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Tag: automotive

  • Aston Martin Lagonda Appointed New Director of Investor Relations

    Aston Martin Lagonda Appointed New Director of Investor Relations

    Aston Martin Lagonda Global Holdings plc (AML) has today announced the appointment of Charlotte Cowley to the position of Director of Investor Relations. Charlotte joins Aston Martin from Burberry plc where she served as Vice President, Investor Relations, and was instrumental in establishing their dedicated IR function. Before this, Charlotte worked in corporate broking at UBS and prior to that, equity research at Credit Suisse.

    In this newly created role, Charlotte will lead the investor relations activities for the company and will report to EVP and CFO Mark Wilson, joining during January 2019.

    Aston Martin EVP and CFO Mark Wilson said: ‘Strengthening our Investor Relations team is a key priority for the business following our successful listing on the London Stock Exchange. Charlotte will bring significant experience to the company at this exciting time in our history. I am delighted to welcome Charlotte to the team as we continue on our execution of our Second Century Plan.”

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  • Honda raises forecasts on solid motorbike sales

    Honda raises forecasts on solid motorbike sales

    Japan’s Honda Motor said Tuesday it was raising annual forecasts after first-half profits rose over 19 percent on motorcycles sales in Asia. Japan’s third largest automaker now expects net profit to reach 675 billion yen ($6 billion) for the fiscal year ending March, down from last year but a still an increase from its forecast last quarter.

    It also revised up annual sales to to 15.8 trillion yen.

    The company said it was seeing strong growth in the sales of motorbikes in Indonesia, Vietnam and other Asian countries, and touted cost-cutting efforts.

    It said net profit in the April-September period was up 19.3 percent to 455.1 billion yen while operating profit jumped 21.7 percent to 513.9 billion yen.

    Sales rose 5.0 percent to 7.87 trillion yen.

    “Honda enjoyed strong sales of motorcycles… This offset the negative impact of floods in Mexico on its production,” Satoru Takada, an analyst at TIW, a Tokyo-based research and consulting firm said ahead of the results.

    Honda was forced to temporarily halt operations at its largest auto factory in Mexico due to floods in June, and said at the time that it would lose 50 billion yen as a result.

    Japanese automakers remain on edge over talk of U.S. tariffs, though immediate action by Washington has been put off for now.

    “Japanese carmakers are also bracing for the impact of U.S. trade disputes with other major economies,” Takada said.

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  • GM chairman might visit Korean facility

    GM chairman might visit Korean facility

    General Motors Chairman and CEO Mary Barra hinted at visiting Korea soon amid conflict over the spinning off of the Korean unit’s R&D division. If the trip happens, it would be Barra’s first visit to the Korean operations since she became chairman in 2016.

    GM Korea head Kaher Kazem reiterated the company’s commitment to the market during a government audit held Monday. “I would like to visit our Korea operations at some point soon,” Barra wrote in a letter sent to labor union head Lim Han-taek on Oct. 24.

    Lim had requested a meeting with Barra over GM’s decision to spin off the R&D division.

    Since July, GM has been pushing to build a separate R&D center tentatively named GM Korea Technical Center. Management says it will raise work efficiency and competitiveness.

    The labor union has opposed the idea, claiming a separate R&D center will eventually result in the ending of production in Korea, resulting in massive layoffs. On Oct. 19, the automaker approved the plan in a board meeting despite the opposition.

    In the letter, Barra emphasized GM’s dedication to its Korean operations.

    “The specialized unit will benefit from focused management, increased transparency on cost and improved operational efficiency,” Barra wrote in the letter.

    “We think the demerger is an important step to allow both the engineering services company and the manufacturing unit to stand on their own as profitable, viable businesses.”

    During a government audit held Monday at the National Assembly, GM Korea CEO Kazem said the company “has no plan to withdraw from Korea.” His comments assured lawmakers the spinoff is part of GM’s plan to stay in Korea longer than the initially promised 10 years.

    “In fact, we are establishing a long-term commitment to GM Korea. [Building a separate R&D center enables] us to not only upgrade but also introduce new models. We are committed to building a very long-term future for GM Korea,” Kazem said. “The framework agreement says 10 years, but we are looking at longer than that.”

