The Truth About Cars » Asia http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Wed, 23 Apr 2014 16:58:35 +0000 en-US hourly 1 http://wordpress.org/?v=3.8.1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » Asia http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com/category/news-blog/asia/ Subaru: No WRX Hatch For U.S. Market http://www.thetruthaboutcars.com/2014/04/subaru-no-wrx-hatch-for-u-s-market/ http://www.thetruthaboutcars.com/2014/04/subaru-no-wrx-hatch-for-u-s-market/#comments Wed, 23 Apr 2014 13:00:39 +0000 http://www.thetruthaboutcars.com/?p=808482 Subaru Impreza WRX STi Hatchback

For those who want a Subaru WRX or WRX STi, but prefer the utility of the previous hatchback over the current sedan offerings, they should start breathing again, as Subaru will not be bringing such a beast to the United States after all.

Motor Trend reports that last month, WRX project manager Masuo Takatsu informed Motoring.com.au that Subaru “received strong interest from the US” for a hatchback variant, citing the 50 percent uptake by the U.S. market for the previous hatch. The statement came as a surprise to Subaru of America, who weren’t expecting anything more than the sedans:

We do not know about, nor do we have, any plans for a WRX hatch. Takatsu San is the product general manager of the WRX, but this is not something he has discussed with us.

One exchange between Subaru of America and Subaru of Japan later gave the final word: No WRX hatch will be forthcoming to the U.S. market, citing cost issues against producing both sedan and hatchback models.

]]>
http://www.thetruthaboutcars.com/2014/04/subaru-no-wrx-hatch-for-u-s-market/feed/ 51
Musk: Tesla Will Build Cars In China Within Next Few Years http://www.thetruthaboutcars.com/2014/04/musk-tesla-will-build-cars-in-china-within-next-few-years/ http://www.thetruthaboutcars.com/2014/04/musk-tesla-will-build-cars-in-china-within-next-few-years/#comments Tue, 22 Apr 2014 13:00:56 +0000 http://www.thetruthaboutcars.com/?p=807330 Model S - Tesla Motors China

Though Tesla is now just delivering new vehicles to China, CEO Elon Musk predicts his company will build luxury electric vehicles in the burgeoning market within the next three to four years.

Bloomberg reports the move to localized production would allow the automaker to sell their wares while also avoiding China’s 25 percent import tariff. Right now, a new Model S retails for $118,000 in Beijing due to VAT, shipping and import duties, compared to $71,000 in Los Angeles. Musk hopes to qualify the Model S for local subsidies to help offset costs in much the same way the luxury EV sedan receives federal tax credits back in the United States.

In addition, Tesla is expanding its Supercharger network to China, with Beijing and Shanghai among the first cities to join. No word yet as to how much the automaker is investing in the expansion.

A number of challenges lay ahead for Tesla’s move into the market, including slow adoption of electric vehicles among Chinese consumers and lack of a robust infrastructure, as well the loss of China general manager of operations Kingston Chang prior to the automaker’s entry. That said, Tesla plans to increase overall global sales 56 percent this year, moving 35,000 EVs out of the showroom in so doing.

]]>
http://www.thetruthaboutcars.com/2014/04/musk-tesla-will-build-cars-in-china-within-next-few-years/feed/ 21
Beijing 2014: Production-Ready Ford Escort To Debut http://www.thetruthaboutcars.com/2014/04/beijing-2014-production-ready-ford-escort-to-debut/ http://www.thetruthaboutcars.com/2014/04/beijing-2014-production-ready-ford-escort-to-debut/#comments Fri, 18 Apr 2014 10:30:53 +0000 http://www.thetruthaboutcars.com/?p=804042 000-ford-escort-concept-shanghai

After several years of dormancy, Ford revived the Escort name for a concept sedan at last year’s Shanghai Motor Show. That concept is now production-ready, and will make its debut this weekend at the 2014 Beijing Motor Show.

Autoblog reports the Escort will be made locally in China through a joint venture, and may sport either a three- or four-cylinder powerplant driving the front wheels.

As for other global markets, an Escort was spotted in Europe earlier this month undergoing testing, but nothing more has come of it.

002-ford-escort-concept-shanghai 000-ford-escort-concept-shanghai 001-ford-escort-concept-shanghai 003-ford-escort-concept-shanghai 004-ford-escort-concept-shanghai ]]>
http://www.thetruthaboutcars.com/2014/04/beijing-2014-production-ready-ford-escort-to-debut/feed/ 63
New PSA Boss Tavares Prepares To Rebuild Company http://www.thetruthaboutcars.com/2014/04/new-psa-boss-tavares-prepares-to-rebuild-company/ http://www.thetruthaboutcars.com/2014/04/new-psa-boss-tavares-prepares-to-rebuild-company/#comments Mon, 14 Apr 2014 14:15:58 +0000 http://www.thetruthaboutcars.com/?p=797482 Carlos Tavares

Though PSA Peugeot Citroen secured funding in a three-way deal between itself, the French government and Dongfeng, new boss and former Renault COO Carlos Tavares has a hard road ahead of him as he rebuilds the ailing automaker.

