Category: Automotive

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  • Vietnam driven to protect domestic automobile industry

    Vietnam driven to protect domestic automobile industry

    Vietnamese policymakers are looking at ways to safeguard the domestic automobile industry against foreign rivals, based on an official document released by the government office.

    Vietnam’s automobile industry is expected to face more hurdles in the years to come as the local market opens up to foreign competitors.

    Locally-assembled cars could cost 20 percent more than those imported from neighboring countries such as Thailand and Indonesia in 2018, when tariffs on car imports into Vietnam from other ASEAN countries will be cut to zero from the current 50 percent, the trade ministry said.

    The government has asked trade officials to look at ways to prevent a surge in car imports.

    Meanwhile, the finance ministry will review import tariffs on cars and monitor their origin to prevent tax dodging.

    Vietnamese policymakers also plan to adjust import tariffs on automotive parts that are not available in the domestic market.

    The Southeast Asian country has targeted car manufacturing as a “spearhead industry” that could help it move up the global chain.

    However, the fact that it still heavily relies on imported cars to meet local demand has exerted tremendous pressure on local manufacturers.

    Vietnam imported 15,270 units in the first two months this year, a 35 percent jump from a year ago, customs data showed.

    The import surge comes as Vietnamese people switch from motorbikes to cars, with more than half of the imported cars classed as midsize sedans, based on official statistics.

  • 5GAA, EATA ink MOU on C-V2X

    5GAA, EATA ink MOU on C-V2X

    5G Automotive Association (5GAA) and the European Automotive and Telecom Alliance have signed partnership MOU, which will see cooperation around jointly promoting the Cellular-V2X industry in term of use cases, standardization, spectrum, and pre-deployment projects with cellular based communication technologies.

    5GAA and EATA commit to prioritize use cases that are identified from two organizations to figure out the technical requirement to be addressed from short to long term. In order to better support connected and automated driving standard, standardization prioritization for the standard bodies such as ETSI, 3GPP, SAE, etc. is necessary as well.

    The agreement between MNO and OEM is deemed important to help work out a business model and unify an industry timeline.

    5GAA is a multi-industry association to develop, test and promote communications solutions, initiate their standardization and accelerate their commercial availability and global market penetration to address societal need.

    Meanwhile, the main goal of the EATA alliance is to promote the wider deployment of connected and automated driving in Europe.

    The first concrete step is the advancement of a “Pre-Deployment Project” aimed at testing use-case categories such as C-ITS services, automated driving, road safety and traffic efficiency. The tests will identify and address both technological and regulatory issues.

    Among other important elements, the project will tackle interoperability issues as well as infrastructure investment to address connectivity needs, and the improving of safety and security.

    “This MOU with the 5GAA not only brings the different industry partners closer together, but also reinforces the European Commission’s strategy on cooperative, connected and automated mobility that was launched at the end of 2016,” said Erik Jonnaert, chairman of the EATA Steering Committee.

    “Car connectivity and automation will require a mix of communications technologies, but it is clear that 5G technology can become a key enabler of Europe’s digital highways,” said Jonnaert.

  • VW trucks division targets strong profitability gain in 2017

    VW trucks division targets strong profitability gain in 2017

    Volkswagen’s truck division aims to significantly increase its profitability this year as deepening cooperation between the MAN and Scania brands and improving overseas markets spur business, it said on Monday.

    Volkswagen, which launched a new truck & bus division in 2015 to challenge global rivals Daimler and Volvo, is targeting a long-term operating margin target of 9 percent, up from 6.1 percent last year.

    “We are not striving to become a volume champion, we want to be the most profitable ones,” chief executive Andreas Renschler told journalists, referring to improving markets in Western Europe, Russia and China.

    But finance chief Matthias Gruendler made clear a significant improvement in financial results requires a rebound in the key Brazilian market where the VW division commands a 37-percent share of the country’s commercial-vehicles market.

    Overall truck and bus sales in Brazil have been falling for four years but demand is expected to rebound slightly in the second half of the year amid the improving economy with a chance for stronger growth in 2018, Gruendler said.

