive director in charge of manufacturing.
He arrives at Proton after two straight quarterly losses, troubles at Italian acquisition MV Agusta, declining market share at home and diminishing hopes of a tighter relationship with Volkswagen.
Proton reported a loss of 154.3 million ringgit (US$40.8 million) for the quarter ended September 30, compared with a profit of 199 million ringgit a year earlier, and is expected to announce further losses for the fourth quarter due in part to the cost of its acquisition of the ailing Italian motorcycle manufacturer MV Agusta.
Proton has signed a memorandum of understanding with Volkswagen, but the extent of the two firms’ collaboration is as yet unclear.
(Autoasia.com)
Malaysian decision could end local Geely CKD production
After the Malaysian government requested the Chinese manufacture Geely Automobile Holdings to export all the cars it builds in the country this month, an unnamed executive of Geely said yesterday the firm may consider alternative Asian production centres.
He was quoted as saying, “The Malaysian authorities are acting against the spirit of the World Trade Organization. If the government sticks with its decision we may look into other South East Asian markets for production."
The executive added Geely had not decided whether to seek assistance from the Chinese Government to lobby the Malaysian government to renew Geely’s permit to sell cars in Malaysia.
In May this year, Geely signed a five-year export agreement with the Malaysian Information Gateway Corporation to deliver at least 30,000 CKD (complete knockdown kits) to Malaysia for final assembly by IGC.
Geely is one of China’s more export-orientated manufacturers; it has recently said it aims eventually to achieve two thirds of its sales outside China. It currently exports in modest quantities to over 30 countries and its 3,283 export sales (6% of its total sales) accounted for 34% of China's total car exports in the first half of this year, according to a recent report by Bear Stearns.
(Yahoo Finance/Dow Jones)
Comfort comes before safety in company car drivers’ wish lists
Whether a car has air conditioning, a CD player or even cup holders are the most important factors when choosing a car, according to research into company car drivers’ preferences from Bank of Scotland Vehicle Finance. The verdict contrasts with the MORI survey on the importance of safety to car buyers, reported by Euro NCAP this week.
Those questioned, as part of the report ‘Company Cars, the Drivers’ Perspective’ were asked to specify what factors led them to select their current company car and in particular what optional extras were key to this choice.
Nearly 60 per cent of those questioned said that they are now spending longer behind the wheel and the car has become a home from home. As a result, and due to roads becoming more difficult to navigate, their main concern is ensuring their car is safer and better equipped in terms of features such as satellite navigation.
The top five comfort and safety features drivers want in their car were found to be:
1. Satellite Navigation
2. Climate control
3. Driver airbag(s)
4. Six track CD player / Bose sound system / iPod holder,
5. ‘Nifty add ons’ e.g. cup holders and mobile phone holders
TTAutomotive joins AUTOSAR
TTAutomotive, the Austrian developer of FlexRay software, has joined the AUTOSAR development partnership as a premium member. TTAutomotive will focus on FlexRay software modules that comply with AUTOSAR specifications to advance FlexRay-based Time-Triggered Architecture (TTA) in the automotive industry.
AUTOSAR is the acronym for AUTomotive Open System ARchitecture. The development partnership's mission is to establish an industrial standard for off-the-shelf software components, in order to provide cost-optimized, best-in-class solutions to the automotive industry. The architecture is characterized by standardized, non-proprietary, and clearly defined interfaces.
TTAutomotive's aim is to provide a full development tool chain for time-triggered AUTOSAR components. The company will provide a variety of associated embedded software components.
(www.ttautomotive.com)
Commons meeting on Browns Lane closure for Jaguar-Land Rover chairman
Geoff Polites, chairman of Jaguar and Land Rover, is to visit the House of Commons on Thursday 1 December for a meeting with MPs and trade union officials from Amicus and the TGWU, following the announcement that Jaguar is considering alternatives to Browns Lane in Coventry for woodshop operations.
The meeting has been organised by Coventry North West Labour MP and former Jaguar chief executive Geoffrey Robinson.
Mr Robinson told West Midlands media: "I'm after assurances as to what will happen to the administrative HQ and its office staff, and I'm eager to know what the plans are for the site. If we do have another manufacturing company poised to take over the site, then how many jobs do they plan to bring with them?
(icBirmingham/Trinity Mirror)
SMMT October new car pre-registration figures
The SMMT released figures for October pre-registrations in the UK car market on 29 November, as required by the Supply of New Cars Order 2000. A total of 183 cars worth an aggregate list price value of £1,843,239.96 were pre-registered in October this year, by just four manufacturers/importers: Peugeot contributed 127 units worth £1,193,455 Ford just eight worth £93,045, and BMW three, worth together £109,665.
(www.smmt.co.uk)
DfT gives local authorities £7m to explore road pricing options
Local authorities in seven areas across the country will share over £7 million to explore ways to tackle local congestion as a further step towards longer-term national decisions on road pricing, Transport Secretary Alistair Darling said on 28 November.
The authorities successfully bid for money from an £18m fund set up to support the development of transport schemes that feature demand management as part of efforts to tackle local congestion and public transport. Last year, the Government's road pricing feasibility study recommended that local or regional schemes should be piloted to test approaches as road pricing is further developed. The seven areas are:
- Bristol City Council, Bath and North East Council, North Somerset Council and South Gloucestershire Council
- Cambridgeshire
- Durham County Council (for Durham City)
- Greater Manchester
- Shropshire County Council (for Shrewsbury)
- Tyne and Wear
- West Midlands conurbation.