Reuters reports Tavares will focus using the joint venture it shares with Dongfeng to go after 1.5 million sales by 2020, bring exports to Southeast Asia and establish a research center. He will also tighten up both working capital and the number of models sold in each market, as well as squeeze savings from PSA’s suppliers.

However, development woes, pricing issues on some models, and the use of heavy discounts and incentives are all roadblocks on Tavares’ “Back in the Race” plan expected to be issued in full Monday, as well as currency challenges in Latin America and Russia and lower-cost products from around Asia.

As part of the plan, Tavares is expected to halve the number of models it currently offers. On the bright side, the 308 and 2008 both delivered a combined 5.2 percent sales increase in the first two months of 2014, as well as an 8.5 percent Q1 2014 gain over PSA’s home market.

]]>
http://www.thetruthaboutcars.com/2014/04/new-psa-boss-tavares-prepares-to-rebuild-company/feed/ 9
BAIC Seeks To Acquire US, European Brand http://www.thetruthaboutcars.com/2014/04/baic-seeks-to-acquire-us-european-brand/ http://www.thetruthaboutcars.com/2014/04/baic-seeks-to-acquire-us-european-brand/#comments Fri, 04 Apr 2014 11:05:24 +0000 http://www.thetruthaboutcars.com/?p=787601 Senova BAIC C10

Looking to expand its global presence beyond its native China, Beijing Automotive Group announced they would like to acquire a “mid to high-level brand” in either Europe or the United States, and already has a list of potential brands in mind.

Reuters reports BAIC originally looked towards Europe for their potential acquisition, but has now expanded their search to the U.S. President Dong Haiyang told reporters that his company’s brand is little-known outside of China, and sees a European or American brand as a shortcut into the global marketplace.

At home, BAIC purchased two smaller rivals in 2013, and signed a joint investment agreement with Daimler AG last month, delivering $5.51 billion into their joint venture in order to double production by 2015.

]]>
http://www.thetruthaboutcars.com/2014/04/baic-seeks-to-acquire-us-european-brand/feed/ 52
Mitsubishi Buys Laguna Ford Assembly Plant http://www.thetruthaboutcars.com/2014/04/mitsubishi-buys-laguna-ford-assembly-plant/ http://www.thetruthaboutcars.com/2014/04/mitsubishi-buys-laguna-ford-assembly-plant/#comments Tue, 01 Apr 2014 17:06:25 +0000 http://www.thetruthaboutcars.com/?p=785649 Mitsubishi_L300_front_20081009

In a push to expand Southeast Asia sales, Mitsubishi has purchased a Ford assembly plant in Laguna, Philippines for an undisclosed amount.

Automotive News reports the plant, which last saw production in 2012, will start back up in 2015 with an initial capacity of 50,000 units per year, expanding to 100,000 annually. The plant will produce both the Adventure and L300 vans.

The second plant in the automaker’s Philippine portfolio, Laguna is key to underpinning Mitsubishi’s strength in the Southeast Asia market, especially in the emerging local auto market where the automaker is second to Toyota in annual sales.

]]>
http://www.thetruthaboutcars.com/2014/04/mitsubishi-buys-laguna-ford-assembly-plant/feed/ 33
Tesla Stays In NY, Loses Key China Exec http://www.thetruthaboutcars.com/2014/03/tesla-stays-in-ny-loses-key-china-exec/ http://www.thetruthaboutcars.com/2014/03/tesla-stays-in-ny-loses-key-china-exec/#comments Mon, 31 Mar 2014 12:59:13 +0000 http://www.thetruthaboutcars.com/?p=785169 Tesla Model S

Automotive News reports Tesla and Greater New York Automobile Dealers Association reached a compromise agreement over the weekend that would allow the EV automaker to keep their five stores while prevent Tesla or any other auto manufacturer from establishing more direct-sale stores in the state. In the words of Governor Andrew Cuomo:

Today’s agreement reaffirms New York’s long-standing commitment to the dealer franchise system, while making sure New York remains a leader in spurring innovative businesses and encouraging zero emissions vehicle sales.

Meanwhile, Tesla spokeswoman Liz Jarvis-Shean tells Bloomberg the Gigafactory will source supplies of graphite, cobalt et al from within North America, citing cost and environmental issues behind the decision. Currently, the majority of graphite found in the automaker’s battery packs come from synthetic sources in Europe and Japan, with future natural sources expected to come from Canada.

Over in China, where graphite mines and processing plants are being closed over air-quality issues, Tesla’s general manager Kingston Chang resigned his position for personal reasons. His departure, which the automaker declined to expand upon to Bloomberg, comes just as CEO Elon Musk prepares to expand further into the country’s auto market, who predicts sales to be on par with those in the United States as early as next year.

