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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.

  • Hyundai Motor union approves pay deal early

    Hyundai Motor union approves pay deal early

    Hyundai Motor’s labor union voted in favor of a modest wage increase late on Thursday, settling pay negotiations before their summer vacation in August for the first time in eight years.

    The speedy deal stands in stark contrast to last year, when a series of strikes and negotiations dragged on into early 2018.

    The challenging business environment for Hyundai Motor, including threat of auto tariffs from the United States and slow global sales, is expected to have influenced the result.

    Of the 42,046 union members, 63 percent voted in favor of the new wage plan on Thursday. The plan includes a monthly base pay raise of 45,000 won ($40.26), an incentive payment worth 250 percent of their ordinary monthly wage and a bonus of 2.8 million won.

    Last year, the union had asked for 154,000 won more a month in base pay, but workers received a 58,000 won raise. It had asked for a 300 percent incentive rate as well.

    The union on Thursday also approved a renewed two-shift working system, where day and night workers will work exactly eight hours without additional time. Previously, night-shift workers had to work about 20 minutes more than those on the day shift.

    Starting Jan. 7, 2019, each assembly line will be adjusted to produce 0.5 more cars per hour in order to compensate for the reduced working hours.

    Hyundai Motor’s labor union, which is affiliated with the umbrella Korea Metal Workers’ Union, is seen as one of the country’s most hard-line unions. Their fierce conflict with company management has faced criticism for not taking into account Hyundai’s business situations.

    Fellow workers gave the Hyundai union a cold shoulder because of the steep discrepancy in wage rates. Unionized workers at the Hyundai Motor labor union receive an average of 90 million won. Average office workers at small and medium-size companies receive an average of 30 million won per year and conglomerate office workers receive around 60 million won. Last year, the union staged 24 strikes, which disrupted the production of 76,900 cars and caused losses worth 1.62 trillion won to Hyundai Motor. In 2016, their strikes caused the company to lose 3.1 trillion won.

    This year, the union staged only 2 strikes, which disrupted the production of 11,487 cars, causing losses of just 250.2 billion won. These are the smallest losses since 2011, when there were no strikes at all.

    “This will be a stepping stone [for the union] to break through its social isolation and perception that it is the ‘royal union,’” said Ha Bu-young, the leader of Hyundai Motor’s union, in a statement on Thursday.

  • Toyota Eyes 53 New Export Destinations for Indonesia-Made SUV

    Toyota Eyes 53 New Export Destinations for Indonesia-Made SUV

    Toyota Motor Manufacturing Indonesia, the local unit of the Japanese automotive giant, aims to expand its export market by shipping its all-new Rush sport utility vehicle to 53 countries in Asia and Africa this year.

    Toyota currently only exports vehicles to the Philippines, but it believes the model, updated early this year, would appeal to a broader market.

    “The Toyota Rush is indeed one product aimed at export. Where previously we only exported it to one other country, this new model will be delivered to 53 countries,” Henry Tanoto, deputy director of Toyota Astra Motor, a joint venture between Toyota Motor Manufacturing Indonesia and the country’s largest car distributor, Astra International, said on Tuesday (24/07).

    The Toyota Rush still leads in Indonesia’s so-called low SUV market segment, with data compiled by the Association of Indonesian Automobile Industries (Gaikindo) showing that 19,508 units were sold in the first semester of 2018, up 69 percent from the same period a year ago.

    Japanese manufacturers have long sought to establish Indonesia as an export hub in the Asia-Pacific region.

    Toyota has pledged $1.9 billion to expand its manufacturing capacity in Indonesia between 2015 and 2019.

    Exports of Indonesian-made completely built-up cars has risen more than 14 percent over the past three years to 231,000 last year. The country exported 110,135 completely built-up cars between January and June, according to Gaikindo data.

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  • Thailand approves electric vehicle investment plans of Nissan, Honda

    Thailand approves electric vehicle investment plans of Nissan, Honda

    Thai authorities said today they have approved investment plans worth 29.63 billion baht (RM3.8 billion), including projects by two Japanese automakers to produce hybrid electric vehicles and batteries.

    Nissan Motor (Thailand), a unit of Nissan Motor Co will invest 10.96 billion baht in one venture while Honda Automobile (Thailand), a subsidiary of Honda Motor Co will spend 5.82 billion baht on its project, the Board of Investment (BoI) said in a statement.

