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Hyundai Motor, Kia Motors sold 72,032 vehicles in China in March, down 52.2 pct from year earlier. Hyundai Motor China sales 56,026 vehicles in March, down 44.3 percent from year earlier.
Kia Motors China sales 16,006 vehicles in March, down 68 percent from year earlier.
Automakers sold a record number of vehicles during March, with General Motors leading in sales volume and posting its best monthly sales performance since 2008.
Overall Canadian sales were driven by an 11.1 percent increase in consumer demand for pickups and sport utility vehicles during the month, which more than offset a 0.3 percent dip in passenger car sales.
Carmakers sold 187,540 vehicles last month, a 7.1 percent increase over the same period last year, which at the time was the best March since 1988, according to industry data from Desrosiers Automotive Consultants.
Sales growth for the first three months of 2017 was 4.6 percent.
GM Canada, which makes Chevrolet and GMC vehicles, reported double-digit sales growth, selling 30,115 total vehicles in March, an increase of 22.9 percent from a year ago when it sold 24,498 cars and trucks.
Fiat Chrysler Automobiles, which makes Dodge and Chrysler brands, posted a marginal sales rise, with 26,531 cars and trucks sold during the month, compared with 26,469 a year ago.
Ford Motor sold a total of 26,487 cars and trucks in Canada last month, up from 26,447, a 0.2 percent rise.
In the United States, monthly figures came in below market expectations, adding to concerns that the boom in U.S. auto sales may be waning. Shares of the three big automakers fell on Monday, with FCA falling nearly 5 percent, GM down 3.4 percent, and Ford closing 1.7 percent lower.
Other automakers also reported a significant increase in Canadian sales, including Nissan Motor, which sold 14,523 vehicles, representing a 26.7 percent jump. Honda Canada reported an 18.7 percent rise, selling 17,392 vehicles.
Tesla, the U.S. luxury electric car maker, said on Sunday first-quarter vehicle deliveries jumped 69 percent from a year ago to a quarterly record of 25,000 vehicles, bouncing back from delays in the previous quarter.
The company said of the total vehicles delivered, about 13,450 were Model S sedan and about 11,550 were Model X sports utility vehicle.
Tesla has said it expects to deliver 47,000 to 50,000 Model S and Model X vehicles combined in the first half of 2017.
In the fourth quarter, deliveries had fallen 9.4 percent due to short-term production hurdles from the transition to a new autopilot hardware.
Tesla had said production challenges, which started at the end of October and lasted through early December, shifted vehicle production towards the end of the fourth quarter, resulting in delayed deliveries.
Ultimately, about 2,750 vehicles were missed being counted as deliveries in the fourth quarter either due to last-minute delays in transport or because the customer was unable to physically take delivery.
In addition to the first quarter deliveries, about 4,650 vehicles were in transit to customers at the end of the quarter and will be counted as deliveries in the cond quarter, Tesla said in a statement on Sunday.
Production in the first quarter also hit a quarterly record at 25,418 vehicles.
Tesla Chief Executive Elon Musk has taken big risks repeatedly since going public in 2010, but investors got spooked after he said in February the electric car company could get “close to the edge” as it burns cash ahead of its crucial Model 3 launch.
China’s Tencent Holdings Ltd (0700.HK) bought a 5 percent stake in Tesla last week for $1.78 billion, providing the company with a deep-pocketed ally as it prepares to launch its mass-market Model 3.
Ford Motor is recalling about 52,600 F-250 pickup trucks sold in the United States and Canada because the vehicles could roll after the driver moves the automatic transmission lever into park position, the company said on Saturday.
The recall, the third announced by Ford this week, affects 2017 model year F-250 vehicles powered by 6.2-liter gasoline engines and built in its Louisville, Kentucky, truck plant, it said in a statement.
Ford, the second-largest U.S. automaker, also said it was unaware of any injuries or accidents associated with the latest issue.
The company said on Wednesday it was recalling 211,000 vehicles in North America to replace potentially faulty side door latches.
Another recall involves 230,000 vehicles that present a fire risk in the engine compartment. Ford said it had reports of 29 fires related to that issue but no injuries.
The Dearborn, Michigan-based automaker had previously recalled nearly 4 million vehicles for door latch issues in six separate announcements since 2014, including 2.4 million vehicles recalled in late 2016.