]]>
http://www.thetruthaboutcars.com/2014/03/tesla-stays-in-ny-loses-key-china-exec/feed/ 11
Hyundai Sonata Fuel Economy Rating Found Lower Than Stated, Corrected http://www.thetruthaboutcars.com/2014/03/hyundai-sonata-fuel-economy-rating-found-lower-than-stated-corrected/ http://www.thetruthaboutcars.com/2014/03/hyundai-sonata-fuel-economy-rating-found-lower-than-stated-corrected/#comments Tue, 18 Mar 2014 13:40:58 +0000 http://www.thetruthaboutcars.com/?p=774929 2014 Hyundai Sonata

Hyundai announced a correction in the upcoming 2015 Sonata’s fuel economy upon findings showing the economy figures to be lower than originally stated.

Reuters reports the sedan claimed a 6 percent-climb to 12.6 kilometers per liter, a figure based on tests at the automaker’s research center. However, government tests returned a 2 percent-climb of 12.1 kilometers per liter than the outgoing model.

Analysts, including Korea Institute for Industrial Economics & Trade senior researcher Cho Chul, said the impact of the error and subsequent correction would be short-lived, having been announced prior to the new Sonata going on sale later this month in its home market:

This may have a short-term impact on its reputation. But for the longer term, it is better for Hyundai to take quick action before controversy erupts.

Both Hyundai and Kia are rebuilding their reputations regarding fuel economy after overstate figures in their respective lineups led to recalls and customer lawsuits, paying $395 million total in settlements in the United States in 2012 for over 1 million vehicles with erroneous mileage.

]]>
http://www.thetruthaboutcars.com/2014/03/hyundai-sonata-fuel-economy-rating-found-lower-than-stated-corrected/feed/ 14
Fushou: Donfeng’s Dragon Won’t Eat PSA’s Lion http://www.thetruthaboutcars.com/2014/03/fushou-donfengs-dragon-wont-eat-psas-lion/ http://www.thetruthaboutcars.com/2014/03/fushou-donfengs-dragon-wont-eat-psas-lion/#comments Mon, 17 Mar 2014 12:08:15 +0000 http://www.thetruthaboutcars.com/?p=773753 Peugeot Display in China Circa 2013

In light of fears regarding the three-way deal between Dongfeng, PSA Peugeot Citroen and the French government leading toward a time where Dongfeng would take the reins of the ailing automaker, CEO Zhu Fushou assured his company would not do so.

Automotive News Europe reports in an interview between Fushou and French newspaper L’Alsace, the 14 percent stake in PSA is a “win-win cooperation, not a purchase deal but a way to help PSA return to growth.”

In return for a capital increase of 3 billion euro — made up of 800 million euro contributions from both the Chinese automaker and the French government in exchange for 14 percent of PSA — the two automakers will begin work on conquering the Asia-Pacific automotive market with an aim of 1.5 million units annually, as well as helping Dongfeng better compete against local rivals.

As for Europe, the deal will help PSA reduce its share of vehicle sales in its local market from 62 percent to 50 percent as focus turns toward emerging markets, including Russia and South America. In turn, 10,000 jobs will be cut in the next three years as part of the recovery plan for the French automaker.

]]>
http://www.thetruthaboutcars.com/2014/03/fushou-donfengs-dragon-wont-eat-psas-lion/feed/ 1
Datsun To Enter Russian Market April 4 http://www.thetruthaboutcars.com/2014/03/datsun-to-enter-russian-market-april-4/ http://www.thetruthaboutcars.com/2014/03/datsun-to-enter-russian-market-april-4/#comments Fri, 14 Mar 2014 10:07:19 +0000 http://www.thetruthaboutcars.com/?p=771234 Datsun_1519061g

Following its global grand opening in India, Nissan’s low-cost Datsun brand will open its doors to the Russian market April 4 in Moscow.

Just Auto reports the launch marks the official introduction of the brand to the Russian market for the first time in its history, and, according to Nissan in a statement, “is particularly significant for the global expansion of the brand as it is a key market that offers Datsun great potential for growth.”

Consumers will be able to sign up for updates on Datsun’s Russian website, as well as view a live stream introduction of the brand on April 4, featuring a sedan made specifically for the market that still follows Datsun’s philosophy of bringing accessibility to consumers in emerging markets.

]]>
http://www.thetruthaboutcars.com/2014/03/datsun-to-enter-russian-market-april-4/feed/ 25
2015 Hyundai Sonata Caught Nude In Home Plant http://www.thetruthaboutcars.com/2014/03/2015-hyundai-sonata-caught-nude-in-home-plant/ http://www.thetruthaboutcars.com/2014/03/2015-hyundai-sonata-caught-nude-in-home-plant/#comments Wed, 12 Mar 2014 18:37:20 +0000 http://www.thetruthaboutcars.com/?p=770842 2015-hyundai-sonata-lf-scooped-factory-3

New spy photos of the 2015 Hyundai Sonata have emerged showing the upcoming sedan fully nude in its home plant in South Korea.

The Korean Car Blog reports spy photographers have said the Sonata boasted a 2-liter T-GDI four-pot pushing 274 horsepower toward the front wheels through a seven-speed dual-clutch transmission.

The new Sonata will make its official launch March 24.

