The Truth About Cars » Emerging Markets http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Sun, 27 Jul 2014 20:45:49 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.1 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 » Emerging Markets http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com/category/news-blog/emerging-markets-news-blog/ 2016 Cadillac SRX May See Local Production In China http://www.thetruthaboutcars.com/2014/07/2016-cadillac-srx-may-see-local-production-in-china/ http://www.thetruthaboutcars.com/2014/07/2016-cadillac-srx-may-see-local-production-in-china/#comments Wed, 09 Jul 2014 12:00:29 +0000 http://www.thetruthaboutcars.com/?p=862161 01-2013-cadillac-srx-ny

On the strength of rising SUV sales in China, General Motors will likely add production of its next-generation Cadillac SRX in the emerging market in order to better capitalize on said sales.

The Wall Street Journal reports Cadillac as a whole is doing well in China, sales rising 72 percent from January through May 2014 to 33,760 units with the SRX making up the bulk of those sales at 14,496 units, a rise of 23 percent for the crossover in the same five-month period compared to 2013. The current model goes for ¥420,000 ($67,770 USD), and has been on sale in China since 2009.

The new SRX would likely arrive as a 2016 model, with the hope Chinese production would help the automaker avoid tariffs on imported models; the crossover is only assembled in Mexico at the present. GM itself has big plans for its premium brand, including a $1.3 billion plant in Shanghai, and a goal of 300,000 units sold/10 percent share of China’s premium market by 2020.

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Cuban New-Car Sales Total 50 During First Half Of 2014 http://www.thetruthaboutcars.com/2014/07/cuban-new-car-sales-total-50-during-first-half-of-2014/ http://www.thetruthaboutcars.com/2014/07/cuban-new-car-sales-total-50-during-first-half-of-2014/#comments Wed, 02 Jul 2014 12:00:46 +0000 http://www.thetruthaboutcars.com/?p=857145 Cuban Yank tank

Last year, the Cuban government finally made it legal for its citizens to freely buy new vehicles for the first time since Fidel Castro sent Fulgencio Batista packing in 1959. The people rejoiced right up until they saw the prices on the showroom floor this January, family sedans marked up 400 percent or above as if they were Ferraris and Bugattis.

Reuters reports that because of the markup, only 50 cars and four motorcycles left the 11 nationalized lots in Cuba during the first six months of 2014, netting a total of $1.28 million USD in new car sales. The high prices also affect foreign businesses and potential investors, all none too thrilled to seek government permission to import their own vehicles without going through the national showroom floor.

In one example cited by the news organization, a Havana Peugeot dealership wanted $91,000 for a 2013 206, and $262,000 for a 506 of similar vintage, which makes the government’s goal of investing 75 percent of all new-car sales into public transportation easier said than done; most state workers make the equivalent of $20 USD per month.

Meanwhile, used car sales are doing much better, with the average price for a used vehicle — including motorcycles — holding at $23,759. Most of the used stock originates from retired rental car fleets.

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Teamsters Aid Los Angeles Uber Drivers In Improving Work Conditions http://www.thetruthaboutcars.com/2014/06/teamsters-aid-los-angeles-uber-drivers-in-improving-work-conditions/ http://www.thetruthaboutcars.com/2014/06/teamsters-aid-los-angeles-uber-drivers-in-improving-work-conditions/#comments Fri, 27 Jun 2014 11:00:35 +0000 http://www.thetruthaboutcars.com/?p=854505 UberSUV

Ride-sharing service Uber has hit a few rough patches as of late, mainly from taxi operators and city and state officials who believe Uber and others like it are too disruptive for its own good. However, the Teamsters — who supported European taxi drivers in their protest of the service earlier this month — are throwing their support to Uber drivers wishing to organize.

Autoblog Green reports Teamsters Local 986 are aiding Uber drivers in organizing an association open to all app-based commercial drivers — such as Lyft and Sidecar — to gain better treatment from their employer. This follows a protest earlier this week at the service’s headquarters in Santa Monica, Calif., where Los Angeles area drivers voiced their frustrations over a decision where owners of 2010 or older vehicles had less than two weeks to acquire a newer vehicle to remain a part of Uber Black or Uber SUV, as opposed to other markets where drivers had months to do the same.