Tata Motors on Friday has announced the launch of JT Special Vehicles, a 50:50 joint venture with Jayem Automotives, for the development of special performance vehicles based on the latest series products, informed the automaker in an official statement.
As part of the agreement, both Tata Motors and Jayem Automotives will work towards performance enhancement and appearance of series vehicles to offer an innovative range of niche aspirational products for the passenger car customers.
Guenter Butschek, CEO and Managing Director, Tata Motors, said, “We are delighted to partner with Jayem, a brand known for its capabilities in concept creation and prototyping of special performance vehicles. This partnership is a step towards creating long-term relationships as a part of our transformation journey and to bring more exciting performance variants to our product range”
J Anand, Managing Director, Jayem Automotives, said, “We are excited about our joint venture with Tata Motors and to be a part of their transformation journey. We aim to bring World Class Performance Products to market in a short time, and to fulfil expectations of passionate customers in the niche segment of sportier cars.”
JT Special Vehicles will develop a range of performance vehicles in a phased manner at a dedicated line, currently being explored at Coimbatore. With all processes including design, precision machining, assembly, and testing facilities driven under one roof, this facility will aim to deliver the next level of personalisation and enhanced performance with agility and efficiency.
As part of Tata Motors’ Passenger Vehicle business strategy, while an architecture approach with two platform strategy will reduce complexity, these special performance vehicles will be targeted to augment the latest product range in our vision to build aspirational cars, added the automaker.
Ford Motor Co, the second largest U.S. automaker, on Wednesday announced two new recalls affecting 440,000 vehicles and expects to spend about $295 million to fix the issues.
The recalls include 211,000 vehicles in North America to replace potentially faulty side door latches and 230,000 vehicles for under-hood fire risks. Ford said it has reports of 29 fires but no injuries.
Ford said the cost of the recalls were included in its updated earnings guidance issued last week.
Last week, Ford warned it expects lower earnings per share in the first quarter and lower pretax profit in 2017 due to higher spending on commodities, warranties and investments and a drop in sales volumes especially fleet sales.
The Dearborn automaker had previously recalled nearly 4 million vehicles for door latch issues in six separate recalls since 2014, including 2.4 million vehicles recalled in late 2016. In September, Ford said it was taking a $640 million charge for its expanded side-door latch recalls.
The new door latch recall includes 211,000 2014 model year Ford Fiesta, 2013-14 Ford Fusion and 2013-14 Lincoln MKZ vehicles. Ford said it not aware of any crashes or injuries associated with this issue.
The U.S. National Highway Traffic Safety Administration (NHTSA) said in 2015 it had 1,102 reports related to the problem and Ford said it had 10,883 warranty claims related to door latch failures. Some owners told NHTSA they used ropes or tape or seatbelts to restrain doors.
The under-hood fire recall covers 230,000 2013-15 Ford Escape, Ford Fiesta ST, Ford Fusion and Ford Transit Connect vehicles equipped with 1.6-liter GTDI engines in North America.
Ford said a lack of coolant circulation could cause an engine to overheat, resulting in a crack in the cylinder head, which could result in a pressurized oil leak and raise the risk of a fire.
In October, NHTSA opened a preliminary investigation into 440,000 Ford 2011-2013 Edge SUVs over door latch warning light issues. The agency said Wednesday it is closing its investigation without seeking a recall.
German luxury carmaker Audi will halt production of the A4 and A5 luxury models at its Ingolstadt base this week until Thursday due to a parts shortage after a fire at a supplier, it said on Monday.
Audi produces 1,400 A4 and A5 models per day at the plant, its largest, so it will lose 5,600 vehicles this week. A fire at a supplier making front wall cladding had disrupted parts deliveries, a spokeswoman said on Monday.
About 8,500 of the 43,000 workers Audi employs at the plant will be affected and will not be working between Monday and Thursday, she said. Production of A4 and A5 models at a plant in Neckarsulm had not been affected.
German news agency Deutsche Presse-Agentur reported the stoppages earlier on Monday.
India’s third largest passenger car exporter Nissan Motor India confirmed that the company is planning to introduce eight new models in different segments by 2021. The company also confirmed that its Nissan brand will be focussing on premium products and Datsun will concentrate on compact segments.