    The agency said it also approved a tax break for Thai AirAsia X’s 9.25 billion baht plan to lease six Airbus A330 aircraft, and for Mars Petcare (Thailand)’s 3.5 billion baht investment in pet food.

    The BoI said Thai and foreign firms submitted projects worth 284.6 billion baht in January-June, which it said was “close to” the amount in the first half of 2017, without giving the previous number. The board said the projects were mainly for Thailand’s Eastern Economic Corridor a centrepiece of the junta’s policy to lift growth and targets high-tech investment.

    The agency is sticking to its target of securing 720 billion baht in investment pledges this year, up 12% from last year, as large applications are expected in the second half, it said.

    Meanwhile, Toyota Motor Corp’s Thai unit said Thailand’s total domestic car sales are expected to be 980,000 units this year, up 12% from 2017, and more than previously expected.

    Toyota, which commands about one-third of the Thai vehicle market, also raised its own 2018 car sales in the Southeast Asian nation to 315,000 cars, up 31% from last year, Toyota Motor Thailand’s president Michinobu Sugata told a news conference. Sales have been supported by stronger economic growth and more activities by carmakers, he said.

    In January, the company predicted overall domestic sales at 900,000 cars and its own sales at 300,000 units.

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  • Hyundai Mobis finds a job for AI

    Hyundai Mobis finds a job for AI

    Auto parts maker Hyundai Mobis announced Sunday that it has developed artificial intelligence-based software and a chatbot equipped with a deep learning algorithm to speed up its research in smart car technology.

    The artificial intelligence-based software is called Maist, short for Mobis Artificial Intelligence Software Testing, and has been co-developed by a research team at the Korea Advanced Institute of Science & Technology led by Professor Kim Moon-zoo.

    Maist is designed to test different software that is to be installed in cars. According to Hyundai Mobis, installing Maist will double the efficiency of the software development process.

    “About 50-70 percent of the testing process will be done by Maist from now on, allowing researchers to engage in more creative works,” an official at Hyundai Mobis said.

    The chatbot is called Maibot, short for Mobis AI Robot, and is able to search through the lab’s cloud, home to more than 200,000 research cases, to find material that a user is looking for. The algorithm will allow Maibot to become more advanced, Hyundai Mobis said.

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  • Korea rush to lobby against U.S. auto tariffs

    Korea rush to lobby against U.S. auto tariffs

    Government officials and representatives from the local auto industry rushed to the United States last week to request that Korea be exempted from higher tariffs on imported cars.

    The Korean delegation, headed by Trade Minister Kim Hyun-chong, met with officials from the White House, Congress and think tanks during their U.S. trip from Wednesday to Friday, arguing that imported cars from Korea should be excluded from the tariff renewal based on Section 232 of the Trade Expansion Act.

    Finance Minister Kim Dong-yeon on Saturday also raised the issue at the G20 meeting held in Buenos Aires, Argentina.

    Kim Hyun-chong’s delegation included Hyundai Motor President Chung Jin-haeng and Korea Automobile Manufacturers Association President (KAMA) Kim Yong-geun, among others.

    The trade minister met with Larry Kudlow, the National Economic Council director, and Mick Mulvaney, the White House Office of Management and Budget director.

    “Kim explained that the revised Korea-U.S. FTA already reflects the concerns that the U.S. has about its automobile industry and security,” said an official from the Ministry of Trade, Industry and Energy on Sunday.

    In March, Korea agreed to extend a 25 percent tariff on Korean pickup trucks in the U.S. to 2041, instead of 2021, ensuring the unfavorable export conditions for Korea’s pickup truck manufacturers continues.

    “He also emphasized the fact that Korea and the United States impose zero tariffs on cars imported from each other’s country based on mutual benefits,” the official added.

    According to the ministry, the U.S. officials agreed with the Korean delegation and showed concern that the new tariffs might have a negative effect on America’s labor market and the economy considering the industry’s complex global supply chain.

    Hyundai Motor President Chung met with lawmakers based in Georgia and Alabama, two states where the automaker runs assembly lines. Korea International Trade Association Vice Chairman Han Jin-hyun mostly met with officials from the U.S. government and think tanks such as the Center for Trade and Economics and the Center for Strategic and International Studies.

    Finance Minister Kim Dong-yeon was also determined to prevent renewed tariffs.