In addition, the L.A. drivers are throwing their support for California Legislature Bill AB 2293, which would mandate all app-based ridesharing services to purchase insurance for any vehicle in service from the time the driver turns on the app, to the time the driver turns the app off. The drivers believe the insurance mandate would both “serve the public interest and not pose a financial hardship” to Uber, currently valued at $18.2 billion.

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GM Recalls 3.36M Vehicles Over Ignition Problem http://www.thetruthaboutcars.com/2014/06/gm-recalls-3-36m-vehicles-over-ignition-problem/ http://www.thetruthaboutcars.com/2014/06/gm-recalls-3-36m-vehicles-over-ignition-problem/#comments Tue, 17 Jun 2014 10:00:55 +0000 http://www.thetruthaboutcars.com/?p=845449 GM-building-US-Flag

In today’s digest: General Motors issues another ignition-related recall; has fixed a handful of those affected by the original ignition recall; and unveils plans for three new compacts to be sold in emerging markets.

Autoblog reports GM has issued six total recalls of some 3.41 million North American vehicles built between the start of the new century and the present:

  • 2000 – 2005 Cadillac Deville; 2004 – 2005 Buick Regal LS, GS; 2004 – 2011 Cadillac DTS; 2005 – 2009 Buick Lacrosse; 2006 – 2008 Chevrolet Monte Carlo; 2006 – 2011 Buick Lucerne; 2006 – 2014 Chevrolet Impala: Ignition switch; 3.36 million recalled
  • 2013 – 2014 Cadillac ATS; 2014 Cadillac CTS: Shift cable/bracket separation in automatic transmissions; 68,887 recalled
  • 2015 Chevrolet Silverado 2500/3500 HD; 2015 GMC Sierra 2500/3500 HD: Potential poor connection of power steering hose clamp connection to power steering pump; 57,192 recalled
  • 2011 Cadillac CTS AWD: Premature rollover airbag deployment linked to gasket leak between constant velocity joint and rear propeller shaft; 16,932 recalled
  • 2014 Chevrolet Corvette: Premature passenger seat side airbag deployment linked to unbelted child and door trim in models with the Competition Sport Seat option; 712 recalled
  • 2014 – 2015 Chevrolet Silverado; 2014 – 2015 GMC Sierra: Movement of driver-side all-weather floor mats due to missing attachments in vinyl-floor models; 184 recalled

The automaker expects to take a $700 million charge in addition to the $400 million already forecast for Q2 2014.

Regarding the original ignition-related recall of 2.6 million vehicles back in February of 2014, Bloomberg reports 154,731 of the affected models have been fixed thus far. GM has also shipped 396,253 repair kits around the world to help dealer service bays repair the problem. Production of the parts has been non-stop for its supplier Delphi, where the line has been going strong through multiple shifts seven days a week.

Finally, Just-Auto says the automaker plans to unveil three new compact vehicles under the Amber project. The new compact sedan, SUV and hatchback will be designed in Europe and assembled in Brazil, with the finished products heading for emerging markets such as Brazil, Russia, India, Mexico et al. Potential global production is expected to reach between 1 million and 1.2 million units annually beginning around 2018 at the earliest.

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Datsun Is Go In South Africa http://www.thetruthaboutcars.com/2014/06/datsun-is-go-in-south-africa/ http://www.thetruthaboutcars.com/2014/06/datsun-is-go-in-south-africa/#comments Wed, 11 Jun 2014 12:00:09 +0000 http://www.thetruthaboutcars.com/?p=842009 OLYMPUS DIGITAL CAMERA

Nissan’s budget brand Datsun is ready to go to South Africa, the fourth market that the resurrected nameplate will either see again or for the first time.

Just-Auto reports the first car to arrive in showrooms will be the Go hatchback, which will go for under R 100,000 ($9,340 USD). The cars will come over from the brand’s factory in Chennai, India at first — though parent company Renault-Nissan has a plant in Rosslyn, South Africa — and will be sold in 30 dealerships by the end of the year.

