Category: Automotive

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  • Takata decides to file for bankruptcy

    Takata decides to file for bankruptcy

    Japan’s Takata Corp decided on Monday to file for bankruptcy protection in Japan with liabilities of more than 1 trillion yen (US$9 billion), Japanese media reported, as the auto parts supplier has struggled due to its defective air bag inflators at the center of the auto industry’s biggest ever product recall.

    The decision came at a special board meeting, public broadcaster NHK said.

    Takata is expected to file for a U.S. Chapter 11-style bankruptcy protection procedure, along with a similar filing in the United States, sources have told Reuters. This would open the door for a financial rescue from U.S. auto parts supplier Key Safety Systems, which Takata has tapped as its preferred financial sponsor.

    Faulty air bag inflators made by Takata have been linked to at least 17 deaths in the United States and other countries, prompting a massive global recall which began nearly a decade ago.

  • Michelin to re-organise business leading to job losses

    Michelin to re-organise business leading to job losses

     Tyre giant Michelin has announced plans to significantly re-organise globally, resulting in significant job losses in France and the US most of which will be covered by natural attrition.

    In the United States 450 jobs in central functions are to be cut between 2018 and 2021. According to Michelin, 1,500 employees would actually leave the company in the same period, suggesting a large majority will result from natural attrition and retirement.

    In France, the transformation coincides with significant job creation. By 2021, 5,000 employees will leave the group in France, the majority due to retirement, and around 2,000 of these would be in Clermont-Ferrand.

    However, at the same time Michelin says it wants to recruit more than 3,500 people externally in France by 2021, including 1,000 in Clermont-Ferrand. The company will also start new activities in Clermont-Ferrand and at other sites in France, creating 250 new jobs. The firm says it aims to “progressively reach the target size of the future organizations, without forced redundancies.”

    The company would not replace 970 retirees, between now and 2021 in Clermont-Ferrand. And finally, in order to be closer to its customers and improve competitiveness, Michelin will locate 290 employee and manager positions in other countries where the group is operating.

    Corporate reorganisation 

    On 16 March 2017 Michelin launched a global reorganisation project. The goal was to “boost growth by adapting…operations to meet the evolving demands of…customers and employees. ” Now, on 22 June, the company has released further details of what has been taking place. In short there will now be 10 new regions, 14 business lines and 8 operational divisions.

    The 10 new regions will be given more operational responsibilities. These are Africa – India – Middle-East; South America; Central America; North America; Eastern Asia and Australia; China; Central Europe; Northern Europe, Southern Europe and Eastern Europe.

    Tyres  and accessories understand that UK and Eire operations will fit into the Northern European region. No details of who will be leading this region or were indeed this region will be physically based have yet been announced.

    Likewise, no details of job consolidation within this region have yet been released, but while the official details clearly focus on the USA and France, it wouldn’t be surprising to learn of some job consolidation in other regions too.

    In addition 14 “business lines” will develop offers for each customer category. The purpose of these Business Lines is to develop offers to satisfy global customer groups with similar needs around the world. They would have a key role in building the strategy of the group and would steer their business results in their respective customer segments.

    At the same time eight operational divisions will provide expertise and support for the regions and business lines. These are research and development; service technology development; manufacturing; supply chain; marketing and sales support; purchasing; operations quality assurance; and corporate and business services (CBS).

    In order to streamline the group’s central operations, the corporate divisions are to focus on their strategic missions. The group’s reporting would be based on consolidation of business lines and would be very similar to currently.

  • Piaggio Indonesia poised strongly against Honda’s challenge

    Piaggio Indonesia poised strongly against Honda’s challenge

    PT Piaggio Indonesia, the principal and sole agent of Vespa and Piaggio in Indonesia, is not concerned by PT Astra Honda Motor’s introduction in April of the Honda SH150i as a new premium scooter competitor.

    Sales of the Vespa Medley, whose specifications are comparable with the Japanese counterpart, has not declined, even though they are in the same price bracket, said Piaggio Indonesia marketing director Andre Sanyoto.

    The Medley is marketed at around Rp 44 million (US$3,320), while the Honda SH150i is priced at Rp 44.9 million. “If they Honda can sell five to 10 units a month, we are seeing at least double-digit sales and have seen positive growth since the Medley’s launch in May 2016,” he said.

    Andre believes that Piaggio will not be affected by declining sales in the industry, as it relies on the premium scooter segment. It will introduce at least two more premium scooters this year, including the Vespa 946 (RED).

    ”We are sticking to the premium segment, with an audience who considers not only the functionality of our product, but also their emotional attachment to it,” he said. “The 946 (RED) model will be marketed at a similar price as the Vespa Armani, at Rp 196 million,” he said, adding that his company had already received orders for the new model from Vespa enthusiasts.

