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Category: Automotive

Retail News Asia is committed to providing both local and global retailers with the latest Auto and Car news throughout the Asian market. This on a daily base.

  • Jaguar Land Rover Sales Decline Last Month

    Jaguar Land Rover Sales Decline Last Month

    UK-based auto giant Jaguar Land Rover (JLR) has posted a decline of 13.3 percent in sales for April 2019. The Tata Motors-owned automaker sold 39,185 units last month, a sharp decline in year-on-year volumes when compared to April 2018. The carmaker attributed to the weak demand for its vehicles largely due to the subdued market conditions in China. JLR, did, however, stated that sales of the new Jaguar I-Pace electric SUV and the new generation Range Rover Evoque continued to be encouraging during this period. Markets like the US and the UK also showed impressive growth last month.

    Felix Brautigam, Jaguar Land Rover Chief Commercial Officer, said, “Although this was a tough month for us due to continuing pressures in China, we are delighted to see good growth in the UK and the US. Once again we strongly outperformed the UK market and the US marked its best-ever April sales. This reflects the strength of our brands and continued demand for our unique and evolving product line-up. This month was a historic milestone for Jaguar, with the all-electric Jaguar I-PACE winning an extraordinary hat trick of awards – the 2019 World Car of the Year, World Car Design of the Year and World Green Car – which no car has ever done before.”

    He further added, “This is in addition to scooping the European Car of the Year and the China Green Car of the Year 2019 trophies, to name just a few of the accolades for the I-Pace. We continue to be encouraged by the market response to this incredible vehicle.”

    Retail sales increased in the UK by 12.1 percent, while in North America were raised by 9.6 percent. However, sales in China saw a dramatic drop of 45.7 percent. Sales in overseas markets also slowed down by 22.3 percent with retails in Europe down by 5.5 percent.  Jaguar retail sales in April 2019 stood at  11,462 units, a drop of 13.7 percent year-on-year, while Land Rover sold 27,723 units last month, a drop of 13.1 percent over the same period last year.

    Between January and April 2019, Jaguar Land Rover’s total retail sales stood at 198,101 units, down by 9.1 percent compared to the same period last year.

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  • Ferrari Considering Netflix And esports Involvement

    Ferrari Considering Netflix And esports Involvement

    Ferrari is considering engaging with Netflix on a second Formula One documentary as well as joining the rest of the 10 teams in the esports world championship, team boss Mattia Binotto said on Friday. Ferrari and champions Mercedes did not cooperate on the successful ‘Drive to Survive’ 10-part fly-on-the-wall series filmed by Netflix last season, arguing that they needed to focus on the title battle. When their cars or drivers did feature, it was from the official world feed television footage.”It’s certainly an interesting program. We were not participating last season as Ferrari,” Binotto told reporters at the Spanish Grand Prix, the fifth round of the 21 race championship.

    “We are considering it at the moment. We have not taken our final decision, so it’s something we will do in the next few weeks.”

    Formula One’s managing director Sean Bratches said this month that he expected a second series to go ahead, with filming already underway. Ferrari is the only ones without a presence in the official F1 esports championship, which is in its third season and involves the teams only later in the year. Mercedes won both titles last year, as in the real world.

    Binotto said Ferrari’s stance on that could change as well.

    “Esport is increasing in terms of interest and certainly as Ferrari, we are looking seriously into it,” he said.

    “We are not yet fully committed to the program but it’s something where the discussions are ongoing and we will very soon make our own decision.”

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  • 2020 Skoda Superb Facelift Global Debut End of May

    2020 Skoda Superb Facelift Global Debut End of May

    The Superb is the flagship in Skoda’s portfolio and it is planning to present the 2020 facelifted model to the world on a special occasion. IIHF Ice Hockey World Championship is a grand affair for the Czech carmaker and it has signed up for the 27th time as its lead sponsor and will supply 50 fleet cars for the event. Skoda will also seize the opportunity to unveil the 2020 Superb Facelift on May 23, 2019, on the quarter-final match day.