2015-hyundai-sonata-lf-scooped-factory-3 2015-hyundai-sonata-lf-scooped-factory-1 2015-hyundai-sonata-lf-scooped-factory-2 hyundai-sonata-turbo-seven-speed-dual-clutch-transmission-dct-scooped-1 hyundai-sonata-turbo-seven-speed-dual-clutch-transmission-dct-scooped-2 hyundai-sonata-turbo-seven-speed-dual-clutch-transmission-dct-scooped-3 ]]>
http://www.thetruthaboutcars.com/2014/03/2015-hyundai-sonata-caught-nude-in-home-plant/feed/ 54
Uchiyamada: Hybrids Soon Reaching 20 Percent Of Global Sales http://www.thetruthaboutcars.com/2014/03/uchiyamada-hybrids-soon-reaching-20-percent-of-global-sales/ http://www.thetruthaboutcars.com/2014/03/uchiyamada-hybrids-soon-reaching-20-percent-of-global-sales/#comments Tue, 11 Mar 2014 15:00:23 +0000 http://www.thetruthaboutcars.com/?p=769666 2014 Toyota Prius v

The father of the Prius and Toyota chairman Takeshi Uchiyamada foresees hybrid sales climbing from 13 percent of global sales today to 20 percent in the near future.

Automotive News Europe reports that while hybrids make up a good part of sales in the United States and Japan, they are currently a niche market in Europe in the face of equal- or better-performing diesels with lower price tags. However, Uchiyamada believes so strongly in his forecast that he didn’t factor plug-in hybrids in to his forecast, nor give a separate outlook for plug-ins.

Speaking of plug-in hybrids, Uchiyamada believes the key to success lies in higher volumes, especially among suppliers:

Suppliers need higher volumes to slash costs of components specific to plug-in models, including batteries that should be bigger and more capable than the ones used in traditional hybrids.

Regarding the Prius, Uchiyamada said the project — known as Project G21 — was a challenge, beginning with the proposal that the future Prius would net “one and a half times better fuel economy than anything that had existed before,” only to be told by top management to double the proposed number. Then, after a successful debut at the 1995 Tokyo Auto Show, he and his team spent 49 days trying to get the proto-Prius to move, finally doing so near the end of that year, “but only for 500 meters.”

Today, with 25 hybrids between Toyota and its premium brand Lexus, as well as a global total of over 6 million hybrids sold, Uchiyamada may have aged out of the title bestowed unto him regarding the Prius:

Maybe I am the grandfather by now.

]]>
http://www.thetruthaboutcars.com/2014/03/uchiyamada-hybrids-soon-reaching-20-percent-of-global-sales/feed/ 25
Japanese Automakers Find New Export Base, Opportunity In Mexico http://www.thetruthaboutcars.com/2014/03/japanese-automakers-find-new-export-base-opportunity-in-mexico/ http://www.thetruthaboutcars.com/2014/03/japanese-automakers-find-new-export-base-opportunity-in-mexico/#comments Tue, 11 Mar 2014 14:45:26 +0000 http://www.thetruthaboutcars.com/?p=769626 Mazda3s Loading Onto Three-Tiered Train Car

Within four months of each other, Honda, Mazda and Nissan have opened new factories in Mexico, taking advantage of the opportunities within the nation’s automotive industry to grow a new export base into the United States, Latin America and Europe while also gaining ground in the rapidly expanding local market, all in direct challenge to the Detroit Three and other automakers on both sides of the border.

Automotive News reports Mexico will become the No. 1 exporting nation to the U.S. by 2015 at the earliest in large part due to the 605,000 units per year added by the three Japanese automakers. Meanwhile, Toyota will begin production in 2015 at Mazda’s newly opened Salamanca plant prior to deciding whether or not to build a new factory of their own. Nissan’s premium brand, Infiniti, may also set-up shop in Mexico.

In turn, the Japanese will see benefits from the move, from mitigating losses from a weaker yen in exports from home and greater profit due to cheap labor, to no tariffs on exports to the U.S. due to the North American Free Trade Agreement and improved product availability resulting from shorter distances between markets.

Speaking of free-trade agreements, Japanese automakers will also have access to some 44 countries and up to 40 million sales annually as a result of Mexico’s many agreements, allowing them to take on competitors in Latin America and Europe.

Finally, the Japanese have taken market share away from the Detroit Three in Mexico’s own automotive market, holding a collective 42 percent over Detroit’s 35 percent in 2013, when just four years earlier Detroit dominated with 57 percent of the market over Japan’s 23 percent.

]]>
http://www.thetruthaboutcars.com/2014/03/japanese-automakers-find-new-export-base-opportunity-in-mexico/feed/ 26
Volvo, Geely Aiming For BMW, Mercedes With A-Segment Lineup http://www.thetruthaboutcars.com/2014/03/volvo-geely-aiming-for-bmw-mercedes-with-a-segment-lineup/ http://www.thetruthaboutcars.com/2014/03/volvo-geely-aiming-for-bmw-mercedes-with-a-segment-lineup/#comments Fri, 07 Mar 2014 17:52:49 +0000 http://www.thetruthaboutcars.com/?p=767329 2015 Volvo V60 T5 Sport Wagon Exterior-005

Volvo, with parent company Geely, is developing a lineup of premium A-segment vehicles aimed at the BMW 1 Series and Mercedes A-Class.