The last time Datsun sold a vehicle was during the 1980s transition into the Nissan brand, and was the No. 1-selling brand in the country from 1976 through 1978. The revived brand’s current goal is to attract first-time car buyers in developing markets around the globe, including Russia, India and Latin America.

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Vehicle Wireless Charging Market To Double Yearly Through 2020 http://www.thetruthaboutcars.com/2014/06/vehicle-wireless-charging-market-to-double-yearly-through-2020/ http://www.thetruthaboutcars.com/2014/06/vehicle-wireless-charging-market-to-double-yearly-through-2020/#comments Tue, 10 Jun 2014 11:00:29 +0000 http://www.thetruthaboutcars.com/?p=841506 Electic_car_wireless_parking_charge_closeup

For owners of PHEVs and EVs like the Nissan Leaf and Chevrolet Volt, the prospect of putting away the cord for wireless induction charging grows with each passing year, doubling per year toward the next decade.

Autoblog Green reports research firm Frost & Sullivan forecasts the wireless market will experience a compound growth of 126.6 percent between 2012 and 2020, resulting in nearly 352,000 units sold around the globe. Usage of the technology is expected to be at 1.2 percent of public and private charging in North America, 2.6 percent of the same in Europe — where adoption will be at its most rapid — while 70 percent of overall wireless charging will likely be in the home.

As for who all is throwing their support behind the technology, the firm says Renault, Nissan, Daimler, Volvo, BMW and Toyota are working on chargers for their upcoming EVs, with an additional 10 automakers entering the testing phase. The current obstacles for greater adoption include charging time, charging rates and production costs.

Finally, Frost & Sullivan expect on-the-road wireless charging will arrive in the next decade while stationary offerings “will be most sought after in the near-term.”

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Musk: Location Of First Tesla Gigafactory To Be Announced By Year-End http://www.thetruthaboutcars.com/2014/06/musk-location-of-first-tesla-gigafactory-to-be-announced-by-year-end/ http://www.thetruthaboutcars.com/2014/06/musk-location-of-first-tesla-gigafactory-to-be-announced-by-year-end/#comments Thu, 05 Jun 2014 11:30:44 +0000 http://www.thetruthaboutcars.com/?p=837873 Tesla Gigafactory

For those awaiting when and where Tesla will build its first Gigafactory, the automaker announced the decision should come near the end of the year, and that said Gigafactory will have siblings.

The Detroit News reports CEO Elon Musk told shareholders at Tesla’s annual meeting in Mountain View, Calif. that as many as three states could see one of the battery factories land in their boundaries, with Gigafactory 1 delivering 6,500 jobs at a cost of $5 billion between it and its investors to one of four states before the end of 2014. Musk added the plans were “quite advanced,” and that his company talks with Panasonic — who wants the Gigafactory all for itself — on a day-to-day basis.

In addition to sharing the love with the concept of American-made battery packs, Tesla plans to boost deliveries of the Model S by 56 percent as markets in China and elsewhere come online. Musk himself will travel to the United Kingdom this week to oversee delivery of the first RHD models assembled by Tesla, with other RHD markets — Japan, Hong Kong et al — to receive theirs down the road. All Ss will also receive software upgrades to provide the owners with more customization abilities, with auto-pilot features to come sometime in 2015.

Finally, Musk himself proclaimed he would not leave the controls of his company until sales of Tesla’s third-gen EVs began, a inevitability not due for the next four to five years.

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BMW: China To Be Largest EV Global Market By 2019 http://www.thetruthaboutcars.com/2014/05/bmw-china-to-be-largest-ev-global-market-by-2019/ http://www.thetruthaboutcars.com/2014/05/bmw-china-to-be-largest-ev-global-market-by-2019/#comments Thu, 29 May 2014 12:00:10 +0000 http://www.thetruthaboutcars.com/?p=834009 2014 BMW i3 01

Though Chinese consumers have been slow to adopt electric vehicles thus far, BMW believes China will become the largest global market for EVs by 2019 at the earliest.

