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Tag: car

  • Hyundai Names Its New Hatchback Grand i10 Nios

    Hyundai Names Its New Hatchback Grand i10 Nios

    Hyundai has named the new-gen Grand i10 as the Grand i10 Nios. The car is set to be launched in India on August 20, 2019. The Grand i10 Nios name is only for India though, worldwide this car will be called the i10. The Grand i10 Nios is the 3rd Generation of the legendary brand ‘i10’ and will co-exist with Grand i10. Hyundai has kick-started bookings for the car in India across its dealerships in the country and the booking amount is set at ₹ 11,000.

    The new Grand i10 Nios gets Hyundai’s Signature ‘cascading grille’ which gives it a wider and stronger appeal to the front while rear gets a low and wide proportioned bumper gives it a sportier look. The compact yet spacious interiors with upper C pad appearing to be floating on the lower C Pad and the door trim character line flowing into the C pad gives a wider and spacious interior feel.The cabin gets a dual-tone treatment with black and beige. The steering wheel too gets a bit of chrome element on it making it looks a bit more sporty. But right in the centre of it all sits the touchscreen infotainment system. It’s likely to get Apple Carplay and Android Auto. The instrument cluster will be part analogue and part digital as well, giving the Hyundai Grand i10 Nios a sporty appeal. It will also get automatic climate control. From what we can see, the car will come with ABS and dual airbags as standard.

    SS Kim, MD & CEO- Hyundai Motor India Ltd said, “Hyundai Motor India has created benchmarks in Indian automobile industry by introducing Cutting-edge technologies and Best-in-segment world-class products for past 21 years. We are glad to present the All New 3rd Generation Grand i10 Nios, that blends the intrinsic and intuitive beauty of the car with unique design sense constantly changing and fulfilling our customers’ expectations. With the new Grand i10 Nios, we have created a new paradigm ensuring to maximize our customers’ emotional values in the perfect harmony with the four elements of Hyundai Design Identity: ‘Sensuous Sportiness’, such as Proportion, Architecture, Styling and Technology.”

    The Hyundai Grand i10 Nios is likely to come with a petrol and diesel powertrain but the company has not yet confirmed the engine line up and we’ll know more closer to the launch of the car

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  • Kia Seltos Starts Arriving At Dealerships Across India

    Kia Seltos Starts Arriving At Dealerships Across India

    Kia Motor India is all set to introduce its first product – Seltos – later this month and the compact SUV has started arriving at dealerships across the country. The Kia Seltos was unveiled to the public at the company’s Hyderabad dealership recently, along with Bangalore, Ahmedabad and Siliguri among other major metros. Kia is commencing operations with 256 touchpoints across 160 cities pan India in a bid to reach out to customers more effectively right from the start. The Kia Seltos is scheduled for launch on August 22, 2019, while bookings are already open for a token amount of ₹ 25,000.

    Speaking at the inauguration of the dealership in Hyderabad, Manohar Bhat, Vice President and Head of Sales & Marketing said, “Kia Motors oozes contemporary and stylish design language to make sure that the customer feels this luxury with ease. We have a great product and now to show our care for the customers, we are prepared to provide world-class vehicle maintenance and repair services with the availability of spare parts across the country. Entering India as a global premium brand, we understand the expectations of the customers, so we are prepared to ensure optimum service quality and customer satisfaction.”

    Located in Hitec City and Nagole, Automotive Kia is a 5000 sq.ft. facility that will include sales, service and spares under one roof. The Hyderabad dealership is one of the company’s 192 dealerships that are currently operational. The manufacturer’s 256 touchpoints will be operated by Kia dealer partners and promise a state-of-the-art experience through Internet of Things (IOT) technology. The company will also connect with customers via the Kia Link App that will notify owners about upcoming service reminder, and also set an appointment with their preferred dealer via the Dealer Management System (DMS) on the app. Kia has also partnered with eight leading banks for financing solutions.

    We’ve already had a close look at the Kia Seltos at the global show earlier this year and only the fine details of the SUV are yet to be revealed including the pricing. The Seltos looks promising with a butch yet urban design language and a host of features including connected car tech, wireless charging, mood lighting, electric sunroof, rear share curtain, 360-degree camera, and a whole lot more.

    Power will come from the new Smartstream family of engines that includes the 1.4-liter turbocharged petrol and 1.5-liter petrol and diesel engines that will be BS6 ready right from the start. The compact SUV will be available with four transmission options including a 6-speed manual, Intelligent continuously variable transmission (IVT), 7-step DCT, and a 6-speed automatic.