    Kazem added that the company is engaging a number of parties on the possible redevelopment of the currently shut-down Gunsan factory, but he didn’t reveal details. He said he would “review” whether the plan for the Gunsan factory site could be included in the initial framework agreement.

    GM abruptly shut down the Gunsan factory in May. GM Korea has since been beset by speculation of completely shutting down in the country.

    The company and the Korean government have decided to jointly invest 7.7 trillion won ($6.7 billion) to save the ailing unit. GM also promised to stay in the country for the next 10 years.

    A GM Korea official said that Barra’s visit to the country is not yet confirmed.

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  • Hyundai to set up $100 million hydrogen fund in China

    Hyundai to set up $100 million hydrogen fund in China

    Hyundai Motor has partnered with a Chinese institute to set up a $100 million fund for local investments in hydrogen technologies and related industrial infrastructure, the company said Monday. Hyundai Motor and the Beijing-Tsinghua Industrial R&D Institute have kicked off the Hydrogen Energy Fund, with venture capitalists from Asia, Europe and the United States expected to join as investors, Korea’s largest carmaker said in a statement.

    “The fund, once fully set up, will be used in the infrastructure needed for the hydrogen industry and venture startups with core hydrogen technologies,” the statement said.

    Yield Capital, an investment organization under the Chinese institute, will be responsible for raising funds and managing them, it said.

    Hyundai has expanded investments in hydrogen fuel-cell electric vehicles, such as Nexo, while expanding partnerships with global companies to gain a share in the next-generation car markets.

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  • Vietnam’s VinFast in deal with PV Oil for electric car charging stations

    Vietnam’s VinFast in deal with PV Oil for electric car charging stations

    VinFast on Thursday signed a memorandum of understanding with PetroVietnam Oil Corp. to build charging stations for its electric cars and scooters.

    The company, a unit of Vietnam’s largest conglomerate Vingroup JSC, is building a $3.5-billion scooter and automobile complex in northern Vietnam, with its first production electric scooters slated to hit the streets late this year.

    Thursday’s agreement will pave the way for VinFast to deploy charging stations at 20,000 of PV Oil’s existing service stations in Vietnam by 2020, VinGroup said in a statement.

    This is part of VinFast’s plan to launch between 30,000 and 50,000 charging stations nationwide by 2020, it said.

    VinFast customers will be able to charge their vehicles or change their batteries at these stations, it added.

    VinFast Chief Executive Officer Jim Deluca said in an interview earlier this month that the firm would produce 250,000 electric scooters a year alongside 250,000 cars, in an ambitious production target that is set to eventually increase to 1 million units each a year.

    The company has started on the development of a battery electric vehicle with Germany’s EDAG Engineering.

    Vingroup, which has a market value of about $13.2 billion, also has businesses in property, hospitality, entertainment, retail, healthcare, education, agriculture and smart phone production.

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  • Hyundai Motor net profit plummets 67%

    Hyundai Motor net profit plummets 67%

    Hyundai Motor’s operating profit plummeted 76 percent on-year in the third quarter as a recall in the U.S. and sluggish growth in major markets hurt the automaker’s bottom line. Korea’s No. 1 carmaker by sales announced Thursday that it posted 289 billion won in operating profit in the July-Sept. period.

    Its net profit was 306 billion won, down 67.4 percent on-year.

    “To fortify quality control, Hyundai Motor rolled out a recall related to airbags and engines which resulted in a 500 billion won one-time cost realized in the Q3 report,” said a Hyundai Motor official.

    Operating costs totaled 3.4 trillion won in the third quarter, according to the carmaker, which is 8.6 percent more than during the same period last year.

    Despite good sales in Europe and emerging markets like Brazil and Russia, low demand in the U.S. and China dragged down overall sales. It sold 1.12 million units globally in the third quarter, 0.5 percent less than during the same period last year.

    The domestic market got a bost from the new Santa Fe SUV, but a decreased number of operating days at dealerships resulted in Hyundai Motor selling just 171,443 units, a 1.4 percent drop compared to last year. Chinese sales dropped by 3.7 percent on-year, selling 181,000 units. Sales in the U.S. dropped by 4.1 percent on-year to 302,000 units.