The authorities will now assess the feasibility of schemes combining demand management, such as road pricing, with better public transport, in order to tackle congestion and improve local travelling conditions. All the successful bids include some work on assessing road pricing options.
American car buyers want fuel-efficient vehicles not available in US – survey
'Most Americans' now believe that they should be able to buy the dozens of fuel-efficient cars made by foreign and American auto manufacturers that are available for sale in other nations but not in the US, according to a new Opinion Research Corporation national survey released today by 40mpg.org, a fuel economy/environmental project of the non-profit Civil Society Institute.
Most respondents to the 40mpg.org/CSI survey are said to have rejected recent oil company denials before Congress about ‘price gouging’ in the wake of Hurricane Katrina, and show signs of wanting more action on fuel conservation (including higher federal fuel efficiency requirements) and other steps to reduce global warming.
(www.40mg.org)
Ford of Britain appoints Nigel Sharp to succeed Morten Hannesbo as head of UK sales
Nigel Sharp is returning to the UK after stints as managing director of Ford's operations in Hungary, Czech Republic, Turkey and, latterly, Switzerland to lead Ford of Britain's sales team. He replaces Morten Hannesbo, who has been appointed to the newly-created position of regional director, Austria and Switzerland and managing director, Ford Switzerland. Both appointments become effective on January 1, 2006.
Three new directors appointed to Avis Rent A Car board
Stuart Gent, Managing Director of Avis Rent A Car, has made three new appointments to its board of directors. Paul Hainsworth joins the UK business as Operations Director after spending 18 months with Avis Europe setting up its group back office in Budapest. Before that he spent 13 years with BP. Mike McEnaney is the new Avis Finance Director, joining from Honda UK, while Daniel McCarthy joins Avis as Business Development Director after spending five years as New Zealand country manager for L.E.K Consulting.
The new directors join Stuart Gent, Penny Stoolman, Jo Steen and Carolyn Emberton on the Avis board. Avis UK, a subsidiary of the Belgian d’Ieteren-owned Avis Europe, has 130 depots and a 18,500-vehicle fleet.
New SBD report surveys European smart key developments
The new car market is witnessing a rapid proliferation of smart key systems, with around 20 new models launched with the technology in the past year and many more set to follow. UK-based telematics consultancy SBD has incorporated its most recent research on the topic into a new report, Smart key system development and availability in Europe.
The report features full descriptions of the range of smart key systems currently available and demonstrates how they perform against the standards issued through the Thatcham research centre by the UK insurance industry.
All the major vehicle manufacturers now offer smart key systems, with the exception, thus far, of PSA Peugeot Citroën. New adopters include Honda, Mazda, Toyota and Jaguar, and Hella has emerged as a new supplier, notably for the latest Volkswagen Passat.
SBD has issued previous reports on the smart key systems offered by Audi, BMW, Ford, Mercedes-Benz, Nissan, Renault, Volkswagen and Volvo. Summarising its findings, SBD shows that generally all models performed well where convenience, range of features and smart entry security are concerned, but most of them would struggle to meet the Thatcham criteria on smart-start security.
SBD’s market analysis demonstrates that the increase in equipment availability is driven more by competition between manufacturers rather than customer demand, although the greater number of cars on sale with the technology should help bring the relatively high prices down and increase consumer interest and take-up.
For more information on the new European smart key report or to order copies, contact SBD on +44 (0)1908 305107 or visit www.sbd.co.uk.
IMI approved as licensed member of the Engineering Council
The Institute of the Motor Industry (IMI) has been granted approval as a licensed member of the Engineering Council (ECUK), which regulates the engineering profession in the UK and represents the interests of UK engineers internationally. IMI members who possess its own specialist automotive engineering grades, Certificated Automotive Engineer (CAE) and Advanced Automotive Engineer (AAE), may be eligible for the internationally recognised award of Engineering Technician - EngTech, which entitles the holder to inclusion on the ECUK’s Register of Engineers. Additionally, IMI members who have achieved Automotive Technician Accreditation (ATA) status at either Diagnostic or Master Technician level may be able to apply.
The IMI greets the inclusion of automotive technicians on the Register of Engineers as a major step forward in raising the perception of the industry among potential recruits. More than 800 IMI members whose credentials meet the appropriate criteria have applied to the Engineering Council for this additional recognition, which involves a commitment to continuing professional development (CPD) monitored by the IMI itself.
Software companies join to offer automotive environmental management solutions
UGS Corp., a provider of product lifecycle management (PLM) software and services, has announced a software development and marketing relationship with Synapsis Technology Inc. through which the two companies will offer a set of solutions to assist companies in the automotive and high tech electronics industries to comply with a significantly increased set of environmental regulations – specifically, the EU’s WEE and ELV legislation.
The new joint solutions integrate EMARS (Environmental Materials Aggregation and Reporting System) software, Synapsis' solution for environmental material and hazardous substance reporting, with Teamcenter software, UGS' digital lifecycle management solution, which it claims to be the world's most widely used PLM (product lifecycle management) portfolio.