    Pulling off a surprise, Skoda may also introduce the Superb Facelift with a new plug-in hybrid powertrain which was expected in the next-generation model. For the first time in history, Skoda will be offering a hybrid model and we are expecting it to borrow the powertrain from the Volkswagen Passat GTE. The same 1.4-liter, turbocharged TFSI petrol motor which powers the Audi A4 is expected to be coupled with an electric motor in the upcoming Skoda Superb. We have seen the same powertrain earlier at the 2016 Auto Expo in the Volkswagen Passat GTE plug-in-hybrid variant in which it develops 212 bhp and 400 Nm of peak torque. The 2020 Skoda Superb is likely to get it in the same state of tune.

    The car has already been spotted testing and design modifications on the new model will be rather subtle. The front bumper will get a wider air dam along with slightly muscular overhangs and the rear bumper will be revised as well. Moreover, new elements such as full-LED headlamps and new daytime running lights (DRLs) will also be on offer. Expect the rear to have the new widespread Skoda badging instead of the logo.

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  • Skoda India Opens Its Largest Workshop Facility In Coimbatore

    Skoda India Opens Its Largest Workshop Facility In Coimbatore

    Skoda Auto today announced opening a new workshop facility in India in association with SGA Cars India, in Coimbatore, Tamil Nadu. The new facility is Skoda Auto’s largest workshop in the country and is spread across 49,585 sq. ft. of the premium service area, equipped with 50 bays, and a capacity to serve 20,000 vehicles per annum. The service workshop also has more than 40 dedicated aftersales personnel, and the company says that it has been built in line with Skoda’s new corporate identity and design.

    Skoda India feels that the new modern workshop facility will further strengthen its position in Tamil Nadu, and help the company achieve a strong foothold in the southern markets. Inaugurating the new state-of-the-art service facility, Zac Hollis, Director – Sales, Service and Marketing, Skoda India, said, “Skoda Auto India is set to strengthen its presence in the southern markets of our nation. The dimensions of the new facility are a reflection of the region’s potential for the brand. We are confident that our partnership with SGA Cars India will play an important role, in scaling up the brand, by offering our patrons a hassle-free ownership experience and utmost peace of mind.”

    Commenting on their partnership with Skoda, Arputharaj, Dealer Principal, SGA Cars India said, “We are delighted to partner with Skoda Auto India to introduce our newly designed workshop facility. The state-of-the-art service infrastructure and optimized business processes will enable us to deliver an unmatched service experience. The advancement of Skoda makes us more confident and committed to our valued customers.”

    Skoda India currently has a network of 64 sales and 62 service outlets across the country. However, as part of its ‘INDIA 2.0’ project, Skoda Auto plans double its dealer network across 50 new cities, over the next 3 years, to further increase the accessibility of the brand. As for some of its customer initiative programmes, the company recently also introduced ‘EasyBuy’, an assured introductory 57 percent buyback value programme for the Skoda Superb model range, at the end of the three-year contractual term. This is in addition to the company’s existing Skoda Shield Plus plan which offers motor insurance, 24×7 roadside assistance, and an extended warranty for all Skoda cars.

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  • David Beckham Receives A 6 Month Driving Ban For Using Mobile Phone Behind The Wheel

    David Beckham Receives A 6 Month Driving Ban For Using Mobile Phone Behind The Wheel

    English footballer David Beckham has been handed a six-month driving ban for using his mobile when he was behind the wheel. The former England captain pleaded guilty to the charge after he was photographed by a member of the public holding a phone as he drove his Bentley in “slow moving” traffic in London on November 21, last year. Beckham was at Bromley Magistrates Court, south of London earlier this week, where he was given the six-month ban, fined 750 Pounds, and was ordered to pay 100 Pounds to prosecution costs and a 75 Pound surcharge fee within seven days.

    The 44-year-old already has six points on his license from his previous offenses for speeding and now gets six more. Beckham pleaded guilty to the charge and said there is no excuse for what happened. However, the former Manchester United player also said that he had “no recollection of the particular incident.”

