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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.

  • The Serious Fraud between Roll Royce with Countries Including Indonesia

    The Serious Fraud between Roll Royce with Countries Including Indonesia

    Rolls-Royce Holdings doesn’t expect to take a hit from the investigation into the company’s audits, according to finance chief Stephen Daintith. The Financial Reporting Council, the U.K. regulator for corporate governance and reporting, said Thursday it has commenced an investigation into the conduct of KPMG Audit PLC related to the auditing of financial statements for two company entities over a four year time period.

    The FRC decision follows an announcement by the Serious Fraud Office in January of a deferred prosecution agreement between the SFO and Rolls-Royce. U.K. fraud investigators said at the time Rolls-Royce engaged in illegal business practices over a period spanning three decades and would pay more than $800 million in fines. The SFO has done a “thorough piece of work”, Mr. Daintith said.

    In February, the company reported a record loss of £4.03 billion ($5.2 billion). KPMG said Thursday it was “confident in the quality of all the audit work” it performed for the aircraft engine maker.

    “It is important that regulators acting in the public interest should review high profile issues. We will co-operate fully with the FRC’s investigation, which follows the SFO’s investigations into Rolls-Royce,” said the auditor in a statement. Jimmy Daboo, partner at KPMG, said “we have confidence in the audits we’ve done.”

    The illegal payments would have been hard for an external auditor to spot, said Sandy Morris, an equity analyst at Jefferies International Ltd. in London. “Most of these payments were small and it is very unlikely KPMG would have selected these cash transactions to be tested during their audit,” Mr. Morris said.

    On average, Rolls-Royce made payments between $1 million and $4 million, he said. As KPMG only tested a proportion of Rolls-Royce transactions during its audit, chances are high it would have missed these payments, especially as they were often obfuscated and conducted by middle managers, Mr. Morris said.

    The Serious Fraud Office said the January agreement covers 12 counts of conspiracy to corrupt, false accounting and failure to prevent bribery. Wrongdoing took place in business dealings in Indonesia, Thailand, India, Russia, Nigeria, China and Malaysia, the U.K. government said.

  • Hyundai shows twin headlights on Kona

    Hyundai shows twin headlights on Kona

    The upcoming Hyundai Kona, the South Korean brand’s attempt to break into the hot subcompact crossover segment, will get “twin headlamps” with running lights positioned above the main lights as Hyundai looks to set its entry apart from an increasingly crowded field.

    A teaser photo of the Kona released April 28 shows a frontal view with sliver-thin chains of LED running lights up high near the seams of the hood. The unorthodox arrangement is reminiscent of the funky placement on the Nissan Juke, another subcompact crossover known for its edgy styling.

    “The new twin headlamp enhances the visual impact, with the LED daytime running lights positioned on top of the LED headlights,” Hyundai Motor Co. said in a release. “The separated lights at the front deliver a confident, progressive appearance with sleek and sharp shapes.”

    Hyundai said the Kona will launch this summer.

    The U.S. version, also named Kona in keeping with a Hyundai crossover nomenclature based on travel destinations, is expected to go on sale in the first quarter of 2018.

    Kona takes its name from the lava-lined coastal district of Hawaii’s Big Island.

    The vehicle fills another gap in Hyundai’s lineup.

    Subcompact crossover sales in the U.S. climbed 15 percent in the first quarter, while compact crossovers were up 11 percent, even as the overall market retreated 1.5 percent.

    Hyundai, a latecomer to the small crossovers, has been unable to tap that growth.

    The Kona will deliver good driver visibility and comfort, with agile handling, Hyundai said.

    “The imminent arrival of Kona,” Hyundai said, “marks Hyundai Motor’s bold first move into the B-SUV segment and leads the wider expansion of its SUV range.”

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  • Ferrari Q1 beats expectations, shares up by 3%

    Ferrari Q1 beats expectations, shares up by 3%

    Italian luxury sportscar maker Ferrari reported a better-than-expected 36 percent rise in first-quarter core earnings on Thursday and confirmed its full-year guidance, lifting shares up more than 3 percent.