    “Brazil has always been an important market and is characterized by a high degree of cyclicality,” chief executive Andreas Renschler said.

    Under Renschler, who ran Daimler Trucks before joining VW in February 2015, Europe’s largest automotive group has also been seeking to expand its footprint in international truck markets.

    Last year, VW announced a stake purchase in U.S. truck maker Navistar International which may earn the German group access to the vast North American truck market, and is also in talks about finding a new partner in China.

    “We are currently in discussions about different opportunities,” Renschler said. “All options are open” including a possible increase in MAN’s stake in China’s Sinotruk and finding a new partner.

  • Liaoning SG Auto cancels new energy car components JV with South Korea’s Samsung SDI

    Liaoning SG Auto cancels new energy car components JV with South Korea’s Samsung SDI

    Liaoning SG Automotive Group Co Ltd Says it will not set up new energy car components JV with partners including South Korea’s Samsung SDI.

    Says it will dissolve a Tianjin-based financial leasing JV, which was set up in 2014.

  • Toyota aims to boost Brazil exports with locally made engines

    Toyota aims to boost Brazil exports with locally made engines

    Toyota Motor will soon begin selling Brazilian-made Corollas in Peru, executives said on Thursday, and is in advanced studies to export from Brazil to Chile and Colombia in a push to make its South American plants more competitive.

    Steve St. Angelo, Toyota’s most senior executive in the region, said the exports to Peru were part of a long-term plan to integrate Brazilian operations with the rest of Latin America, which has long imported Corollas from the United States.

    Toyota’s Brazilian factories, which exported only to Argentina when St. Angelo arrived in 2013, also send the mid-sized Corolla sedan and smaller Etios to Uruguay and Paraguay now.

    Toyota has invested in a new engine plant and engineering facilities in Brazil, which St. Angelo said would be key to lifting the domestic content of the Corolla and Etios from about 60 percent currently. As Brazilian plants import fewer parts, they should be able to export more competitively to new markets, he said.

    Rafael Chang, the company’s new chief executive in Brazil, said he hoped to have news “soon” on exports to Chile and Colombia.

    Toyota’s exports from Brazil rose nearly 10 percent in 2016 to about 43,000 cars, of some 176,000 vehicles produced in the country last year.

    “We’re trying to diversify our Brazilian operations, so we’re not so dependent on this one economy,” St. Angelo told journalists at a launch event for the new Corolla in Brazil.

    Brazil’s worst recession in more than a century has nearly halved auto sales since 2012, battering automakers’ profitability and leading them to cut some 35,000 workers.

    Auto factories in Brazil are still using less than half of installed capacity, as high unemployment and tight credit pinch demand. St. Angelo acknowledged that Toyota had struggled to turn a profit in the country during the recession.

    “We’re not going to break even this year,” he said of the Brazilian business, adding that Toyota had not finalized its projections for the fiscal year. “We’ve been doing an unbelievable amount of cost cutting. Everyone is sacrificing.”

    St. Angelo said an overhaul of Argentine operations had also diversified exports from that country beyond just Brazil to include Honduras, Guatemala, Peru, Chile and Colombia.

  • Car industry players diverge on timescale for self-driving cars

    Car industry players diverge on timescale for self-driving cars

    Carmakers and suppliers gave widely differing timelines for the introduction of self-driving vehicles on Thursday, showing the uncertainties surrounding the technology as well as a split between cautious established players and bullish new entrants.

    Chipmaker Nvidia, facing direct competition with the world’s top chipmaker after Intel’s (INTC.O) $15 billion deal to buy autonomous driving technology firm Mobileye this week, gave the most optimistic predictions.

    Chief Executive Jen-Hsun Huang forecast carmakers may speed up their plans in the light of technological advances and that fully self-driving cars could be on the road by 2025.

    “Because of deep learning, because of AI (artificial intelligence) computing, we’ve really supercharged our roadmap to autonomous vehicles,” he said in a keynote speech to the Bosch Connected World conference in Berlin.