(www.ugs.com, www.synapsistech.com)
Renault wins eco-design award for 50% recycled Modus dashboard plastic
The Modus’ dashboard has earned Renault second prize in the "Eco-products for Sustainable Development" category in the 2005 French Enterprise and Environment awards. It contains 4kg of recycled material, or one half its total weight, which Renault says is more than is found in any other plastic component in the automotive industry.
Renault’s Vehicle Engineering Department and Visteon designed the dashboard, with help from
the recycling firm C2P in developing the recycled material. Altogether, the Modus contains almost 18kg of recycled plastic in various components, including the wheel arch shields, the under-engine skidplate, the rear suspension fairings and the spare wheel.
Renault claims to be the first vehicle manufacturer to place such emphasis on using recycled
materials and to design parts directly with recycled plastic. It is also the world's largest user of recycled polypropylene, with annual consumption of 25,000 tonnes. 95% of Renaults’ weight can be recycled, in line with forthcoming European End of Life Vehicles Directive requirements.
Warranty survey: "Come clean on sample sizes", SMMT tells Warranty Direct
The SMMT called yesterday for the used car warranty provider Warranty Direct to publish sample sizes and methodology to support its latest reliability survey. The data quoted by Warranty Direct is, it says, based on a minimum of 100 examples of each model.
Despite repeated requests from SMMT and its members, the trade association says the company seems either unwilling or unable to provide these details. SMMT chief executive Christopher Macgowan said, “Car makers value feedback from reliable sources, particularly in areas like safety and durability. That's why our members have asked for more detail than the limited information in today's press release. The statement makes it very difficult for the industry to take the results seriously, and for the media to cover the story accurately for their audiences, thousands of whom will own listed models.”
Warranty Direct issues new reliability survey
Data using ‘thousands’ of claims handled by the warranty firm Warranty Direct, names the cars that ‘just can’t stop breaking down’ and puts the cost of breakdowns to motorists and warranty firms at £680m per annum. Based on the study sample, thirty per cent of cars will break down during the course of a year, leaving owners having to pay an average repair bill of £310.66. With an estimated 7.2m cars aged 3-5 years old on the road, Warranty Direct’s figures can be grossed up to £677million spent on repairs annually.
The vehicle most prone to break down in the survey, based on more than 26,000 vehicles built between 2000 and 2002 (W to 02 registration plate), was the Renault Espace with a 71 percent failure rate – almost twelve times more than the best placed model, Honda’s Civic. Eighty popular models were included in the study. A complete listing is available at www.reliabilityindex.co.uk.
Sharing the second worst position was the Jeep Cherokee and Saab’s 9-5, both with 55 failures in every 100 vehicles; they were closely followed by the Ford Galaxy and Volvo C70 with 54 breakdowns each.
Sixth from bottom in the Warranty Direct study was the Audi TT with 51 out of 100 owners recording a mechanical failure of some kind. The Jaguar XJ, Vauxhall Frontera, Volvo V70 and Renault Laguna completed the bottom ten.
The performance of Jaguar’s XJ contrasted with the X-Type, which, according to Warranty Direct has so far only shown a 9 per cent breakdown incidence. It was fourth overall.
The Swindon-built Honda Civic recorded only six failures per 100 vehicles. The Mazda MX-5 (7 per cent) and Nissan Micra (8 per cent) were just behind.
Duncan McClure Fisher of Warranty Direct commented, "It is hard to recommend a vehicle to someone when seventy per cent of owners have had to have remedial work done to it over the past twelve months. The fact that nearly half of the eighty models we analysed will break down more than the national average simply isn’t good enough."
Britain’s best selling model, the Ford Focus was 26th (20 per cent rate of failure), and the Vauxhall Astra 25th. Other models noted by Warranty Direct were the Vauxhall Corsa (11 per cent), Volkswagen Golf (31 per cent), Mercedes A-Class (36 per cent), and Land Rover Freelander (42 per cent).
The Warranty Direct data is based on a minimum of 100 examples of each model. The SMMT, however, has urged the company to 'come clean' and publish more information on its sample sizes before the data can be treated as reliable and useful to its members in their efforts to increase reliability.
Tata to establish West Midlands engineering centre
“Though there is no (British-owned) automobile industry, we were really surprised at the level of technology skills in the UK, with a strong base there that does lots of work for Europe,” said Ratan Tata, chairman of Tata, interviewed for a 28 November report by the Financial Times in Mumbai.
“We would create a focal point for technology that would still have a strong connection with India,” said Mr Tata. “The idea is to plug into technology at a higher level than is possible in India.”
The centre would, reports the FT, focus on areas such as body engineering, transmission and gearboxes and final styling.
Established in 1945, Tata Motors is India's largest and only fully-integrated automobile company. Tata Motors began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. Since 1969, the company's products have come out of its own design and development efforts. Tata Motors is now India's largest commercial vehicle manufacturer with a 59 per cent market share, and ranks among the global top six manufacturers of medium and heavy commercial vehicles.
The company's passenger car range comprises the hatchback Indica launched in 1999 and later marketed unsuccessfully by MG Rover in an adapted version, the Indigo sedan and the Marina, its station wagon variant, in petrol and diesel versions. The Tata Sumo, its rural variant, the Spacio and the Tata Safari (India’s first SUV) are the company's multi-utility offerings.
