Category: Industry News

  • Top 10 engines in the US

    Top 10 engines in the US

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    Ward’s Auto World has released the list of the 10 best engines of 2007. There is only one diesel engine as the magazine is published in the US. To enter the contest, the engine had to be featured in a vehicle whose price tag is less than £27,500/$54,000.

    Unsurprisingly, there are five V6 units and two V8 engines among the winners.

    – Audi : turbocharged FSI 2.0-litre inline-4 featured in the Audi A3.
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    – BMW : turbocharged 3.0-litre inline-6 from the 335I
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    – Mercedes : turbodiesel 3.0-litre V6 featured in the Mercedes E320 CDI
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    – Ford : 4.6-litre V8 from the Mustang Shelby GT/Bullitt
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    – General Motors: 3.6-litre V6 featured in the Cadillac CTS
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    – General Motors: 6.0-litre V8 Hybrid from the GMC Yukon Hybrid
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    – Honda : 3.5-litre V6 featured in the Accord Coupe
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    – Mazda : turbocharged 2.3-litre Inline-4 from the Mazdaspeed3
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    – Nissan : 3.7-litre V6 featured in the Infiniti G37
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    – Toyota : 3.5-litreV6 from the Lexus IS 350
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  • Untitled post 827

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    The largest Russian car maker, AvtoVaz has announced that it will open a new factory in Chechnya. The company expects to employ 8,000 people.

    In the meantime, the Avtovaz also announced it had recorded a strong 2007 year in its domestic market. The sales totalled 663,500 vehicles, an increase of 6.2% over the same period in 2006. The best-seller is the outdated Lada Samara. Globally, the company sold 770,000 vehicles last year.

    If this year follows the December sales trend, 2008 might a very good year for the company and for Renault which recently bought 25% of it. Indeed, its December car sales in the Russian market totalled 62,800 units, up 26.4 percent year-on-year.

    Source: Reuters

  • Third generation G-Wiz i on sale

    Third generation G-Wiz i on sale

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    GoinGreen has unveiled the third generation of its ugly iconic vehicle, the G-Wiz i. This time, the little electric car comes with a new safety package and increases its top speed from 45mph to 50mph.

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    After the catastrophic crash test operated by Jeremy Clarkson where a G-Wiz is launched against a table, it was more than urgent for the company to upgrade the safety package of its model. With the help of Lotus Engineering,the company has introduced a new safety package to the G-Wiz i, frontal crash tested at 25mph city speed. Safety features include front and side impact protection, a strengthened space frame, a collapsible steering column, a hill rolling restraint feature and new front disc brakes that deliver a 30% improvement in braking performance.

    While the exterior remains unchanged, the interior features a roomier cabin. The G-Wiz i has a colour-impregnated body whose standard colours include marine blue, lightning silver or deep black.

    At £8,895 inc VAT, the G-Wiz i fails to convince despite 900 of them on London’s roads. How can a sensible person spend almost £9,000 on a car whose only merit is not to pollute if we don’t take into account the pollution generated by the power centrals?

    Using public transport is likely to be less expensive and more comfortable. At least we can read a decent newspaper or discuss with friends on the bus or the tube. In a way, the G-Wiz i isn’t a vehicle to show your green credentials but to make your friends realise how stupid you are.

  • Mahindra has bought the Italian designer GRD

    Mahindra has bought the Italian designer GRD

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    The Indian car maker Mahindra has been in the spotlight of the media recently. After the failed bid over Jaguar and Land Rover sale, the company has bought the Italian designer GRD.

    GRD, for Grafica Ricerca Design,  is certainly unknown to many of us, but the small company, founded in 1996, is used to working for Fiat, Pininfarina and Magna Steyr. It collaborated on the Fiat Bravo and the premium platform projects. The practical details of the operation remains unknown, but Pawan Goenka, president of Mahindra’s automotive unit said that “this acquisition will help us [Mahindra] strengthen our existing design capabilities, help us emerge as a global auto design powerhouse (and) provide a solid European footprint.“ The acquired design company will be renamed Mahindra Graphic Research and Design.

    For Mahindra, this is the first milestone of a race to acquire European technology and knowledge as Indian market promises to be tougher in the coming years. Its current models can’t compete with the Western and Japanese cars. With the Jaguar and Land Rover purchase, Mahindra wanted to access the Land Rover technology, but the failed attempt pushes the company to acquire technical skills elsewhere.