    Germany’s Bosch, however, the world’s biggest automotive supplier, gave a timetable as much as six years longer to get to the final stage before fully autonomous vehicles, and declined even to forecast when a totally self-driving car might take to the streets.

    Progress is fraught by issues including who is liable when a self-driving car has an accident, bringing down the costs of sensor technology and guarding against hacking.

    “Of course, we still have to prove that an autonomous car does better in driving and has less accidents than a human being,” Bosch CEO Volkmar Denner told a news conference.

    Nvidia has applied its market-leading expertise in high-end computer graphics to the intense visualization and simulation needs of autonomous cars, and has been working on artificial intelligence – teaching computers to learn to write their own software code – for a decade.

    “No human could write enough code to capture the vast diversity and complexity that we do so easily, called driving,” said Huang.

    Together with Bosch executives, Huang presented a prototype AI on-board computer that is expected to go into production by the beginning of the next decade. The computer will use Nvidia’s processing power to interpret data gathered by Bosch sensors.

    DEGREES OF AUTONOMY

    On the way to fully self-driving cars, levels of autonomy have been defined, with most cars on the road today at level two and Tesla (TSLA.O) ready to switch from level four to five – full autonomy – as soon as it is permitted to do so.

    Level three means drivers can turn away in well-understood environments such as motorway driving but must be ready to take back control, while level four means the automated system can control the vehicle in most environments.

    Independent technology analyst Richard Windsor wrote in a note this week he doubted automakers would have autonomous vehicles leaving factories by a typical self-imposed deadline of 2020, mainly because the liability issue was unresolved.

    “This is good news for the automotive industry which is notoriously slow to adapt to and implement new technology as it will have more time to defend its position against the new entrants,” he wrote.

    But Nvidia’s Huang said he expected to have chips available for level three automated driving by the end of this year and in customers’ cars on the road by the end of 2018, with level four chips following the same pattern a year later.

    That is at least a year ahead of the plans of most carmakers that have an autonomous-driving strategy.

    The head of autonomous driving at BMW told the conference the luxury carmaker was on its way to deliver a level three autonomous car in 2021, but could produce level four or five autonomous cars in the same year.

    “We believe we have the chance to make level three, level four and level five doable,” he said. He told Reuters the decision on which levels to release would depend in part on the market, and that cars with more autonomy might first be produced in small batches for single fleets.

    Bosch said it saw level three vehicles being released with its on-board computer at the end of the decade, and level four driving not before 2025.

    Uber , Baidu and Google spin-off Waymo are testing self-driving taxis, while carmakers including Volvo, Audi and Ford expect to have level four cars on the road by 2020 or 2021.

    Nvidia’s Huang predicted those plans would speed up: “In the near future, you’re going to see these schedules pull in.”

  • Japan’s Toyota to look at Saudi production as the countries seek closer ties

    Japan’s Toyota to look at Saudi production as the countries seek closer ties

    Toyota Motor signed a memorandum of understanding (MOU) on Tuesday with a Saudi Arabian government agency to conduct a feasibility study into producing vehicles and parts in the Middle Eastern nation.

    The move, if firmed up, would be a big step for the Saudi economy as the government tries to diversify beyond oil exports and create jobs as part of the kingdom’s 2030 Vision.

    So far, Saudi Arabia and other Gulf oil exporters have failed to significantly develop industries such as automaking because they lack broad industrial bases and a skilled local workforce.

    “The study would take into account the evaluation of development of a local supply base using materials produced by major Saudi companies like Sabic, Maaden, Petro Rabigh, and other major industrial companies in the kingdom,” the official Saudi state news agency reported.

    The MOU is with Saudi Arabia’s National Industrial Clusters Development Program (NICDP).

    Meanwhile, state-run Saudi Aramco has signed MOUs with five Japanese entities during a business forum that both nations hosted on Tuesday, coinciding with a visit by Saudi Arabia’s King Salman this week.