    Ferrari said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in January-March rose to 242 million euros ($265 million), above a Thomson Reuters SmartEstimate consensus of 222 million euros.

    Quarterly revenues were up 22 percent to 821 million euros, above expectations of 767 million euros, helped by sales of its 12 cylinder models such as the GTC4Lusso and the newly-launched LaFerrari Aperta hybrid convertible.

  • VW brand targets productivity gains through 2020

    VW brand targets productivity gains through 2020

    Volkswagen has set itsef fixed targets for raising productivity at its troubled core division through 2020 by pushing cost savings, stemming overseas losses and launching more higher-margin cars.

    Volkswagen’s namesake VW brand is targeting an operating margin at the upper end of a 2.5 to 3.5 percent range this year, with revenue expected to exceed 2016 levels by around 10 percent, the carmaker said on Friday.

    Europe’s biggest carmaker said it expects its largest division to continue to improve financially over the course of the year after a strong first quarter, and will increase guidance on key targets if necessary.

  • Vietnam Motorcycle Show 2017 opens in HCM City

    Vietnam Motorcycle Show 2017 opens in HCM City

    The exhibition, the second edition, is being held with numerous challenges facing domestic manufacturers and importers.

    A wide range of models from commercial and sport bikes to motors were showcased at the exhibition.

    A number of activities were also held during the event, including driving games and a freestyle motorcross performance by Japanese athletes, funded by Yamaha.

    The event also gathered 55 trademarks of support industries and spare part providers as well as relevant industries, including foreign brands including Motul, Michelin, Caltex, Total, Nissin and Quik Fix.

    The exhibition is open until May 7.

    According to the Vietnam Association of Motorcycle Manufacturers, last year, automatic motorcycles accounted for 45 percent of total sales.

    Vietnam’s motorcycle market is expected to continue growing in 2017, the association added.

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  • Opel to build new Corsa model with Peugeot technology

    Opel to build new Corsa model with Peugeot technology

    Car maker Opel, which PSA Group has agreed to buy from General Motors, will use the French carmaker’s technology in the next generation of its best-selling Corsa model, a company spokesman said, confirming a report.

    The current Corsa model is built with GM technology. Opel had previously said its new Corsa, slated to be launched in 2019, would also be built with GM technology but has now decided to use Peugeot technology, allowing for higher margins, Allgemeine Zeitung Mainz reported in its online edition on Monday.

    PSA, which agreed to buy Opel in March, was not immediately available for comment.

    The new Corsa will be Opel’s fourth joint project with PSA after Opel models Crossland X, Grandland X and Combo. The Corsa will be built at Opel’s largest manufacturing site, in Saragossa, Spain.

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  • Peugeot gears up with nuTonomy for self-driving car test

    Peugeot gears up with nuTonomy for self-driving car test

    French carmaker Peugeot is partnering with Boston, Massachusetts-based tech firm nuTonomy to test self-driving cars in Singapore. NuTonomy’s software, sensors and computing platforms will be installed in Peugeot 3008 models as part of plans to develop the technology needed for large fleets of autonomous cars, PSA and nuTonomy said in a statement on Wednesday.

    The latest PSA Group project seeks to work on “level 5” autonomous capable vehicles, which require no driver input, and will allow both companies to study how an “on-demand autonomous vehicle mobility service” performs, they said.

    The combination is the latest between technology and automotive companies after Daimler, which owns Mercedes-Benz, last month unveiled an autonomous cars development partnership with supplier Robert Bosch, while BMW has announced an alliance with chip maker Intel and Israel’s Mobileye.

    Autonomous driving in urban areas requires a more radical approach to vehicle design, particularly for software and sensors, to help a car navigate inner city obstacles, said Anne Laliron, Head of the Business Lab at PSA Group.

    “That is the reason we jump on the opportunity to work with nuTonomy,” Laliron told.

    PSA Group will use the project to learn about what components make sense, and which suppliers are available, Laliron said.