    Piaggio Indonesia’s sales is mainly supported by the Primavera and Sprint model, which are marketed at Rp 32.8 million and Rp 34.8 million respectively, and contributed 70 percent of total Vespa sales in Indonesia.

  • Jaguar seller says new tax rate could hit business

    Jaguar seller says new tax rate could hit business

    Inchcape Thailand, an importer and distributor of Jaguar and Land Rover, says it’s concerned about the way the new excise tax for cars, effective in mid-September, will be calculated.

    The government has yet to formally announce details of the new tax rate and the computation formula that will apply to car distributors; however, Inchcape said the new tax may affect the way in which it does business.

    From Sept 16 onward, Thailand’s amended excise tax law will change the base tax rate to take into account the recommended retail price of goods, rather than ex-factory prices and cost, insurance and freight (CIF) values.

    The government says a tax system based on retail prices will create a fairer system for makers and importers after some were found to have been exploiting the ex-factory and CIF values to understate tax bills.

    The act also authorises the director-general of the Excise Department to determine recommended retail prices for use as a base for excise tax calculation in the event of disputes.

    If the recommended retail price is not in line with the market price, the department will have the power to determine it. The value will be based on retail market prices or import prices.

    The department is drafting 80 organic laws to facilitate the new base for excise tax computation.

    Inchcape Thailand managing director Charnchai Mahantakhun said the details are not yet available but he is aware that the new tax measures will come into effect in September.

    “At this time, not only Inchcape but also other distributors cannot calculate future prices or margins,” he said.

    Mr Charnchai said the new tax regime will affect Thailand’s automobile market as a whole, both importers and local manufacturers.

    Imported cars are subject to an 80% import duty. In addition, all imported vehicles are also subject to a 10-50% excise tax based on CO2 emissions, a 10% interior tax and a 7% value-added tax.

    Nonetheless, Mr Charnchai remains upbeat about the sales prospects for his three brands this year, though he declined to offer projected sales figures.

    According to the Land Transport Department, Land Rover had 38 cars registered from January to May, followed by Jaguar with 23 and Range Rover with 11.

    Last year, 73 units of Jaguar were sold, with Land Rover’s sales standing at 49 cars and Range Rover’s at 47.

    Mr Charnchai said the overall sentiment for luxury cars and sport-utility vehicles is still positive, though competition has intensified with brands that run their assembly plants locally.

    The British automotive retail and services company set up a local subsidiary, Inchcape Thailand, in July last year with registered capital of 100 million baht to handle the import and distribution of Jaguar Land Rover vehicles and parts in Thailand.

    Earlier, the Jaguar and Land Rover brands were sold by authorised distributor and service provider City Automobiles Co, an affiliate of global automotive company RMA Group.

    In a related development, Inchcape yesterday launched the Jaguar Land Rover Approved programme to offer its certified used cars for buyers, aiming to upgrade its reselling prices in the Thai market.

    Inchcape has eight approved used cars that are 15-35% cheaper than new vehicles.

  • VCAR – Vietnam Limousine for the Southeast Asian market

    VCAR – Vietnam Limousine for the Southeast Asian market

    VCAR, a new generation Limousine of Vietnam, has been launched at a recent ceremony with the participation of nearly 300 businessmen and investors from many Southeast Asian countries like Malaysia, the Philippines, Thailand and Singapore.

    Since the limousine first appeared in Vietnam 5 years ago, thousands of limousines with luxurious and comfortable interiorshave been sold. To grasp this trend, Vinter Capital Group Corporation and its close joint venture partner, Dasan, has manufactured limousines with VCAR brand for the purpose of exporting to Malaysia and other Southeast Asian countries,with the support of the parent company Dynamic Investment Fund from Vinter Capital Group Corporation based in Malaysia, Vietnam and Thailand.

    At the launching ceremony of the new model of limousine, Vinter and Dasan introduced the three versions of VCAR New Generation Limousines, includingVCAR VIP, VCARSolati and VCAR X with excellent and valuable interiors.

    “VCAR Limousine brings about totally new experiences with luxury and comfortable interiors. I hope that the venture between Vinter Capital Group and Dasan will create and bring more versions of VCAR limousine, especially VCAR X to Malaysia in the coming time”, said a Malaysian entrepreneur at the ceremony.

    “Limousine has beenfavored in Vietnam since the very first day. Six versions of limousine have been introduced in the market for the past 5 years. All the essentials of limousine in Vietnam are currently crystallized in VCAR X, a President’s new generation version in Vietnam, produced by Dasan,” said Mr. Le Thanh Tuan, President of VCAR Limousine.