    Hyundai Motor expects profitability to improve in the fourth quarter and going into next year with the launch of new SUV models and a reduction in costs.

    “In the fourth quarter, the new Santa Fe SUV and an upgraded Tucson SUV will launch in the U.S.,” said a Hyundai Motor official.

    “The implementation of a new platform starting next year will help reduce costs and raise efficiency as well.”

    Hyundai Motor shares fell by 5.98 percent to 110,000 won on Thursday as of press time.

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  • Why did Dyson pick S’pore for electric car?

    Why did Dyson pick S’pore for electric car?

    When James Dyson, the billionaire British inventor of the bagless vacuum cleaner, unveiled a plan to build an electric car plant in Singapore, it raised a few eyebrows.

    Not only does the land-starved city state have some of the highest average salaries in the world, but it has been nearly 40 years since Ford closed its factory in Singapore, effectively ending car production there.

    “It is a bit of a surprise because of the cost base and no other car manufacturing plant being here,” said Shantanu Majumdar, a regional director at consultancy JD Power.

    Dyson said on Tuesday the decision was based on supply chains, access to markets and the availability of expertise, which offset the cost factor.

    But what other factors could have influenced the decision?

    Why not head straight to the biggest electric vehicle market in the world, China, like rival Tesla?

    Here’s a look at some of the less obvious pros and cons:

    1. High Costs vs Generous Incentives
    Compared with other global cities, Singapore has some of the highest average salaries in the world after tax, according to studies by Deutsche Bank. Land available for industrial use is scarce and expensive, and it ranks highly in general cost-of-living indexes.

    But aside from its skilled engineers and scientists, for a high-tech firm like Dyson, Singapore offers generous incentive schemes. Some schemes include tax breaks for five years, which can be extended, and grants that can cover up to 30% of the cost of projects to improve business efficiency.
    Singapore declined to comment on whether Dyson benefited from any such schemes.

    To shore up productivity in its manufacturing sector, which makes up less than quarter of its output, Singapore has focused efforts on attracting high-end manufacturers and those who adopt automated production processes.

    2. Small Market vs China Gateway
    Dyson may have decided to make electric cars in Singapore, but few are likely to be driven here or anywhere in Southeast Asia for that matter.

    The number of privately owned electric vehicles in Singapore is in single digits, and Tesla CEO Elon Musk has criticised Singapore for not being supportive of electric vehicles.

    Singapore is one of the world’s most expensive places to own a car because the government strictly controls the vehicle population by charging owners a variable rate for the right to own and use a vehicle for a limited number of years.

    In Southeast Asia, only 142 electric vehicles are forecast to be sold this year, data from consultant LMC Automotive shows. By contrast, sales in China are forecast to almost reach 700,000 vehicles this year, more than double the combined sales from the United States and Europe.

    But with one of the world’s busiest ports on its doorstep, Dyson can roll a car off the production line in Singapore and within the hour it can be on its way to China or other sizeable electric vehicle markets like South Korea or Japan.

    Dyson products – which include bladeless fans, air purifiers and hair dryers – are becoming a premium brand in China and other Asian markets. Asia accounted for over 70% of its growth last year, the firm said.

    3. Familiarity vs New Frontier
    Dyson’s history with Singapore probably also played a role. It already employs 1,100 people in Singapore, making 21 million digital electric motors a year. It also has manufacturing hubs in Malaysia – connected to Singapore via two road bridges – and the Philippines.

    “This is obviously a surprise but since Singapore is at the heart of Southeast Asia, Dyson would be best placed to source many components from neighbouring countries and, locally, assemble and manufacture the high-tech car here,” said a corporate banker who deals with multinational firms in the region.

  • Volvo shifts its safety strategy for self-driving world

    Volvo shifts its safety strategy for self-driving world

    In Swedish, “safety” translates to “säkerhet,” but for employees of one of Sweden’s biggest employers, it might as well translate to “Volvo.”