    Following the initial phase of this partnership, the companies will consider expanding their on-road AV testing initiative to other major cities.

    nuTonomy, a software company founded by Massachusetts Institute of Technology (MIT) academics and McKinsey management consultants was the first to begin on the road testing of driverless taxi services in Singapore last year.

    It raised $16 million last May in a funding round led by Highland Capital Partners and has backing from Singapore government authorities and Samsung Ventures, among others.

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  • Tesla must complete brake fix to regain top safety rating

    Tesla must complete brake fix to regain top safety rating

    Tesla needs to complete fixing its Model S sedan emergency braking system to regain Consumer Reports’ top safety rating, the magazine said on Friday, noting that a recent update by the luxury electric car maker was not enough.

    The magazine, which provides an annual rating of vehicles sold in the United States, said on Wednesday the sedan had lost its top ranking in the ultra-luxury car category for failing to install the feature that it had promised to owners as standard equipment.

    The Model S fell to third place in Consumer Reports’ ratings behind the Lexus LS made by Toyota Motor Corp and the BMW 7 Series.

    Consumer Reports said both Tesla models previously came with standard automatic emergency braking (AEB), a feature that helps reduce accidents. The software issue affects more recent vehicles built since late October 2016.

    The magazine said Friday that the Model S sedan it owns had received an automatic emergency braking software update Thursday, but the new version only operates up to 28 miles per hour (45 km).

    That is far less than the current 90 mile per hour limit for the prior Tesla AEB system included on vehicles built before late October.

    The magazine cited a statement from Tesla that “over the next several weeks” the car maker would increase the speed limit “until it is the most capable of any vehicle in the world.”

    The California automaker last week recalled 53,000 Model S and Model X vehicles to fix an unrelated parking brake issue.

    Earlier this month, Tesla briefly edged out General Motors Co to become the most valuable U.S. car maker.

  • Fiat Chrysler may add more self-driving supplier partners

    Fiat Chrysler may add more self-driving supplier partners

    Fiat Chrysler Automobiles may seek more supplier partners to help it develop and build self-driving vehicles, Chief Executive Officer Sergio Marchionne said on Wednesday.

    The Jeep and Ram brands are strong enough to exist as standalone entities outside FCA, Marchionne also said on a conference call with analysts after the company reported record first-quarter results. But he did not elaborate on whether there were any plans for a spin-off of either, like with Ferrari.

    The automaker reported an 11 percent jump in first-quarter operating profit, boosted by strong sales in North America, its most profitable market. Shares jumped about 10 percent on the news.

    FCA currently has a partnership with Alphabet Waymo self-driving unit. Marchionne said Waymo has an “unbeatable solution” to help build self-driving vehicles, including versions of the Chrysler Pacifica hybrid minivan, but that FCA is looking at additional partners.

    “Between now and the next three years, we need to provide viable solutions to take people around,” Marchionne said, citing Waymo’s new test program in Phoenix offering ride sharing in self-driving Pacificas.

    But FCA is considering more partners “because banking all of our solutions on one possible outcome is going to be disastrous,” Marchionne said. FCA continues to work with Waymo “in a very intense way,” he said, but “we need to look at optionality in more than one dimension” to build self-driving cars.

    FCA is retooling several U.S. plants to produce redesigned versions of the popular Jeep Wrangler and Ram 1500 pickup later this year and early next. Marchionne said the company would continue to produce several versions of the current models for several months in 2018 after the new versions begin production.

    New models from premium brands Maserati and Alfa Romeo should help boost FCA’s gross margins. Marchionne said Alfa, long a cash drain on the company, could be profitable in the fourth quarter, while Maserati has returned double-digit margins over the past three quarters. Both brands have launched new luxury utility vehicles in the United States.

    Marchionne said FCA hopes to resolve emissions certification issues “in a few weeks” with the U.S. Environmental Protection Agency and the California Air Resources Board.

    In the meantime, he said FCA will try to meet future emissions regulations without relying so heavily on diesel engines, but with a combination of gasoline engines and electric motors.