    “The Malaysian market is hard-to-please and much larger compared to Vietnam. Even though the population of Malaysia is only one third of Vietnam, Malaysia’s GDP is three times higher than that of Vietnam. Malaysia’s total number of tourists and revenue from tourism are three times higher, and the income per capita is six times higher. The transportation infrastructure is also one of the best among ASEAN countries. Therefore, VCAR X with its outstanding features would be able to meet the best needs in Malaysia. We believe that the limousine, which is highly favored in Vietnam, could be developed in Malaysia,” Tuan said.

    Dasan and Vinter Capital Grouphave conducted a lot of researches, improvement and investment in order to produce the VCAR limousine with the best standard and unique design to satisfy requirements of the Malaysian market in particular and the Southeast Asian markets in general.

    President of Dasan, Mr. Dang Quang Khanh, said: “Dasan and Vinter Capital Group Corporation will promote operations and fully exploit the assembly and production capacity of factories in Malaysia and supply our products to Malaysia and ASEAN countries in the near future. We will constantly improve the technologies and designs to create more variants of VCAR limousine to satisfy and suit the market trend of Malaysia in particular, as well as other countries in general. Vinter Capital Group Corporation and Dasan expect thatVCAR limousine will be the first Vietnam car brand to reach out to the world”.

    “This event is the milestone of success and close joint venture between Dasan and Vinter Capital Group Corporation. We have committed strongly to support Dasan in expanding the market of VCAR limousine in Malaysia and other ASEAN countries as soon as possible,” said Mr.  Elvin Chew Chee Wooi and Ms. Dolly Hoang Minh Tuyet, Chairman and General Director of Vinter Capital Group.

    “Dasan and Vinter Capital Group had seriously prepared over a year to get this event done. We plan to let the first VCAR limousine to be driven in Malaysia within the next three months,” said Mr. Dang Quang Khanh.

    VCAR X, a President’s new generation version has included all the essentials of existing limousines in Vietnam. Besides strengths of “Ground Specialist”, VCAR X also eliminates redundant and impractical items and overcomes inherent weaknesses of the President version (with two 180-degree-rotation seats), and adds unique interior features that are equipped for the President version.

    With the overwhelming and positive respond by the entrepreneurs and investors from the ASEAN markets, Vinter Capital Group Corporation has committed to launch the limousine as soon as possible.

    Not only manufacturing limousine, Vinter has also actively involved in several segments of business such as property development and investment, agriculture sector, legal and consulting services and resort and restaurant services.

  • Harley-Davidson enters race to buy Italian rival Ducati

    Harley-Davidson enters race to buy Italian rival Ducati

    U.S. motorcycle maker Harley-Davidson is lining up a takeover bid for Italian rival Ducati, potentially bringing together two of the most famous names in motorcycling in a deal that could be worth up to 1.5 billion euros ($1.67 billion), sources told Reuters.

    Indian motorcycle maker Bajaj Auto and several buyout funds are also preparing bids for Ducati, which is being put up for sale by German carmaker Volkswagen.

    A deal with Harley-Davidson would bring together the maker of touring bikes like the Electra Glide that are symbolic of America with a leading European maker whose high-performance bikes have a distinguished racing heritage.

    Milwaukee-based Harley-Davidson has hired Goldman Sachs to work on the deal, one source familiar with the matter said, adding tentative bids were expected in July.

    Volkswagen, whose Audi division controls Ducati – maker of the iconic Monster motorbike – is working with investment boutique Evercore on the sale which will help it fund a strategic overhaul following its emissions scandal.

    Based in the northern Italian city of Bologna, Ducati was on the wish list of private equity funds KKK, Bain Capital and Permira, which are all working on the deal, said the sources who declined to be identified as the process is private.

    Ducati was launched in 1926 as a maker of vacuum tubes and radio components and its Bologna factory remained open in World War Two despite being the target of several bombings.

    Ducati racers have won the Superbike world championship 14 times, with Carl Fogarty and Troy Bayliss its most successful riders.

    Harley-Davidson, which commands about half the U.S. big-bike market, was founded in Milwaukee, Wisconsin at the start of the last century and was one of two major American motorcycle manufacturers to survive the great depression.

    Demand for Harley’s motorcycles continues to be slow as its loyal baby boomer demographic ages and rivals such as the Indian brand bike maker Polaris Industries Inc (PII.N) and Japan’s Honda Motor offer discounts.

    Volkswagen’s powerful labor unions, which control half the seats on the carmaker’s 20-strong supervisory board, repeated their opposition to selling the Italian motorcycle maker.

    “Ducati is a jewel, the sale of which is not supported by the labor representatives on Volkswagen’s supervisory board,” a spokesman for VW group’s works council said in an email.

    “Harley-Davidson is miles behind Ducati in technology terms,” he added.

    BIDDING FIELD

    Evercore has sent out information packages to a number of potential suitors including Ducati’s previous owner Investindustrial, sources with knowledge of the matter said.