    While the district court Judge Catherine Moore said she acknowledged the slow pace of the traffic, she did also say that there was “no excuse” under the law. Prosecutor Matthew Spratt said: “Instead of looking straight forward, paying attention to the road he appeared to be looking at his lap.” Beckham’s lawyer Gerrard Tyrrell further stated that the footballer found driving relaxing. He said, “He takes his children to school each day and picks them up when he can. To deprive him of that is something he will acknowledge.”

    The short but important ban on David Beckham reiterates why need to avoid using our phones behind the wheel. The incident should serve as an example to drivers across the globe that safety can’t be ignored even if it is in slow moving traffic.

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  • Volvo Cars Could Cut Several Hundred Jobs

    Volvo Cars Could Cut Several Hundred Jobs

    Swedish carmaker Volvo, which is owned by China’s Geely, is cutting several hundred jobs, Swedish radio reported on Friday citing sources.The carmaker, whose number of employees has more than doubled over the past decade to about 43,000, confirmed it was reviewing staff and other costs to ensure its business had the “right skills”.

    “As a growing company, Volvo Cars is constantly reviewing its cost base. This becomes even more important in light of the headwinds the industry is facing and Volvo Cars are now increasing its focus on costs related to staffing and bought services,” the company said in an emailed statement.

    The jobs primarily affected were those of consultants and staff involved in factory production will not be affected, a Volvo spokesman said. He declined to specify the number of job cuts and savings expected from the layoffs. Volvo’s fortunes have come under renewed threat with the car sector facing one of its most challenging periods due to trade conflicts, hefty bills to develop electric and driverless cars, and an overall downturn in the industry.

    The company, which has put its listing plans on ice due to the tariff wars and auto stock downturn, has reported lower first-quarter profit and warned that margins will remain under pressure this year.

  • Maruti Suzuki Opens 300th Commercial Vehicle Outlet

    Maruti Suzuki Opens 300th Commercial Vehicle Outlet

    Maruti Suzuki India has inaugurated its 300th commercial vehicle showroom in India. The 300th outlet comes in less than three years, and with it Maruti Suzuki’s Commercial retail outlet network is now present in over 230 cities across the country. With the recent addition, the Company’s total sales network has crossed over 2,940 showrooms covering more than 1,860 towns and cities. Currently, the company sells only the Super Carry LCV in the country and it commands a 12 percent market share in India and it’s sold 23,000 units already ever since it was launched. It is offered in two colors Superior White and Superior Silver.

    The Super Carry LCV comes with a loading bay of 3.25 sq.mt and offers a payload capacity of 740 kg. The ground clearance stands at 175mm, while suspension duties are performed by MacPherson struts at the front and a rigid axle with leaf springs at the rear. The wheelbase measures 2110mm and at 4.3 meters, the turning radius similar to that of a hatchback. The LCV gets all the basic features including a light steering wheel, mobile charging socket, dual assist grip, multi-purpose storage spaces, lockable glovebox and bottle holders. An air-conditioner, however, is missing from the ensemble.

    The Super Carry is available with a diesel engine in the country and this 793cc twin-cylinder diesel engine that made its debut on the Celerio last year and comes paired to a 5-speed manual transmission. However, the diesel variant will be discontinued as it would not comply with the upcoming BS6 norms. The company will therefore only offer it with petrol and the CNG variant, which according to the company will be great for its consumers.

    Shashank Srivastava, Executive Director, Maruti Suzuki India said, “The Light Commercial Vehicle segment has been the largest volume contributor in the commercial vehicle industry in the country. Globally, Suzuki Motor Corporation has expertise in this segment and the Super Carry is part of that lineage. Super Carry for India has been developed specifically keeping in mind the unique requirements of the Indian mini truck customer. Starting the commercial segment with Super Carry, we have rapidly rolled out our network to keep pace with the growing demand and business opportunity for light commercial vehicles. With the growth in entrepreneurship and businesses, we see a continuous requirement of Light commercial vehicles for various business applications.”