Edmunds reports the upcoming lineup will include a five-door crossover, a sedan and a hatchback, and will also offer the opportunity for Geely to sell their wares in the United States while offering a similar lineup in its home market.

Under the bonnet will be a range of engines driving either the front or all four wheels, including gasoline, diesel and their respective hybrid pairings, all based upon Volvo’s current four-cylinder engine family.

The A-segment joint venture will be based upon the upcoming Compact Modular Architecture developed in their China Euro Vehicle Technology research and development center, with the first cars due in 2017 at the earliest.

]]>
http://www.thetruthaboutcars.com/2014/03/volvo-geely-aiming-for-bmw-mercedes-with-a-segment-lineup/feed/ 15
GM Korea May Increase Exports To Australia http://www.thetruthaboutcars.com/2014/03/gm-korea-may-increase-exports-to-australia/ http://www.thetruthaboutcars.com/2014/03/gm-korea-may-increase-exports-to-australia/#comments Fri, 07 Mar 2014 17:52:32 +0000 http://www.thetruthaboutcars.com/?p=767345 Holden Cruze

As Chevrolet slowly exits from the European market while Holden exits the production line altogether, General Motors is mulling over increasing exports to Australia out of South Korea.

Bloomberg reports the increase in exports is compensation for GM Korea losing as much as 15 percent to 20 percent of its production volume when Chevrolet closes the door on Europe at the end of 2015, and is roughly the same volume needed to fill the showroom floors in Australia while Holden winds down local production — and possibly itself — by 2017.

The Chevrolet experiment ultimately lost General Motors “millions” of dollars according to GM Korea CEO Sergio Rocha, though he expects the Australian market will more than make up for it:

With this money that we call ‘loss avoidance,’ I’m going to have a lot of money in the next couple of years that we can invest in new products to be competitive in the local market and for exports as well.

Meanwhile, GM will focus on Vauxhall and Opel vehicles in their native markets, with Opel also providing select vehicles to the Australian market, beginning with the Cascada convertible.

]]>
http://www.thetruthaboutcars.com/2014/03/gm-korea-may-increase-exports-to-australia/feed/ 41
Toyota To Receive SkyActiv Engines For Upcoming Subcompact http://www.thetruthaboutcars.com/2014/03/toyota-to-receive-skyactiv-engines-for-upcoming-subcompact/ http://www.thetruthaboutcars.com/2014/03/toyota-to-receive-skyactiv-engines-for-upcoming-subcompact/#comments Fri, 07 Mar 2014 15:33:51 +0000 http://www.thetruthaboutcars.com/?p=767377 Mazda3 SKYACTIV engine, photo courtesy Michael Karesh

Toyota’s line of engine/body mashups continues, this time with their upcoming Mazda2-based subcompact powered by Mazda’s SkyActiv engine family.

Automotive News reports the subcompact, set to replace the current Yaris by 2016 at the latest, will be assembled alongside the new Mazda2 at Mazda’s newly opened Salamanca, Mexico factory. Approximately 50,000 of the factory’s total annual output of 230,000 units will be allocated to Toyota for the subcompact, with the SkyActiv transplant assembled on-site.

Though few details regarding either subcompact have been released, Mazda’s partnership with Toyota will allow the former to achieve greater economies of scale for the factory by supplying engines and possibly other SkyActiv-related components to Toyota.

Production for Toyota’s subcompact is set to begin next year, while Mazda2 production may begin as soon as the second half of 2014.

]]>
http://www.thetruthaboutcars.com/2014/03/toyota-to-receive-skyactiv-engines-for-upcoming-subcompact/feed/ 82
Fiat, Abarth Likely To Receive Mazda-Based Roadster Over Alfa http://www.thetruthaboutcars.com/2014/03/fiat-abarth-likely-to-receive-mazda-based-roadster-over-alfa/ http://www.thetruthaboutcars.com/2014/03/fiat-abarth-likely-to-receive-mazda-based-roadster-over-alfa/#comments Tue, 04 Mar 2014 19:19:50 +0000 http://www.thetruthaboutcars.com/?p=764089 2011_Mazda_MX-5_PRHT_--_04-28-2011

Long rumored to wear the Alfa Romeo badge, the next-generation Mazda MX-5 may instead don a Fiat or Abarth necklace in 2015 if Fiat Chrysler Automobiles CEO Sergio Marchionne has the last word.

Automotive News reports sources close to the project stated product planners from Mazda and Fiat met recently to discuss a roadster based upon the MX-5. Fiat’s planners are looking for a way to maintain the supply partnership deal with the Japanese automaker, lest the break-up leave Fiat in the red through 2016, when they hope to return to the black in their native Europe.

As for why, Marchionne has proclaimed that no Alfa will be made outside of Italy so long as he is CEO, a statement reinforced as recently as the 2014 Detroit Auto Show; Marchionne plans to head FCA until 2017 at the earliest.