    Saudi Aramco and Japan’s biggest oil refiner JX Nippon Oil & Energy (5020.T) agreed to consider a refinery joint venture in a third country and cooperation in trading and technology of oil and petrochemical products.

    Aramco also agreed to consider a possible future cooperation in crude oil supply and downstream business with Idemitsu Kosan Co (5019.T).

    In addition, Aramco and state-run Japan Oil, Gas and Metals National Corp (JOGMEC) formally agreed to expand crude storage capacity in Japan by 300,000 kilolitres (about 1.9 million barrels) from the current 6.3 million barrels from April 1.

    Japan treats crude oil stored by Aramco as quasi-government oil reserves, counting half of the barrels stored by Aramco as national crude reserves.

    Companies and government organizations in both nations signed a total of 20 MOUs on Tuesday, including cooperation between the Saudi Arabian General Investment Authority (SAGIA) and Japan’s three megabanks – Mitsubishi UFJ Financial Group (8306.T), Sumitomo Mitsui Financial Group (8316.T) and Mizuho Financial Group (8411.T) – on increasing investments in the kingdom.

    The MOUs also included cooperation in seawater desalination.

  • Renault denies report of emissions cheating software

    Renault denies report of emissions cheating software

    Renault is denying a report that its vehicles are equipped with software that allowed its vehicles to cheat on emissions testing.

    The statement Wednesday from the French carmaker followed a report in the newspaper Liberation, which claimed to have obtained an investigative document from the Economy Ministry indicating that emissions from two models – the Renault Captur and the Clio IV – spewed emissions more than 300 percent higher than the legal limit in real-life conditions.
    The ministry’s fraud department handed its findings to prosecutors in November.

    French authorities raided Renault premises after Volkswagen was found to have used software to cheat on U.S. diesel emissions tests. Renault recalled 15,000 cars last year over excessive levels of harmful gases, but the company insisted there was no intentional wrongdoing.

  • VW’s MAN sees significant rise in 2017 operating profit

    VW’s MAN sees significant rise in 2017 operating profit

    Volkswagen division MAN expects operating profit to rise significantly in the fiscal year 2017, as the company continues its diesel-engine unit restructuring, which started in September.

    The German truck maker said on Thursday its operating profit rose to 204 million euros ($219 million) in 2016, up from 92 million in the previous year.

  • Second Vietnam motor show to be held in Hanoi

    Second Vietnam motor show to be held in Hanoi

    The show, the second of its kind, is held by the Vietnam Association of Motorcycle Manufacturers (VAMM), carrying the message “Free Your Wheels”.

    It will gather famous brand names from official suppliers including Honda, Piaggio, Yamaha, SYM and Suzuki as well as some imported complete built units such as Benelli, Ducati, Kawasaki, Peugeot and Harley Davidson.

    In addition, tens of brands in support industry, spare parts and other fields like finance, insurance and banking will also be present at the event.

    According to VAMM Chairman Yano Takeshi, the show aims to create a prestigious and professional playground for manufacturers to popularise their products.

    He said that it is billed as a bridge to nudge high-end motorcycles with modern technology closer to Vietnamese consumers, contributing to branching out the local motorcycle industry.

    The event is expected to welcome 150,000 visitors to experience free trial drive and join in vibrant interactive activities.

    Last year’s show displayed over 100 motorcycle models, luring 140,000 people.

  • China may roll back electric vehicle quotas as industry pushes back

    China may roll back electric vehicle quotas as industry pushes back

    China is considering easing proposed quotas aimed at producing more electric vehicles, as Beijing gets pushback from the automotive industry over the scale and pace of the plans.

    If adopted, proposed changes under discussion could see a target of new energy vehicles (NEV) making up 8 percent of sales next year pushed to 2019, two auto executives said.

    The changes would lower targets from a draft policy released in September requiring 8 percent of automakers’ sales to be battery electric or plug-in hybrid vehicles by 2018, rising to 10 percent in 2019 and 12 percent in 2020.

    Any loosening of NEV targets would mark a pull back by Beijing, which has faced opposition to the planned targets as it looks to drive its domestic carmakers to overtake global rivals in the ‘green’ vehicle sector.