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  • South Korea’s Kia invests in Indian factory after China troubles hit profit

    South Korea’s Kia invests in Indian factory after China troubles hit profit

    South Korean carmaker Kia Motors Corp signed a deal on Thursday to invest about $1.1 billion to build its first factory in India, aiming to tap a fast growing market at a time when its China sales are sagging.

    The Hyundai Motor Co affiliate posted a 19 percent slump in first-quarter net profit as anti-Korean sentiment and a conflict with dealers hit its China sales, sending its shares down 2.2 percent in a flat market.

    Production at the factory in Anantapur district, Andhra Pradesh state, would begin in the second half of 2019, the company said.

    Kia is expected to leverage Hyundai’s supply chain network built around its factories in the neighboring state of Tamil Nadu to gain a foothold in the Indian market, tipped to become the world’s third-largest by 2020. Hyundai is India’s No.2 automaker by sales.

    The plant, which will have production capacity of 300,000 vehicles a year, will produce a compact sedan and a sport utility vehicle tailored for the Indian market, Kia said in a statement.

    It will break ground in the fourth quarter of this year.

    “Our new India plant will enable us to sell cars in the world’s fifth-largest market, while providing greater flexibility for our global business,” Kia Motors President Park Han-woo said in a statement.

    Reuters reported in February that Kia was close to finalizing Andhra Pradesh as the site for its first Indian factory..

    The announcement came after Kia and Hyundai Motor suffered a March sales slump in China, their biggest market, and sharply cut production in the wake of Seoul’s decision to deploy a U.S. anti-missile system, which angered China.

    “The fall in consumer sentiment in China is stemming from a political issue, a situation which is beyond the control of an individual firm and is difficult to be resolved within the short term,” Han Chun-soo, Kia’s chief financial officer, said during an earnings conference call.

    Kia would adjust its China production to reduce inventories, cut costs and launch new models including a small crossover to minimize the impact of the political row, he said.

    Kia also said its first-quarter profit was hurt by a cost of 160 billion won ($141.53 million) to recall vehicles over an engine issue in North America and South Korea.

  • Peugeot first quarter revenue rose 4.9 percent as new models offset forex impact

    Peugeot first quarter revenue rose 4.9 percent as new models offset forex impact

    French carmaker PSA Group’s first-quarter revenue rose 4.9 percent, the maker of Peugeot, Citroen and DS models said on Wednesday, as new models helped offset the effect of weak sales growth and a negative exchange-rate impact.

    Revenue rose to 13.63 billion euros ($14.92 billion) from 13 billion a year earlier, the Paris-based company said. Revenue at the core automotive division rose 2.5 percent to 9.02 billion euros.

    PSA also lifted its full-year market outlook to a 1 percent expansion in Europe and 2 percent in Latin America, having previously forecast flat demand in both regions.

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  • Mobileye in deal with Nissan to create maps for self-driving cars

    Mobileye in deal with Nissan to create maps for self-driving cars

    Israeli autonomous vehicle technology firm Mobileye said on Tuesday it forged an agreement with Nissan Motor to create next generation maps to enable safe self-driving cars.

    The deal comes after a successful trial last year that culminated in Mobileye’s mapping technology being used in Nissan’s recent autonomous vehicle demonstration in London.

    “We now have significant commitments from multiple global automakers to generate and share data from camera-equipped ADAS (advanced driver-assistance systems) vehicles,” said Mobileye Chairman Amnon Shashua, adding the results will add to a global road map that is a critical feature of self-driving autos.

    Mobileye, which also is collaborating with German automaker BMW, is in the process of being acquired by Intel, which last month agreed to buy the company for $15.3 billion in a deal that promises to escalate the arms race among the world’s carmakers and suppliers to acquire autonomous vehicle technology.

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  • Indian cars cheapest, French most expensive in Vietnam

    Indian cars cheapest, French most expensive in Vietnam

    For many Vietnamese, Indian cars prove to be the best choice. The products are described as ‘unprecedentedly low’ with the import price of VND84 million, CIF, not including tax.