    Investindustrial bought a stake in Ducati before the financial crisis, subsequently taking control of the business before selling it to Audi in 2012.

    It is now looking to compete with heavyweight private equity firms and large industry players to regain control.

    Volkswagen, Audi, Harley-Davidson, KKR and Bain Capital declined to comment. Bajaj, Investindustrial and Permira were not immediately available.

    Volkswagen, Europe’s largest carmaker, is seeking to move beyond an emissions-cheating scandal that has tarnished its image and left it facing billions of euros in fines and settlements.

    A successful deal for Ducati, which last year reported revenues of 593 million euros, would show Volkswagen boss Matthias Mueller is serious about reversing his predecessor’s quest for size.

    Volkswagen said last June it would review its portfolio of assets and brands, rekindling speculation among analysts that “non-core” businesses could be put up for sale.

    Volkswagen hopes to raise between 1.4 billion and 1.5 billion euros from the sale of Ducati, valuing it at 14-15 times its earnings before interest, taxes, depreciation and amortization (EBITDA) of about 100 million euros, the sources said.

    The German car maker wants a valuation that reflects trading multiples of similar trophy assets in the automotive industry, such as Italian car maker Ferrari (RACE.MI) which trades at almost 30 times its forward earnings.

    Yet it may need to compromise on price as some of the bidders would struggle to pay as much as 1.5 billion euros for Ducati, several sources said.

    Price expectations have already proved challenging for some industry players who recently decided against bidding.

    Indian motorcycle firm Hero Moto and its rival TVS Motor initially expressed interest in Ducati but were put off by its price tag and decided to walk away, the sources said.

    German car marker BMW and Japanese motorcycle makers Honda and Suzuki have also decided against bidding for Ducati, sources close to the companies told Reuters.

    A BMW spokesman confirmed the German firm was not interested in Ducati, while Hero and TVS were not immediately available for comment.

    Another source close to Volkswagen said the sale of Ducati might not be finalised before the annual EICMA motorcycle show in Milan in mid-November as Volkswagen wanted to find the right buyer and the sales process might take time.

  • Ford bets on low oil prices, moves Focus production to China

    Ford bets on low oil prices, moves Focus production to China

    Ford Motor said on Tuesday it will move some production of its Focus small car to China and import the vehicles to the United States in a long-term bet on low oil prices and stable U.S.-China trade relations despite recent tensions.

    The move suggests China could play a much larger role in future vehicle production for North America, perhaps eclipsing Mexico as a low-cost manufacturing source.

    Ford painted the production shift from Mexico to China, slated for mid-2019, as a purely financial move that will save the company $500 million in reduced tooling costs.

    But Ford also expects to ship about 80,000 vehicles to China this year, including the redesigned Lincoln Navigator luxury sport utility vehicle, which goes into production this fall at Ford’s Kentucky truck plant.

    Ford’s decision to import its first vehicles from China to the United States is also the first major manufacturing investment decision made by new Chief Executive Jim Hackett, who succeeded Mark Fields in May. Discussion about the small-car production shift from Mexico to China began “a couple months ago” under Fields, said Joe Hinrichs, president of global operations.

    The decision also signals a shift in strategy at Ford, which is responding to dwindling U.S. consumer demand for small cars in favor of more expensive and more profitable trucks and SUVs. Cars accounted for more than 50 percent of U.S. auto sales as recently as 2012, but have fallen to just 37 percent of sales this year.

    Ford on Tuesday said it would invest $900 million at the Kentucky truck plant to build the redesigned Navigator and Ford Expedition. It has contingency plans to build more of the big SUVs at an Ohio plant if demand grows.

    In January, after U.S. President Donald Trump repeatedly criticized Ford for shipping small-car manufacturing to Mexico, Ford said it would kill plans to build a $1.8 billion Focus plant in San Luis Potosi and instead produce the new Focus at an existing plant in Hermosillo.

    “The Ford decision shows how flexible multinational companies are in terms of geography,” U.S. Commerce Secretary Wilbur Ross said in a statement.

    Trump did not address the issue on Tuesday.

    White House Press Secretary Sean Spicer said Trump “wants to create a tax system (so) that companies want to come back and bring back jobs in manufacturing here in the United States.”

    Although it is cheaper to build and ship cars to the United States from Mexico than China, “this was not a variable cost decision,” Hinrichs said in a briefing on Tuesday. “It allows us to free up a lot of capital” because Ford now has to retool only one plant – the existing Focus factory in Chongqing – rather than two to supply North America.

    The current Focus will be phased out of production in Wayne, Michigan, in mid-2018, according to Hinrichs. The Wayne plant will begin building a new Ranger midsize truck in late 2018 and a Bronco midsize SUV in 2020.