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  • Hero Pleasure Plus 110 Launched In India

    Hero Pleasure Plus 110 Launched In India

    Hero MotoCorp’s second launch for the day is the all-new Pleasure Plus scooter. The new Hero Pleasure 110 is priced at ₹ 47,300going up to ₹ 49,300  and gets comprehensive upgrades over the outgoing version with a revised design, new colors and more features on offer. It still remains one of the most affordable scooters on sale and will be attracting a number of first-time female buyers. Bookings for the new Pleasure commence from today across the two-wheeler maker’s dealerships pan India, while deliveries will begin by the end of this month.

    The all-new Hero Pleasure had been given a number of revisions for a smart looking appearance. The scooter looks fresh with the bright colors, while the front apron gets a bow-tie like silver plastic cladding that lends a cute face to the model. The headlamp design is completely new and is an angular-upright shaped unit that gets a retro-touch while looking all modern. The side panels have been reworked and get brushed silver highlights for added effect. The taillights are new and the instrument console has been revised as well with a new digital display. The scooter comes with a USB charging slot as well.

    The 2019 Hero Pleasure Plus draws power from the more powerful 110 cc single-cylinder air-cooled engine that is tuned for 8 bhp and 8.7 Nm of peak torque. The motor is paired with a CVT unit. The more powerful engine replaces the 102 cc mill that was seen on the predecessor and belt out nearly 7 bhp and 8.1 Nm of peak torque. The updated scooter continues to use spring loaded shocks at either end that help keeps costs low. Braking performance too comes from the 130 mm drum brakes at the front and rear with Integrated Braking System (IBS) offered as standard.

    The Hero Pleasure has always been an entry-level offering and comprehensively updated version will certainly help the scooter solidify its position in that space. The aggressive pricing will also help the model that competes against the likes of the Honda Activa-i and the TVS Scooty Zest. Bookings for the updated Pleasure scooter are now open.

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  • McLaren GT Teased Ahead Of Its Debut On May 15

    McLaren GT Teased Ahead Of Its Debut On May 15

    We have seen the McLaren GT before in its prototype version and McLaren has finally teased the production spec model. The new McLaren is a Gran Tourer and the brand has decided to call it GT (without any suffix or prefix). As we are aware that McLarens are categorized into three segments- Sports, Super, and Ultimate Series, the upcoming GT will be positioned between the Sports and Super segment. In fact, McLaren has said that the GT will be slightly different having a mix of cross-country abilities and McLaren’s dynamic and agile characteristics. The McLaren GT also takes inspiration from the Speedtail.

    As customary as it could be, the new teaser gives just a slight idea of its design and aerodynamics, leaving us curious about the rest. However, it reveals the silhouette and rear of the car and the outline looks pretty much identical to the 720 S. The air ducts on the bulbous rear haunches are sizeable and the tail looks angular housing the integrated spoiler. However, it gets dual exhaust pipes and different LED lights.

    The McLaren GT will get a center mounted engine which is unlike other models. The engine in the question is the same 4.0-litre, twin-turbocharged, V8 engine which will be differently tuned and given it’s a GT, it’s not expected to have the outright performance of track-focused cars like the McLaren 600lt Spider or even the 720 S.The McLaren GT will make its first public appearance on May 15.

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  • Indian Drivers Face The Heat As Uber Plans IPO

    Indian Drivers Face The Heat As Uber Plans IPO

    As Uber drivers planned a global strike on Wednesday ahead of the ride-hailing giant’s massive initial public offering (IPO), Uber drivers in India said they are facing the heat as cash incentives have considerably gone down while work hours have gone up. Drivers in cities like Los Angeles, New York City, London and Tokyo were to join the strike and log off from the apps on Wednesday.

    According to Santosh, an Uber driver in Delhi-NCR, the initial adrenaline rush is over and it has been difficult to run the family as income is low, incentives are down and stress levels are high owing to the pressure to pay monthly EMIs towards car and home loans.