    The automaker, owned by Zhejiang Geely Holding Group of China, is fiercely protective of its reputation in safety. But in an age of autonomous driving and advanced sensor technology, Volvo’s top safety experts are increasingly navigating a blurry line between driving safely and being driven.

    “We’re very focused that you as a driver know that you’re in charge, [and] not giving you so much support that you question who’s in charge,” said Malin Ekholm, director of the Car Safety Center at Volvo Cars headquarters in Gothenburg, Sweden. “It’s nudging rather than giving the feeling of taking over.”

    With a bevy of new tools to ensure passenger safety, the automaker’s safety strategy is shifting from passenger protection to accident prediction and avoidance, Ekholm said.

    New technology, tools

    Volvo has a well-developed apparatus in safety research.

    Its safety center, created in the 1970s, runs crash tests and shares information with Swedish road authorities to document accidents and crashes, so that engineers can better understand scenarios they must guard against.

    But the rise of autonomous and connected-vehicle technology, as well as digital simulation technology used to pioneer self-driving vehicles, have augmented researchers’ approach to safety. Now, for instance, in addition to crash tests, vehicle safety systems run through nearly 30,000 accident simulations.

    Volvo’s increasing investment in autonomous r&d — including a recently expanded Silicon Valley operation — also increases the capabilities of its advanced safety team. Volvo’s City Safety package, for instance, incorporates a front-facing camera to recognize pedestrians, bicyclists and oncoming vehicles and deploy automatic emergency braking to avoid collisions.

    The “sensors and cameras were there, so we could use it,” Ekholm said.

    Avoiding accidents

    Increasing use of advanced technology is shifting Volvo safety researchers’ approach from mitigating accidents through restraint devices to predicting and preventing accidents.

    “More and more, we need to help you avoid the crash,” Ekholm said. Researchers, she said, are asking how automakers can support drivers so the motorists never encounter critical situations.

    Part of the solution is supplying more information on potential hazards through the use of connected technology. In Sweden, the carmaker uses vehicle-to-vehicle technology to send warnings about low-friction roads or hazard-light detection to oncoming traffic.

    But a larger focus is on human behavior, often in response to semi-autonomous technology that lulls drivers into a false sense of security.

    The automaker’s semi-autonomous Pilot Assist system, for instance, is intended to reduce fatigue on long trips, but can be abused if drivers fail to keep their attention on the road. Ekholm has responded by expanding the company’s safety team to include human behavior and biomechanical researchers.

    As vehicles become increasingly automated, Volvo’s researchers will need to pick and choose where the technology can enhance the company’s safety standards.

    “Autonomous has so many aspects to it,” Ekholm said. “What we focus on is the safety research.”

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  • BMW expands recall on fire risk to 1.6 million diesel vehicles

    BMW expands recall on fire risk to 1.6 million diesel vehicles

    BMW is recalling about 1.6 million diesel cars to fix a potential fire hazard in their engines, expanding repairs from just under half a million vehicles in Europe and Asia. The voluntary service action follows a BMW investigation that found coolant could leak from the car’s exhaust recirculation unit. The defect can lead to sparks while driving and cause fires in “in extreme cases,” the automaker said Tuesday in a statement.

    South Korea’s government, after reports of 40 fires this year, asked drivers to keep vehicles off roads until undergoing checks. Police also raided the automaker’s office in Seoul to probe the safety issue, after videos of cars engulfed by fire went viral.

    The vehicles affected — diesels with four- and six-cylinder engines — were produced between 2010 and 2017, BMW said.

    After the initial recall announced in August, BMW’s internal investigation found more vehicles with similar technical setups. The company said it will replace the components as necessary.

    BMW last month cut its profit forecast, blaming an increase in warranty provisions alongside trade tensions and pricing pressure.

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  • GM Korea votes to spin off R&D unit

    GM Korea votes to spin off R&D unit

    A GM Korea shareholders’ meeting Friday decided to spin off its R&D and design department, reigniting conflict with its labor union and the state-owned Korea Development Bank (KDB), the automaker’s second-largest stakeholder.  “The plan to establish a dedicated engineering unit, GM Technical Center Korea, was approved during the shareholders meeting,” GM Korea said in a statement.