    Automakers and industry bodies have said the targets are too tough and could hurt manufacturers’ interests. New energy vehicles last year accounted for just 1.8 percent of sales in the world’s biggest autos market, according to Reuters calculations based on official data.

    “It’s normal to make revisions as it’s a draft plan,” An Jin, chairman of Anhui Jianghuai Automobile Group (JAC Motor) , said on the sidelines of the National People’s Congress in Beijing.

    He said he was aware of talks to revise the quota targets, but said nothing was set in stone. “JAC hasn’t been told what revisions might be made to the draft, but I think it is possible the draft will be changed after the discussions,” he said.

    “Whether the whole market can hit this quota by 2018 depends a lot on the strength of government policy. If it’s strong then we should be able to surpass the targets,” An said, “(But) if you consider China’s infrastructure and the transformation of China’s auto sector, then perhaps the pace will have to slow.”

    TWO PERCENT CUT
    Two executives familiar with the plans told Reuters the government was considering options for lowering the requirements.

    One idea was to reduce the quota requirement by 2 percent each year, cutting the 2018 requirement to 6 percent, said a China-based government relations official at a major global automaker. It would then be 8 percent in 2019 and 10 percent in 2020.

    Another option would be to push back each target by a year, with the 8 percent quota starting from 2019, an executive at a Japanese car maker said.

    Both asked not to be named due to the sensitivity of the matter and because the draft was still under consideration.

    The overall policy includes quotas for plug-in cars, targets for average fuel economy requirements, and a credit trading system to promote green energy cars while penalizing petrol cars.

    The two people said the quota stand-off was tied to a disagreement between the Ministry of Industry and Information Technology (MIIT) and China’s top state planner, the National Development and Reform Commission (NDRC).

    MIIT, which regulates manufacturers, supports a more flexible credit trading system favoured by automakers. The NDRC is more aggressive in promoting a transition to electric vehicles, pushing the introduction of the stricter quotas.

    An NDRC spokesman said the body played a “small role” when the draft was open to public for discussion. MIIT did not immediately respond to Reuters’ requests for comment.

    China has strongly supported and subsidized electric vehicles, but is gradually swapping out incentives for hard targets automakers must meet. The central government cut subsidies 20 percent this year, a first reduction towards eliminating them by 2020.

  • President Jokowi receives Toyota Motor executives

    President Jokowi receives Toyota Motor executives

    President Joko Widodo (Jokowi) received Toyota Motor Corporation executives led by the companys president, Akio Toyoda, at Merdeka State Palace here on Monday.

    “In 2015, Jokowi visited Toyota in Japan, and today we have presented a report on the several commitments of Toyota in Indonesia,” PT Toyota Motor Manufacturing Indonesias (TMMIN) deputy president director Warih Andang Tjahjono said after the meeting.

    He stated that Toyota has expressed its commitment to continue to participate and contribute to the development of automotive industry in Indonesia through investment, exports, manpower, and human resource development.

    Tjahjono was introduced to the president as the new president director of TMMIN. He would replace Masahiro Nonami starting from April 1, 2017.

    Warih would be the first local person to be in the top position of the affiliation company of Toyota Manufacturing in the Asia-Pacific region.

    Nonami, who had held the post as TMMIN president director since 2010, would take over a new position in TMMIN.

    The meeting between the president and Toyota Motor Corporation executives lasted around 30 minutes from 9.35am to 10.15am

  • Ford’s Lincoln plans to produce new luxury SUV in China by late 2019

    Ford’s Lincoln plans to produce new luxury SUV in China by late 2019

    Ford Motor Co’s luxury unit Lincoln on Monday said it plans to produce a new luxury SUV in China by late 2019.

    “The new luxury SUV will be built in partnership with its joint venture partner Changan in Chongqing,” Lincoln China said in a press release.