    “Finance Minister Kim Dong-yeon explained to his U.S. counterpart that the two countries have been carrying out fair trade with the renewed Korea-U.S. FTA until now, and expressed his strong opposition to imposing higher tariffs on imported cars from Korea,” the Finance Ministry said in a release. “Kim also emphasized the positive effect that Korea’s auto industry has had in the U.S., such as hefty investment and employment,” the release added.

    U.S. President Donald Trump has been pushing for higher 25 percent tariffs on imported cars on national security grounds. The plan sent jitters through Korea’s auto industry, which relies heavily on exports to the U.S. According to industry statistics, 30 percent of exports to the U.S. last year came from the auto industry.

    Trade Minister Kim will continue to lobby U.S. officials. He will visit the United States from July 25 to July 27.

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  • Hyundai, Kia hope to hit targets with SUVs

    Hyundai, Kia hope to hit targets with SUVs

    Hyundai Motor and affiliate Kia Motors said on Friday that they would achieve their sales target for the year by launching new sport utility vehicles in two major auto markets, the United States and Europe, in the second half.

    In separate biannual meetings with overseas sales executives, Hyundai and Kia discussed measures to achieve their sales target of a combined 7.55 million vehicles, up 4.1 percent from the 7.25 million they sold last year, Hyundai Motor Group said in a statement.

    In terms of major challenges in the second half, the company named interest rate increases in the United States, rising oil prices and an unfriendly business environment due to U.S. tariffs on imported vehicles.

    To boost sales in the second half, Hyundai plans to launch a new Santa Fe and upgraded Tucson in the U.S. market in July and November. Kia will launch a Sorento facelift in June.

    The new Santa Fe is the most essential model in determining Hyundai’s annual earnings results this year. If it is well accepted in the United States, Hyundai will come up with strong financial figures at the end of the year, the company said.

    In Europe, Hyundai will gradually the Santa Fe, Tucson and Kona, and Kia will roll out the Sportage SUV. The company has recently set up a task force to attract female customers in Saudi Arabia after the country permitted women to drive cars.

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  • SsangYong expands to Australia

    SsangYong expands to Australia

    SsangYong Motor will establish its first overseas sales unit in Australia in November to take advantage of rising demand for SUVs there, the carmaker said Monday.

    The establishment of its first overseas sales unit will serve as a stepping stone for SsangYong Motor to further fortify its global sales, the carmaker said.

    SsangYong Motor, the Korean unit of Indian auto giant Mahindra & Mahindra, sold its cars in other countries before through partnerships with local dealerships. It has never operated its own sales unit outside of Korea before.

    “The Australian sales unit will be SsangYong Motor’s first overseas sales unit to be directly managed by the carmaker,” said CEO Choi Johng-sik in a written statement released on Monday. “It will help us to be more flexible in handling the local market, such as the marketing strategy.”

    SsangYong Motor currently exports cars to Europe, South America and the Middle East.

    Chile was the biggest export market for SsangYong Motor last year.

    When the Australian unit opens in November, SsangYong Motor is expected to launch a full range of models, including the Tivoli, G4 Rexton and Rexton Sports. SsangYong Motor said it hopes to eventually run 60 directly managed dealerships in Australia.

    SsangYong Motor stopped selling its cars in Australia in 2016. It had previously been selling vehicles to local dealerships.

    Its decision to resume sales is due to the sharp growth in Australian SUV sales. According to the carmaker, sales of SUVs accounted for 18 percent of vehicle sales in Australia in 2006, but they expanded to 39 percent last year. Sales of pick-up trucks, which SsangYong Motor also sells, rose by 70,000 vehicles during the same period.

    The unique Australian automobile market, which is completely reliant on imported vehicles, also factored into SsangYong’s decision to launch an overseas sales subsidiary.

    “While countries that have a homegrown brand tend to be hard to penetrate, Australia doesn’t have their own marque, which is why we thought the brand would have a better chance,” a SsangYong Motor official said.

    After launching its existing models, SsangYong Motor said it will continue to launch new models in Australia to secure its position in the market.

  • BMW under pressure as cars keep catching on fire

    BMW under pressure as cars keep catching on fire

    Reports of BMW 520ds catching on fire are on the rise in Korea, posing a serious threat to the carmaker’s credibility.

    An official recall of the vehicles has still not been announced, making owners of the country’s second most popular import brand anxious about their own cars.