The so-called heir to the throne abdicated by the Fiat Duetto Spider made famous by the film “The Graduate,” the Italo-Japanese roadster may find a home with Fiat or Abarth, too underpowered be paired with Ferrari or Maserati, while Lancia retreats into its home market as a one-model brand by the end of 2014.

]]>
http://www.thetruthaboutcars.com/2014/03/fiat-abarth-likely-to-receive-mazda-based-roadster-over-alfa/feed/ 35
VW Budget Brand Hitting Budget Wall, Still Under Consideration http://www.thetruthaboutcars.com/2014/03/vw-budget-brand-hitting-budget-wall-still-under-consideration/ http://www.thetruthaboutcars.com/2014/03/vw-budget-brand-hitting-budget-wall-still-under-consideration/#comments Mon, 03 Mar 2014 14:47:21 +0000 http://www.thetruthaboutcars.com/?p=760145 2013 Volkswagen Up

In 2012, Volkswagen began research into starting a budget brand in the vein of Datsun and intended rival Dacia, with the aim of having a full lineup ready for sale by 2015. Two years later, the budget brand has hit a budget wall, and that’s only the start.

Autoblog and Autocar report VW is having issues hitting safety and quality targets while maintaining the low-cost pricing — aimed between 6,000 and 8,000 euro; the Up above begins at nearly 10,000 euro — the automaker expects for the unnamed budget brand.

Though no business case has been found thus far, VW’s project is still under consideration as technicians pour over how similar rivals — including one-time partner Suzuki and considered partner Proton — are able to build low-cost vehicles without compromising on quality or price. Even though Renault-Nissan manages to be profitable with Dacia, VW is concerned that a low-cost car would erode their own margins.

Last year, Volkswagen announced they would work in a joint venture with Chinese automaker FAW to bring a budget vehicle to China by 2016; cost issues are affecting this effort, as well.

]]>
http://www.thetruthaboutcars.com/2014/03/vw-budget-brand-hitting-budget-wall-still-under-consideration/feed/ 15
Yamanouchi: Mazda’s Mexico Factory Key To Global Strategy http://www.thetruthaboutcars.com/2014/02/yamanouchi-mazdas-mexico-factory-key-to-global-strategy/ http://www.thetruthaboutcars.com/2014/02/yamanouchi-mazdas-mexico-factory-key-to-global-strategy/#comments Fri, 28 Feb 2014 16:15:21 +0000 http://www.thetruthaboutcars.com/?p=757201 Takashi Yamanouchi

Mazda Chairman Takashi Yamanouchi opened his company’s sole North American factory in Salamanca, Mexico, proclaiming the new factory the key to a global strategy “upon which the very future of [the] company hinges.”

Automotive News reports the strategy with the factory — Mazda’s Structural Reform Plan — follows a three-pronged approach: a hedge against currency exchange disruptions, provide Mazda with a low-cost manufacturing base, and give the automaker access to new markets. The factory’s location allows the automaker to gain more profit for the Mazda3s destined for the United States, than those exported from Japan, while also providing an export base to Europe and access to new markets in Latin America. In turn, Mazda’s new access through Mexico’s free trade pacts provides to markers worth a combined 35 million to 40 million vehicle sales annually.

Though the yen is weakening against the dollar at the moment, Yamanouchi said the factory will act as a hedge against unpredictable currency fluctuations that could bring down profits for his company at any time:

When the yen becomes stronger, we have the Mexican plant, therefore we will never again go into the lost position. But when the yen gets weaker, we will further cost reduce the Mexican plants so it will contribute to our total profitability. Our philosophy is that we will strike the balance of business so that we won’t go into the very difficult times of the past that we have experienced. Never.

The factory is expected to employ 4,600 workers once at full capacity of 230,000 units/annually. Currently, 3,000 employees assemble Mazda3s for the North American market, which will be joined by the Mazda2 and a Mazda2-based vehicle for Toyota. An engine machining plant will also set up shop in the factory by October 2014.

]]>
http://www.thetruthaboutcars.com/2014/02/yamanouchi-mazdas-mexico-factory-key-to-global-strategy/feed/ 41
Hyundai To Challenge BMW, Mercedes With Genesis Sedan In Europe http://www.thetruthaboutcars.com/2014/02/hyundai-to-challenge-bmw-mercedes-with-genesis-sedan-in-europe/ http://www.thetruthaboutcars.com/2014/02/hyundai-to-challenge-bmw-mercedes-with-genesis-sedan-in-europe/#comments Thu, 27 Feb 2014 13:55:32 +0000 http://www.thetruthaboutcars.com/?p=756313 2015 Hyundai Genesis

Set to be introduced to the European premium market at the Geneva Auto Show next week, the Hyundai Genesis will be aimed at establishing a foothold for the automaker in the market against BMW and Mercedes upon arrival in showrooms in June, particularly in Southern Europe, Slovakia and the Czech Republic.