    Ford executives told Trump last year that moving production to Michigan of bigger vehicles that were more profitable would secure the Wayne plant’s future – a decision later praised by Trump.

    No U.S. jobs will be affected by shifting Focus production to China, Ford said, adding that it employs more U.S. hourly workers and builds more vehicles in the United States than any other automaker.

    The United Auto Workers labor union declined to comment.

    Hinrichs said “the capital saving outweighs the risk” of having to pay a potential border tax, or import tax, on the Chinese-built Focus.

    Ford U.S. Focus sales have fallen 22 percent this year, as low gas prices have helped spur more buyers into larger vehicles. Ford’s full-size F-series pickup truck remains the best-selling U.S. vehicle by a wide margin.

    Unlike many consumer products, few Chinese-made vehicles are sold in the United States.

    General Motors has been exporting Buick and Cadillac vehicles from China to the United States since last year, as has Volvo Cars, a unit of Chinese automaker Geely Automobile Holdings.

  • China problems force Aston Martin into global recall of 1,658 cars

    China problems force Aston Martin into global recall of 1,658 cars

    British sports car maker Aston Martin Lagonda Ltd is ordering a global recall of 1,658 Vantage cars after problems with a routine transmission software update led to incidents in China in which some cars stalled and lost power, its CEO told Reuters.

    Chief executive Andy Palmer said the decision was taken after a team of Aston Martin engineers went to China in May to investigate a problem that several customers there had been complaining about since 2014.

    “Normally (recalls) start in America. I don’t think it is the only example, but it’s interesting that it started from China and becomes a global recall,” Palmer told Reuters by telephone.

    “It demonstrates the importance of China, the sophistication of the customer and the diligence of the authority there.”

    The luxury carmaker, famous for making the car driven by secret agent James Bond, sold 3,259 cars globally last year, nearly 8 percent of them in China.

    Aston Martin’s plan was conveyed on Tuesday to Chinese regulatory agencies that had taken up the issue after dissatisfied customers complained. Formal documents would be submitted by the end of the European day, Palmer said.

    Chinese authorities did not respond to a request for comment.

    The global recall will be unwelcome publicity for a company that has said for years it wants to go public. It reported its first Q1 profit in a decade in May.

    Palmer did not say how much the recall would cost, but knowledgeable people close to the company estimated the total cost at around 300,000 pounds ($380,760).

    The recall will cover 1,658 Vantage cars built between June 2010 and September 2013 with the Sportshift I and Sportshift II automated manual transmission gearboxes, including 113 that were sold in China. The Vantage is the only Aston Martin model with a semi-manual shift.

    FAILURE TO RESET

    Palmer said the problem occurred because some dealerships in China failed to reset the clutch position after software updates to the automatic transmission system.

    “In the normal course of events, when you make a software change, you have to re-teach the engagement position of the clutch. And most of our dealers around the world automatically did that,” he said.

    If the clutch is not re-taught the biting point – the point when the clutch plate engages with the engine plate – “it’s possible that a car could initially stall while in operation”, he said.

    Aston Martin sent its engineers to China after it tried and failed to replicate the stalling problem in its own engineering laboratories. When they arrived, they discovered that some cars suffered unusual noise and vibration, and in worst cases an engine stall, after the new software was installed.

    The stalling caused a complete loss of power in some cases, shutting off the engine and power to the electrically-assisted steering and brakes, making it extremely difficult for a driver to guide the car safely to a stop.

    Given that dealers and customers in China may have less experience operating and maintaining supercars like Aston Martins, Palmer said the company should have spelt out to dealerships what they needed to do.

    “I blame us,” Palmer said. “Basically we should have explicitly said within the service action for the software that we should re-teach the clutch. We didn’t explicitly say that. Therefore we take responsibility for fixing it.”

    Palmer, who joined Aston Martin from Nissan Motor Co in late 2014, said the company knows of 21 instances of potential sudden engine stall, all in China.

    The fluid pipe connectors on the gearboxes would also be replaced during the recall, he said.

    Three years ago Aston Martin recalled most of the cars sold in China that had been built since 2007 after discovering a problem with defective throttle pedals, which it blamed on Chinese subcontractors using counterfeit plastic material.

    “TOO DANGEROUS”

    The Beijing branch of China’s product quality watchdog – the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) – in January last year asked the company to investigate the issue and report back.

    AQSIQ’s Defective Product Administrative Center opened its own investigation in April. Also in April, China’s Consumers Association issued a statement saying that there were enough incidents of the Vantage stalling to warrant a recall.

    Carson Guo and his brother James lost their licensed dealership with Aston Martin in Beijing in December 2016 after fielding complaints from customers about stalling cars. Of the eight customers who complained, six had bought Vantages.

