Category: Automotive

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  • Mercedes-Benz India Sells 2386 Units In Q1 2020

    Mercedes-Benz India Sells 2386 Units In Q1 2020

    Mercedes-Benz India announced that it managed to sell 2386 units in the January-March 2020 period. The company clocked these sales numbers even as it continues to face strong market challenges including the current lockdown due to COVID-19 pandemic.

    The company already kick-started with its new car launches in January 2020 with the GLE and then we saw it showcase its upcoming product line-up at the Auto Expo 2020 in February. Martin Schwenk, Managing Director & CEO, Mercedes-Benz India commented, “We started 2020 on a high note and our existing, as well as newly launched products, continued to draw customer traction till the time sales came to a complete stop, due to the current COVID-19 pandemic situation. At Mercedes-Benz, we are doing our best to support all our stakeholders through varied initiatives and measures, so that all of us can emerge stronger than ever before, especially during this period of crisis.”

    The company was the first carmaker in the country to make the transition to BS6 last year with the launch of the S-Class and now the company has made the complete transition to BS6 products. Though the GLC facelift, GLC Coupe and the GLE continue to rake in sales for the company, it’s the A-Class Limousine which was showcased at the Auto Expo in February that’s getting most of the attention. The company has said that it is ‘overwhelmingly popular and has already received a number of pre-bookings received for the car.

    However, given the current lockdown due to the coronavirus pandemic, Mercedes-Benz India’s focus is on strengthening its online presence. Therefore, the company is collaborating closely with its retail partners to jointly address this challenging situation and to offer them advice and support in order to best serve Mercedes-Benz customers. Customers can now book their cars online and also receive delivery of their cars at their doorstep.

  • China Car Sales Post First Weekly Rise Since Virus Outbreak

    China Car Sales Post First Weekly Rise Since Virus Outbreak

    China’s retail sales of passenger cars in the week of April 7-12 rose 14% from a year earlier, marking the first weekly rise reported since the coronavirus outbreak, data from the China Passenger Car Association (CPCA) showed.

    Coronavirus to push China’s Q1 GDP into the first decline on record.

    The coronavirus crisis likely knocked China’s economy into its first decline since at least 1992 in the first quarter, raising the pressure on authorities to do more to restore growth as mounting job losses threaten social stability.

    Sales for the first 12 days of the month were down 12% the CPCA data showed

  • Tesla Shares Extend Rally After China Registration Surge And Nod From Goldman

    Tesla Shares Extend Rally After China Registration Surge And Nod From Goldman

    Tesla’s stock extended its recent rally on Wednesday following a surge in China car registrations and after Goldman Sachs initiated coverage of the electric car maker with a “buy” recommendation.

    Shares of the Silicon Valley automaker rose nearly 2%, bringing their gain this week to 26% as traders look beyond the short-term impact of the coronavirus pandemic, which has forced Tesla to close its California factory, furlough workers and cut salaries.

    Tesla’s China car registrations jumped 450% in March, month on month, data from auto consultancy LMC Automotive showed. Overall auto sales in China plunged 43.4% in March, as a coronavirus pandemic continued to depress demand.

    In a note late on Tuesday, Goldman Sachs analyst Mark Delaney started coverage of Tesla with a $864 price target, compared to its latest price of $723.

    Tesla told employees on Tuesday the company will furlough all non-essential workers and implement salary cuts as part of a continued shutdown of the company’s U.S. production facilities.

    “We believe that the combination of Tesla’s product leadership (including its over-the-air updates to continue to improve vehicle performance), brand/early-mover advantage, vertical integration, and the long development cycles in autos (new cars can take 2-4 years to develop) will help Tesla to maintain a strong market position,” Delaney wrote.

    Wall Street has long been divided over Tesla and its chief executive, Elon Musk. Supporters expect Tesla to become a dominant global carmaker, with a fleet of driverless taxis, while many skeptics doubt Tesla can become sustainably profitable.

    Goldman Sachs’ previous Tesla analyst, David Tamberrino, had a “sell” rating and a $158 price target as of last June, the lowest on the street at that time.

    Previously, in 2016, Goldman Sachs attracted attention when it upgraded Tesla to “buy” just hours before the carmaker announced a $2 billion stock offer with Goldman Sachs and Morgan Stanley acting as joint lead bookrunners.

