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. Wed, 16 Apr 2014 05:18:32 +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 » 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/ 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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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.

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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.

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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.

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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.

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Mexico Besting Japan, Canada In Auto Exports To The U.S. http://www.thetruthaboutcars.com/2014/02/mexico-besting-japan-canada-in-auto-exports-to-the-u-s/ http://www.thetruthaboutcars.com/2014/02/mexico-besting-japan-canada-in-auto-exports-to-the-u-s/#comments Mon, 24 Feb 2014 13:38:27 +0000 http://www.thetruthaboutcars.com/?p=752601 2015 Honda Fit

Mexico’s auto industry is set to ship more product north to the United States than Japan and Canada by the end of 2015, in part due to the effects the North American Free Trade Agreement has had on the country since its signing two decades ago.

USA Today reports that with operations at Honda’s new $800 million plant in Guanajuato now online, the 200,000 Fits destined annually for the U.S. will push total Mexican exports to 1.7 million units this year, just 200,000 more than Japan’s exports from their home market. Mazda’s newest plant 25 miles away, when open this week, will add 230,000 units annually to the total, pushing Mexico past Canada by the end of 2015 to become the No. 1 exporter to the U.S.

At the time of NAFTA’s signing, the auto industry in Mexico produced 6 percent of the total output in North America. Twenty years later, that figure is now 19 percent, with 3 million units leaving the factory floor. Total valuation of the nation’s exports surged to $70.6 billion from $40 billion in 2007. The industry is now Mexico’s primary source of foreign currency, surpassing oil exports and remittances from migrant labor along the way.

This growth is driven by low wages — $16/day on average for Mexico’s 580,000 auto workers — which critics attribute to maintaining Mexico’s poverty rate between 40 percent and 50 percent two decades on. Meanwhile, the nation hasn’t fared any better as a whole, with overall economic growth at 1.1 percent in 2013, the worst rate of growth since the beginning of the Great Recession.

For Eduardo Solis, president of the Mexican Automotive Industry Association, the boom is about more than low wages, citing a new generation of local engineers and increases in automotive research as positive outcomes:

It’s not only about lower salaries. That’s short-sighted. It is a component of a larger equation that has to do with the expertise we are developing.

Aside from NAFTA opening the floodgates, the lack of tariffs has allowed Japanese manufacturers — the main driver behind new production in Mexico — to set up shop easily. Incentives from local governments, such as employee training, tax exemptions and infrastructure improvements, have helped to draw new factories to their cities.

Correction: an earlier iteration mistakenly quoted Mexican auto ages at $16 per hour.

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Tesla Q4 Sees $16 Million In Losses, Annual Revenue Climbs To $2 Billion http://www.thetruthaboutcars.com/2014/02/tesla-q4-fall-16-million-in-losses-annual-revenue-climbs-to-2-billion/ http://www.thetruthaboutcars.com/2014/02/tesla-q4-fall-16-million-in-losses-annual-revenue-climbs-to-2-billion/#comments Thu, 20 Feb 2014 16:30:05 +0000 http://www.thetruthaboutcars.com/?p=749913 tesla-model-s-01

Tesla announced their Q4 2013 earnings saw a total net loss of $16 million while pulling in an annual revenue of $2 billion on the strength of higher sales and more efficient manufacturing methods.

Automotive News reports the luxury EV automaker’s annual loss for 2013 totaled $74 million, while Q4 revenues using GAAP accounting standards were $615 million; non-GAAP revenue for the same period totaled $716 million. Contributions to the fourth quarter revenue stream included $13 million via a powertrain-sharing program with Daimler and Toyota, $15 million in regulatory credits, and $5 million from favorable foreign currency rates.

Tesla’s crystal ball for 2014 sees deliveries climbing to over 35,000 units worldwide through expansions into new markets — including China, Australia and the United Kingdom — production output increasing from 600 to 1,000 units/week, and the introduction of the Model X SUV.