    Carson Guo told several customers waged a campaign against the British carmaker via Weibo, China’s answer to Twitter, and at least two received a refund.

    One of the knowledgeable individuals close to Aston Martin said the Guos’ contract was terminated due to a “significant reduction in sales through that outlet”.

    Zhang Jia’ao, a 32-year-old partner at a Beijing-based venture capital firm, did not get a refund.

    He told he bought his Vantage S coupe from the Guo dealership for 2.35 million yuan ($344,287) in 2013, and sold it 11 months later to a used-car dealer for 1.23 million yuan ($180,201) after a series of stalls, some at high speed.

    On one occasion, following a complete loss of power, Zhang only managed to slow the car down by repeatedly bumping the tires against the kerb, he said.

    “It was too dangerous,” Zhang said.

    Asked about the problems Zhang encountered, Simon Sproule, chief marketing officer at Aston Martin Lagonda, said: “The recall will ensure that any issues with this car are fixed.”

  • Hella and ZF enters into partnership for autonomous driving

    Hella and ZF enters into partnership for autonomous driving

    German auto component makers ZF and HELLA have entered a strategic partnership for making products for autonomous vehicles, the company informed a press statement. The partnership will strengthen both the companies in sensor technology, particularly for front camera systems, imaging and radar systems.

    “This strategic partnership for sensor technology with HELLA enhances our position as a complete systems supplier for modern assistance systems as well as autonomous driving functions,” says Dr. Stefan Sommer, CEO of ZF Friedrichshafen AG. “This non-exclusive cooperation with HELLA is an important expansion of our Vision Zero ecosystem of development partnerships. Thus, we can create a wider technological foundation for safety and autonomous driving.”

    ZF will further strengthen its portfolio as a systems supplier which offers both modern assistance systems and autonomous driving functions, whereas HELLA will drive technological development and benefits from a broader market access with its leading technologies. The first joint development project in camera technology will start immediately, with the objective of a market launch in 2020.

    Dr. Rolf Breidenbach, CEO at HELLA KGaA Hueck & Co., adds: “HELLA is a strong and experienced provider of sensor technologies. Our knowledge aligns perfectly with ZF’s expertise. By combining our strengths, we clearly aim to provide market leading and high performing assistance systems and autonomous driving functions. In addition, this cooperation will strengthen HELLA’s position as a well-regarded supplier for imaging and radar sensor technologies.”

    In their first joint project, the partners are targeting a current market trend: In the future, the highest Euro NCAP safety ratings will require the assistance of camera-supported assistance functions. Therefore, the demand for front cameras in all vehicle segments will rise. ZF and HELLA will offer automotive manufacturers a joint product and are starting development immediately with an expected SOP in 2020. ZF brings hardware and its expertise in functions, systems and integration to the table, whereas HELLA and its subsidiary HELLA Aglaia Mobile Vision contribute competence in efficient, tried-and-tested imaging software and application development.

    In the mid to long term, these cooperation partners will also provide camera systems for automated driving functions as well as for commercial vehicles and off-highway applications. ZF expands its camera portfolio and therefore offers more options to customers while continuing to work with established partner. HELLA Aglaia gains a new customer and partner for its independent and open software solutions for driver assistance systems.

    In their cooperative work in the radar systems sector, the partners will also identify opportunities to provide attractive volume-production solutions in the short to mid term by jointly building up their product portfolio. HELLA’s 360° surround view radar systems together with ZF’s mid-range and long-range radar systems will establish a new and comprehensive systems solution.

    While the joint development will focus on systems solutions, each partner will continue to develop and to offer its technology independently on a component level. Here, the true potential of a long-term development partnership lies in the ability to utilize common system architecture as well as product families which are adapted to each other.

  • Tesla close to agreement on first production plant in China

    Tesla close to agreement on first production plant in China

    Tesla Inc is close to an agreement to produce its electric cars in China for the first time and gain better access to the world’s largest auto market, citing people familiar with the matter.

    An agreement with the city of Shanghai would allow Tesla to build its facilities in Lingang development zone and could come as soon as this week, the report said.

    The electric carmaker, whose revenue from China tripled to more than $1 billion last year, would need to set up a joint venture with at least one local partner under existing rules, Bloomberg reported.

    Tesla was not immediately available for comment.

    In March, Tencent Holdings Ltd, China’s biggest internet company, bought a 5 percent stake in Tesla for $1.8 billion

  • Auto supplier Magna to manufacture BMW 5-series plug-in hybrids

    Auto supplier Magna to manufacture BMW 5-series plug-in hybrids

    Canadian auto supplier Magna International Inc will produce BMW’s new 5-series plug-in hybrid at its Austrian factory, the company said on Monday, part of a strategy to produce electric cars on a contract basis for global automakers.