    The Kia Seltos registered an impressive 6046 bookings on the first day itself and the manufacturer has a capacity of three lakh units per annum at its newly developed manufacturing facility in Anantapur, Andhra Pradesh. The Seltos will be the first offering from Kia in India, which will be followed by a new car in every six to nine months, lining up at least five vehicles by 2021.

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  • My Audi Connect App Introduced In India

    My Audi Connect App Introduced In India

    There is no denying the fact that connected cars are the future and whoever gets it first in the segment, definitely has the exclusivity advantage to an extent. In the luxury car market, its Audi which have come up with a new connected app that not only helps you access your car 24×7 but also offers a range of exciting features. However, Audi customers will need to shell out ₹ 19,999 more for the package. The app represents the digital connection between the owner, vehicle and infrastructure and provides real-time information about the vehicle which can be accessed from any part of the world as long as you have an active internet connection.

    The My Audi app is broadly divided into five categories- Safety and Security, Driver’s Behaviour, Lifestyle, Geo-Location and Utility. Under the safety and security slug, you get features like SOS emergency alert to contacts and medical help, roadside assistance, curfew alerts which basically is geofencing and sets the boundary outside which the car isn’t allowed to go and disturbance alert which alerts your whenever someone is trying to access your car without your permission. The Driver’s behavior category offers features like Trip Analysis, Head Braking, Hard Acceleration, sharp turns and idling alert (just in case your vehicle is on for a long time and the driver is misusing the AC or other features). The lifestyle segment brings to you various music and media apps along with a very elite kind of feature called concierge desk which gives you a plethora of dine and wine options among other leisure activities. The geolocation feature is again a very useful one primarily because of its car finder and tow alert feature along with live location service. Last but not the least, the utility category offers features like service booking, vehicle history, vehicle’s health and virtual document storage which Audi says won’t be used for scanning personal information of any customer.

    Though these services come at a cost in most of Audi cars, the company says that the flagship models will get them as standard. Existing Audi customers who have purchased their cars after 2011 can also avail these services as it will be compatible with those models. However, the idea is also to cater and attract entry-level luxury car buyers who may find these features even more lucrative as it will add value to their lifestyle.

  • Tata Motors To Introduce Its Next Electric Car By End Of FY2020

    Tata Motors To Introduce Its Next Electric Car By End Of FY2020

    Tata Motors will be introducing its next electric vehicle for the Indian market by the end of the financial year 2019-20. The carmaker recently announced its partnership with Tata Power to set up 300 fast chargers across 5 metros in India. Speaking to carandbike.com on the sidelines, Shailesh Chandra, President Electric Mobility Business & Corporate Strategy, Tata Motors, said that the company is currently working on electric vehicles focused towards private buyers, and will introduce a higher range Tigor EV a new model by end of this fiscal year.

    Talking about the upcoming electric vehicle, Chandra said, “We will come out with a very private focused product within this financial year, and we are doing a host of activities around it. That is the reason why we have started the charging infrastructure work now so that when we have to launch that product, in a certain number of cities that we have targeting, charging infrastructure should be visible.” Chandra further added, “We are also planning to come with a higher range version for Tigor which we will be bringing out in the market very shortly. That is the time when we intend to open it to the private buyers also.”

    Recently at the company Annual General Meeting, N Chandrasekaran, Chairman Tata Motors announced that the company aims to launch four electric models in India in the next 18 months. Chandrasekaran also confirmed that the electric version of the Tata Nexon will be one of the four new electric models. The other three will be – the Tata Altroz EV showcased at the Geneva Motor Show, the more powerful Tigor EV for private buyers, and a fourth undisclosed model.

    Talking about these upcoming electric cars, Shailesh Chandra said, “These are the products which are focused towards the private segment and there might be some more products which might come, but we are gearing up towards their development and we’ll see what the right time to launch them is. So, these two (Nexon EV and Altroz EV) special products are definitely the private buyer-focused products,” When asked whether the upcoming EV could either be the Nexon EV or the Altroz EV, he said, “Hopefully, yes”.

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  • Sales Of Japanese Cars In South Korea Slump Amid Growing Diplomatic Row

    Sales Of Japanese Cars In South Korea Slump Amid Growing Diplomatic Row

    Sales of Japanese-branded autos in South Korea slumped in July amid a worsening diplomatic row between the two countries that has led to consumer boycotts and efforts by Seoul to cut the economy’s reliance on imports from Japan.

    Industry data out of South Korea on Monday showed Toyota Motor sales in the country tumbled 32% from a year earlier and Honda’s sales skidded 34%.

    Although automakers are still assessing the main factors driving the declines last month, industry participants worry declining sales would continue in August as diplomatic tensions grow.