The Tata Indica, India's first indigenously designed and manufactured car, was launched by Tata Motors in 1999 as part of its ongoing effort towards giving India transport solutions that were designed for Indian conditions. Currently, the company's passenger cars and multi-utility vehicles have a 16-per cent market share.
Cumulative sales of Tata passenger vehicles in the Indian from January-October were 1,01,347 units; exports totalled 27,912 units, representing 116.8 per cent growth year on year.
Two more groups vie with Pendragon for Reg Vardy plc
In a statement to the Stock Exchange, the UK’s third largest franchise dealer group Reg Vardy plc has said, "The board of Reg Vardy can now confirm that it has received two further unsolicited approaches from potentially interested parties. These approaches are above the 750p level currently under discussion with Pendragon."
The company added that there is no certainty that a new bid will be received, but it is continuing discussions with the two other groups. This morning, Reg Vardy’s shares were up 4.83 per cent at 770p, while those of Pendragon had fallen by 4.08p to 482.5p
If Pendragon’s discussions result in a successful bid for Vardy, it will account for some 6 per cent of UK new car registrations, already being the UK’s largest dealer group.
Bentley Motors in recruitment drive
Bentley Motors is embarking on a recruitment drive for temporary production jobs ahead of the production of two new models to be launched next year. An unspecified number of assembly and paint shop workers and body and metal finishers are needed for Bentley’s Azure and Continental GTC models.
A spokesman at the Crewe factory told a local paper: "The rate of new product development at Bentley represents one of the most exciting periods and certainly one of the busiest in the company's history.Two new models are entering the production process and we require additional help through this period.”
The temporary positions, which include skilled and semi skilled workers, are anticipated to run until the end of 2006.
The convertible GTC, which was unveiled at Frankfurt this autumn and will go on sale in late 2006, will add to the four-door Flying Spur derivative of the Continental GT coupé. It takes 680 man hours to build.
(Staffordshire Sentinel, 28 November)
DaimlerChrysler UK consults staff on up to 128 redundancies
DaimlerChrysler UK Limited announced yesterday that, as part of a reorganisation of its UK operations, the company has today entered into a 90-day period of consultation over 128 jobs which are at risk of potential redundancy, primarily at its Milton Keynes headquarters.
DaimlerChrysler UK Limited, responsible for DaimlerChrysler AG’s third largest market, says it “has had to review the organisation and structure of its business to maintain its competitive edge. In reducing costs and increasing revenues, this course of action today is a regrettable but unavoidable step.”
"The company will be doing all in its power to assist staff who are made redundant in finding alternative employment, either within the DaimlerChrysler Group or through outplacement support."
- DaimlerChrysler AG launched an €850m bond this week, to be redeemed in May 2008.
Euro NCAP survey assesses safety as factor in car choice
Euro NCAP recently commissioned Market & Opinion Research International (MORI) to carry out a survey across Europe to identify how much safety concerns played a part in the decisions made by consumers and the extent to which consumers relied upon the information provided by Euro NCAP.
The survey showed overall that “Safety” was the most important aspect influencing their choice. This was closely followed by “Reliability.” Germany and Great Britain were the only countries where consumers placed reliability, just ahead of safety.
Overall, 47% sought safety information prior to buying a new car. Only German respondents exceeded this figure, at 70%. Their high interest alone was sufficient to significantly affect the average. The next most enquiring were the Czech Republic (44%), Poland and Great Britain (42%). Of those who brought cars, 57% sought safety information and of those influencing choice, 56% did so.
Car magazines (20%), Friends and acquaintances (19%) and Newspapers and TV (17%), were the major sources of safety information. In Germany, the use of information from car magazines (39%), newspapers and TV (37%) was much higher than it was elsewhere. Euro NCAP was infrequently cited as the source of safety information (2%), though its ratings feature in several media consulted by car buyers.
The survey was carried out in seven European countries, between July and September 2005, by MORI. In total around 1000 adults were interviewed, “face to face” or by telephone, in each country. The pilot survey was carried out in Great Britain, so there were just over 2,000 respondents from there.
Delphi postpones labour contract petition; GM postpones price cuts
Delphi Corporation yesterday announced it will accelerate its discussions with General Motors regarding Delphi's restructuring efforts, and confirmed that GM has agreed to temporarily forego previously agreed 2006 price reductions on components provided by Delphi, to provide interim financial support.
Delphi also said it was continuing to work to achieve consensual agreements with the unions that represent Delphi employees, and that it will suspend its previously contemplated December 16 motion to petition for rejection of its collective bargaining agreements and modification of retiree health care benefits under Sec. 1113/1114 of the U.S. Bankruptcy Code, at least until Jan. 20, 2006.
While these discussions continue, Delphi said it would have no further comments regarding GM's role in the potential outcome or resolution of the issues.
J.D. Power and Associates to launch internet new-car buyer behaviour study
The J.D. Power and Associates’ US Online Media Study, which will employ both Internet and mail surveying, is designed to identify the potential of web sites to reach future new-vehicle buyers. This includes the frequency of visits to specific web sites by new-vehicle buyers and the way they use the internet for news, sports, hobby and lifestyle information.
Steve Witten, executive research director at J.D. Power and Associates, said, "As a complement to our New Autoshopper.com Study, which measures how buyers use the Internet during their automotive shopping process, the Online Media Study gathers data that will help with upper purchase-funnel needs, such as product awareness."