    Tesla’s stock has doubled from its March low and remains down 20% from its record high close in February, before fears about the impact of the coronavirus on the global economy triggered a deep stock market sell-off.

  • General Motors Begins Production Of Ventilators For U.S. Government

    General Motors Begins Production Of Ventilators For U.S. Government

    General Motors said on Tuesday it had started producing ventilators in the volume needed to treat severely ill coronavirus patients and would deliver the first batch of the medical equipment to the U.S. government this month.

    The U.S. Department of Health and Human Services (HHS) has awarded nine contracts totaling nearly $2.6 billion to produce 137,000 ventilators by the end of 2020 for the U.S. Strategic National Stockpile, including a contract to GM worth $489.4 million for 30,000 ventilators by the end of August after President Donald Trump invoked the Defense Production Act.

    Other contracts announced by HHS in recent days include a $646.7 million contract to Dutch health technology company Philips and others to General Electric Co, Hill-Rom Holdings Inc, Medtronic Plc , ResMed Inc, Vyaire Medical Inc, Hamilton Medical AG and Zoll Medical Corp.

    The United States awarded General Motors a $489 million contract Wednesday to produce ventilators to treat severely sick coronavirus patients.

    Hamilton is receiving a $552 million contract for 14,115 ventilators, while Vyaire is receiving a $407.9 million contract for 22,000 ventilators produced by June 29 and Zoll is receiving a $350.1 million contract for 18,900 ventilators, HHS said on Monday.

    HHS Secretary Alex Azar said in a statement the contracts “will mean we have more capacity to respond to the pandemic as it evolves.”

    GM, which is working with ventilator firm Ventec Life Systems to produce the medical equipment, said it would ship more than 600 ventilators in April.

    It added that it expected to fill nearly half the order by the end of June and the full order by the end of August. The ventilators will be produced at a plant in Kokomo, Indiana.

    White House adviser Peter Navarro said that “as these lifesaving ventilators roll off GM’s assembly line as fast as tanks once did in an earlier World War, they will be rapidly deployed.”

    GM’s shares closed flat. The stock has fallen more than 37% this year, as coronavirus-related lockdowns weigh on automobile sales.

  • Toyota Plans Limited Operations In France

    Toyota Plans Limited Operations In France

    Toyota Motor  on Monday said it plans to restart limited production at vehicle plants in France and Poland from April 22 after closing them due to the

    Automakers make a push to reopen plants. Global automakers reeling from the COVID-19 pandemic are accelerating efforts to restart factories from Wuhan to Maranello to Michigan, using safety protocols developed for China and U.S. ventilator production operations launched in recent weeks. Cia

    Most other plants in Europe, North America, Latin America, and Asia will remain closed for now, it said in a news release

  • Tesla’s China Car Registrations Surge In March As Shanghai Factory Back Up

    Tesla’s China Car Registrations Surge In March As Shanghai Factory Back Up

    U.S. electric vehicle maker Tesla Inc’s China car registrations jumped 450% in March, month on month, data from auto consultancy LMC Automotive showed.

    Tesla’s China registrations rose to 12,709 units in March from 2,314 in February.

    Overall auto sales in China plunged 43.4% in March, as a coronavirus pandemic continued to depress demand, industry data showed.

    Tesla told employees on Tuesday the company will furlough all non-essential workers and implement salary cuts as part of a continued shutdown of the company’s U.S. production facilities.

    Tesla, which started delivering cars from its Shanghai factory last year, said last week it has started China sales of two more Model 3 variants built at its Shanghai plant.

  • Volkswagen To Aid U.S. Dealers Supporting Coronavirus Relief Efforts

    Volkswagen To Aid U.S. Dealers Supporting Coronavirus Relief Efforts

    Volkswagen AG said on Monday it would give financial assistance to its U.S. dealers who wish to use their loaner fleet to pick up and deliver essential supplies in areas affected by the COVID-19 pandemic.

    The loaner cars, typically offered to customers to drive while their vehicles are in a shop for repairs, can be called upon for delivering food to a local food bank, transporting masks and gowns, and dropping off necessary items to those who are unable to leave their home, the automaker said.