    However, the decision is guaranteed to be controversial since KDB, which owns 17-percent of GM Korea, intended to vote against the spinning off of R&D and design unit from production but missed the shareholders’ meeting.

    “We received notification of the shareholders’ meeting, but the decision was made in our absence,” an official at the KDB bank said. “We were not able to exercise our veto rights since we weren’t there.”

    GM Korea’s unionized workers occupy the hallway leading to the GM Korea chief executive’s office at the company’s headquarters in Bupyeong District, Incheon, on Friday in an effort to stop a shareholders’ meeting from taking place

    It’s not clear why KDB representatives didn’t attend. KDB said it will be looking into the legality of the meeting.

    On Thursday, KDB released a statement saying it would ask GM Korea’s management to explain fully its decision to spin off the R&D and design center and decide whether to exercise its veto rights.

    The statement was released after a court in Incheon rejected KDB’s request for an injunction to stop the shareholders’ meeting.

    “Although we respect the judgment of the Incheon court, we have deep concerns about GM Korea’s push to spin off [R&D and design] without sufficient explanation or agreement from the interested parties during the shareholders’ meeting,” the bank said in the statement.

    GM Korea’s union claims the spin-off is the first step in a long-term plan to completely halt domestic production.

    KDB has the right to nullify any GM Korea decision to sell more than 20 percent of its total assets, which is supposed to prevent the U.S. automaker from pulling out of Korea or restructuring without the consent of the bank.

    That right, which expired in October 2017, was reinstated after GM and the Korean government reached an agreement in April.

    However, it’s not clear whether that veto right can be applied to spinning off units within GM Korea. There’s even arguments that the newly forming center may not account for 20 percent of the automaker’s total assets.

    The union tried to stop the shareholders’ meeting by occupying a hall leading to GM Korea CEO Kaher Kazem’s office in Bupyeong District, Incheon. The union earlier this week voted in favor of a walkout that will likely take place next week.

    A crisis that led to the shutdown of one of GM Korea’s four plants in Korea in May seemed to have been solved when GM and the Korean government reached an agreement after long negotiations to inject $7.15 billion into the struggling automaker. GM agreed on covering $6.4 billion while KDB put up $750 million. GM agreed to keep the local unit going for at least 10 years.

    But in July, GM Korea announced the spinning off of its R&D center, which will turn Korea into its global strategic development and design center for next generation models.

    Meanwhile, production of compact vehicles will end in 2022 and factories will concentrate on SUVs.

    “The establishment of a dedicated GM Korea Technical Center is an important development in continuing our organization,” said GM Korea CEO Kazem in a letter sent to employees on Monday, adding that the new center would help to “more effectively respond to and secure and execute global engineering projects.”

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  • Samsung Launches New Chipsets To Make Cars Smarter

    Samsung Launches New Chipsets To Make Cars Smarter

    Samsung Electronics, a part of the Samsung Group, has announced the introduction of two new chipsets or processors for the automotive segment for connected cars technology. Christened the Samsung Exynos Auto and Samsung ISOCELL Auto, the new chipsets claim to offer cutting-edge application processor and image sensor technology solutions to the road.  While the former Exynos will help manufacturers develop in-car apps for infotainment, advanced driving assistance systems, and telematics, the ISOCELL Auto is targeted at developing in-vehicle infotainment systems and telematics solutions.

    Talking about the two new chipsets, Kenny Han, vice president of Samsung’s Device Solutions Division said, “Samsung’s new automotive brand solutions, Exynos Auto and ISOCELL Auto, bring Samsung’s market-proven technologies to automotive applications with enhanced features and durability required by the market. With fast telecommunication, accurate sensing and powerful processing capabilities, Samsung’s Auto-branded solutions will enable new driving experiences to next-generation smart vehicles.”

    Processors from Exynos Auto range come in three sub-categories: Exynos Auto V series for advanced in-vehicle infotainment (IVI) systems, Exynos Auto A series for ADAS, and Exynos Auto T series for telematics solutions. On the other hand, Samsung’s ISOCELL image sensors are built on the company’s innovative pixel isolation technology, which provides greater visibility of the road and surroundings even in low-light environments, while enabling more precise identification of objects. The sensors also allow vehicles to perceive road conditions or potential hazards even when driving through tunnels or other high-contrast environments.