In the 2005 pilot study, the web sites that new-vehicle buyers most often visited during the past month were similar across all vehicle segments. Web sites visited at least once in the past month by new-vehicle buyers include eBay.com, Google.com, Travelocity.com, Weather.com, Yahoo.com and Yahoo!Search.
The study also includes the usage of "new media" platforms and devices such as the iPod, satellite radio, mobile phone and video on demand. The full results of the 2006 Online Media Study will be published in July.
International Auto Components JV buys Collins & Aikman Europe
International Auto Components Group ("IAC"), the joint venture company recently formed by WL Ross & Co. LLC, Franklin Mutual Advisers LLC, and Lear Corporation, has announced a definitive agreement to acquire from Collins & Aikman Europe its US$600 million operations in the UK, Austria, Belgium, Czech Republic, Germany, Netherlands, Slovakia, Spain, Sweden, serving Ford, GM, DaimlerChrysler, Porsche, Saab, Volkswagen, Volvo and other OEMS. The acquisition of the C&A business in Austria is subject to approval of the local insolvency authority and the Austrian Court.
Wilbur L. Ross, Chairman of IAC said, "We are delighted to make IAC's first acquisition within a month of announcing the joint venture company. We also are appreciative that the automobile industry has decided to support our efforts. This is the start of a major global factor in the automotive interior plastics industry."
The transaction is subject to certain conditions including approval by regulators, landlords, and customers, but is expected to close early in 2006. The purchase price is subject to certain final adjustments but in any event involves cash well in excess of US$100 million and assumption by IAC of various liabilities and commitments of Collins & Aikman.
Cars Direct launches retail auction web site
The Cars Direct Group, a vehicle re-marketing specialist, has opened up its vehicle auction web site to the consumer for the first time, offering the public a chance to buy used vehicles at trade prices, at weekly online auctions at www.cars-direct.ltd.uk.
SMMT publishes new edition of towing guide
The SMMT this week published a new edition of their most requested publication, Towing and the Law. The 40-page booklet covers subjects relevant to any commercial or industrial user of light trailers (up to 3,500 kg), as well anyone using trailers for leisure purposes, including tow bars, coupling types and the correct use of breakaway cables, driving licence requirements, and when tachographs are needed.
The last edition of Towing and the Law sold nearly 140,000 copies. The new one costs £5.00 including post and packaging (UK only) and can be ordered online at www.smmt.co.uk/publications . Alternatively, orders, with accompanying payment, can also be sent to Publications Department, SMMT Ltd, Forbes House, Halkin Street, London SW1X 7DS.
ThyssenKrupp outbids Arcelor for Dofasco
Dofasco and ThyssenKrupp have reached an agreement for ThyssenKrupp to make an offer to acquire all of Dofasco's outstanding common shares in a friendly, all-cash transaction for total consideration of approximately C$4.8 billion (€3.5 billion). The offer price represents a 40% premium over Dofasco's closing share price on November 22, 2005, the day prior to Arcelor’s announcement of its intention to make an unsolicited offer for Dofasco at C$56.00 per share. It also represents a 9.8% premium over the Arcelor bid. ThyssenKrupp expects the acquisition to be accretive to earnings in the first full year of the combination.
Dofasco and ThyssenKrupp both produce flat steel products for the automotive sector.
Hamilton, Ontario will become ThyssenKrupp's new North American headquarters for carbon steel. Within the ThyssenKrupp Group, Dofasco will be given responsibility for ThyssenKrupp Steel in North America and will take over ThyssenKrupp Steel's existing processing activities in the NAFTA region.
The managements of Dofasco and ThyssenKrupp do not anticipate restructuring involving employees or operations, as a result of this transaction.
Hayes Lemmerz increases stake in Turkish alloy wheels joint venture
Hayes Lemmerz International, Inc. has increased its ownership stake in its Turkish aluminium wheel joint venture, Jantas Aluminyum Jant Sanayi ve Ticaret A.S. (a.k.a. Jantas Aluminum Wheels).
Hayes Lemmerz and Inci Holding A.S., one of the other two original joint venture partners in Jantas Aluminum Wheels, acquired the 35 per cent interest in the joint venture previously held by Cromodora Wheels S.p.A. As a result of the transactions, Hayes Lemmerz increased its interest from 40 per cent to 60 per cent, while Inci Holding A.S. increased its share from 25 per cent to 40 per cent.
The joint venture is expected to eventually produce 1.5 million wheels annually and will start production in early 2006.
Solutia to buy out Mexican joint venture partner
US-based PVB glazing interlayer supplier Solutia Inc. has agreed to buy Vitro Plan S.A.'s 51 per cent stake in its joint venture with Solutia, known as Quimica M, S.A. de C.V., subject to bankruptcy court approval, the approval of the parties' respective boards of directors, and the Mexican Competition Commission.The Quimica M joint venture produces PVB interlayers used by glass producers such as Vitro to make laminated glass for use in vehicles and buildings. Solutia recently build a laminated glazing interlayers plant in Suzhou, China.
Spanish cast components supplier to build Slovakian plant
The Basque automotive supplier Industrias Amaya Telleria is to invest €12.5 million in building a new plant in central Slovakia, due to become operational early next year.