Guillaume Sicard, President, Nissan India Operation on the side-lines of Nissan Terrano facelift launch said:
“The structure of Indian market is you have a certain set of population who need global products, they are well travelled and they also have the bank power. So, we can offer that with Nissan. We are also lucky to have two brands which is also difficult to manage at times but it’s also a strength. Datsun is for the first – time four-wheeler buyers, The brand concentrates on emerging markets and India is the leading country in terms of decisions for the Datsun brand. This is where we have the biggest potential. We have 20 cars for over 1000 habitants and so India is paradise for OEMs. If we manage infrastructure correctly, it can be a paradise for everybody.”
Sicard expressed his reservations about the future of sub-4 meter cars in India and confirmed that Nissan would not be coming up with a sub-compact sedan. Nissan aims to bring in premium SUVs and cars. The company also hinted a possible comeback of Nissan Teana sedan and Nissan Patrol SUV along with other affordable luxury products but did not share more details on upcoming products.
“We are very careful with our compact cars. Talking about Nissan, it is not positioned in the compact market. We want to bring in slightly upper market SUVs and cars. We want to position Nissan as a high technology brand. The future of the sub-4 meter vehicles is not so clear. In terms of taxations we still have some doubts. This is the uniqueness of Indian market and so being a global car maker we are looking at it and are very careful to what we plan as well. No sub-4 meter cars for Nissan, we might have one but will not be our focus. If the sub-4-meter rule still exists we will develop new cars under Datsun brand.” Sicard added.
In the upcoming financial year, Nissan will launch its first hybrid SUV in India – Nissan X-Trail hybrid which will come to India as a completely built unit. The company also confirmed that a flow of new products will roll out from beginning of 2018. Nissan in India has been manufacturing products in alliance with Renault at its Renault-Nissan Alliance plant in Chennai and going forward the company claims 100% differences from its products with Renault.
Guillaume Sicard said: “There will be 100% differences in terms of both the brands, similar products is not something which we would like to repeat and I will be very transparent in terms of strategy, which was an interesting idea from the start which worked very well but with maturity of the Renault-Nissan Alliance obviously we are going to separate more and more even though we will continue to keep making synergies in terms of platforms and engines which the customer doesn’t see to obtain the best price possible for the alliance for the retail market.”
Sooner or later the Alliance will also see the Mitsubishi contributing to the overall synergy. While the details on the role of Mitsubishi specially in India is still under the wraps the President of India operations did mention that Nissan is meeting Mitsubishi at global level and India is a major part of the on-going discussions. The objective of the Alliance is to find and create win-win situation for both the companies.
“This is the spirit of the alliance that Carlos Ghosn has developed so far and we are in the understanding mode, expertise mode and project mode for the time being and for sure we will find synergies. This is the objective of the alliance and we will soon find synergy in India.” Said President of India operations.
In the 2017-18 financial year, Nissan confirms that its exports will decline as the new generation Nissan Micra which has debuted in many global markets will not be built or sold in the India. Nissan currently exports to over 100 countries and Nissan Micra is the top exported model for the company from India. Current generation Nissan Micra will continue to be sold in the domestic market and to a few export markets retaining the model. However, the export for the same will be at a slower pace confirms the Indian arm of the Japanese car maker.
Guillaume Sicard commented that “Next year exports will decline slightly because of the Micra, but year after it will really pick up as we will be on the high export programme. We have capacity in the plant close to 500,000 units. There is always possibility to do more, we can invest more if required. For me to keeping 1/3rd of production for exports from India is the safe side of the strategy.”
By 2021, with new products coming in the company is also looking to phase out Nissan Micra and Nissan Sunny then. Nissan Motor India is not looking to flood Indian market with a lot of products but want to get it right with its offering.
“I think number of cars in our portfolio is not important as much as to be spot on to what you offer. If you look at the structure of the market, I think there is a threshold in the industry, for a product to be significant in terms of economy of scales and financial efficiency it has to cross a sales of 50,000 units. You have about 22 cars that are sold above 50,000 sales.”
“Out of the 22 cars, You have 11 Maruti Suzukis, six from Hyundai and then after you have one of the six brands. To reach 50,000 mark is extremely difficult for global OEMs. Instead of expanding the portfolio, We are planning to introduce may be up to three models to be successful to reach that 50,000 mark. This is the way to monitor your success. There is no need for us or any global OEM to have a lot of products to be efficient in India.” Sicard concluded.