    A GDC report shows that in January 2017, Vietnam imported 5,425 cars, worth $97 million, an increase of 120.8 percent in quantity and 92 percent in value compared with the same period last year.

    The report showed the sharp increase of 233 percent in imports form ASEAN with 3,408 cars imported, accounting for 62.8 percent of less-than-nine-seat imports, which were mostly from either Thailand or Indonesia. These included 1,585 cars from Thailand, worth $31 million, an increase of 55 percent in quantity and 209 percent in value.

    The number of cars from Indonesia increased unexpectedly to 1,823, worth $35 million. Only one car came from the market last year, worth $10,000.

    From January 1, 2017, the tariff on CBU less-than-nine-seat cars from ASEAN was cut from 40 percent to 30 percent.

    A car dealer said the import volume increased sharply because domestic automobile manufacturers have stopped making some car models in Vietnam, such as Fortuner and Civic, but import them from ASEAN to sell domestically.

    The public is more concerned with the appearance of a new source of supply – India. 1,006 cars from India docked at Vietnam’s ports in January, with the average price of $3,708, or VND84 million only. However, Indian imports cannot enjoy preferential tariffs like products from ASEAN.

    In mid-2016, the average import price was VND160 million. The figure decreased to VND100 million in late 2016 and then to VND84 million in January 2017.

    Contrary to all predictions, the most expensive imports are the ones from France, not from Germany or the UK, which produce many luxury brands.

    Only six CBU cars from France were imported to Vietnam in January 2017, worth $342,000, which means the average import price was $57,000, or VND1.3 billion.

    In Vietnam, the products of two French brands – Renault and Peugeot – are distributed.

    Meanwhile, 27 cars from the UK came in January, worth $1.349 million, and 146 cars from Germany, worth $7.624 million, which meant the average import price was $52,220 for British cars and $49,998 for German cars.

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  • Jokowi optimistic of witnessing 10% growth in automotive industry

    Jokowi optimistic of witnessing 10% growth in automotive industry

    Indonesian President Joko Widodo (Jokowi) is optimistic that the automotive industry would attract more investors and grow over 10 percent annually.

    “Indonesias automotive industry is more competitive now and is growing on an average of more than 10 percent,” he remarked in Bekasi on Tuesday.

    President Jokowi expressed optimism in his remarks at the opening ceremony of PT Mitsubishi Motor Krama Yudha Indonesia (MMKI) at the Greenland International Center, Central Cikarang, Bekasi District, West Java.

    “With such a large market, I am certain that more investments will flow into the automotive sector of Indonesia, as we have a large market, and greater the investments, more employment opportunities will be available,” he emphasized.

    President Jokowi lauded Mitsubishi Motors commitment to increasing its investment by setting up a new plant in Indonesia, which will be able to offer jobs to around three thousand people.

    “This can provide employment to some three thousand people. Once again, three thousand job opportunities,” the president pointed out.

    Hence, Jokowi is committed to easing the flow of investments, particularly in the automotive sector, considering its impacts on the economic growth.

    “The inflow of investments will create more job opportunities, and it means more people will have jobs,” he stated.

    However, the president highlighted the importance of the quality of human resources to meet the high standards of the automotive industry.

    He pointed out that the government is taking steps to boost economic development by providing skilled manpower through vocational schools.

    “Here, we will strengthen vocational education, vocational schools, as well as vocational training, entrepreneurship, and the labor market,” he affirmed.

    “The government will continue to implement policies that link and match or job matching between vocation and the industry,” the president noted.

    Investment in industry will also allow the transfer of technology and knowledge to Indonesia. Hence, President Widodo has urged the employees to use the opportunity extensively.

    “I hope you will also pay attention to the transfer of technology and knowledge. Continue conducting trainings for the local human resources, and it will be better if the Japanese work ethics, such as high discipline, can be imbibed by Indonesian human resources,” he said.