    “When I joined Uber, things were just going fine. Now, with low cash incentives, I have to drive for long hours to make the ends meet,” Santosh told IANS.

    Dharam and Shamu, both Uber drivers, also echoed Santosh’s view.

    An email sent to Uber India for comment went unanswered.

    Uber launched its services in India in 2013 with its UberBLACK service and launched its premium UberX service in 2014.

    Uber currently operates in 31 cities in the country and aims to take its services to other, deeper parts of the country.

    The global ride-hailing platform in January announced the appointment of Indian Institute of Technology (IIT)-Kharagpur alumnus Pavan Vaish as the new Head of Central Operations.

    Uber filed its IPO process last month. It would be listed on the New York Stock Exchange (NYSE) under the symbol “UBER”.

    The company is seeking a market value just above $90 billion in its IPO, according to documents filed with regulators. The ride-hailing company has also announced a one-off bonus for drivers as it prepared to go public.

    As of December 31, 2018, it had 91 million, or 9.1 crores, monthly active platform users. There were 3.9 million, or 39 lakh, drivers on the platform by the end of 2018.

    Uber and Lyft drivers in cities, including Los Angeles, New York City, and London, were set to join the strike and log off from the apps (from 7 am to 9 am ET) on Wednesday.

    “Wall Street investors are telling Uber and Lyft to cut down on driver income, stop incentives and go faster to Driverless Cars,” Bhairavi Desai, Executive Director of the New York Taxi Workers Alliance, was quoted as saying by the CNET.

    “With the IPO, Uber’s corporate owners are set to make billions, all while drivers are left in poverty and go bankrupt,” she added.

    In a statement to CNET, an Uber representative said: “Drivers are at the heart of our service — we can’t succeed without them — and thousands of people come into work at Uber every day focused on how to make their experience better, on and off the road”.

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  • Toyota, Panasonic To Set Up Firm To Connect Cars

    Toyota, Panasonic To Set Up Firm To Connect Cars

    Japan’s Toyota Motor and Panasonic Corp said they plan to establish a joint company to develop “connected” services to be used in homes and urban development. The tie-up deepens the partnership between the companies, which in January announced a joint venture to build electric-vehicle (EV) batteries, pooling the R&D and manufacturing strengths of one of the world’s largest automakers and battery makers to compete in the fast-growing EV market.

    In their latest venture, Toyota and Panasonic said they will set up a new company early next year to focus on technology that could be used to offer personalized services in the home. The pair plan to be 50-50 partners in the new firm and will increase cooperation at their respective housing operations in Japan.

    “We will put our respective strengths together to offer new value in everyday life,” Panasonic President Kazuhiro Tsuga said in a joint statement on Thursday.

    The move comes at a time when lower-emissions vehicles and ride-sharing services have opened up the auto industry to new competitors, leaving traditional car makers and their suppliers scrambling to find alternate revenue streams.

    Toyota has been developing connected cars that can share information on usage – data that could be leveraged for on-demand ride-sharing, insurance, and maintenance.

    The automaker has said it will tap into its partner network and its operations which range from building and selling cars, homes and companion robots to expand into new transportation and home energy services.

    “If we are able to use this network going forward not only to manufacture and sell vehicles but to also provide new services, our future possibilities will greatly expand,” President Akio Toyota told reporters on Wednesday.

    “In addition to cars, I think that having our own housing business and connected business will be a big advantage for us.”

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  • 2019 Triumph Scrambler 1200 India Launch Date Out

    2019 Triumph Scrambler 1200 India Launch Date Out

    Triumph Motorcycles India will be launching the long-anticipated Triumph Scrambler 1200 on May 23, 2019. The motorcycle made its global debut in last year in October 2018 and went on sale in the global marker early this year, and now the British motorcycle maker is finally ready to launch the new Scrambler 1200 in India as well. Globally, the motorcycle is offered in two variants, the base trim Scrambler 1200 XC, and a top-spec Scrambler 1200 XE. India, however, will only get the former and we have already ridden the bike and told you all about it.