Bloomberg reports the automaker entered into a joint venture with municipal power company State Grid Shanghai, installing public charging infrastructure at the city’s former World Expo site as one of 46 such sites around the city to be installed by the end of 2014. The charging equipment will be compatible with products made by BMW, SAIC and BYD et al, while Tesla owners will have to use Supercharger stations instead.

Meanwhile, BMW will begin deliveries of the i3 in China this September, being sold in showrooms alongside the i8. BMW China CEO Karsten Engel says he expects only 1,000 will arrive in showrooms this year due to lack of supply, while BMW overall will sell over 400,000. The Bavarians join fellow Germans Volkswagen and Daimler in producing EVs for the Chinese market to help boost adoption among consumers. Currently, 70,000 total EVs are on the road in the nation, far behind the Chinese government’s goal of 500,000 by next year.

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Toyota Turns Away From Batteries, Toward Fuel Cells http://www.thetruthaboutcars.com/2014/05/toyota-turns-away-from-batteries-toward-fuel-cells/ http://www.thetruthaboutcars.com/2014/05/toyota-turns-away-from-batteries-toward-fuel-cells/#comments Wed, 21 May 2014 13:00:19 +0000 http://www.thetruthaboutcars.com/?p=828210 Toyota FCV Concept

After 20 years of pursuing a battery-powered future, Toyota has decided to take a different course powered by hydrogen.

Automotive News reports Toyota North America CEO Jim Lentz says his company sees EVs’ viability “in a select way, in short-range vehicles that take you that extra mile, from the office to the train, or home to the train, as well as being used on large [corporate] campuses.” This view is reflected in the decision to end its purchase agreement with Tesla of battery packs for 2,600 RAV4 EVs over three years, which Lentz personally felt future investment into the agreement would be better spent developing hydrogen fuel cells instead.

Speaking of such things, Toyota’s commitment toward a hydrogen future includes a $7 million “arms-length” investment in FirstElement Fuel Inc. — the startup founded by former General Motors and Hyundai executive Joel Ewanick — in its plan to build 19 hydrogen fueling stations throughout California by the autumn of 2015. The automaker’s own research found that 68 stations would be needed in California to meet the needs of 10,000 fuel cell vehicle owners, 50 of which are expected to come online by the end of 2016.

Lentz says he hopes his company won’t be alone in developing the emerging market like it was when the Prius first arrived. So far, Toyota, Honda and Hyundai are working on new fuel cell vehicles to help spur demand, the first of which are predicted to arrive in 2015.

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Volkswagen’s Cervone Returns To GM As Global Communications VP http://www.thetruthaboutcars.com/2014/05/volkswagens-cervone-returns-to-gm-as-global-communications-vp/ http://www.thetruthaboutcars.com/2014/05/volkswagens-cervone-returns-to-gm-as-global-communications-vp/#comments Tue, 20 May 2014 10:00:01 +0000 http://www.thetruthaboutcars.com/?p=826618 GM Next

Autoblog reports Volkswagen Group of America executive vice president of group communications Tony Cervone is returning to the GM fold as the automaker’s senior vice president of global communications. According to CEO Mary Barra, Cervone “brings an ideal mix of outside perspective and experience that compliments a deep background in GM and today’s global auto industry.” Prior to his return, he also served as the vice president of communications for United Airlines and Chrysler Group, where he spent 14 years before his decade-long previous service to GM. Cervone succeeds Selim Bingol — who resigned from the company in April “to pursue other interests,” and will report directly to Barra.

Speaking of “outside perspectives,” Automotive News chronicles the story of how a trio of Southern gentlemen helped to bring the spotlight upon the out-of-spec ignition switch at the heart of the February 2014 GM recall. Leading the charge, attorney Lance Cooper had sought answers into the death of Brooke Melton at the wheel of her 2005 Chevrolet Cobalt. Cooper retained a number of experts in his case, including auto shop owner Charlie Miller and materials engineer Mark Hood, both of whom discovered the switches in Melton’s Cobalt and related vehicles performed differently than those found in 2007 and later models. The evidence gathered would help cement the settlement for his client’s family, as well as pave the way for the recall.