Near-term, deliveries for Q1 2014 are predicted to hit 6,400 units, though production of the Model S will be constrained due to battery-cell supplies. Tesla CEO Elon Musk hopes to remedy the issue in the long-term through his “giga-factory” concept, meant to supply the automaker with lithium-ion packs while protecting it from forces outside of their control.

Finally, Tesla’s assets for the outgoing year were $846 million in cash and $738 million in equipment and property, including a new body-in-white assembly facility that will serve as the starting point for the Model X when units begin to roll off the line early next year.

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Farley: Ford’s Global Growth Driven By Crossovers http://www.thetruthaboutcars.com/2014/02/farley-fords-global-growth-driven-by-crossovers/ http://www.thetruthaboutcars.com/2014/02/farley-fords-global-growth-driven-by-crossovers/#comments Fri, 14 Feb 2014 12:00:35 +0000 http://www.thetruthaboutcars.com/?p=741409 2015-ford-edge-concept-live-08

Though the F-150 rules over Truck Mountain and North America with an aluminium fist, Ford marketing boss Jim Farley told reporters in a meeting that crossovers are driving his employer’s sales growth all over the globe.

Automotive News reports Ford’s shifting focus to crossovers is thanks in part to the popularity among the automaker’s global audience for the particular body style, as Farley notes:

“Most people think the F series drove our top line unit growth. The No. 1 vehicle was the Escape/Kuga. No. 2 was EcoSport. Together they had about half-million-unit growth for us. The F series was a distant third.”

Farley expects global crossover sales to reach 20 million units by 2018, with 90 percent of the sales — led by the massive hit EcoSport — to be gained outside of the North American market. The aforementioned EcoSport was developed for Brazil, only to see sales jump 220 percent in 2013 upon launch in Europe, India and China.

Speaking of China, the nation is the biggest driver of the global growth now being experienced by Ford, where not only are subcompact crossovers are doing well as are exported North American mainstays Edge and Explorer. The Blue Oval aims to continue the trend when Lincoln’s MKC luxury compact crossover takes the global stage in June against the likes of the Audi Q5, BMW X3 and Land Rover Evoque.

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Datsun Go Production Launched In India http://www.thetruthaboutcars.com/2014/02/datsun-go-production-launched-in-india/ http://www.thetruthaboutcars.com/2014/02/datsun-go-production-launched-in-india/#comments Thu, 06 Feb 2014 15:35:54 +0000 http://www.thetruthaboutcars.com/?p=734889 Datsun redi-GO Concept

Just in time for the 2014 Delhi Motor Show — where the above Datsun Redi-Go concept made its debut this weekRenault-Nissan launches production of the revived brand’s Go subcompact at their plant in Chennai, India.

Datsun returns from a three-decade absence on the global stage with a market debut in the Indian market featuring the five-door, four-passenger vehicle, set to go on sale in late February 2014. The Go will be sold at Nissan dealerships at first until a separate Datsun network is established. The price of admission will be less than $9,300.

Two more Datsun models are in the offing in the next two years, while the brand will soon expand to Indonesia, South Africa and Russia by the end of this year. Datsun is expected to move 300,000 units annually by 2016.

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Renault Resumes Supply Shipments To Iranian Production Lines http://www.thetruthaboutcars.com/2014/01/renault-resumes-supply-shipments-to-iranian-production-lines/ http://www.thetruthaboutcars.com/2014/01/renault-resumes-supply-shipments-to-iranian-production-lines/#comments Thu, 30 Jan 2014 17:30:16 +0000 http://www.thetruthaboutcars.com/?p=728010 Iran Khodro Renault Production Line

After a six-month self-imposed hiatus, Renault has begun shipping “a very low volume” of parts overland to Iran for vehicle assembly.

According to Automotive News, over the past 10 days, parts for the Renault Tondar — the variant of the Dacia Logan built and sold by Iran Khodro — have made their way to Iranian production lines overland from Romania upon temporary easing of sanctions against the Iranian government for their nuclear ambitions. The lifting of sanctions is currently expected to last six months after Tehran pledged to freeze key components of their nuclear program, with talks due next month to work out a permanent deal to wind down sanctions in exchange for curbs in Iran’s aforementioned program.