    Dieselgate’ made headlines around the world. For deliberately cheating the system, Volkswagen was made to pay a record $20 billion fine. But, as this investigation shows, they were far from the only culprits.

    Volkswagen said its dealers would not charge the group or person making such a request.

    “Only dealership employees will be permitted to drive vehicles. Volkswagen corporate will offer dealers a daily stipend per vehicle to cover fuel and lease costs,” the automaker said.

    Volkswagen’s network of more than 600 U.S. dealers maintains a loaner fleet of nearly 7,000 vehicles, although some dealerships could be closed or working with reduced personnel due to state and local guidelines.

  • Ford Expects Coronavirus Shutdown To Cause $600 Million Quarterly Loss

    Ford Expects Coronavirus Shutdown To Cause $600 Million Quarterly Loss

    Ford Motor said on Monday it expects to post a pre-tax loss of about $600 million for the first quarter as the coronavirus outbreak pummeled its sales and shuttered vehicle assembly plants, resulting in a 21% drop in vehicle sales to dealers versus the same quarter in 2019.

    The news sent Ford’s shares down more than 5% in morning trading.

    Only Ford’s joint ventures in China, where the COVID-19 pandemic has been receding, are currently producing vehicles. The automaker said it is working on a scenario for a phased restart of its manufacturing plants beginning in the second quarter.

    “However, we believe we have sufficient cash today to get us through at least the end of the third quarter with no incremental vehicle production and wholesales or financing actions,” Chief Financial Officer Tim Stone said in a statement.

    Global automakers reeling from the COVID-19 pandemic are accelerating efforts to restart factories from Wuhan to Maranello to Michigan, using safety protocols developed for China and U.S. ventilator production operations launched in recent weeks. Cia

    Asked whether Ford would apply for loans from the U.S. government or the Federal Reserve to sustain its operations for longer if needed, a spokesman for the automaker said that unlike during the Great Recession – when financing dried up – there is still plenty of liquidity in the capital markets.

    “We have a broad range of options” for obtaining additional financing if needed, the spokesman said.

    As of April 9, Ford said it had about $30 billion in cash on its balance sheet, including $15.4 billion it borrowed last month against two existing credit lines.

    Ford said any decisions on restarting its plants will be made “in cooperation with local unions, suppliers, dealers and other stakeholders.”

    In March, the company shuttered plants in North America and Europe due to the spreading pandemic.

    Earlier this month, the No. 2 U.S. automaker said its first-quarter U.S. sales had fallen 12.5% during the quarter. The U.S. market, with its highly profitable pickup truck and SUV segments, generates the overwhelming majority of Ford’s profits.

    Ford’s U.S. sales chief Mark LaNeve said on April 2 that Ford believes some level of government stimulus will be needed for American consumers once the COVID-19 pandemic recedes.

    Ford said it expects its first-quarter adjusted loss before interest and taxes to be about $600 million, compared with a profit of $2.4 billion a year ago.

    The company said it expects to report revenue of about $34 billion for the quarter.

  • Passenger Vehicle Sales Down  In March 2020

    Passenger Vehicle Sales Down In March 2020

    The entire nation is under lockdown since March 24 which has been taking a toll on businesses. With both sales and production being stopped, auto sales have taken serious hit recording a sales decline of 44.95 percent in March 2020 selling 10,50,367 units last month as compared to 19,08,097 units which were sold in the same month a year ago. Sales of passenger vehicles went down by 51 percent in March 2020 selling 143,861 units as compared to 2,91,861 units a year ago. Sales of passenger cars went down by 52.12 percent at 85,229 units as compared to 178,019 units while UV sales slumped by 44.67 percent at 51,569 units as compared to 93,206 units in the same month a year ago. However, it’s the Van segment that witnessed the steepest decline at 69.88 percent selling 6216 units as compared to 20,636 units in March 2019.

    Two-wheelers sales too went down by 39.83 percent at 866,849 units against 14,40,593 units sold in the same month last year while three-wheeler sales went down by 58.34 percent in the same month at 27,608 units as compared to 66,274 units sold last year. Sales of commercial vehicles took the worst hit dropping by 88.05 per cent at 13,027 units as compared to 109,022 units sold in March 2019.