The Spanish Trade Office in Bratislava has announced that the factory, expected to employ 200 people, will produce steel and aluminium cast components for clients including Renault, PSA Peugeot, Citroën, SEAT, Ford and GM.
(eitb24.com, 28 November)
Jaguar considers vacating Browns Lane site
Jaguar’s parent company Ford has drawn up a list of proposals for moving the remaining non-assembly Jaguar operations from Browns Lane in Covernty to other Jaguar site, including Whitley, also in Coventry, reports the BBC.
Car production ended at Browns Lane in July, but some 500 people are still employed at the site which is mainly used for wood veneering. Ford spokesman Don Hume said none of the proposals involved job losses. Jaguar has been at Browns Lane for 53 years:
"Moving remaining production at Browns Lane to another site is one of several considerations being made at this moment. It is very early days but the reality is that the way forward is to move from Browns Lane." (BBC, 28 November)
- All of Ford Motor Co.'s overseas automotive operations will make money in 2006, including the Premier Automotive Group, CEO Bill Ford has forecast, while declining to predict when the North American automotive business, which lost £1.4bn in the first nine months of this year, would return to profitability. Restructuring moves in North America are due to be announced early in January. (Automotive News, 28 November)
Nanjing Automobile agrees sale of Austin Healey brand to GB Sports Car consortium
Nanjing Automobile and GB Sports Car signed a memorandum of understanding on 23 November, according to sources quoted by a Financial Times report, which says a final agreement facilitating the start of Birmingham production is understood to be likely within six weeks.
GB Sports, which is backed by unidentified US funds, refused to confirm the agreement. It said: “The talks are progressing well. We will obviously go public when we have got a firm plan for a new business venture. There is still some way to go.” No statement was forthcoming from Nanhing Automobile.
The revival of the Austin-Healey name was part of GB Sports’ unsuccessful bid for MG Rover. It reportedly hopes to finalise a joint venture that would build the MG TF sports car and ZT saloon in Birmingham and import the rest of the range from Nanjing factories in China. GB Sports would also have its own business building sports cars under other brands, and is thought to be bidding to buy the former Rover racing division, which owns the SV supercar, from PwC, its administrator. (FT, 24 November)
Over 500 franchise points are available to UK dealers – Motor Trader
Car manufacturers have identified over 500 dealer open points in the UK, according to the Open Points Directory published in this week’s Motor Trader. It shows that over half of the 37 car importer respondents are actively looking to fill open points with recruitment numbers ranging from just two sites for Toyota to 56 for Citroen. Most of the opportunities are offered by Asian brands, with Kia, Perodua, SsangYong, Hyundai and Proton wishing to appoint dealers to 137 open points between them. (Motor Trader, 25 November)
Rosoboronexport confirms nominations to Avtovaz board
Russians state-controlled arms dealer Rosoboronexport confirmed last week that it will nominate its deputy general director Vladimir Artyakov and another senior official, Igor Yesipovsky, to the board of AvtoVAZ, Russia’s largest car manufacturer.
Rosoboronexport said the nominations were "another step in the direction of Russian machine-building development" and that its presence on the board of manufacturing firms should be seen as common practice.
The chairman of AvtoVAZ, which manufactures the Lada, Vladimir Kadannikov, resigned a month ago. A new board will be elected at an extraordinary shareholders' meeting on December 22. (Moscow Times, 28 November)
MV Agusta expected to lead to heavy quarterly loss for Proton
Malaysian car manufacturer Proton is expected to report a loss of as much as $US 185m for the three months to end September, according to the New Straits Times, whose sources suggested the losses of the indebted Italian motorcycle manufacturer MV Agusta, recently acquired by Proton, "would spread to Proton’s own books”.
Proton announced a US$ 3.3 million dollar net loss in its first quarter to June. The second quarter result is due to be announced this week. The Straits Times said analysts were prepared for it to contain more provisions amid preparations for an expected alliance with Volkswagen, which has been holding talks with Proton this year. (Channelnewsasia.com, 28 November)
Delphi creditors seek to block supplier payment scheme
With the support of debtor-in-possession lenders and the UAW, Delphi has applied to the bankruptcy court for permission to repay up to 75 per cent of debts to an estimated 8,000 important suppliers in return for new two-year supply contracts with more favourable credit terms, but the official committee of unsecured Delphi creditors, and Wilmington Trust, which represents bondholders owed $2bn by Delphi, will ask the court to reject the application, which has also brought criticism from suppliers themselves.
More than 60 suppliers filed objections last week asking the court to require written agreement to any contract extensions, and many also demanded full and immediate payment of outstanding debts in return for a new contract, rather than 75 per cent of debts over 18 months.
Delphi’s application warned that “Without the goods, (Delphi’s) manufacturing process, and the entire automotive industry, could face imminent shutdown following expiration of the agreements.”
The threat of industrial action at Delphi caused further losses in GM’s share value last week, since it would be likely to halt all GM production in North American within 48 hours, and analysts believe a three-month strike at Delphi would use up all or most of GM’s $19.2bn cash reserves, giving it no option but to file for bankruptcy protection.
GM CEO Rick Wagoner, in an interview with the Detroit News, said, “If everybody steps back and thinks about what we really need to do here, the possibility of coming to a reasonable agreement is much, much better than the possibility of the thing blowing up,” he said. “The probability isn’t zero and we all have to recognise that. No guarantees.”
