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.
Emerging markets have been a big theme at TTAC for the past few years, with our coverage going beyond the cursory articles on automotive developments in the BRIC countries. Our articles on places like North Africa and Indonesia aren’t always the most popular, but we keep an eye on them for a very important reason. These countries are the final frontier for growth in the automotive sector.
If Chinese carmakers have started exporting to Africa in the early 00′s, they set foot in Latin America even earlier, with JAC starting to export trucks to Bolivia back in 1990. Similarly to the strategy they adopted in Africa, the Chinese have initially focused on the less developed car markets in the region. They are now in the process of stepping up their involvement by launching in the bigger, more mature markets like Argentina and Brazil.
In fact, the foundations the Chinese have built in secondary Latin American car markets are potentially their strongest in the world so far…
Exactly a week ago, Fiat said it would up its stake in Chrysler “within weeks,” and according to the Detroit News, the deed is now done. Having earned 5% of Chrysler’s equity by building a FIRE-family engine in the US (for use in the Mexico-built Fiat 500), Chrysler had to confirm that it has brought in $1.5b in non-NAFTA foreign revenue, and (according to Chrysler’s LLC agreement [PDF])
[execute] one or more franchise agreements covering in the aggregate at least ninety percent (90%) of the total Fiat Group Automobiles S.p.A. dealers in Latin America pursuant to which such dealers will carry Company products
in order to bring its stake up from 25% to 30%. We already know that Fiat will achieve this goal by rebadging Chrysler vehicles as Fiats for Latin American markets, a move that is technically compliant with the letter (if not the spirit) of the LLC agreement. But, it turns out that Fiat still had to get the Treasury to amend its agreement in order to bend the rules just a little bit more.