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  • BMW plans to take control of China joint ventures

    BMW plans to take control of China joint ventures

    German luxury carmaker BMW announced a plan to take control of its China joint-venture, the first foreign automaker to take advantage of Beijing’s new ownership rules for the sector. BMW will acquire a further 25 per cent stake in the venture with Brilliance China Automotive for €3.6 billion (US$4.2 billion), the company said, bringing its stake to 75 per cent by 2022.

    Foreign automakers have long been restricted to holding no more than a 50 per cent stake in their China operations, but Beijing decided to relax the ownership caps this year.

    The reforms are part of Beijing’s plan to further open its economy to foreign business, after years of facing pressure from the United States and Europe.

    But US and European business groups say the reforms have still not gone far enough, and have pushed for further opening.

    To force the issue, and to hit back at China for alleged theft of American intellectual property, US President Donald Trump has slapped tariffs on roughly half of the imports from China.

    The joint-venture “is the cornerstone of the BMW brand’s sustained success in its largest single market,” said Harald Kruger, BMW’s chairman.

    “BMW Group and Brilliance continue to set a good example of successful cooperation in China,” he said.

    TRADE WAR EFFECT

    The changes in ownership rules are a boon for foreign automakers which will gain a greater share of control and profits from their China operations, but hurt prospects for their Chinese partners.

    Brilliance China’s shares in Hong Kong have plummeted this year, and were suspended from trading on Thursday.

    The two companies had extended their joint venture contract until 2040 and announced a plan to pump €3 billion (US$3.5 billion) into expanding their auto plants in northeast Liaoning province – ramping up production capacity to 650,000 cars early next decade while creating 5,000 new jobs.

    BMW has been hit particularly hard by the US-China trade war with many of its SUVs imported from the US facing new 25 per cent taxes, while cars imported from other countries have benefited from China’s tariff cut for vehicles from 25 per cent to 15 percent.

    With the new production capacity, the China joint-venture will start to produce BMW vehicles like fully-electric BMW iX3 for export globally from 2020, BMW said.

    China’s auto market, the world’s largest, has faced headwinds this year as the economy slows.

    In August, China’s new vehicle sales continued to fall, following a drop in July.

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  • Vietnam to revise automobile industry laws

    Vietnam to revise automobile industry laws

    The Ministry of Industry and Trade (MoIT) has asked the Ministry of Finance to remove the special consumption tax for locally-manufactured auto parts.

    This is part of a recommendation document that MoIT sent to the finance ministry in order to revitalise domestic automobile industry in the future and reduce the import of autos.

    The MoIT said that it is needed to have more measures to help local automakers cut production cost and accelerate the product’s competition capacity as well as revising policies on tax and fees.

    The ministry wanted the finance ministry to exempt the import tax on materials for part and components manufacturers who invest in Việt Nam, which should be in association with their commitment on long-term investment, volume of products, technology transfer and use of local labour force.

    The MoIT also recommends the application of a tax payment guarantee for a period of eight months instead of the current 30 days.

    The MoIT expected the finance ministry to study to amend and supplement a number of the above contents, which were proposed by Thành Công Group, with regard to laws on value-added tax, special consumption tax, and corporate income tax, in addition to personal income tax and natural resources protection tax.

    Earlier, at the review conference of the industry and trade sector held in Hà Nội on January 15, General Director of Hyundai Thành Công Lê Ngọc Đức proposed that the MoIT, in co-ordination with the finance ministry, consider several recommendations as those mentioned above.

    According to Đức, in order to achieve the goal of developing the automobile industry in Việt Nam, the Government has issued decrees such as Decree 116 on conditions for production, assembly, import and business of warranty service, car maintenance, and Decree 125 that regulates the roadmap for import duty exemptions of parts and components for manufacturers who meet conditions such as emission standards, engine displacement capacity for the car with nine seats and less, passenger car and truck.