For Renault and their rivals in Peugeot/PSA, the six-month window is crucial in rebuilding their relationships with their partners in Iran Khodro and Pars Khodro, as well as regaining their foothold on the Persian auto market before more players — such as General Motors — enter the room.

According to Renault’s Asia-Pacific boss Giles Normand, the window marks an opportunity to “gradually restart the supply of parts for vehicle production as well as flow of payments,” noting that the current state of things “must be allowed to improve visibly in Iran” lest their customers feel their country has been short-changed through a lack of visible change.

Total production of vehicles in Iran peaked at 1.6 million units in 2011, the year the sanctions were imposed. Renault lost 64,500 deliveries as a result in 2013, marginally dampening global growth to 2.63 million units overall. With the possibility of 1 million to 1.5 million annual sales at stake, Renault nor PSA can afford another setback.

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Toyota Supplier Expects Chinese Sales To Double By 2018 http://www.thetruthaboutcars.com/2014/01/toyota-supplier-expects-chinese-sales-to-double-by-2018/ http://www.thetruthaboutcars.com/2014/01/toyota-supplier-expects-chinese-sales-to-double-by-2018/#comments Thu, 30 Jan 2014 17:00:15 +0000 http://www.thetruthaboutcars.com/?p=728082 2014 Toyota RAV4 Exterior-011

Tsubakimoto Chain Co., a Toyota supplier, expects sales of their auto parts to factories in China to double within the next four years as automakers seek to diversify their supply chains.

In an interview with Bloomberg earlier this week, Tsubakimoto managing executive officer Toru Fujiwara expects sales of his company’s line of chains and gears to surpass $116 million by March of 2018, more than double the $58 million Tsubakimoto aims to sell in 2014. This is due to General Motors and Volkswagen battling it out over China for the title of No. 1 in the largest global auto market, leading both automakers to diversify their supply chain to reduce the risk of having only one supplier per part.

VW and GM have plans to build new plants in China to help increase production capacity, with the Germans building seven plants to produce 4 million units by 2018 as the General opts to build four plants to produce 5 million annually; GM also plans to invest $11 billion in China by 2016 to further their cause.

Japanese manufacturers, including Toyota, are also expected to increase orders as the conflict over the Diaoyu Islands cools down, allowing demand for Japanese cars to recover.

As for Tsubakimoto, Fujiwara recently approved plans to build a factory in China as early as 2014, and may either choose to increase capacity of his company’s plant in Tennessee or build a new plant within the next three years based on increased sales in the United States, which are expected to reach $172.3 million by March, then expand 15 percent by the same time in 2017. Overall sales in North America account for 17 percent of the Japanese chain company’s total revenue in the previous fiscal year.

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Datsun to Unveil Concept at 2014 Delhi Auto Expo http://www.thetruthaboutcars.com/2014/01/datsun-to-unveil-concept-at-2014-delhi-auto-expo/ http://www.thetruthaboutcars.com/2014/01/datsun-to-unveil-concept-at-2014-delhi-auto-expo/#comments Thu, 23 Jan 2014 16:32:14 +0000 http://www.thetruthaboutcars.com/?p=706482 Datsun Concept India

Should you happen to be in India two weeks from now, Datsun will unveil the above concept at the 2014 Delhi Auto Expo during a conference held by the offshoot automaker.

The concept heralds a possible expansion of Datsun’s current lineup, aimed at the young customers in South Africa, Russia, India and other high-growth markets. The concept appears to be a three-door hatch slotted just below the Go five-door supermini, with the Go+ MPV completing the future trio.

As far as production is concerned, the hatch will be underpinned by Renault-Nissan’s Compact Module Family platform. The flexible platform is expected to support up to 14 vehicles within the Franco-Japanese alliance’s complete range.

The concept will debut at Datsun’s press conference February 5.