  • Mitsubishi-Nissan’s Cooperation Rapidly Extend to Countries Including Indonesia

    Mitsubishi-Nissan’s Cooperation Rapidly Extend to Countries Including Indonesia

    Mitsubishi Motors and its new parent Nissan are studying joint production of pickup trucks in Southeast Asia as they look for savings within the broader Renault-Nissan alliance, a senior executive told.

    The Japanese groups may pool technical underpinnings and production of future replacements for the Thai-built Nissan Navara and Mitsubishi Triton, Mitsubishi Chief Operating Officer Trevor Mann said in an interview at the Geneva car show.

    Mitsubishi’s pickup architectures are likely to become the basis for future alliance models, said Mann, who was despatched by Chief Executive Carlos Ghosn to help turn Mitsubishi around after Nissan paid US$2.3 billion for a 34 percent controlling stake in the scandal-hit company last October.

    “If you look at our cost performance in that region, we are the benchmark within the alliance,” Mann said. “Our four-by-four technology, our cost base on pickups is better than Nissan’s.”

    Nissan snapped up Mitsubishi last year after the company admitted in April it had falsified fuel consumption data, triggering a sales slump and steep losses expected in the current fiscal year, which ends this month.

    Mitsubishi expects sales to bounce back above 1 million vehicles next year, Mann said, almost reversing their 8 percent decline from 1.05 million before the outcry. Nissan and Mitsubishi currently produce frame-based pickups and cars – which have fundamental design and manufacturing differences – on separate lines at each of their Thai plants.

    Moving to common architectures could potentially allow the Mitsubishi factory to specialize in pickups while the Nissan plant builds cars and SUVs, increasing productivity at both sites, Mann said, while stressing that nothing had been decided.

    Cooperation will rapidly extend to other countries in the region including Indonesia and the Philippines, where the companies have plants, Mann said. But pickups are likely to stay based in Thailand, where they account for 40 percent of sales.

    The current Navara and Triton models were launched in 2014 and are not due for replacement before 2022, which means development and production decisions may still be two or more years away. In the meantime, Nissan and Mitsubishi are already pooling car transport and other logistics while stepping up efforts to find more savings from joint purchasing.

    Renault and Nissan, whose 18-year-old alliance is cemented by reciprocal minority shareholdings, are also likely to use Mitsubishi’s plug-in hybrid technologies, Mann added. “That’s an obvious opportunity.” But Renault may have to wait longer than its alliance partner for the market access and savings that their new affiliate can bring.

    “What we have to do is prioritize,” Mann said. “We have the capital share with Nissan, so it’s logical to start there.” Under Nissan ownership, Mitsubishi is still “cleaning house” in the wake of the fuel-economy data scandal, he added.

    “We’re introducing a proper delegation of authority, risk control and business ethics in the company,” Mann said. “If we did uncover anything (else) which was not correct, we would disclose in an appropriate manner.”

  • Daimler to recall one million Mercedes globally after 51 fires

    Daimler to recall one million Mercedes globally after 51 fires

    Daimler AG said it will recall one million newer-model Mercedes-Benz vehicles worldwide due to the risk of fire, after 51 fires were reported.

    The German company said no injuries or deaths were reported relating to the vehicles that it will begin recalling in the U.S. market in July when parts become available.

    A fix has been implemented in the production of new vehicles and vehicles on dealers lots will be fixed before they are sold, the company said. The issue relates to a potentially faulty fuse.

    “Any affected vehicles in inventory will not be sold until they can be outfitted with the additional fuse,” said a Mercedes-Benz spokesman.

    Of the million vehicles to be recalled, 307,629 are in the United States, which is 40,000 units less than Mercedes-Benz reported to U.S. regulators.

    The company did not immediately have a breakdown of where vehicles will be recalled outside of the United States.

    The United States is among the three biggest markets for Mercedes-Benz, the others being China and Germany.

    Of the 51 fires, 30 were reported in the U.S. market, a Mercedes-Benz U.S. spokesman said.

    The recall affects newer models, including those from the 2017 model year.

    Mercedes-Benz and Daimler said it would begin to notify its U.S. customers late in March. It didn’t say when owners in other markets would be notified.