    “Do not hesitate to involve the Indonesian people in creating new innovations, as they are all actually smart,” added Jokowi.

    In addition, President Jokowi is optimistic that the automotive industry would begin developing its export market.

    “The local or domestic market is large, but we also need to focus on the export market to achieve a balance,” he pointed out.

    Some VIP guests also attended the opening ceremony with President Jokowi, including Minister of Industry Airlangga Hartarto, Minister of State Secretary Pratikno, Head of the Investment Coordinating Board Thomas Lembong, Vice Minister of Finance Mardiasmo, Vice Governor of West Java Deddy Mizwar, and Chairman of Mitsubishi Motors Carlos Ghosn.

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  • Japanese automakers strengthen grip on SE Asia

    Japanese automakers strengthen grip on SE Asia

    The Japanese auto industry maintained its strong grip on the vehicle markets of southeast Asia last year, according to exclusive data provided to just-auto.

    The Japanese carmakers’ combined sales in the region’s five main markets rose by an estimated 3.3% to 2.62 million units in 2016, for a market share of 84%, according to data supplied by AsiaMotorbusiness.com.

    The highest Japanese dominance is in Indonesia, the region’s largest market, where their combined share of sales rose to a staggering 98.5% by last year. In Thailand, the Japanese accounted for 88% of sales, while in Malaysia it was 78%, including sales of Perodua – a domestic brand which depends entirely on Daihatsu for its products.

    Competitors from elsewhere have tried and failed to gain a significant foothold in this region and in key markets the Japanese have only strengthened their grip in recent years.

    European manufacturers such as Mercedes-Benz and BMW, and to a much smaller extent Jaguar Land Rover, dominate the premium segments and this is set to continue. But this success does not extend to other segments of the market.

    Ford withdrew from Indonesia at the end of last year, choosing instead to focus on markets where it has a better chance of competing. It has had better luck in some of the smaller emerging markets such as Vietnam and the Philippines.

    GM’s efforts to break into the high-volume compact MPV segment in the region were short-lived. It closed its “Spin”MPV plant in Indonesia last year and is downsizing its product range in the region to include just pickup trucks and SUVs.

    Toyota dominates the ASEAN region, with sales in the five main markets estimated at 910,263 units in 2016 – for a market share of 29%. If combined with Daihatsu, upon which it relies heavily, and with its Hino subsidiary, Toyota group’s sales in the region rose to 1.355m units last year (including Perodua) – to account for more than 43% of sales.

    Toyota has been extremely successful in maximising synergies with Daihatsu in Indonesia, which is by far its largest market in the region and where it is responsible for 56% of total sales.

    Toyota has by far the largest range of vehicles in this market and has been at the forefront of the development of new market segments across the region, including low-cost green cars and small and medium MPVs and SUVs. It enjoys the best economies of scale and strongest pricing power.

    Honda has emerged as the second-best selling brand in the region in recent years, despite the company’s lack of a presence in the commercial vehicle segment. Its share of regional sales has risen from just over 8% in 2012 to almost 14% in 2016.

    Honda’s recent growth has been underpinned by its strong and successful product range expansion, particularly in the compact MPV and SUV segments. New models such as the Mobilio, H-RV and B-RV have proved to be extremely popular in markets such as Indonesia, where its sales and market share have almost tripled in since 2012.

    Not all Japanese automakers have enjoyed growing sales in the region. Nissan and Suzuki in particular have struggled to keep pace with their more successful rivals, while Mitsubishi/Fuso has also been impacted by weak commercial vehicle demand in key markets.

    In ASEAN’s smaller markets the Japanese dominance is not so overwhelming. Japanese brands accounted for 69% of total vehicles sales in the Philippines last year, while in Vietnam their combined share was below 50%.

    South Korean brands such as Hyundai and Kia have been more successful in penetrating these markets, as have Ford and GM. Chinese brands have also targeted in the commercial vehicle segments here with a degree of success.

    But one wonders whether it’s just a matter before the Japanese tighten their grip on these markets too.

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