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Russian Government to Spend $8 Billion Subsidizing Local Car Industry http://www.thetruthaboutcars.com/2014/01/russian-government-to-spend-8-billion-subsidizing-local-car-industry/ http://www.thetruthaboutcars.com/2014/01/russian-government-to-spend-8-billion-subsidizing-local-car-industry/#comments Wed, 22 Jan 2014 10:00:40 +0000 http://www.thetruthaboutcars.com/?p=704634

Click here to view the embedded video.

The Russian government said that it will spend up to 271 billion rubles ($8US billion) over the next three years to subsidize the country’s struggling auto industry. A government web site said that the subsidies will underwrite research & development, jobs and costs related to more stringent emissions standards. Car sales in Russia in 2013 fell by 6% to 2.78 million units and 2014 looks like another weak year as the Russian economy stutters, according to the Association of European Businesses.

A 2012 effort to prop up Russian automakers, a recycling fee for imported cars supposedly to pay for scrapping the cars at the end of their life cycles, raised issues with the World Trade Organization so that fee was expanded to include locally manufactured cars as well. The new indirect subsidies are less likely to run afoul of the WTO.

A government incentive program for car consumers was also tried last year but the program ended in December.

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Jeep Aiming For 1 Million Units Sold in 2014 http://www.thetruthaboutcars.com/2014/01/jeep-aiming-for-1-million-units-sold-in-2014/ http://www.thetruthaboutcars.com/2014/01/jeep-aiming-for-1-million-units-sold-in-2014/#comments Thu, 16 Jan 2014 17:05:39 +0000 http://www.thetruthaboutcars.com/?p=701209 2014-Jeep-Cherokee-front-closeup-1024x640

Chrysler Group LLC CEO Sergio Marchionne threw down the gauntlet for Jeep during an interview on Detroit’s WJR-AM at the 2014 Detroit Auto Show, proclaiming that the Rubicon-rated brand will move 1 million units onto the trails and highways by the end of this year.

Global sales of the iconic off-road brand rose 4 percent in 2013 for the fourth consecutive year, topping out at a record 731,565 units moved. Though Marchionne is confident Jeep will make his stated sales goal, brand president Mike Manley is taking a more conservative stand, stating that the figure might come by 2015 rather than 2014.

However, Manley believes the new Cherokee could bring the remaining 300,000 or so units to the table by the end of the year should the SUV do well at home and abroad. Sales of the Cherokee in the United States, in spite of its face, are 15 percent to 20 percent ahead of Chrysler’s expectations after only two months in the market; total U.S. sales account for 67 percent of Jeep’s overall global sales.

As far as the rest of the world is concerned, Fiat has plans to build a subcompact Jeep in Italy for sale in Europe in 2014, with arrival in the U.S. due sometime in 2015. The parent automaker also plans to expand production in America, as well as in China and Brazil.

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Porsche’s Bernhard Maier: China Could Become No. 1 in 2014 http://www.thetruthaboutcars.com/2014/01/porsches-bernhard-maier-china-could-become-no-1-in-2014/ http://www.thetruthaboutcars.com/2014/01/porsches-bernhard-maier-china-could-become-no-1-in-2014/#comments Fri, 10 Jan 2014 12:00:50 +0000 http://www.thetruthaboutcars.com/?p=695753 Porsche 911 GT3-R Hybrid in China

In a sign that the 21st Century could belong to China after all, Porsche’s head of sales and marketing Bernhard Maier predicts that the United States will finish second on the podium to China as far as 911s and Macans are concerned by the end of 2014 at the earliest.

Though Maier’s ultimate goal is for Porsche to have “qualitative, sustainable and profitable growth” — defined as an ROI over 15 percent with a return on equity of over 21 percent, thus allowing Porsche to remain the most profitable automaker in the world while financing their investments through net cash flow — in opposition to volume, he believes that China could become the automaker’s No. 1 single market as soon as 2014, if not sometime in 2015, knocking the United States from the top.

In China, the Cayenne and Panamera are Porsche’s two best-sellers, with more growth potential in 2014 due to a product changeover with the second-generation Panamera creating a shortage in the market. Overall, their current balance of global sales is divided evenly between the Americas, Europe and Asia, with the Macan leading the way toward growth in mature and emerging markets.