Indian auto parts maker Motherson Sumi Systems Ltd said on Monday it had completed the buyout of Finland’s PKC Group for 571 million euros ($619.4 million).
Motherson is now the controlling shareholder of PKC Group, holding 93.75 percent of PKC’s outstanding shares and stock options.
“There is a great synergy between MSSL & PKC and a complementary geographical presence to serve the customers in all regions,” Motherson said in a statement.
Shares of Motherson, which have gained 12 percent since the deal was made public on Jan. 20, were trading slightly higher on Monday.
Tesla has completed the installation of three Destination Chargers at Shinsegae department store in the Gangnam, Seoul.
The move follows the opening of two showrooms in the city last month as the brand picks up momentum with its South Korean operations.
It was the second set of Tesla chargers introduced at a Shinsegae outlet after another batch was installed at the Yeoju Premium Outlets.
The Korean giant Shinsegae Group signed a partnership with the American automaker last year, planning to equip 25 of its locations with Tesla’s charging stations this year.
One of the two Tesla stores that opened last week is located in Starfield Hanam, the largest shopping complex in Korea, which opened last year under a Shinsegae-Taubman partnership.
South Korea’s Hyundai Motor on Monday said it had suspended production at one of its Chinese factories for a week, fueling concern that a diplomatic standoff may be hurting sales in the automaker’s top market.
South Korean companies, from cosmetics firms to retailers, say they are being targeted in China because of Beijing’s objections to a planned deployment of the U.S. Terminal High Altitude Area Defence (THAAD) system in South Korea. China worries the system’s powerful radar can penetrate its territory.
News of Hyundai’s China plant closure, first reported by online media ChosunBiz on Sunday, drove shares of the company down as much as 3% on Monday. The shares recovered slightly to end down 1.2%.
Shares in Hyundai’s affiliates, Kia Motors and Hyundai Mobis, also finished lower.
Hyundai said it had suspended the plant in Hebei Province, from March 24 to April 1, in order to check its production line to modify technology. The automaker has three other passenger car factories in China – a country that accounts for about a quarter of its total sales. No further details were available.
Industry officials and analysts say the suspension may be aimed at bringing down inventories given slowing sales in China, due to political tension and rising competition.
Ko Tae-bong, an analyst at Hi Investment & Securities, said Hyundai’s March sales in China may have fallen year-on-year due to the political spat, after gaining in January and February.
China Competition
The automaker is already grappling with falling market share in China with a product line-up that features more sedans at a time when sport utility vehicles have become more popular.
China’s Geely Automobile Holdings recently reported its biggest profit growth in eight years, underlining a threat from Chinese makers armed with cheaper SUVs.
Hyundai makes Verna subcompact cars at its Hebei plant, which came online less than six months ago.
The automaker plans to start production at a fifth China factory later this year. Hyundai’s China operations are a 50-50 joint venture with state-owned Beijing Automotive.
Hyundai officials have previously said the company’s business ties with Chinese firms meant they were less likely to be the main target of any punishment resulting from the diplomatic standoff over the deployment of the THAAD.
The chill in business ties between the nations is evident from the fact that China’s tourism ministry has instructed tour operators in Beijing to stop selling trips to South Korea, while state media has called for a boycott of South Korean goods.
Chinese authorities have also closed nearly two dozen retail stores of South Korea’s Lotte Group, with some workers saying the closures were fire-safety related. Earlier this year, Lotte approved a land swap outside Seoul that will allow South Korea to install the THAAD.
Volkswagen’s Spanish division Seat reported on Thursday its first annual operating profit since 2007 and announced plans to launch a third sport-utility vehicle (SUV) in as many years in 2018 to try to build on its recovery.
Seat said it made an operating profit of 143 million euros ($154 million) last year compared with a 7 million euro loss in 2015, helped by selling more models with higher specifications and integrating its R&D operations with parent Volkswagen (VW).
“Seat is now preparing itself for development and growth,” chief executive Luca de Meo said in an emailed statement.
The 2018 SUV, which follows the launch of the Ateca crossover in 2016 and its smaller sibling Arona later this year, “will boost brand image and will have a very big effect on our ability to generate margins,” the CEO said.
“This car will bring new customers to us.”
Seat’s third SUV model will be built at VW’s main Wolfsburg factory and use the German group’s cost-saving MQB modular platform that underpins VW’s top-selling Tiguan SUV.