    The BMW 530 plug-in hybrid will be manufactured beginning this summer at Magna’s plant in Graz, Austria, where it already plans to produce Jaguar’s I-PACE SUV beginning in early 2018.

    Global automakers and their suppliers are investing heavily in fully-electric and gasoline-electric hybrid vehicles. Consumer demand is still low versus that for gasoline engine vehicles, but companies are beginning to offer more choices to respond to government mandates for greater sales of vehicles that emit little or no carbon dioxide, and prepare for a future experts believe will be dominated by electric vehicles.

    Rival tier-one auto supplier Continental, for example, said in April it was increasing spending by 300 million euros ($334.68 million) on new products such as charging systems and battery management components related to electric vehicles.

    Magna, North America’s largest automotive supplier and the third globally, is alone among the top auto suppliers to perform contract manufacturing for carmakers. Its Austrian plant can produce about 200,000 cars per year. Magna is currently building a new paint shop in Slovenia due to increased demand.

    A Magna spokeswoman would not comment on a statement by the Slovenian government in March that the auto supplier would potentially invest up to 1.24 billion euros in the country, including a car plant with capacity of 100,000 to 200,000 vehicles per year.

    Having contract manufacturing in its portfolio creates a niche for the company as automakers slowly bring more electrified vehicles to market over the next decade. For automakers, outsourcing the assembly can be an advantage on low-volume models to minimize capital expenditures and avoid tying up their own production lines.

    Swamy Kotagiri, Magna’s chief technology officer, said he sees contract manufacturing of electric vehicles as a “near-term opportunity” for the company, given that by 2025, 40 to 50 percent of all vehicles produced will include some electrification elements.

    “We are setting up knowing the penetration will be higher.”

    Magna has also produced non-electric cars at its Austrian facility, including BMW’s Mini Countryman and Mercedes-Benz’ (DAIGn.DE) luxury G-Wagen SUV.

    Last month, Magna raised its full-year sales forecast on higher demand.

  • Takata would stop making air-bag inflators under new plan

    Takata would stop making air-bag inflators under new plan

    Japan’s Takata, facing bankruptcy over the biggest recall in automotive history, would stop making air-bag inflators after completing a global recall, under a restructuring plan under consideration by its steering committee, sources told Reuters on Friday.

    The committee is discussing plans with rival Key Safety Systems Inc (KSS) which is negotiating to take control of the company. Any plan would require final approval from Takata’s board before the air bag maker submits them as part of expected bankruptcy filings in the United States and Japan.

    Takata declined to comment on the plans.

    Takata is still building replacements required under a recall of around 100 million inflators that could detonate with excessive force after prolonged exposure to heat.

    Exploding Takata airbag inflators have been blamed for at least 16 deaths and more than 150 injuries worldwide.

    Takata would stop producing airbag inflators after it completes production of replacement parts and fulfills existing supply contracts for them with automaker clients, the sources said.

    One source said existing contracts would likely end around 2020.

    Job cuts are also on the table, the sources said, including upper-level managers involved in manipulating inflator test results to conceal possible defects. Many plant managers would likely remain to ensure that production continues during the transition period.

    The plan is critical for a bankruptcy restructuring that could be launched as early as next week. Takata is hoping to erase billions in liabilities and resolve the recall of air-bag inflators.

    Any bankruptcy would pose limited risk to Takata’s ability to supply the roughly 100 million replacement inflators required to complete the global recall, one of the sources familiar with the company’s plans said. U.S. vehicle safety regulators are putting pressure on Takata and automakers to speed up the replacement of defective inflators in the United States.

    The plan would also have Takata air bags and seatbelts rebranded as KSS products after Takata emerges from bankruptcy. Michigan-based KSS, owned by Chinese supplier Ningbo Joyson Electronic, currently is a smaller competitor to Takata in airbags and seatbelts.

  • Dutch firm aims to deliver first flying car in 2018

    Dutch firm aims to deliver first flying car in 2018

    From ‘The Jetsons’ to ‘Chitty Chitty Bang Bang’, flying cars have long captured the imagination. While several futuristic projects are under way in different countries, a Dutch design may be the first one sold and soaring into the skies.

    After years of testing, the PAL-V company aims to pip its competitors to the post. It is poised to start production on what they bill as a world first: a three-wheeled gyrocopter-type vehicle which can carry two people and will be certified for use on the roads and in the skies.

    “This kind of dream has been around for 100 years now. When the first airplane was invented people already thought ‘How can I make that driveable on the road?’,” chief marketing officer Markus Hess told.

    The PAL-V (Personal Air and Land Vehicle) firm, based in Raamsdonksveer in the Netherlands, is aiming to deliver its first flying car to its first customer by the end of 2018.