Automotive News Europe reports Hyundai expects to sell 1,000 of the premium sedans to a targeted group of customers who are familiar with the brand, especially those ready to attach diplomat plates to their new purchase. No price has been announced thus far, though the automaker has pegged the BMW 5 Series and Mercedes E-Class as rivals to their Genesis.

Overall, Hyundai aims to increase their market share on the continent from 3.4 percent currently to 5 percent by 2020. Though sales fell 5.5 percent last month, there are already 6 million vehicles on the road, with 70 percent under seven years of age. Customer retention also increased, moving from 36 percent in 2010 to 50 percent in the present, which benefits Hyundai in Europe according to regional head Allan Rushforth:

Working on loyalty is really fundamental to the economics of our business, and the success of our business in Europe. We’ve been a conquest brand to get to this point, but we’ve got to evolve and mature to balance retention and conquest in the future.

]]>
http://www.thetruthaboutcars.com/2014/02/hyundai-to-challenge-bmw-mercedes-with-genesis-sedan-in-europe/feed/ 35
Opel Adam Entering Chinese Market As A Buick http://www.thetruthaboutcars.com/2014/02/opel-adam-entering-chinese-market-as-a-buick/ http://www.thetruthaboutcars.com/2014/02/opel-adam-entering-chinese-market-as-a-buick/#comments Thu, 27 Feb 2014 13:55:15 +0000 http://www.thetruthaboutcars.com/?p=756345 2013-Opel-ADAM-Models

When the Opel Adam enters the Chinese auto market in 2015, it will do so with a Buick badge as General Motors’ first high-end city car.

CarNewsChina reports the Adam will sell for somewhere between 169,800 yuan and 268,800 yuan, the same price range as that of the city car’s main competitor, the Fiat 500. Buick will import the Adam at first, though local production could come to fruition further down the road.

Under the hood, two engines will be available to future Adam owners, including a 1.2-liter engine driving 69 horses through the front wheels, and a larger 1.4-liter with 100 horsepower. Both engines are gasoline-powered.

The customer base for the Adam are those seeking a trendsetting lifestyle machine that has little to do with their parents’ Regal or other sedans.

]]>
http://www.thetruthaboutcars.com/2014/02/opel-adam-entering-chinese-market-as-a-buick/feed/ 12
Sonata Quality Issues Drag Down Hyundai, R&D President Returns http://www.thetruthaboutcars.com/2014/02/sonata-quality-issues-drag-down-hyundai-rd-president-returns/ http://www.thetruthaboutcars.com/2014/02/sonata-quality-issues-drag-down-hyundai-rd-president-returns/#comments Thu, 27 Feb 2014 13:54:37 +0000 http://www.thetruthaboutcars.com/?p=756401 2011 Hyundai Sonata

Just as J.D. Power ranks Hyundai fifth from dead last over quality issues regarding the 2011 Sonata, the automaker’s research and development president, Kwon Moon-sik, returns to the fold three months after quitting over a number of quality issues within the product line.

Automotive News and Reuters report Hyundai holds 27th overall on J.D. Power’s Vehicle Dependability Study, with 169 problems per 100 vehicles surveyed. Though nothing was specified for the 2011 Sonata or the 2011 Elantra — the other car from 2011 that brought down Hyundai’s rank — the industry overall developed issues with engines and transmissions tied to advanced fuel-efficiency technologies, including turbocharging. The sedan’s issues are magnified due to its groundbreaking design and said technologies, shaking up the otherwise conservative midsize sedan segment on its way to becoming Hyundai’s top-selling vehicle.

Meanwhile, Hyundai chairman Chung Mong-koo has rehired R&D president Kwon Moon-sik to help right the ship as the next generation Sonata prepares to make its debut in South Korea next month, as the automaker said in a statement:

Given his expertise, experience and leadership skills, we reinstated president Kwon to enhance quality and R&D capability from scratch.

Hyundai also said they expect their dependability ratings to improve next year when the 2012 models are evaluated, though it was “very disappointed” the results of this year’s study, and is “examining every component of the score to determine root-cause solutions” for improving their product line and services.

Kwon, along with two other R&D executives, quit three months earlier over quality issues — such as those affecting the 2011 models — that led to massive recalls in the United States, South Korea and other market. He was also one of the top aides to Chung’s son, Chung Eui-sun. His replacement, Kim Hae-jin, will return to heading powertrain development.

]]>
http://www.thetruthaboutcars.com/2014/02/sonata-quality-issues-drag-down-hyundai-rd-president-returns/feed/ 29
BASF Investing In EV Battery Market Despite Industry Setbacks http://www.thetruthaboutcars.com/2014/02/basf-investing-in-ev-battery-market-despite-industry-setbacks/ http://www.thetruthaboutcars.com/2014/02/basf-investing-in-ev-battery-market-despite-industry-setbacks/#comments Tue, 25 Feb 2014 15:04:41 +0000 http://www.thetruthaboutcars.com/?p=753761 BASF BMW M1 Procar

Though some electric vehicles have seen their share of woes, from fires in individual cars to bankruptcies filed by manufacturers, German chemical maker BASF is going in for the long game by investing in the EV battery market.