In another interview, with the Detroit Free Press, Mr Wagoner said GM was likely to sell more vehicles outside than inside the US this year for the first time, as Chinese sales boomed. He predicted US sales of 4.5m this year, down from 4.7m last year. Overseas sales would rise from 4.3m to 4.6m.
If no agreement is reached with unions over Delphi’s requested pay cuts by mid-December, Delphi has said it will ask the bankruptcy court to cancel worker contracts a month later. GM has declined to comment on whether it is prepared to help Delphi by subsidising any wage deal it may be able to strike. (Media sources, including the FT, 27 November)
Colin Bruder is new Network Automotive managing director
Colin Bruder has been appointed as managing director of the motor industry consultancy Network Automotive, after having been engaged on a consultancy basis by Network's sister company, Forester Grant, setting up operations in Germany and Spain for the last 12 months.
His background includes almost two decades in various roles with Procter and Gamble, a 10-year spell as managing director of Guinness in Germany, and experience with Mars Limited and Smiths Food Group.
Bruder was national sales director at Renault UK from 1981-1986, and was more recently sales and marketing director of the electronic vehicle tagging, automatic number plate recognition and telematics specialist, Police 5.
Western European new car market falls 2.8% in October
Data from JATO Dynamics shows that the Western European market for new cars fell by 2.84% (to 1,132,484 units) in October 2005, compared with the same month in 2004. Year-to-Date (YTD), the market remained comparable with 2004; up 0.06% to 12,608,797 units.
Sweden (up 9.9%) and Denmark (up 5%) showed strong growth in October. But sales in the UK, Norway, Switzerland and the Netherlands were more than 10% lower than in October 2004. Total sales in the 'Big Five' markets of France, Germany, Italy, Spain and the UK were 3% down (to 895,695 units) in October but almost level with 2004 on YTD performance, with total registrations in the five markets up 0.1% to 9,928,338 units for the period January to October.
Iceland (up 40%) and Denmark (up 23.7%) continue to show remarkable YTD growth, while Ireland also saw a significant increase (up 11.7%). Switzerland (down 17.1%) is the lowest-performing market for the YTD.
Volkswagen heads the brand table with YTD sales up 1.9% on 2004. BMW (up 13.7%) and Toyota (up 3.9%) also registered notable YTD growth. Toyota and Citroën increased sales in October. The leading brands in October were VW (120,963 units), Renault (108,284 units) and Opel/Vauxhall (94,646 units). Outside the top 10, Audi (up 12.2%), Skoda (up 14.8%) and Honda (up 10.1%) all showed significant YTD sales growth in the region.
VW Golf moved back to the top of the model ranking in October, ahead of the Opel/Vauxhall Astra (up 0.6% in October and 32% YTD), Ford Focus (up 24% in October), Peugeot 307 and Renault Clio. For the YTD, the Golf also ranks first, ahead of the Astra and the Focus, with Peugeot's 206 and 307 completing the top five.
Luxury (up 22%) and premium Lower Medium sales (up 15.6%) led the way in October, while SUVs and Mini-MPVs maintained their steady growth in sales and market share. Apart from City Cars, every other segment suffered compared with October 2004, with Sports models (down 14.4%) turning in a particularly listless performance and Premium Upper Medium sales falling by almost 10%.
Despite some difficult market conditions, total registrations in the Utility/City Car segment were 5.6% higher in October although the segment remained down 2.8% YTD. The Fiat Panda (up 3.7%) led the segment in October from the smart fortwo and Renault Twingo.
The new Renault Clio (up 10.4%) led the Small segment in October, from the Peugeot 206 and Ford Fiesta. Registrations in this segment fell 4.6% in October, continuing the trend that has left YTD sales down by 3.8% despite good performances by recent entrants including the VW Fox, Peugeot 1007, Suzuki Swift and Lancia Musa.
The surge in registrations of Lower Medium segment models earlier in the year did not continue in October, as volumes fell by 7%. The YTD total remained 2.4% up on 2004. VW's Golf led the segment in October from the Opel/Vauxhall Astra and Ford Focus. Citroën's C4 performed notably well, compared with its outgoing predecessor the Xsara last year, claiming 6th place in the segment with sales up 201% in October and up 130% YTD.
Premium Lower Medium models showed slower growth now that the leading products are well-established in the market. Nevertheless, total registrations were up 15.6% in October and up 39% for the YTD, with Audi's A3 (up 12.3% in October) leading from the BMW 1-Series (up 30.8% in October) and Alfa Romeo 147 (up 17.2% in October).
Strong sales of Upper Medium segment models kept the segment 2% ahead of 2004 on YTD registrations, although October registrations were down by 4.3%. VW's Passat (up 17.6%) led in October from the Peugeot 407 and Ford Mondeo.
The Premium Upper Medium segment continued to lose market share, with total registrations down 9.6% in October and down 12.1% YTD. BMW's new 3-Series led the segment in October from the Audi A4 (up 15.4%) and Mercedes-Benz C-Class.
Executive segment registrations also fell. They were down 4.7% in October and down 4.2% YTD. However, Audi's A6 saw sales rise 7.7% in October, and the A6 led the segment from the BMW 5-Series and Mercedes-Benz E-Class.