  • Toyota overtook Ford on the US market last year

    Toyota overtook Ford on the US market last year

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    For the first time in 75 years, Ford lost its second rank on the US market as the company has been supplanted by Toyota last year. With a 2.7% increase to 2.62 million delivered vehicles, Toyota overtook Ford which sold 2.57 million vehicles last year, which is a 12% drop from the previous year over the same period.

    2008 will likely confirm the trend as the American market going to recession will be tougher for American brands. Toyota will likely rank second next year and don’t expect the Japanese giant to overtake GM in the US as the American group has delivered 3.87 million vehicles there last year despite a 6% decrease compared to 2006 over the sane period.

  • Hyundai has strong ambitions for 2008

    Hyundai has strong ambitions for 2008

    080102_p10_hHyundai CEO, Chung Mong-koo has announced in a speech to mark the new year that the car maker wants to increase its global sales by 20% for this year. The Korean company expects to sell 4.8 million vehicles compared with 3.96 million over the same period last year.

    Hyundai expects to sell 3.11 million vehicles this year while its subsidiary Kia Motors will target 1.69 million vehicles.This is not the first time Hyundai announces an ambitious target. Last year, the company planned to sell 2.735 million vehicles but only achieved to sell 2.6 million units. How does Hyundai plan to sell 830,000 more vehicles? The company expects a strong growth on its national market and expects new models to boost demand in the US and in China.

    On the American market, Hyundai will soon sell the eagerly-awaited Genesis saloon which will mark the company’s serious attempt to take on Lexus in the luxury segment. Some observers believe that the subprime crisis will prevent Hyundai to succeed on the luxury market as demand will decrease and competition increase. But automobile history might repeat itself. Indeed, Lexus arrived on the American market during a recession but its low price and the Toyota’s brand image convinced people to buy the LS saloon at a time when driving a German car was too arrogant. Hyundai might benefit from the same situation as US is heading for a recession. Kia will also unveil its new Mohave SUV destined for the American market. The new SUV will be powered by V6 and V8 engines. Its lack of green credentials might become a disadvantage but its expected low price tag will likely convince consumers to make the jump.

    On the other hand, China will be a tougher challenge as competition from domestic car makers increase and Toyota’s success is another threat for the Korean car maker. But Hyundai is confident and has recently opened its second factory in China.

    Source photo: Korea Times

  • Tata to lead the Jaguar and Land rover bid

    Tata to lead the Jaguar and Land rover bid

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    It wasn’t a real secret but Ford has confirmed that Tata was leading the bid over the Jaguar and Land Rover sale. Lewis Booth, executive vice president – Ford of Europe and PAG, has declared that “Ford is committed to focused negotiations at a more detailed level with Tata Motors concerning the potential sale of the combined Jaguar Land Rover business.”

    Until now three potential buyers were in the race to buy the two carmakers. One was the Mahindra & Mahindra car maker and the other bidder was OneEquity. This is a good news for Tata but there is still a large amount of work before both parties sign an agreement. Lewis Booth said that “there is still a considerable amount of work to do, and while no final decision has been made, we will proceed with further substantive discussions with Tata Motors over the forthcoming weeks with a view to securing an agreement that is in the best interests of all parties concerned.“

  • 2007 sales analysis for the French market

    2007 sales analysis for the French market

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    The French market increased it sales by 3.2% for the year 2007 with 2 064 633 sold vehicles compared to 2,00,549 units over the same period in 2006. The performance is slightly worse than 2005 when 2,067,789 were sold. Despite its planned replacement due to appear next year, the Renault Megane model topped the sales chart with 155,336 vehicles.

    The Renault Clio ranked second with 145,345 delivered vehicles while the recently launched Twingo took the seventh rank with 52,134 vehicles. Globally Renault’s sales decreased by 6% in 2007 which contrasts with Dacia. Indeed, its Romanian subsidiary recorded a 74.1% increase with 32,635 vehicles compared to 18,742 in 2006. Dacia sold more vehicles than Nissan which recorded a slight increase of 4,2% to 32,263 units.