Bloomberg reports the world’s largest chemical maker will use a part of its annual $2.3 billion R&D budget on battery materials — one of 10 areas targeted for growth by BASF — in the pursuit of a better battery that will help EVs run longer. Company head of global business management for BASF’s battery materials unit Adrian Steinmetz says his employer is committee to making the battery materials focus a success, noting that newer and safer batteries with a higher capacity will prove beneficial to the overall EV market:

The battery can only be as good as the chemistry inside. It’s a very technically demanding field and you really need to understand the whole interplay between different chemical compounds.

To accomplish this goal, BASF has bought four companies, established a nickel cobalt manganese plant in the United States, and bought patent licenses from rival Mitsubishi Chemical Holdings Corp, one of three market leaders — the others being Sumitomo Chemical and Ube Industries — whose dominance over lithium-ion technology, aided by proximity to related tech industries, reigns supreme.

By 2020, BASF aims to be one of the top three battery materials suppliers, pushing overall market valuation to $20 billion in the same time frame. Part of this plan includes taking the fight to the home turf of their Asian rivals, already begun with the company’s establishment of a battery materials research and development center in Amagasaki, Japan. The R&D unit provides BASF with the majority of its Asian sales.

]]>
http://www.thetruthaboutcars.com/2014/02/basf-investing-in-ev-battery-market-despite-industry-setbacks/feed/ 9
China To Relax Restrictions On Foreign Joint Venture Ownerships http://www.thetruthaboutcars.com/2014/02/china-to-relax-restrictions-on-foreign-joint-venture-ownerships/ http://www.thetruthaboutcars.com/2014/02/china-to-relax-restrictions-on-foreign-joint-venture-ownerships/#comments Fri, 21 Feb 2014 18:00:41 +0000 http://www.thetruthaboutcars.com/?p=750969

China’s Ministry of Industry and Information Technology, in line with President Xi Jinping’s desire for opening the domestic economy to private and foreign investors, plans to relax restrictions on foreign ownership of joint ventures with local automakers in the face of those warning such a move would be the beginning of the end of the Chinese local auto industry.

Automotive News China reports the organization will join their fellow ministries in developing a plan to implement the proposed deregulation sometime in the future. Currently, foreign companies are mandated to form joint ventures with local companies in order to do business in China, while foreign shareholders are barred from owning more than half of said ventures.

Meanwhile, the China Association of Automobile Manufacturers, representing local interests, voiced their opposition in a statement following the announcement by ministry spokesman Xiao Chunquan:

Relaxing the current foreign ownership restrictions will wipe out Chinese brands. Foreign companies can totally use the competitive advantage of their global supply chains to support a price strategy to kill Chinese brands in the cradle.

The death spiral may have already begun, however, as Chinese consumers opt for foreign makes such as Buick, Volkswagen and Peugeot. Local brands lost 4.9 percent market share in 2013 from the year before, hovering around 38.4 percent as Volkswagen AG became the No. 1 foreign automaker over General Motors during a prosperous run by all foreign manufacturers bolstered by higher industry sales.

]]>
http://www.thetruthaboutcars.com/2014/02/china-to-relax-restrictions-on-foreign-joint-venture-ownerships/feed/ 15
Toyota Australia Engine Plant Moving To Thailand After 2017 http://www.thetruthaboutcars.com/2014/02/toyota-australia-engine-plant-moving-to-thailand-after-2017/ http://www.thetruthaboutcars.com/2014/02/toyota-australia-engine-plant-moving-to-thailand-after-2017/#comments Fri, 21 Feb 2014 16:30:37 +0000 http://www.thetruthaboutcars.com/?p=751065 Toyota Altona Engine Plant

Sources close to Toyota say the engine plant in Altona, Australia will likely be relocated to Siam Toyota Manufacturing in Thailand once the automaker ceases Australian manufacturing operations in 2017.

GoAuto reports that while the company hasn’t officially announced what will happen to the $331 million AUD engine plant thus far, executives inside Toyota Australia have Thailand in mind as a potential new home for some of the tooling currently in use. The factory exports 16 percent of its 2.5-liter four-cylinder engines to Thailand and Malaysia for fitment in Camry and Camry Hybrid models.

Another reason for the move to Thailand? While Toyota Australia builds 100,000 Camry, Camry Hybrid and Aurion models annualy — 70 percent for export markets, such as the Middle East — Toyota Thailand builds 880,000 units annually, exporting a wide range of vehicles to Australia and Association of Southeast Asian Nations — or ASEAN — member states. Furthermore, a free trade agreement between the two countries means vehicles, such as the HiLux and the Corolla, from Thailand enter Australian ports duty-free.

The plant, partially funded by a $63 million AUD contribution from Australia’s Green Car Innovation Fund and opened at this time last year, will close halfway through its expected lifespan of 10 years in 2017, shedding 2,500 jobs with thousands more down the local supply chain in the process.

]]>
http://www.thetruthaboutcars.com/2014/02/toyota-australia-engine-plant-moving-to-thailand-after-2017/feed/ 23