    Speaking on the sales performance, Rajan Wadhera, President- SIAM said, “The month of March 2020 was one of the most challenging months for the Auto sector as the 21-day lockdown resulted in bringing the production and sales of vehicles to a standstill in the last week. As the revenues took a severe hit, the OEMs struggled on meeting fixed cost and working capital requirements. The industry was already reeling under severe de-growth and the pressure of disrupted supply chain, which was followed by a majority of the auto companies announcing a shutdown of their manufacturing units in the last week of March 2020, due to concerns over ensuring workplace safety & health of their employees. As per our estimates at SIAM, Auto industry is losing Rs 2,300 crore in production turnover for every day of closure.

    Owing to the prolonged slowdown that had gripped the industry for the last 15 months, sales in FY2020 also remained subdued recording a decline of 17.96 percent selling 2,15,48,494 units as compared to 2,62,66,179 units sold a year ago. The PV segment witnessed a decline of 17.82 percent at 27,75,679 units as compared to 33,77,389 units. In the same period, sales of two-wheelers went down by 17.76 percent at 1,74,17,616 units as compared to 2,11,79,847 units last year while three-wheelers sales declined by 9.19 per cent at 6,36,569 units as compared to 7,01,005 units. CV sales went down by 28.75 per cent at 7,17,688 units against 10,07,311 units. Sales of quadricycles in the same month went up by 50.24 percent at 942 units as compared to 627 units sold in FY2019.

  • Daimler To Restart German Factories From April 20

    Daimler To Restart German Factories From April 20

    Mercedes-Benz maker Daimler said Wednesday it plans to restart work at factories in Germany from April 20, after a weeks-long interruption due to the coronavirus pandemic. “In a few selected factories, we are implementing a coordinated restart of production,” the group said in a statement. “From April 20 this will affect the car motor factories in Germany, Mercedes-Benz car factories in Sindelfingen and Bremen and the vans factories.” Truck and bus sites will also open from the same date.

    But Daimler also said that it would extend shorter hours for its German workers until April 30, impacting “the majority of production… as well as administration”.

    In the first quarter, Daimler’s worldwide sales slumped 15 percent year-on-year, with Mercedes-Benz cars alone seeing a 20-percent drop in China and 16 percent in Europe.

    Coronavirus “heavily impacts sales on a global scale,” finance chief Harald Wilhelm said in a conference call Wednesday, adding “the overall economic impact cannot yet be assessed with sufficient certainty”.

    Meanwhile, Volkswagen said Wednesday that it would begin increasing production from April 14 in “a few” factories building car components, which are currently operating at much-reduced capacity.

    Most of the auto behemoth’s sites are closed until at least April 19, but the group wants “to safeguard the supply of components to plants in China” after the Easter weekend.

    “Further details of the mode of operation are expected after Easter” for other components and vehicle sites, VW said.

    Daimler rival BMW said Tuesday that it would extend a production stop until April 30, while Ford’s European factories are on hold until at least May 4.

    Car sales plummeted in several European countries in March as far-reaching restrictions on daily life to limit the spread of the coronavirus bit.

    Experts expect still-worse performance in April, while rating agency Moody’s forecast a 14-percent contraction in the global car market for 2020 as a whole.

    But the picture is brightening in Asia, with “significant growth in demand” in China and South Korea, Mercedes-Benz sales director Britta Seeger said in a statement.

    BMW also sees “first signs of a rebound” in China, sales chief Pieter Nota said Tuesday.

  • Toyota Extends North American Plant Shutdown

    Toyota Extends North American Plant Shutdown

    Toyota Motor said Wednesday it plans to reopen its North American auto plants on May 4, extending its current shutdown by two additional weeks.

    The Japanese automaker cited the ongoing COVID-19 pandemic and decline in vehicle demand to extend the halt of production at all of its automobile and components plants in Canada, Mexico and the United States.

    Toyota will not furlough its direct employees but has asked its hourly plant employees to take two days out of the 10-day extension as paid time off or they can go without pay if they don’t have accrued leave.