Moving toward the present, victim compensation expert Kenneth Feinberg may end up sorting through a mountain of data as he works out the details for a compensation package between GM and the 35 families affected by the switch. Between the time the first vehicles left for showrooms in late 2002 through 2012, 1,752 individuals died in accidents involving the vehicles under the February 2014 recall. Though the link may be tenuous in most of the cases, each one may open an opportunity for affected groups to lay some of the blame at the door of GM’s comptroller.

Looking toward the future, GM and AT&T will offer a number of 4G LTE connected-car packages beginning next month to consumers, ranging from $5 for a few hours of streaming music to $50 for several showings of “Frozen” for the little ones in the back. However, demand for the service may not be what the automaker expects, as consumers who don’t have company on the road often may wonder why they need a connected car with 4G. The concern isn’t helped by the delay of an app suite — featuring offerings from NPR and The Weather Channel — which would allow owners access without using their smartphones; the delay is over quality concerns, according to GM.

In brand news, GMC is doing very well for itself as of late, being the healthiest among GM’s four brands left standing after the 2009 bankruptcy. The “professional-grade” line of trucks, SUVs and crossovers are leaving their bow-tied brethren behind for the premium market, bumping into Cadillac more often than may be comfortable for some within GM’s hallowed halls. That said, GMC’s demographic prefers to remain low-key in opposition to the flash that brings the celebs to Escalade’s yard, even if the Yukon XL Denali is within spitting distance of the Caddy’s $72,690 base price.

Leading the charge is Buick-GMC boss Duncan Aldred, who is looking forward to where GMC will go while shaking off the shadow of Buick’s “senior citizen” image within the United States. The former Vauxhall managing director sees similarities between Buick and Vauxhall/Opel, and aims to rehabilitate its image through a marketing strategy that may use “shocking and polarizing” messaging to prove his point. As for GMC, Aldred says he sees its future “as really exciting in an Audi-esque kind of way,” with plans to push the Denali line further up the mountain toward the summit.

Finally, CarNewsChina has the first official photos of the facelifted Chinese-market Chevrolet Aveo, which takes its looks from the upcoming Cruze. The Aveo will be priced between 81,800 yuan and 114,800 yuan ($13,113 to $22,732 USD), with power from 1.4- and 1.6-liter engines under the bonnet. Made by the GM Shanghai joint-venture between GM and SAIC Motor, the newly styled compact will arrive in showrooms in June for the sedan, July for the hatchback.

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BMW May Bring MINI Production To Mexico http://www.thetruthaboutcars.com/2014/05/bmw-may-bring-mini-production-to-mexico/ http://www.thetruthaboutcars.com/2014/05/bmw-may-bring-mini-production-to-mexico/#comments Fri, 16 May 2014 12:00:07 +0000 http://www.thetruthaboutcars.com/?p=821354 2014-MINI-cooper-yellow

Already considering a new plant in Mexico for its 1 and 3 Series, BMW may also bring MINI production to the line when the factory doors open in the near future.

Automotive News Europe reports the automaker’s execs prefer Mexico for the location of the small-car plant, proclaiming higher profits under a robust euro from building lower margin vehicles in the country’s growing manufacturing base.

The decision on where the plant will go could come sometime in the second half of 2014. Should Mexico get the nod, total annual production capacity in North America would climb to 600,000 units, the bulk of which would be fueled by the Spartanburg, S.C. plant’s 450,000 units per year.