    Japan tightened controls in July on exports to South Korea, escalating a row over wartime forced laborers and sparking a boycott by South Korean consumers of Japanese products and services, from cars, beer, and pens to tours. On Friday, Japan escalated tensions by removing South Korea from a list of export destinations approved for fast-track status.

    “Showroom visits are declining while consumers are holding off on signing contracts,” a Honda Korea official told Reuters, asking not to be identified because of the sensitivity of the matter.

    A Honda Korea spokesman said it needs to assess the reason for the July sales fall and whether it is related to Japan’s export curbs, or summer holidays. A Toyota Korea spokeswoman declined to comment on the drop.

    The data from the Korea Automobile Importers & Distributors Association (KAIDA) also showed Lexus, South Korea’s third-most imported car brand after Mercedes and BMW, saw sales down 25% from the previous month, although that was still up 33% from the previous year.

    South Korean shares fell more than 2% on Monday, tracking broader moves in Asia as the Sino-U.S. trade war intensified but also weighed by uncertainty over the diplomatic dispute between Seoul and Tokyo.

    Earlier on Monday, South Korea’s government announced plans to invest about 7.8 trillion won ($6.48 billion) in research and development for local materials, parts and equipment over the next seven years in an effort to cut the reliance on Japanese imports.

    The government on Friday said it would “step up safety measures” on Japanese tourism, food and waste, without elaborating further.

    While foreign-branded cars make up a small portion of domestic auto sales in South Korea, the business community is concerned a consumer swing away from Japanese imports for political reasons could spread to other parts of the retail market.

    Japan’s Asahi Group Holdings, whose Asahi Super Dry is the most popular import brand in South Korea, said on Thursday the spread of the South Korean consumer boycott of Japanese goods was affecting its beer sales as it lowered its profit guidance slightly.

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  • Auto Industry May Further Cut Production

    Auto Industry May Further Cut Production

    After denting the auto sector’s profitability, the consumption slowdown along with the upcoming shift to BS VI standards will further decelerate production, leading to eventual job losses. Industry insiders point out that slowdown, which is a culmination of high GST tax rates, farm distress, stagnant wages, and liquidity constraints, has led to the month-on-month sales de-growth. Besides, inventory pile-up at the dealership level and stock management of the unsold BS IV vehicles has become a problem for the sector.

    According to Grant Thornton India Partner Sridhar V., a further reduction in production due to the continuing de-growth in sales of passenger vehicles can be expected.

    “OEMs are exploring avenues to minimize cost at an operational level by deferring and tightening the spending rate,” Sridhar V. told IANS.

    “They also at times resort to production cuts to tide over this difficult phase.”

    Accordingly, the sales downturn assumes significance as the auto industry contributes to almost half of the manufacturing GDP and 11 percent of the total GST revenue.

    “With prolonged weak consumer demand, the inventories at dealer levels have peaked, necessitating production cuts by OEMs,” Richa Bulani, Senior Analyst, India Ratings & Research (Fitch Group), told IANS.

    “Production cuts may provide some short-term relief to dealers, it negatively affects the entire auto supply chain — OEMs, component suppliers, and dealers. Volume growth of components dependent on OEMs will be affected in the first half.”

    Recently, all major OEMs consisting of passenger, commercial, two and three-wheeler manufacturers have reported a massive decline in domestic sales.

    Figures from the Society of Indian Automobile Manufacturers (SIAM) showed that domestic passenger car sales in June went down by 24.07 percent to 139,628 units. The July figures are awaited.

    In the commercial vehicle segment, domestic sales were down by 12.27 percent to 70,771 units last month.

    The overall sales of two-wheelers, which include scooters, motorcycles and mopeds, edged lower by 11.69 percent to 1,649,477 units.

    In all, the total sales of the Indian automobile sector declined by 12.34 percent during June 2019 to 1,997,952 units across segments and categories.

    Consequently, sales slowdown led to a curtailment of manufacturing with the domestic passenger cars’ production coming down by 22.26 percent to 169,594 units from 218,167 units.

    Similarly, commercial vehicle production was down by 23.39 percent to 69,496 units last month. Overall two-wheelers’ production edged lower by 11.70 percent to 1,915,195 units.

    The total production of the Indian automobile sector declined by 12.98 percent during June 2019 to 2,336,138 units across segments and categories.

    “Tight control on production volumes will continue. Beyond the upcoming festive season when OEMs would expect to have sufficient volume in the channel, they would want to keep production volume output in check,” said Rahul Mishra, Principal, A.T. Kearney.

    “Volume liquidation pressures due to BS VI and the sluggish demand will not revive production output drastically for the next few months.”