    The Toyota Vellfire is a luxurious MPV and is the perfect vehicle for celebrities, movie stars and the likes. It is full-sized panel van and it is loaded with all sorts of creature comforts. We spent a scant amount of time with the new Vellfire an…

    For Toyota’s 5,000 workers provided by outside agencies, Toyota is releasing those workers back to their agencies. Toyota will continue to pay the benefits of those workers for the time being, and they may be eligible for unemployment.

    On Tuesday, Honda Motor Co and Nissan Motor Co on Tuesday said they had furloughed thousands of workers at their U.S. operations as the coronavirus pandemic slashes demand for cars in the country.

    A spokesman for Honda, which employs about 18,400 workers at plants in Alabama, Indiana and Ohio, said the Japanese automaker would guarantee salaries through Sunday, has suspended operations on March 23. The plants will be closed through May 1.

    Nissan said it was temporarily laying off about 10,000 U.S. hourly workers effective April 6. It has suspended operations at its U.S. manufacturing facilities through late April due to the impact of the outbreak.

    Automakers are facing a dramatic drop in sales in the United States, the world’s second-largest car market after some states barred dealers from selling new cars while “stay-at-home” orders are in place. Fiat Chrysler Automobiles NV on Monday extended its shutdown of U.S. and Canadian plants until May 4.

  • European Motorcycle Industry Appeals For Extension Of Euro 5 Deadline

    European Motorcycle Industry Appeals For Extension Of Euro 5 Deadline

    The global motorcycle industry has been hit hard by the novel coronavirus outbreak. In Europe, brands like Ducati, KTM, BMW and MV Agusta have all halted production in the battle against the COVID-19 outbreak. A few European motorcycle brands are citing supply chain slowdowns and retail shutdowns, in order to justify delaying the Euro 5 emission standards by as much as six months, or up to even a year. From January 1, 2021, every new motorcycle sold in the European Union will have to comply with the Euro 5 regulations.

    The European motorcycle industry association, ACEM, is working on possible solutions but has also appealed for an extension of the Euro 5 deadline. The ACEM has reportedly started pushing the EU to postpone the final adoption date of Euro 5 by a full 12 months, giving manufacturers, as well as dealers, another year to clear stock of Euro 4 models and prepare their Euro 5 successors. In a statement, the ACEM said that it has pushed for the delay in the deadline.

    “The ongoing pandemic o 5 models. This disruption, in addition to virus containment measures taken in factories, has led to a near-complete standstill of the industry in many countries. The recent lock-down and stringent measures to contain the pandemic have also paralyzed motorcycle retail business activity. This is progressively affecting all European markets, creating unsettling uncertainties for the motorcycle sector. The COVID-19 crisis is placing dealerships, most of which are small family-run operations, under extreme financial hardship. Immediate cash flow concerns will need to be addressed through support measures in every impacted country.

    “Against this background, the motorcycle industry urgently calls on the European Commission and national administrations to swiftly adopt all necessary measures to help the sector come through this unprecedented crisis. The motorcycle sector is ready to work with all policymakers to achieve this aim, protecting the 300,000 jobs linked to this industry.”

    Unlike the BS6 regulations in India, in Europe, manufacturers have been given a lot of time, with the deadlines chalked out well in advance, with the final implementation laid out in 2013. But now it seems that a lot of modern motorcycles have yet to be approved to meet the Euro 5 standards. Some of those motorcycles will need minor updates, but others will need to be completely revamped, and in the current situation it appears to be difficult that these models will be allowed to be sold after December 31, 2020

    Many current motorcycle models, across brands like Ducati, BMW, Kawasaki, Yamaha and Suzuki still don’t meet the Euro 5 regulations, although some are described as “Euro 5-ready”, meaning they will still need to go through final testing to get the Euro 5 certification. What is clear is that the motorcycle industry across the world will be under pressure, even if, and when, the world moves out of the coronavirus pandemic. So far, it’s still not clear how the European Union will react to pressure to delay the introduction of Euro 5. Either way, the industry will be under pressure and will take several months to make a turnaround, that is certain.

  • Honda, Fiat Chrysler Aim To Restart production in  U.S.

    Honda, Fiat Chrysler Aim To Restart production in U.S.

    Honda Motor Co and Fiat Chrysler Automobiles NV said on Monday they hope to restart U.S. and Canadian auto production in May amid the ongoing coronavirus pandemic.