    The lucky owner will need both a driving license and a pilot’s license. But with the keys in hand, the owner will be able to drive to an airfield for the short take-off, and after landing elsewhere drive to the destination in a “door-to-door” experience.

    Different versions of a flying car are being developed in the Czech Republic, Slovakia, Japan, China and the United States.

    But final assembly on the PAL-V will start in October, with the company seeking to be the first to go into commercial production.

    ‘No falling from sky’

    The PAL-V uses normal unleaded petrol for its two 100-horsepower engines, and can fly 400 to 500 kilometers (248 to 310 miles) at an altitude of up to 3,500 meters (11,500 feet).

    On the road it has a top speed of around 170 kilometers an hour.

    In 2019, the company expects to produce between 50 and 100 vehicles, before ramping up to “quite a few hundred” in 2020.

    It won’t be cheap. The first edition, the PAL-V Liberty, costs 499,000 euros ($599,000), while the slightly cheaper PAL-V Liberty Sport, to be made next, has a price tag of 299,000 euros.

    PAL-V was founded in 2007 by Robert Dingemanse and pilot John Bakker.

    “In the beginning it was, let’s make a gyrocopter drivable,” said Hess.

    But the company, which has some 40 to 50 employees, realized the weight and length of a gyrocopter’s blades gave the vehicle a high center of gravity when driving, especially taking corners.

    They have designed the car so at the flick of a button the blades fold down and gather like a bat’s wings on the top.

    And they have incorporated into the car a 2005 breakthrough — when the Dutch company Carver invented a tilting system for three-wheelers — to counter the high center of gravity and make it roadworthy.

    The company insists the PAL-V is not a helicopter, in which the blades are powered by an engine. It is a gyroplane, in which the blades rotate thanks to airflow.

    Even if both engines cut out, the blades will still turn, so “even if you go at zero speed it still keeps rotating and you are not going to drop out of the sky,” said Hess.

    While he refused to divulge how many orders they have, he said the company “was more than satisfied”.

    ‘Selling a dream’

    Clients put down a non-refundable deposit of 10,000 to 25,000 euros depending on the model. A third option is to put 2,500 euros into an escrow account, which secures them a place in the line.

    “In some senses we are selling a dream,” Hess said, standing next to the sleek, black first model developed in 2012 which has already put in “substantial hours” of flying and driving time.

    Parts are on order, with the first already in stock. Once built, the vehicle will have to complete at least 150 flying hours, and undergo extensive tests to receive its certification from the Cologne-based European Aviation Safety Agency (EASA).

    Hess defended the hefty price tag. It’s not a lot more than “a super-duper sports car with a few extras,” he said.

    “Considering the extra certification standards we have to go through for aviation, and that a super-duper sports car can’t even fly, we think it’s actually a bargain.”

    The PAL-V staff know many inventors in other countries also developing flying cars, but remain unconcerned by the competition.

    And Hess laughs when asked whether the skies will become too crowded.

    People at first “cannot even imagine flying cars. Then suddenly when they start imagining it, they see millions of flying cars in the air.”

    That new reality, for the time being, is still a long way off, he said.

  • Fiat Chrysler recalling 297,000 vehicles for inadvertent air bag deployments

    Fiat Chrysler recalling 297,000 vehicles for inadvertent air bag deployments

    Fiat Chrysler Automobiles NV is recalling 297,000 older minivans because of a wiring problem that can lead to inadvertent air bag deployments, the company said on Thursday.

    The recall of 2011-2012 model year Dodge Grand Caravan minivans is linked to eight minor injuries, the automaker said, after initially reporting 13 injuries. Wiring may short-circuit, resulting in the driver-side air bag deploying without warning.

    The recall will begin in late July and includes 209,000 vehicles in the United States and nearly 88,000 vehicles in Canada. Dealers will replace the wiring if needed and add protective covering.

    Fiat Chrysler share fell nearly 2 percent to $10.69 on the New York Stock Exchange.

    Automakers have been recalling tens of millions of vehicles in recent years for a series of air bag problems, mainly tied to Takata inflators.

    More than a dozen automakers have called back 46 million Takata air bag inflators in 29 million U.S. vehicles that can rupture and emit deadly metal fragments. By 2019, automakers will recall 64 million to 69 million U.S. inflators in 42 million vehicles, U.S. regulators said in December.

    The new Fiat Chrysler recall is not linked to Takata, the company said.

  • Cummins to make electric powertrains for city buses in 2019

    Cummins to make electric powertrains for city buses in 2019

    Engine maker Cummins plans to start production of electric powertrains for transit buses in cities around the world in 2019, executives said on a conference call on Wednesday.

    Company executives said that more industrial and commercial uses will follow in the years to come, especially as the battery range for electric vehicles increases.