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  • Lexus LC500h Coming To India In 2020

    Lexus LC500h Coming To India In 2020

    Lexus India has confirmed that the 2020 LC500h will be launched in India next year. While the company is still to decide on the timeline of the launch, we expect it to come to us in the 2nd half of 2020. The LC500h was first showcased as a concept at the 2012 Detroit Motor Show as the LF-LC. The challenge here was to bring this concept to life and in 2017 the LC or Luxury Coupe was finally launched. The LC500h is on sale in 68 countries already and India will be the 69th to get it. 12,000 units of the LC500h have already been sold worldwide ever since its launch and with its introduction to new markets, Lexus is looking to add more customers to its tally.

    The LC500h will be positioned as a GT or Grand Tourer. India will only get the hybrid variant of the LC. Sadly, we won’t get the one with the V8 engine. Then again, given that Lexus India’s portfolio currently boasts of majority cars getting hybrid powertrains, this move does not come as a surprise. The LC500h will get the 3.5-liter petrol engine which produces 295 bhp. There are two electric motors which will produce 177bhp and there’s a lithium-ion battery for the energy to be stored. Now total combined output stands at 354bhp and this translates into a 0-100 kmph time of just above 5 seconds.

    The LC500h looks mad and devilishly handsome. Lexus has really turned a new leaf with its design. Upfront, it gets the massive spindle grille, which is a family identity now, L-shaped DRLs and three LED headlamps, which blend well into the design. There’s a bit of aggression on the face and the low hood makes it look as if it’s closer to the ground and gives it a sports car-like stance. The pinched waist, blackened C-Pillars and the creases to the side, add a lot of drama to the look. As you move to the rear, the LC500h gets wider and there’s no doubt it looks stunning.

    Lexus is likely to price the LC500h in India in the range of ₹ 1.5 crore and this will see it take on the likes of the Jaguar F-Type which is priced between ₹ 90.93 crore for the 2.0-liter coupe variant and goes up to ₹ 2.80 crore for the SVR convertible variant along with the Audi RS5 Coupe which costs ₹ 1.12 Crore. It will be a low volume player for the company but there has been no clarification from Lexus India about how many units of the LC500h it plans to sell in the country.

  • Hyundai Venue Bags 50,000 Bookings In Two Months

    Hyundai Venue Bags 50,000 Bookings In Two Months

    The Hyundai Venue has stood out to be a blockbuster hit for the Korean carmaker. The subcompact SUV has bagged 50,000 bookings in just two months since its launch and has helped Hyundai achieve 21 percent market share in the Indian SUV market. According to latest reports, the Venue became the second bestselling subcompact SUV India in June 2019, outperforming the Mahindra XUV300 by 3,994 units, which is quite a margin. In fact, at 8,763 units, the Venue is just 108 units behind the segment leader- Maruti Suzuki Vitara Brezza.

    Commenting on the record-breaking booking number, Vikas Jain, National Sales Head- Hyundai Motor India Ltd. said, “The Hyundai Venue has been able to strike a chord with the iGen customers who seek future technology, space, comfort, safety and ergonomics with new-age style. We are extremely overwhelmed by the enthusiastic response and milestone created by Venue with 50,000 bookings within sixty days of launch. We are glad that Indian customers have shown their faith in the Blue Link Connected Technology as out of the total Venue delivered so far, over 55 percent of the cars are Blue Link-enabled variant. Out of the 50,000 bookings, over 35 percent of customers have preferred the Hyundai’s in house best-in-segment -DCT (Dual Clutch Transmission) technology.”

    The figures make it clear that buyers prefer the top variants of the Venue which are equipped with the Bluelink connected car technology. The Hyundai Venue is offered in India with three engine and gearbox options – a 1.4-liter diesel engine mated to a six-speed manual gearbox, a 1.2-liter petrol engine mated to a five-speed manual gearbox and the 1-litre GDI Turbo engine which is mated to a seven-speed DCT automatic gearbox or a six-speed manual gearbox. The Hyundai Venue was launched in India on May 21 and the company has delivered 18,000 units since its launch.

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  • Groupe PSA Opens New Technical Centre In Chennai

    Groupe PSA Opens New Technical Centre In Chennai

    PCA Motors India, part of Groupe PSA today announced opening its new India Technical Centre (ITC) in Chennai, Tamil Nadu. The company says that the new technical centre will play a key role in the smoother and more efficient working of the employees of PSA India, in addition to boosting the capacity of the group to accelerate further in India. The new technical centre has come up in a specific building area, Chennai One, which is part of one of the Chennai Special Economic Zones (SEZ). Groupe PSA says the new facility has been designed and built in a frugal and efficient way, consistent with the spirit of scalability corresponding to the India project.