Thanks mainly to the introduction of the new Mercedes-Benz S-Class, registrations in the Luxury segment rose by a remarkable 22.5% October. The S-Class led the segment in October (up 112%), ahead of the BMW 7-Series (up 2.8%) and the Audi A8. YTD, Luxury registrations remain down on 2004 by 13.1%.
Renault's Scénic/Grand Scénic led the resilient Mini-MPV segment in October from the new Opel/Vauxhall Zafira (up 12.1%) and Volkswagen Touran. Total registrations of Mini-MPVs rose 5% in October and rose 5.1% for the YTD.
Full-size MPV sales remained depressed. The segment fell 12.7% in October, with YTD volumes down 11.1%. Renault's Espace/Grand Espace maintained its lead in October, followed by the Volkswagen Sharan and Mazda5.
Increases of 6.5% in October and 11.2% YTD helped the buoyant SUV segment increase its share of the Western Europe car market to 6.5%. Toyota's RAV4 led in October from the Hyundai Tucson (up 12.8%) and BMW X3. As well as the Tucson, new products selling well in this segment include the Kia Sportage, Nissan Pathfinder, Land Rover Range Rover Sport and Nissan Murano.
Lethargic sales of Sports models saw the segment suffer a 14.4% fall in October, leaving it down 5.1% for the YTD. The segment leader in October was the new Opel/Vauxhall Tigra, ahead of the Mercedes-Benz CLK-Class and SLK-Class.
(jato.com)
Euro NCAP celebrates 10th anniversary with Brussels conference on 29 November
Euro NCAP is celebrating 10 years of raising vehicle safety public awareness with a conference at the Brussels Autoworld museum that will bring together speakers from Europe, Japan and the USA. At the conference Euro NCAP will announce the results of a new consumer survey detailing the most important factors affecting consumer purchase decisions.
As part of these findings, Euro NCAP will reveal that safety (94%) was cited as the most important deciding factor for consumers in their choice of vehicle, while car buyers are also showing a growing interest in protecting pedestrians as well as vehicle occupants.
These findings form part of a survey carried out in the summer for Euro NCAP by Market & Opinion Research International (MORI). Over 8,000 people were interviewed in seven EU countries.
The conference will be formally opened by Professor Claes Tingvall, Euro NCAP Chairman, who will be joined by speakers including Jacques Barrot, European Commissioner for Transport, Ari Vatanen MEP and Dr Stephen Ladyman, Britain’s Minister of State for Transport. A panel of guests will also discuss the future evolution of Euro NCAP.
Toyota hybrid sales top 500,000
Cumulative global sales of Toyota hybrid vehicles have just topped the 500,000 mark, with approximately 513,000 units sold worldwide by the end of October this year*. Toyota launched the Prius — the world’s first mass-produced hybrid vehicle — in Japan in 1997 and began selling it in North America, Europe and elsewhere in 2000. In 2001, it added in Japan the Estima Hybrid minivan, the Crown luxury saloon mild hybrid and the Dyna light-duty hybrid truck.
In 2003, Toyota introduced in the second-generation Prius a new-generation hybrid system based on the concept of Hybrid Synergy Drive. In 2005, it expanded use of this system to SUVs in the form of the Lexus RX400h and the Highlander Hybrid. Toyota is now preparing a Hybrid Synergy Drive-based hybrid system for rear-wheel drive passenger vehicles and expects to introduce it on the Lexus GS450h saloon, scheduled for launch in spring 2006.
Yamagata University and Mitsubishi Chemical launch joint new automotive polymers R&D
Mitsubishi Chemical has launched a five-year research project on new polymer materials for use in automotive applications in collaboration with Yamagata University, involving research into the synthesis, modification, compounding and processing of polymer materials. Yamagata University will organize the activity while Mitsubishi Chemical will contribute researchers and funding.
(Japan Corporate News Network)
CIE Automotive to build Shanghai plant
The Basque automotive supplier group CIE Automotive, the result of merger between Corporacion Egaña and GSB, is to invest €3 million in its first factory in China, due to open in the first half of 2006. Employing 100 people, the new stamping and sub-assembly plant will be located near Shanghai. CIE also plans to establish a Chinese purchasing centre for its operations outside China.
(EITB24.com)
Atmel Corp. launches BCDMOS fail-safe system IC for automotive applications
Semiconductor maker Atmel Corporation has announced the availability of the new monolithically integrated fail-safe system IC, the ATA6814, manufactured using Atmel's state-of-the-art 0.8-um BCDMOS technology.
With built-in driver functions and complete monitoring system, the ATA6814 is proposed for all safety-relevant automotive electronics, such as DC motor controls in electric parking brake systems, power steering, chassis and powertrains.
The ATA6814 combines various functions into one single IC, whereas Atmel says competitors require the addition of several standard components such as stand-alone voltage regulators and watchdogs; integration offers significant board space reduction and smaller, more cost-efficient designs.
(atmel.com)
Hyundai considers new premium brand launch - report
Hyundai Motor Company is considering launching a new luxury saloon that would carry a separate brand from Hyundai, the company has reportedly announced in South Korea.
The new model, code-named "BH," is intended to compete with Lexus and BMW's 5-Series in the US market. Hyundai’s corporate web site has yet to confirm the story. (Yonhap news agency, 28 November)