Speaking of the Macan, Maier has high hopes for the compact SUV, which will debut in European showrooms in April, with the United States following soon after before China gets theirs in August. Serving as one of two entry points into Porsche’s paradise — the other being the Boxster — Maier expects 50,000 units to head out on the highway by the close of 2014, with overall sales fast approaching Porsche’s 2018 goal of 200,000 units/annually by next year.

Why so soon? Maier says that when Porsche outlined their strategy back in 2011, the automaker sought to go all in with both guns blazing the global marketplace. With market forces expecting an increase in the luxury segment by over 4.5 percent, and annual global sales demand climbing to 100 million, 200,000 yearly sales by 2015 appears to be possible.

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Hyundai, Kia See Weakest Annual Sales Growth in a Decade http://www.thetruthaboutcars.com/2014/01/hyundai-kia-see-weakest-annual-sales-growth-in-a-decade/ http://www.thetruthaboutcars.com/2014/01/hyundai-kia-see-weakest-annual-sales-growth-in-a-decade/#comments Thu, 02 Jan 2014 16:59:53 +0000 http://www.thetruthaboutcars.com/?p=691178 kia-k900-la-auto-show-14

2014 may only be a day old, but it’s already shaping up to be a rough year for Hyundai and Kia as they prepare to increase global sales by just 4 percent this year, the lowest and bleakest forecast for the Korean duo since 2003.

Though the foreseen growth will be fueled by revamped models and increased production in China, and is in line with overall projected global sales in 2014, a stronger won and weaker yen — the latter brought about by Japan’s desire to support its export industry and to find a way out of the 20-year trek through the economic wilderness — have eroded the price advantage Hyundai and Kia held over their Japanese competitors.

While the duo experienced market growth in Brazil and China last year, they lost market share in both their home market and in the United States, the former through a free trade pact between the European Union and South Korea. Sales in 2013 totaled 7.56 million units worldwide, with a total projection of 7.86 million going forward in 2014.

Shares of the parent automaker haven’t fared well in the outgoing year, advancing only 8 percent against GM’s 41 percent and Toyota’s 60 percent surges on the trading floor.

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Akio Toyoda Sees Emerging Markets’ Growth Slowing, Uncertainties in China, Japan http://www.thetruthaboutcars.com/2014/01/akio-toyoda-sees-emerging-markets-growth-slowing-uncertainties-in-china-japan/ http://www.thetruthaboutcars.com/2014/01/akio-toyoda-sees-emerging-markets-growth-slowing-uncertainties-in-china-japan/#comments Thu, 02 Jan 2014 13:00:58 +0000 http://www.thetruthaboutcars.com/?p=691122 TOYOTA/

Bloomberg is reporting that Akio Toyoda, president of Toyota Motor Corp. and scion of its founding family said that a slowdown in emerging markets and uncertainty over demand in both China and the Japanese home market makes 2014 “unpredictable”.

While the weaker yen increased earnings for Japanese exporters, those profits are being offset by slowing demand in India, Thailand, Brazil, and Russia. Japanese automakers also continue to face a potential repeat of Chinese consumers rejecting their products, as happened last year as tensions between those countries’ governments increased over who owns a group of Islands under dispute.

“It may be impossible” to shield against tensions between the two countries, Toyoda had told reporters earlier in December. “But we will work to minimize the impact.”

Slowing sales in emerging markets caused Honda Motor Co. to miss analysts’ forecasts for its first-half earnings this year. Nissan Motor Co., which is looking to make Mexico a hub for exports, reduced projected full-year earnings by 15 percent to reflect slower than anticipated sales in the developing world.

Toyota’s own operating profits were down in Asia, excepting Japan, in the third quarter, as Thailand ended government incentives for first-time car purchases. Akio Toyoda was pessimistic about Japan as well because of that country’s planned increase in the national sales tax rate from 5% to 8%. The Toyota president said, on behalf of JAMA, that automakers would like to see a stable yen since production cannot be shifted around the world as quickly as currency values change. The Japanese currency is currently at a five year low against the American dollar.

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