    The latest fire broke out on Monday in Incheon on a highway in Incheon headed toward Ilsan, Gyeonggi. The engine of the 520d sedan reportedly caught fire while the vehicle was moving, resulting in damages worth 37.5 million won ($33,000) according to the local fire station. The driver was not injured.

    Monday’s incident was the latest in a slew of fires. A total of 15 fires in BMW 520ds have been reported to Korea’s Ministry of Land, Infrastructure and Transport this year as of Monday, according to the ministry.

    In the month of July alone, four fires have been reported; some while driving and some while the car was parked.

    “It seems the manifold -part of the emissions system – has defects,” said an official from the Transport Ministry Monday.

    “But since all but one of the vehicles were completely burnt out, it will take more time to come up with an exact reason as to why these 520ds caught fire,” the official added.

    BMW Korea said it will carry out a recall “soon,” but the range of affected cars and when the recall will take place has not been decided.

    The ministry launched its own investigation into the problematic car on July 16 and is waiting for the carmaker to submit a detailed recall plan.

    BMW Korea said it needs more time to come up with a plan.

    If the recall plan is finalized, it would be the first time that BMW Korea has ever had to carry out a recall due to the risk of fire.

    “The fact that we will carry out a voluntary recall has been decided but more time is needed to decide when and what models will be recalled since it is a sensitive matter,” a BMW Korea spokesman said Monday.

    “We are considering expanding the recall beyond just the 520d model to ones that use the same parts,” the official added.

    This is not the first time a safety issue has been raised with BMW vehicles due to fire hazards.

    In 2015, four fires were reported in less than a month in BMW vehicles including the 5-Series and 7-Series, resulting in then-BMW Korea CEO Kim Hyo-joon issuing an official apology. The vehicles were not recalled.

    The 520d model is the most popular vehicle within the BMW Korea lineup. In the first half of this year, sales of the 520d accounted for nearly 30 percent of the company’s entire sales.

  • Electric car sales in Korea shoot up as driving range grows

    Electric car sales in Korea shoot up as driving range grows

    For years, Korea’s electric car market lagged behind that of other countries due to a lack of charging infrastructure and few appealing models.

    This year marks a turning point, as sales of electric vehicles (EV) grew by more than 150 percent in the first half of 2018 when compared to 2017.

    According to data from Korea’s four domestic carmakers and the Korea Automobile Importers & Distributors Association released on Sunday, 11,866 pure electric vehicles were sold from January to June this year. This is 168.9 percent more than the first half of last year, when 4,412 electric cars were sold in Korea.

    Hyundai Motor sold 4,488 of its Ioniq Electric cars, making it the year’s most popular model. It was followed by GM Korea’s Bolt EV.

    The Bolt EV launched in Korea last year, and GM Korea sold a total of 3,122 of the cars in the first half of this year.

    The electric version of Hyundai Motor’s small Kona SUV, which only launched in May, took the third spot with 1,380 vehicles sold.

    The top three EV models this year all have batteries that provide for long ranges.

    The Ioniq Electric, the oldest of the three, can travel 200 kilometers (124 miles) per charge, a slight upgrade from its previous version, which ran out of juice after 191 kilometers.

    GM Korea’s Bolt EV, a rising star in the Korean EV industry, can travel about 380 kilometers. The Kona Electric has the longest range of the top three at 400 kilometers.

    According to Hyundai Motor, about 15,000 sales of the Kona EV have not yet been reflected in the data.

    Kia Motors’ Soul EV followed in fourth place, with 1,139 cars sold, which is 80.2 percent more than the first half of 2017.

    Renault Samsung Motors is aiming at a niche market with its electric cars. Its electric SM3 Z.E. sold 630 units in the first half. The Korean unit of French auto giant Renault Group is targeting taxi companies by providing an extra discount for SM3 Z.E.s sold as taxi vehicles.

    It also launched a micro EV, the Twizy, last year, which sold 984 units so far this year.

    BMW upgraded the driving distance of its i3 by 50 percent last year to 208 kilometers. The company sold 115 i3s last year, 173.8 percent more than the first half of 2017.

    The EV market in Korea is expected to grow further later this year after Kia Motors’ launches its electric Niro SUV, which will be able to travel more than 380 kilometers per charge, and Jaguar’s I-Pace, which will have a range of 480 kilometers per charge.

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  • Volkswagen, Toyota lead a surge in imports

    Volkswagen, Toyota lead a surge in imports

    Audi and Volkswagen have roared back to the Korean imported car market after a two-year absence.