    The Japanese automaker halted production on March 23 and said it will extend the halt through May 1.

    Fiat Chrysler said Monday it “intends to progressively restart its U.S. and Canadian manufacturing facilities beginning May 4.”

    U.S. President Donald Trump last week extended the guidelines aimed at slowing the spread of the coronavirus to April 30.

    US auto industry executives say it will be nearly impossible for companies to resume production before the end of the month

    Several U.S. auto industry executives told Reuters on Monday it will be nearly impossible for companies to resume production before the end of the month — and there is no assurance automakers will be able to resume production in early May. Other automakers plan to extend current production halts later this week, automakers told Reuters.

    It will also take auto suppliers time to resume production. In an internal estimate, Ford Motor Co said last week it believed 600,000 U.S. industry auto sales may have been lost in March because of the coronavirus outbreak.

    The threat from the coronavirus crisis closed in on the global auto industry on Thursday, as Fiat Chrysler Automobiles NV warned that a European plant could shut down within two to four weeks if Chinese parts suppliers cannot get back to work.

    Honda noted many consumers are unable to purchase vehicles and said it “must continue to suspend production in order to align product supply with a lack of market demand.” Some states have barred car dealers from selling new cars while “stay at home” order are in place.

    Last week, Nissan Motor Co said it would extend its U.S. production halt into late April. Toyota Motor Corp has halted U.S. and Canadian production through April 17.

    Ford said last week it was postponing its plan to restart production at its North America. Ford had been aiming to resume production at several key U.S. plants on April 14, but then said it would now do so at dates to be announced later. Ford said Monday it is “continuing to assess public health conditions, government guidelines and supplier readiness to determine when the time is right to resume production in our North American plants.”

    General Motors Co has shuttered its plants indefinitely and has not provided a date for vehicle production to restart.

    Automakers are working on additional employee protections to add when they restart, including new personal protective gear, staggering shift starts, more frequent cleanings and new social distancing rules.

    Fiat Chrysler said it will redesign “work stations to maintain proper social distancing and expanding the already extensive cleaning protocols at all locations.”

  • Kia Compact Vehicles Contractor Suspends Production

    Kia Compact Vehicles Contractor Suspends Production

    A South Korean contract manufacturer for Kia Motors’ compact vehicles has suspended production, a company official said on Monday, citing a drop in overseas demand as the coronavirus outbreak has spread across Europe.

    Donghee Auto, which produces Kia’s Picanto and Ray models, has suspended production at its plant in Seosan, South Korea, until April 13, the official said.

    Of the 195,516 Picanto vehicles produced in South Korea last year 73% were exported, mostly to Europe, Korea Automobile Manufacturers Association data shows.

    Hyundai Wia, which produces engines for the Picanto and Ray, also said in a regulatory filing on Monday that it will suspend operations at its plant in Pyeongtaek, South Korea, from April 6 to April 9.

    Kia did not reply immediately to a request for comment.

  • Fiat Chrysler Starts Ventilator Component Output In Italy

    Fiat Chrysler Starts Ventilator Component Output In Italy

    Fiat Chrysler Automobiles (FCA) has begun producing ventilator parts to help Italy’s Siare Engineering boost its output of the medical equipment needed to treat patients during the coronavirus crisis, the carmaker said on Friday.

    Carmakers around the world are ramping up the production of critical healthcare products and machines to respond to the enormous demand during the pandemic.

    Italy, the epicenter of the virus outbreak in Europe, had asked Siare to triple its normal monthly production as a part of government efforts to increase the number of intensive care beds.

    FCA said that with the support of luxury group Ferrari and holding company Exor, which controls both carmakers, it had produced the first electro valves, a key part in ventilators, at its plant in Cento, in northern Italy.

    The Cento plant is usually used to produces high-performance car engines for the global market. It had been closed because of the coronavirus but has partially reopened for this project.

    “With the additional supply of electro valves from Cento, Siare estimates that it will be able to reduce total production time for ventilators by as much as 30-50%”, the statement said.

    In addition to the production of the electro valves, a team of specialists from FCA is also working alongside Siare staff at their production facility near the city of Bologna.

    “The objective is to help increase Siare’s total production, with a gradual scaling up of daily output beginning from the first week of April”, FCA said.