    The Triumph Scrambler 1200 is powered by the company’s ‘high-torque’ 1,200 cc parallel-twin engine that already powers the Thruxton R and the newly launched Speed Twin. However, Triumph has made several changes to it to make it more suited for the all-terrain nature of the bike. In the Scrambler 1200, the engine churns out 89 bhp @ 7,400 rpm and develops a peak torque of 110 Nm @ 3,950 rpm. This means the Scrambler 1200 will have more grunt with minimal throttle input, suitable for traversing broken trails and for riding off-road. The motor comes mated to a 6-speed gearbox with a torque-assisted clutch.

    Both motorcycles come with superior off-road capabilities thanks to the fully adjustable 45 mm USD forks from Showa up front (47 mm for XE) and fully adjustable twin-spring Ohlins rear suspension. While the XC comes with 200 mm of travel both at the front and back, on the XE, the suspension units offer 250 mm of travel. The XE also gets gold anodized front forks compared to the black unit on the XC. Both models are equipped with piggy-back reservoirs. Furthermore, the Scrambler 1200 also comes with the first-in-segment 21-inch front wheel, along with 17-inch rear wheels, both are spoked and come shod in dual-purpose tires from Metzler Tourance tubeless tires. The bike comes with twin 320 mm discs with Brembo M50 monoblock calipers up front and a single 255 mm disc, also gripped by a Brembo’s 2-piston floating. Both bikes get switchable ABS, but the XE trim gets switchable cornering ABS.

    The 2019 Triumph Scrambler 1200 also come loaded with some of the best-in-class features like – ride-by-wire, cruise control, heated grips, under seat mobile storage with a USB charging port, keyless ignition, Single-button cruise control, and torque assist clutch. Triumph has also equipped the motorcycle with its latest generation full-color TFT instrument display, with 5 riding modes – Road, Rain, Sport, Off-Road and Rider-Configurable. The classy bits include – all-LED lighting with DRL headlight, Intuitive switch cubes & 5-way joystick, illuminated backlit switches. Furthermore, the Scrambler 1200 also gets a first-of-its-kind integrated accessory fit connectivity Bluetooth module, enabling the world’s first integrated GoPro control system, ‘turn-by-turn’ navigation, plus phone and music operation. The bike comes in two color options – Jet Black with Matt Black, and Khaki Green with Jet Black.

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  • Nissan Spain To Cut 600 Jobs From Barcelona Plant

    Nissan Spain To Cut 600 Jobs From Barcelona Plant

    The Spanish arm of Japanese carmaker Nissan has reached an agreement with unions to cut 600 jobs at its plant in Barcelona, or almost 20 percent of the plant’s workforce. The layoffs, a mixture of voluntary redundancies and early retirements over the next year, were a condition for a planned investment of 70 million euros ($79 million) in a new painting facility, Nissan said in a statement on Thursday.

    Nissan, which has five plants and employs around 5,000 people in Spain, reached the agreement after more than a month of negotiations with unions. As part of the deal, any further changes to the workforce are to be negotiated separately with unions.

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  • Panasonic Flags First Profit Drop In 8 years

    Panasonic Flags First Profit Drop In 8 years

    Panasonic Corp warned profit this financial year would fall for the first time in eight years as costs to boost battery output rise and it moves to overhaul some businesses amid investor pressure to find new avenues of growth. The Japanese conglomerate expects operating profit for the year through March 2020 to slump 27 percent to 300 billion yen ($2.7 billion) from a year earlier. That is well below analyst expectations of a 12 percent decline, according to Refinitiv.

    The company is looking at a 15 billion yen loss at its automotive unit this year, it said on Thursday. Panasonic expects costs to ramp up battery production in Japan and China for a planned electric-vehicle (EV) battery joint venture with Toyota Motor Corp to weigh heavily.

    Toyota and Panasonic said they will set up a new company early next year to focus on technology that could be used to offer personalised services in the home.