    After launching in May, Volkswagen’s flagship midsize Tiguan SUV became the best-selling imported car model in Korea in June.

    The Tiguan 2.0 TDI sold 1,076 units in June, according to the Korea Automobile Importers & Distributors Association on Thursday. It was the only imported model that sold over 1,000 units last month.

    In its launch month, Volkswagen Korea sold 1,561 Tiguans.

    “Although Volkswagen’s brand image was dented due to the emissions scandal, the Tiguan SUV is widely known to be well-made and it seems like Korean consumers have been waiting specifically for the model,” said Kim Pil-soo, an automotive engineering professor at Daelim University.

    “At the moment, there are no substitutes for the Tiguan SUV that satisfy those who want to buy an imported car in a medium price range. Due to its relatively low price, Tiguan is able to appeal to consumers who were thinking about buying domestic brands.”

    On the back of those strong sales, Volkswagen Korea was ranked third in sales of imported cars in June with only two models on offer, the Tiguan and the Passat sedan.

    As for specific imported models, BMW’s 5-series sedan 520d came in second in June sales with 963 units, followed by Audi’s A6 35 TDI with 891 units.

    Korea’s imported car sales continued to grow in the first half of this year.

    According to KAIDA statistics, a total of 140,109 imports were sold between January and June, which was an 18.6 percent year-on-year jump.

    Mercedes-Benz Korea managed to maintain its top spot for six consecutive months. It sold 41,069 units in the Jan.-June period, an 8.9 percent year-on-year increase. BMW Korea followed, selling 34,568 units, a 19.2 percent year-on-year jump.

    Japanese brands are expanding their presence in Korea. In the past, Japanese brands were largely neglected here because they were considered overly expensive.

    Toyota Korea came in third spot in the Jan.-June period. It sold 8,350 units, recording a whopping 60.8 percent year-on-year increase. A hybrid version of its new Camry sold 3,051 units in the first half, followed by the gasoline-powered Camry, which sold 2,104 units.

    Toyota’s luxury arm Lexus tumbled two steps from last year’s third spot to fifth, but its sales still recorded solid growth. It sold 6,276 units in the first half, a 7.2 percent year-on-year jump.

    “With the rising interest in imported cars, people who would have bought domestic brands are now turning to import brands. Japanese brands are benefiting from that shift in consumption patterns,” Kim added.

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  • Android Auto finally learns Korean Language

    Android Auto finally learns Korean Language

    Android Auto, Google’s three-year-old software for cars, is finally available in the Korean language and can now be used in a majority of Hyundai and Kia vehicles in Korea.

    Google Korea, Hyundai Motor and Kakao jointly announced the launch of the smartphone-based virtual dashboard in Korea on Thursday, effective on the same day. The Android software, when connected to an Android smartphone, enables drivers to make calls, send text messages, use a navigation map, listen to music and much more, all through Google Assistant voice commands.

    “The primary task of drivers is safely driving,” said Lawrence Kim, a lead product manager at Google Android Auto, “but observation of drivers showed they do so many other tasks with their smartphone – sending text messages, reading news and making calls. It’s a far-from-safe situation, which led us to think about how to seamlessly integrate smartphones with the vehicle.”

    He noted that the software is not designed to simply mirror the app on the smartphone. Google has customized the user interface for the car display.

    Google joined forces with Kakao Mobility, the transportation arm of Kakao, to develop a navigation map based on the Kakao Navi app as an alternative to Google Maps. The Korean government’s ban on Google’s use of mapping data has led to Android Auto’s later-than-expected debut here. Google Maps users in Korea can only get access to public transportation routes – save for subways – and simple street maps.

    Hyundai Motor and its sister carmaker Kia Motors were the first in the world to introduce Android Auto in their vehicles in 2015, but availability was confined to outside of Korea until Thursday. The software is compatible with all cars currently sold by Hyundai Motor and Kia Motors – totaling over 40 including the Avante, Sonata, Santa Fe from Hyundai and the K5, K7 and K9 from Kia.

    Drivers only need to download the Android Auto app from the Google Play store, connect their smartphone to their vehicle via a USB cable and install the system in the car. The software is activated by pressing a voice-recognition button on the steering wheel or saying “Okay Google.”

    Choo Kyo-woong, director of the infotainment development group at Hyundai Motor, said the carmaker currently does not support wireless connection with the smartphone, citing the issue of smartphone battery exhaustion.