    PSA Peugeot Citroen recorded a 2% increase with 626,798 vehicles compared with 614,728 units over the same period in 2006, but situation differs between its two brands. Citroen recorded a strong 7.5% increase while Peugeot scored a 2% decrease. 2007 was a good year for Citroen whose best model, the C4, ranked fourth with 119,345, a 5.8% increase compared to 2006. Despite ist old age, the C3 performed well by taking the sixth rank with 61,522 units. Peugeot models still topped the chart with the third rank for the 207, 131,623 units and a 6.4% increase. The outgoing 307 took the fifth rank with 65,800 vehicles. Surprisingly, the 407 family ranked eighth with 41,710 vehicles. 2008 will likely be a tougher year for the French saloon as the recently launched Laguna will iikely increase its sales.

    Overall, the French car makers had a 51.84% market share in 2007 compared with 53.34% over the same period in 2006. December sales have been difficult for the French brands due to the new CO2 tax that has started this year on January 1st. Indeed, foreign brands, especially premium’s, tried to sell as many cars as possible. In December, Porsche recorded a 319% increase while Land Rover increased is sales by 300%! The first foreign model is the Ford Focus with 40,652 vehicles while Volkswagen sold 39,559 vehicles in 2007.

    Volkswagen took the first rank among imported brands with 142,600 units while Ford replaced Opel at the second rank with 103,000 units thanks to a 7.2% increase over the same period in 2006. Opel fell at the fourth rank with 99,732 units behind Toyota which recorded a 6.3% increase to 100,732 vehicles. The Fiat 500 didn’t have an impact on Fiat’s sales as the Italian group sold 53,113 vehicles. The future small Alfa Romeo and Lancia Delta will likely increase the company’s sales in 2008.

    Among the premium car makers, Mercedes-Benz took the first rank with 61,632 units. BMW took the second rank with 49,548 vehicles and achieved its 2007 target to overtake Audi. With 48,235 vehicles, the third German brand still recorded a 9.6% increase but could not resist to the 21.8% increase performed by BMW. The next years promise to be better for Ingoldstadt.

    Smaller car makers also performed well. Suzuki recorded a 20.8% increase with 30,841 vehicles compared to 25,523 units over the same period in 2006. Honda recorded a 33% increase to 15,631 vehicles.

    For 2008, the new CO2 tax will likely penalise premium brands and favours French car makers and Fiat models as smaller models will be less taxed. January sales will give a first glimpse at the trend for this year.

  • BMW to eliminate 8,000 jobs and put pressure on suppliers

    BMW to eliminate 8,000 jobs and put pressure on suppliers

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    With the goal to increase its profit margin to between 8% and 10% by 2012, BMW double its efforts to move up from a current level of 5.5%. First it put pressure on suppliers and secondly plans a big layoff.

    BMW has decided to cut cost and will de so by pressuring its suppliers. This is a surprising move for them as the company has always been known for its commitment to quality over price and favouring long-term contracts.

    But the most astonishing news is the company’s plan to eliminate 8,000 jobs, that’s to say about 8% of its global workforce that currently stands at 108,000 employees.

    Is BMW in trouble? No, the company still makes profit, but the 2007 figures won’t be as good as the previous year. Indeed BMW suffers from higher cost in product development. The Volkswagen plan and Audi will to sell 1.5 million vehicles by 2015 oblige competitors to expand their own range. Added to new stricter regulations that target premium car makers, BMW is facing higher costs than expected to develop new models. This strategic move could also go further and includes for the first time a collaboration with another car maker. BMW has already been co-operated with Peugeot for the MINI engine range but a collaboration with BMW models can’t be excluded in the future.

  • Pininfarina to build electric cars for Bollore

    Pininfarina to build electric cars for Bollore

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    The troubled Pininfarina has signed a €150 million/£108 million contract with the French company Bollore to develop and build the future electric the French company plans to launch in the future.

    Pininfarina will start building the car by 2009 and plans to produce 15,000 cars annually. At this early stage, exact spec remain a secret although the main car’s characteristics are already known. The Bollore car will be a four-seater which will use lithium-metal-polymer battery packs developed by the company. It is expected to have an autonomy of 155 miles. The batteries will a lifespan of 125,000 miles and will take 5 hours to charge fully. It will also offer a 5-minutes charge mode which will allow a 16 mile autonomy.

    Bolloré had unveiled the Bolloré Blue Car prototype (pictured) at the 2006 Geneva Motor Show.

    Secrecy surrounds the price tag although Bollore will rent the car for £340 per month. The company plans to release the car in Europe, US and Japan.