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GM Moves EV Pack Production In-House, Almost Had A Commodore EV http://www.thetruthaboutcars.com/2014/05/gm-moves-ev-pack-production-in-house-almost-had-a-commodore-ev/ http://www.thetruthaboutcars.com/2014/05/gm-moves-ev-pack-production-in-house-almost-had-a-commodore-ev/#comments Thu, 15 May 2014 13:00:21 +0000 http://www.thetruthaboutcars.com/?p=820874 2014 Chevrolet Spark EV Exterior-003

Automotive News reports General Motors will bring production of the Chevrolet Spark EV’s battery pack in-house to its Brownstown Township plant in the Detroit metro area, having already moved the subcompact’s 85-kilowatt electric motors to White Marsh, Md. in 2013. The pack was originally assembled by A123 Systems before Wanxiang Group picked up the torch. No new jobs will be created as a result of the move, spokesman Dave Darovitz stating GM would add jobs “if consumer demand requires it.” The packs for the 2015 Spark EV — whose market will expand to include California and Oregon later this year — will be 86 pounds lighter than the outgoing units, and will have a storage capacity of 19 kilowatts held within 192 lithium ion cells.

Speaking of GM EVs, GoAuto reports the Holden Commodore almost had an EV variant that would have been priced for $10,000 AUD ($9,400 USD) less than the Volt. Only seven pre-production units made it out of the joint venture between Axiflux, EV Engineering, Bosch Australia, Better Place, GE Finance and Air International before Holden announced it would end all local production by 2017. The announcement, along with the collapse and withdrawals among a majority of the project’s partners, led to Axiflux acquiring EV Engineering’s assets. The company plans to focus on industrial applications for the developed technology until the right partner comes along to pick up where the project left off for an automotive joint venture.

The Detroit Press says GM’s board of directors has retained New York-based Wachtell, Lipton, Rosen & Katz to give an “independent assessment” of the automaker’s inner workings. An unnamed source familiar with the announcement says the decision “was a good governance practice” aimed to deliver sound advice to GM’s senior management. The firm is the latest third-party to join GM’s cadre of attorneys, including Anton Valukas and Ken Feinberg, as the automaker navigates the legal waters in the wake of the February 2014 ignition switch recall.

Finally, Just-Auto reports GM is planning to expand its Indian operations into a global base of operations for small-car exports to Latin America and beyond. The exports will begin with 2,000 to 2,500 Beats to Chile in October from the automaker’s factory in Talegon, with some 30,000 to 33,000 units to leave annually for Latin America within two years. GM expects Mexico to receive the biggest imports from India, with over 12,000 units shipped annually.

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Great Wall’s Descent A Sign Local Industry Not Ready For Primetime http://www.thetruthaboutcars.com/2014/05/great-walls-descent-a-sign-local-industry-not-ready-for-primetime/ http://www.thetruthaboutcars.com/2014/05/great-walls-descent-a-sign-local-industry-not-ready-for-primetime/#comments Tue, 13 May 2014 12:00:10 +0000 http://www.thetruthaboutcars.com/?p=819681 Great Wall Haval H8

Once the darling of investors amid ambitions of taking on foreign automakers such as Jeep with its line of SUVs, Great Wall Motors’ recent fall from grace on the back of the upscale Haval H8 may be a sign Chinese automakers are not yet ready to move from production of cheap transportation.

Bloomberg reports production of the 200,000 yuan ($32,100 USD) SUV, aimed at the likes of the Volkswagen Tiguan and Ford Kuga, was suspended indefinitely earlier this month amid quality concerns regarding “knocking noises” from the six-speed automatic transmission at high speeds. The second delay of the H8 — the first occurring earlier this year after local press panned the SUV in test drives — sent Great Wall’s stock price down 17 percent, while seven analysts cut their ratings of the automaker due to perceived weaknesses in the overall local industry from the suspension. Oriental Patron Financial Group analyst Vivien Chen, one of the seven, explains:

We believe the event indicates domestic automakers haven’t met requirements to upgrade to be a high-end vehicle maker. The event definitely hurt customers’ perception of H8, and hurt company image.

The suspension is the latest stumbling block for Great Wall, having faced a recall with Chery of 23,000 units from Australia in 2012 when banned asbestos parts were found in some models. In addition, 2013 exports fell 22 percent to nearly 75,000 units due to currency challenges in Japan and South Korea. Locally, the automaker is faring better, having moved almost 112,000 SUVs over its competitors so far in 2014, though the market overall fell 2.5 percent in April to 37.1 percent for local automakers, the eight consecutive month this has occurred.