    Android Auto’s entry in Korea comes amid growing competition in the auto infotainment market. Consumers are increasingly attracted to entertaining and safe driving and customized car systems. There is no downright leader in the market, yet, but Google has a great competitive edge, given that the Android system captures more than an 80 percent share of smartphones in Korea.

    Naver currently sells Away, a car infotainment display based on its self-developed artificial intelligence platform, at over 300,000 won ($266). Naver’s portal and chat app rival Kakao has its own service based on its Kakao I AI platform. SK Telecom has combined Nugu AI platform with T Map, a navigation app that controls more than 60 percent of the navigation market in Korea. KT is preparing to unveil its system, Giga Drive.

    Apple’s CarPlay is already available for owners of the iPhone 5 or later models in almost 40 countries around the world, including Korea. Unfortunately, its functions are limited here because navigation is not available.

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  • H1 car imports slow down to a crawl in Vietnam

    H1 car imports slow down to a crawl in Vietnam

    More than 126,000 autos were sold in Vietnam in the first half of the year, 106,600 of them locally assembled and over 19,000 imported ones.

    The Vietnam Automobile Manufacturers’ Association (VAMA) says that sales of locally assembled cars increased 10 percent over the same period last year, while that of imported cars plunged 49 percent.

    As a whole, sales were down 2 percent over H1 in 2017, VAMA said.

    It noted that the decline in sales of imported cars was mainly because of a government decree that took effect this year, setting tough conditions for car imports.

    The decree stipulates that traders will only be permitted to import automobiles if they can provide valid vehicle registration certificates issued by authorities from the countries of origin.

    Original quality control certificates for each vehicle and letters of authorization regarding recalls of defective vehicles from the manufacturers are also be required, along with copies of quality assurance certificates provided by the countries of origin.

    The regulation also requires importers to have one car from each batch shipped to Vietnam to go through emissions and safety tests.

    The decree was met with strong opposition from importers who said that it cost them more time and money, but the Ministry of Industry and Trade countered it by saying the new rules would protect consumers and facilitate fair competition.

    However, in March this year, the government removed the condition for local testing of autos, and June auto imports saw a 45.6 percent surge dominated by Thailand.

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  • DRB-Hicom studying Proton-Indonesia joint venture

    DRB-Hicom studying Proton-Indonesia joint venture

    DRB-Hicom Bhd is studying the proposed collaboration between Malaysia and Indonesia to produce an Asean car.

    Group managing director Datuk Seri Syed Faisal Syed Albar said a discussion on the matter is taking place as a memorandum of understanding was signed in 2015 between its subsidiary, Proton Holdings Bhd, and an Indonesian company to undertake the joint effort.

    “There is no cost involved and we need to study it a lot,” he said.

    Proton is 50.1% owned by DRB-Hicom and 49.9% by China-based automaker Zhejiang Geely Holding Group via its wholly-owned subsidiary, Geely International (Hong Kong) Ltd.

    It was reported earlier that the joint effort between Proton and Indonesia to produce an Asean car would be revived following talks between Prime Minister Tun Dr Mahathir Mohamad and Indonesian President Joko Widodo during the former’s visit to Indonesia last month.

    Meanwhile, Syed Faisal, who is also Proton chairman, disclosed that Geely has invited Mahathir to visit the company’s facilities in China during the prime minister’s visit to the country next month.

    Syed Faisal gave an assurance that the launch of the first Proton sport utility vehicle (SUV) will take place as scheduled in October.

    He said the briefing today also covered future technology offered by Geely.

    “Tun Mahathir likes the SUV that we loaned to him earlier, which indirectly shows that he has confidence in Geely’s technology in Proton,” he said.

    On the Mahathir’s plan for another national car, Syed Faisal said he believes that Proton, as the national car, has secured the confidence of banks, vendors and dealers. “In that regard, we will think of Proton first, and there will be no change in direction on that.”

    Syed Faisal reiterated the group’s commitment to pursue a 30% price cut from its automotive parts suppliers by year-end.

    Also present at the briefing was Dr Li Chunrong, CEO of Proton’s manufacturing arm, Perusahaan Otomobil Nasional Sdn Bhd.

  • Tesla Buyers in China Are Early Casualties in Trade Wrestle

    Tesla Buyers in China Are Early Casualties in Trade Wrestle

    Tesla buyers in China will be among the first consumers to feel the pinch from the U.S.-China trade dispute.