    Panasonic switched its focus to corporate clients such as automakers a few years ago to escape price wars in lower-margin consumer electronics. The shift, which involved a vast migration of TV engineers to the automotive unit, helped the company restore profit growth, but its non-consumer businesses did not grow as fast as the company had hoped.

    “Over the last three years, we aimed for stable revenue and profit growth focusing mainly on the automotive business … but development costs and insufficient abilities to adjust to rapid battery production expansion limited our profits,” Panasonic President Kazuhiro Tsuga said. The business was also squeezed last year due to production delays for Tesla Inc’s mass-market Model 3 sedan.

    Panasonic is Tesla’s exclusive supplier of battery cells and industry watchers have said the Japanese company needs to cut its reliance on the U.S. electric carmaker.

    Elon Musk, Tesla’s mercurial CEO, last month blamed Panasonic for the production delays. He previously said Tesla was looking for other battery suppliers for its new Shanghai car factory.

    Tsuga, however, told a post-earnings press conference on Thursday that Panasonic’s relationship with Tesla remained good.

    “We are not just a supplier but a partner,” he said.

    Panasonic is set to deepen its partnership with Toyota, announcing earlier on Thursday they would establish a joint company to develop “connected” services to be used in homes and urban development. Panasonic also said it would sell its solar battery research arm and a solar battery plant in Malaysia to China’s GS-Solar for an undisclosed amount.

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  • Daimler CEO Says His Successor Will Have A Tough Job

    Daimler CEO Says His Successor Will Have A Tough Job

    Daimler’s next chief executive will have a tough job to restore margins at Mercedes-Benz, current boss Dieter Zetsche told Reuters on Wednesday, as Mercedes-Benz launched a new luxury electric car to rival Tesla.

    Zetsche, who bows out as CEO on May 22, said the German luxury carmaker needed to find a way to rebuild margins after research and development (R&D) costs at Mercedes-Benz ballooned.

    “There are many challenges ahead. We are in a situation of an economic slowdown. It is not going to be easier going forward,” he said on the sidelines of the launch event near Oslo.

    Pressure to develop electric and autonomous cars has led R&D costs at Mercedes-Benz passenger cars to rise to 14 billion euros ($15.7 billion) from around 8 billion euros four years ago, Zetsche said.

    At the same time, China, the world’s largest car market, has seen sales momentum slowing for nine months in a row, with a 5.2 percent fall in sales in March.

    Mercedes-Benz’s large electric car will hit showrooms this summer, years after Tesla launched its Model S in 2012.

    Daimler has been cautious about embracing mass production of electric vehicles at Mercedes-Benz amid concerns about operating range and customer acceptance.

    The company took a 9.1 percent stake in Tesla for around $50 million in May 2009 to learn about battery technology but sold its stake for a $780 million profit in 2014.

    Daimler launched an electric car under the smart brand in 2010, but waited until 2014 to build an electric Mercedes-Benz B-Class.

    Daimler, like other manufacturers, has struggled to make electric cars profitable, although the cost of battery packs is expected to fall as they invest in ramping up battery cell production.

    ING analysts say the total cost of ownership, including fuel prices, could reach parity between electric and combustion engined vehicles by 2025.

    In an effort to make a profit with electric cars, Daimler has opted to manufacture the Mercedes EQC in a way that enables it to be built on the same production line as a combustion engined car, retooling existing plants.

    Daimler is investing more than 10 billion euros to expand the electric EQ model range and is building battery cell production facilities.

    The Mercedes EQC will have an operating range of 445-471 kms, with a base version costing below 60,000 euros to make it eligible for Germany’s electric car environmental bonus.

    Asked whether Daimler was too late to the electric vehicle trend, Zetsche said: “For the past 40 years I have heard that German manufacturers have missed all the important trends. But apparently, customers still like cars from manufacturers that have missed the boat.”

    Zetsche took over as CEO of DaimlerChrysler in 2006 and took the decision to sell Chrysler, returning Mercedes to the top-selling luxury brand globally in 2016 and defending the title ever since.

    Zetsche said Daimler’s future hinged on making electric cars profitably.

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