VW, which bought Seat in 1986 to increase its exposure to the then fast-growing Spanish market, has long battled to reverse losses caused by under-utilised capacity at Seat’s factory in Martorell near Barcelona.
Finland’s Valmet Automotive said on Wednesday it had signed a new contract to build future Mercedes-Benz compact cars for Daimler AG.
The company said it would hire about 1,000 staff to help with its existing contract under which it manufactures Mercedes-Benz passenger cars and SUVs. The plant currently has 2,300 employees.
The facility is one of the bright spots in the Finnish economy which is slowly recovering from a decade of stagnation.
In January, Chinese battery maker Contemporary Amperex Technology Ltd bought a 22 percent stake in Valmet Automotive.
China’s Geely Automobile Holdings posted its biggest profit growth in eight years on Wednesday, as improved product design and engineering following its 2010 purchase of Sweden’s Volvo helped propel it to record sales.
Geely, which also owns the maker of London’s black cabs, has already forecast a 31 percent jump in sales for the current year as affordable models introduced after the Volvo acquisition, such as its GC9 sedan and Boyue sport-utility vehicle, exceed initial estimates.
Long seen as a no-frills brand, Geely has transformed itself into an automaker with up-market aspirations, using its Volvo research-and-development advantage to climb the sales table in the world’s largest auto market where it ranks around seventh.
Come next year, Geely plans its next phase of expansion as it aims to become China’s first automaker to market its own brand – new Volvo collaboration Lynk & Co – in developed markets, beginning with Europe and the United States.
Entering major markets with an unknown Chinese brand is an expensive risk, analysts say, but investors are unperturbed: Geely’s share price has trebled over the past 12 months.
“It’s a total turnaround story,” said a fund manager at a Taiwan-based investment firm that bought a significant amount of Geely stock last year.
“Before it was just a normal domestic brand, but after several new product launches it successfully elevated its brand image,” said the person who was not authorized to speak publicly on the firm’s investments and so declined to be identified.
Geely’s China sales grew 50 percent last year to 766,000 vehicles, powered by the GC9 and Boyue, as well as small cars featuring Volvo technology. It aims to top 1 million this year, though could sell far more depending on market conditions, a Geely official with direct knowledge of the matter told Reuters.
For 2016, net profit more than doubled to 5.1 billion yuan ($741 million), its strongest growth since 2008. The figure is set to rise 37 percent to 7 billion yuan in 2017, showed a Reuters poll of analyst estimates prior to Geely’s Wednesday filing.
Geely shares were down 1.2 percent in early afternoon trading after the earnings release.
OVERSEAS GAMBLE
To be sure, growth has come at a cost. Geely and parent Zhejiang Geely Holding Group have spent 10 billion yuan on R&D in each of the past three to four years, or about 15 percent of current revenue, said spokesman Victor Yang.
That compared with 2 billion yuan in 2015 at domestic rival BYD.
But Geely’s domestic growth spurts could lessen as expansion in China’s overall passenger car market slows following the reduction of subsidies for small-engine vehicles, adding impetus to any international push.
“The current focus of our work is firstly the pace of development in China and increasing our share of the Chinese auto market, then next we can focus our work abroad,” Geely Chairman Li Shufu told reporters in Beijing earlier this month.
But entering markets where the brand is unknown is a gamble, and it could take years to gain traction, said James Chao, Asia-Pacific chief of consultancy IHS Markit Automotive.
As there is plenty of room for growth in China, however, there is no need to be concerned about the move abroad, said fund managers at two investment firms that hold Geely stock.
“If they do well abroad it’s a bonus, and if they don’t then it’s not a big reason to worry,” one of the managers said.
Polaris Industries Inc is recalling about 19,200 all-terrain vehicles due to fire hazard and risk of injury, the U.S. Consumer Product Safety Commission said on Tuesday.
Polaris will recall all model year 2015 and 2016 Sportsman 850 and 1000 all-terrain vehicles, the U.S. consumer-safety regulator said.
The right side panel heat shield in the ATVs can melt, posing burn and fire hazards to riders.
In addition, the exhaust springs can stretch and damage the exhaust seal in 2015 Sportsman 1000 ATVs, resulting in exhaust leaks that could pose burn and fire hazards.
Polaris has received at least 793 incidents, including reports of warped, melted or burned side panels, 47 fires and four minor burn injuries, the regulator said.