    Price listings on Tesla’s Chinese website increased by nearly 20% this weekend. It came after the U.S. and China on Friday imposed tit-for-tat tariffs on $34 billion of each other’s goods, which affected U.S.-built cars exported to China including Teslas.

    The Silicon Valley electric-car maker had briefly cut prices by about 6% after the Chinese government reduced its tariffs on imported cars to 15% from 25% on July 1.

    But that cut proved short lived. The measures imposed Friday raised the tariff on Tesla to 40%.

    A basic Model S sedan now costs roughly $128,400, up from $107,300 last week, while a Model X sport-utility vehicle costs $140,100, compared with $117,100.

    A Tesla dealer in Beijing said there were still some cars in stock with lower price tags that were delivered before the new tariffs were imposed, but that inventory was very low.

    Tesla plans to build a plant in Shanghai to serve the local market, but for now it only produces vehicles in the U.S. Last year, it sold about 17,000 cars in China, its second-biggest market globally, generating more than $2 billion in revenue.

    Unlike most auto makers, Tesla sells its cars through company-owned stores instead of franchised dealerships, allowing it to set prices. It has 30 stores in China, according to its website.

    The tariffs the U.S. and China imposed on each other present companies with a dilemma: Risk a loss by absorbing the cost or risk market share by passing it on to consumers. Beijing has been looking for ways to shield its companies and consumers, for example by trying to direct purchases of soybeans to Brazil and other suppliers.

    China’s Commerce Ministry said Monday it would use the added revenue from the increased tariffs to provide relief for affected companies and workers. Also Monday, the executive office of the State Council, China’s cabinet, issued a notice Monday calling for an increase in imports while stabilizing exports to promote more balanced trade.

    Tesla isn’t the only auto maker that builds in the U.S. and ships to China: BMW AG , DaimlerAG and Ford Motor Co. all sell U.S. imports in significant volume here.

    Last week, Ford said it has no current plans to raise retail prices on its China imports in response to the tariff hike. Ford sold roughly 65,000 imported Lincoln vehicles in China last year, as well as nearly 19,000 Fords. Locally produced cars comprised more than 90% of its sales.

    Daimler said it didn’t plan to pass the entire cost of the tariff rise onto its customers.

    Sales of high-end imports such as Tesla’s are unlikely to be hit severely by the price increase, according to analysts, since buyers of luxury cars tend not to be price-conscious.

    But the pain will spread if the trade war continues, a saleswoman at an import-export company based in Shandong province predicted.

    The company imports U.S. auto parts that are subject to the new tariffs, which means higher prices for its Chinese buyers. They are negotiating with American suppliers on how to divide the higher costs, she said, but they will most likely be absorbed by her company, the saleswoman said.

    “In the short term, our vendors are still talking and discussing prices,” she said. “But in the long term, I think it will definitely have an impact on our business.”

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  • Volvo Car Malaysia launches new Batu Pahat 3S centre

    Volvo Car Malaysia launches new Batu Pahat 3S centre

    Volvo Car Malaysia, together with its newest dealer AJ Premium Motors, have launched a new Volvo 3S centre in Batu Pahat to serve customers in the Southern region. The new dealership is part of the company’s sales and aftersales transformation programme, with more locations set to be introduced later in the year.

    “There is growing interest for our models in Malaysia and we are actively setting-up dealerships in strategic areas around Malaysia to better service this need,” said Lennart Stegland, managing director of Volvo Car Malaysia.

    “It is an absolute requirement for all new dealerships to adhere to the Volvo Retail Experience (VRE) standards, consistent with our dealership standards in Europe – it is not just an aesthetical guideline but also dictates the level of service rendered in our dealerships,” added Stegland.

    Volvo Batu Pahat features a Scandinavian-inspired ‘living room’ where customers can relax while being attended to by a sales representative or while waiting for the vehicles to be serviced in one of the two service bays in the facility.

    “Our presence in Batu Pahat makes it more convenient for owners from the surrounding areas of Muar, Kluang and Segamat to service their cars or for prospective customers to view new Volvo models,” said Jacky Ong, managing director of AJ Premium Motors.

    The 3S centre is located at Lot. 1005, Jalan Kluang, 83000 Batu Pahat, Johor, Malaysia and it is open from 9am till 6pm on Monday to Saturday, and from 11am to 5pm on Sunday and public holidays.

     

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