    However, he said such privileges were not strong enough to be of significant priority for locally-assembled autos to help them compete with complete built-up units imported from ASEAN.

    Under the ASEAN Free Trade Agreement (AFTA) commitments, a zero per cent tax has been applied on cars imported from the bloc with a localisation rate of 40 per cent or more in the country of origin from January 1.

    A MoIT report showed that the price of an automobile in Việt Nam is currently high in the region but its quality is lower than an imported one.

    “Locally-assembled autos in Việt Nam have a similar price doubling as those seen in regional countries and much higher than other countries which have a stable automobile industry such as Japan and the United States,” said the report.

    “The domestic automobile industry has not yet reached the standards of the real automobile industry because most are at the level of simple assembly; the production line mainly consists of four key stages including welding, painting, assembly and inspection. There is no co-operation, linkage and specialisation between automakers and assemblers and part suppliers. There is no such system used by material suppliers and large-scale parts and components makers.

    “The localisation rate of new autos is only between 7 per cent and 10 per cent on average (compared to the target of 40 per cent in 2005 and 60 per cent in 2010). Currently, locally-produced products with very low technological content are tubes, tires, chairs, mirrors, cables, plastic products and batteries,” the report pointed out.

    MoIT has on numerous occasions warned that if such privileges and incentives were not approved, the domestic automobile industry would find it difficult to compete with imported cars.

     

  • Peugeot launches joint venture to build cars in Algeria

    Peugeot launches joint venture to build cars in Algeria

    Peugeot maker PSA Group signed a joint venture agreement with three Algerian partners on Sunday to build cars in the North African country.

    The French carmaker said it would invest around 100 million euros ($117 million), equalling 49 pct of the joint venture’s capital.

    The joint venture will set up a plant in the western Algerian city of Oran, where French automaker Renault opened a plant in 2014.

    The Algerian partners are Condor Electronics, Palpa Pro and Entreprise Nationale de Production de Machines-Outils (PMO), PSA said in a statement.

    The plant will start some production next year and be fully operational in 2019, PSA said.

    The agreement was signed in Algiers as part of the France-Algeria joint economic committee (COMEFA), in the presence of French Foreign Minister Jean-Yves Le Drian and French Economy, Finance and Industry Minister Bruno Le Maire.

    They said France was seeking to boost investment in its former colony after losing ground to countries including China, Turkey and Italy.

    French firms including Renault, Alstom, and Sanofi were expected to sign deals in Algeria in the near future, Le Maire said.

    Algerian ministers present at the signing also said they hoped France would boost its investment in the North African country.

    “We need to point out the weakness of the partnership in our economic relations, including FDI (foreign direct investment),” Algerian Foreign Minister Abdelkader Messahel said.

    The agreement will enable PSA to achieve its goal of selling 700,000 vehicles in the Middle East and Africa region by 2021, PSA Executive Vice President, Africa-Middle East, Jean-Christophe Quemard said in the statement.

    Groupe PSA said it sold 383,504 vehicles in the region in 2016.

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  • BMW says shortage of parts from Bosch hampers production

    BMW says shortage of parts from Bosch hampers production

    German carmaker BMW said a shortage of steering gears supplied by Robert Bosch slowed production of several of its compact and mid-sized models and caused stoppages at its plants in South Africa and China.

    “Our supplier Bosch is not currently able to provide us with a sufficient number of steering gears for the BMW 1 Series, 2 Series, 3 Series and 4 Series,” BMW said in a statement on Monday.

    BMW plants in Tiexi, China and Rosslyn, South Africa have extended or pulled forward planned interruptions to production, the carmaker said.

    “We are taking advantage of the flexibility of our processes to minimize economic damage. We expect that Bosch, as the responsible supplier, will compensate for damages,” BMW said.

    Bosch meanwhile blamed the problem on a sub-supplier in Italy, which it did not name.

    “One main component of the steering system is the housing; which Bosch procures from a sub-supplier in Italy. We are currently experiencing delivery problems with this supplier,” it said in an e-mailed statement.

    It said Bosch, BMW and the sub-supplier were doing all they could to resolve the delivery bottlenecks.

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