Despite the setbacks, Macquarie Group analyst Janet Lewis believes Great Wall and the rest of the Chinese automakers may be able to learn from the experience as they move forward toward selling their wares to developed markets such as the United States, though they all still have a long road ahead of them, as Sanford C. Bernstein analyst Max Warburton points out with Great Wall:

The company faces monumental challenges in trying to move up a league in the automotive world, and the problems faced by the H8 confirm Great Wall is struggling with technology. Serious questions will now be asked about Great Wall’s growth potential.

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BAIC, Siemens Team Up For Green Joint Venture In Beijing http://www.thetruthaboutcars.com/2014/04/baic-siemens-team-up-for-green-joint-venture-in-beijing/ http://www.thetruthaboutcars.com/2014/04/baic-siemens-team-up-for-green-joint-venture-in-beijing/#comments Thu, 24 Apr 2014 13:00:32 +0000 http://www.thetruthaboutcars.com/?p=809266 Siemens Audi A4 DTM

Though Siemens won’t be putting their name upon the body of BAIC C70G for a DTM entry anytime soon, the Chinese automaker and German industrial giant will come together for an green vehicle-related joint venture in Beijing.

Automotive News Europe reports the joint venture — Beijing Siemens Automotive E-Drive System Company — will mass produce motors and inverters for hybrid and electric vehicles beginning in 2015, with small-batch and prototype production coming online sometime this year.

Once underway in full, the joint venture will push 100,000 inverters out the door annually, with BAIC being the first recipients of the Sino-German technology. There, the inverters will find a home in the automaker’s S, C and L series vehicles, and projected power output for each model will range from 45 to 200 kW (60 to 268 horsepower).

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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.

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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.

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Toyota Looking To Conquer Africa http://www.thetruthaboutcars.com/2014/04/toyota-looking-to-conquer-africa/ http://www.thetruthaboutcars.com/2014/04/toyota-looking-to-conquer-africa/#comments Tue, 15 Apr 2014 11:58:19 +0000 http://www.thetruthaboutcars.com/?p=798514 Toyota Land Cruiser 79 Bakkie

Though Toyota already has a presence in South Africa, the automaker is eyeing the last untapped market in the world: The African continent.

Automotive News reports Toyota patriarch Shochiro Toyoda gave his son, current president Akio Toyoda, a mission last year to explore markets outside of the “Asia-Europe-America” sphere, especially those where the younger Toyoda had not visited. His travels took him to a knockdown factory in Kenya, where there are 40 cars per 1,000 people according to IHS Automotive, laying the early groundwork for an all-out campaign to get as much of the final frontier as possible.

Success in the market may have to come in the long term, however; IHS predicts GDP per capita in Sub-Saharan Africa won’t reach the threshold of $3,000, as well as the ownership rate of 70 units per 1,000 people, until 2030 at the earliest. Toyota Africa CEO Johan van Zyl, who is scouting for new factory locations outside of South Africa, knows this reality well:

It’s a growing market, a market with a future. We have quite an ambitious [annual sales] target. But we must also understand, this is not going to happen overnight. We have to put the right things in place. And that is what we are busy doing, to ensure that we have the right foundation for the business in the future in Africa.

In the meantime, the automaker will launch the Quest compact in South Africa next month. The Quest — based upon the previous-gen Corolla — will help boost production towards full capacity at Toyota’s Durban plant; while max capacity is 220,000 annually, current production is 160,000 units per year. Unlike many auto makers, Toyota is not pursuing a new brand or platform for their new, low-cost car.

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Ford Cuts 950 Jobs In Russia Due To Weakening Ruble, Demand http://www.thetruthaboutcars.com/2014/04/ford-cuts-950-jobs-in-russia-due-to-weakening-ruble-demand/ http://www.thetruthaboutcars.com/2014/04/ford-cuts-950-jobs-in-russia-due-to-weakening-ruble-demand/#comments Thu, 03 Apr 2014 13:21:10 +0000 http://www.thetruthaboutcars.com/?p=786689 Ford-Sollers-Vsevolozhsk-plant

Two plants in Ford’s joint venture with Russian manufacturer OAO Sollers will experience job cuts as a result of a weakening ruble and decreasing demand by customers in the local market.

Bloomberg says 700 positions in St. Petersburg and 250 temporary positions in the Tartarstan region will be let go by June, while production in the former will lose one shift. The cuts were caused by “the rapid and significant depreciation of the ruble, falling industry sales and a consumer shift away” from small cars toward large SUVs according to Ford, who also reassured that the joint venture would continue to remain committed to the Russian market.

As for the current state of things, sales fell 4 percent in the first two months of 2014, following a 5.5 percent decline in 2013 to 2.78 million vehicles, while the ruble lost 13 percent of its value against the dollar within the last 12 months.

The St. Petersberg plant will also shut down for over four weeks before single-shift production and painting begin June 9. The plant currently builds the Mondeo and Focus.

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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.

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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.

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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.

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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.

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Ellinghaus: Cadillac Could “Easily Flourish” In Australian Market http://www.thetruthaboutcars.com/2014/03/ellinghaus-cadillac-could-easily-flourish-in-australian-market/ http://www.thetruthaboutcars.com/2014/03/ellinghaus-cadillac-could-easily-flourish-in-australian-market/#comments Fri, 14 Mar 2014 10:05:57 +0000 http://www.thetruthaboutcars.com/?p=771210 2015 Cadillac ATS Coupe

Sometime in the future, Cadillac global marketing boss Uwe Ellinghaus believes Cadillac could enter the Australian market, being able to “easily flourish” under the proper conditions established on top of the goodwill the brand already has in the country.

Auto Advice reports however the main goal for Cadillac is to go after what Ellinghaus calls “low-hanging fruit” markets:

We see the opportunity [in Australia] and we want to expand into as many markets as we can afford, but it’s also fair to say we have so much growth potential unexploited in China, even in the US, Canada, Russia, Dubai, Mexico… This is the lower-hanging fruit.

We have limited resources and great opportunities elsewhere that we need to make a very careful plan when to enter which market.

Regarding where Cadillac could enter the Australian market, he says the space soon to be vacated by the Holden Commodore would be the perfect point of entry. Offering the brand for Commodore prices, though, would be easier said than done as far as a business case is concerned, pointing toward both the BMW M Series and Mercedes AMG as to where pricing would occur for Cadillac’s high-performance lineup. He also had high hopes for the CTS, and the SRX and Escalade, with the latter two finding huge success in Australian burgeoning SUV marketplace.

As for when Cadillac would enter the scene, Ellinghaus says an introduction would occur near the end of the 2010s at the earliest, and would be headed by one or two models converted to right-hand drive. This follows an near-entry into the market back in 2008 before turning back at the last moment, though not before exporting a few vehicles and appointing dealers to sell them.

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Tesla Hires Renault-Nissan Communications Director http://www.thetruthaboutcars.com/2014/03/tesla-hires-renault-nissan-communications-director/ http://www.thetruthaboutcars.com/2014/03/tesla-hires-renault-nissan-communications-director/#comments Thu, 13 Mar 2014 12:35:00 +0000 http://www.thetruthaboutcars.com/?p=770985 tesla-model-s-10

In preparation to enter the Chinese market while battling state governments of direct sales, Tesla has hired Renault-Nissan communications director Simon Sproule to the role of vice president of communications and marketing for the EV automaker.

Bloomberg reports Sproule’s experience gained from stints with Microsoft, Jaguar, Ford and Renault-Nissan may be of benefit to Tesla, according to AutoTrends Inc. principal Joe Phillippi:

In many respects he’s got the perfect background. He’s been on the tech side, he’s been on the international auto side and he works for a CEO with peripatetic qualities who runs more than one company.

Sproule will be responsible for marketing Tesla to Europe and China — who aim to increase sales of its Model S 55 percent through exports to the two markets this year — while aiding in the fight with various state regulators over direct sales to customers, including this week’s blow-up between the automaker and New Jersey.

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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.

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