    Commenting on the launch, Emmanuel Delay, Executive Vice President & Head of India-Pacific, Groupe PSA, said, “The new India Technical Center [ITC] is an important step for the development of Groupe PSA in India, and is definitely an asset to grow the Group’s business in the India & Pacific region. This is part of our strategy to develop a global network of state-of-the-art technical centre, strategically positioned in India, to support a customer-oriented agenda. With the new centre, we’re focusing our investment in creating a cohesive work environment to accelerate our growth. This unified approach will improve the speed, efficiency and effectiveness of our employees while enabling us to address evolving consumer needs more quickly in the future. Our investment in ITC further emphasizes the importance of India to our global business.”

    Groupe PSA’s new technical centre will house departments of Research & Development, Programs and Projects, Global Purchasing Hub, Supply Chain, Process and Manufacturing Engineering, Quality, KD Excellence Centre and Product. In fact, going forward, the state-of-the-art centre will also house a workshop for styling, architecture and assembly of prototypes.

    Commenting on the launch, Eric Apode, Senior Vice President, PCA Motors India, said, “The new India Technical Centre is the next strategic step for Groupe PSA in India. It will allow the group to accelerate quickly its growth in India, through the development of new products and deployment of our strategy in and outside India. The area around our new centre is popular for housing dozens of international and Indian companies this gives the Groupe strong confidence of attracting Indian talent to the new ITC. The Monozukuri philosophy, the art of creating objects in an efficient and effective way is now taking shape with our new India Technical Centre, which will benefit group operations domestically and globally.”

  • India’s Auto Parts Makers Warn Of 1 Million Job Cuts

    India’s Auto Parts Makers Warn Of 1 Million Job Cuts

    India’s auto parts industry could be forced to slash a fifth of its five million or so workforce if the slowdown in vehicle sales continues, the president of the country’s largest industry group for auto parts makers said. India’s auto industry is in the middle of one of its worst slumps. Passenger vehicle sales fell 18.4 percent in the first quarter, and monthly passenger vehicle sales in June fell by the biggest margin in 18 years. The slump has prompted automakers to cut production and automakers and parts makers to cut jobs.

    The drop in production “has led to a crisis like situation in the auto component sector,” Ram Venkataramani, president of the Automotive Component Manufacturers Association of India (ACMA), said in a statement late on Wednesday. “If the trend continues, an estimated 1 million people could be laid-off.”

    The slump in the auto sector, which accounts for nearly half of India’s manufacturing output, has been a major factor behind the slide in economic growth to a five-year low earlier this year.

    Speaking to NDTV about the present condition of the auto industry, Jagdish Khattar, former Managing Director, Maruti Suzuki said, “The employment related to the automobile industry, direct and indirect is 35 million, which includes transportation, insurance, finance, dealership network, service, spare parts and all that. So, it’s a huge employment and not couple of million. The total output is ₹ 8.30 lakh crore.

    He added further, “The impression is manufacturers are big names, the fact is 70-80 percent of the production of the components comes from small and medium industries. Two years back, we used to have 40 per cent diesel vehicles. Today it is less than 20. Rural areas used to have 30-40 per cent sales. The rural areas are distressed today. With Euro6, the industry has invested over a lakh and fifty thousand crore. However, Euro6 hasn’t even come yet and we are talking about electric vehicles. Euro6 will increase the prices of cars, and the Supreme Court has said that you have to take three years of insurance. I mean, everything has gone wrong as this industry is concerned. Yes, it is not the only industry, others have also been affected but this industry has a very major role to play in manufacturing, employment etc.”

    “If the government was to reduce GST, it will not make much of a difference. There are far too many things. The economy should grow, people’s confidence should grow. People are losing jobs. If I’m losing a job, am I going to buy a car? No, I’m going to wait for it,” he said. Khattar also pointed out congestion, pollution, parking charges as some of the other factors against people buying new cars.

    Venkataramani said investments in the auto sector have been frozen due to a lack of government clarity on its electric vehicles (EVs) policy. He said a government plan to speed up the rollout of EVs would raise India’s import bill and damage prospects for auto components manufacturers.

    Venkataramani also called for a cut in the goods and services tax for the vehicles and auto component sector.

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  • Apple Card expected to be launched in August

    Apple Card expected to be launched in August

    When Apple announced its card back in March, the company said it will be available at some point this “summer,” but didn’t commit to a certain date. Now that Apple added support for Apple Card in the latest iOS 12.4 update, we can expect the card to be made available very soon.

    Apple and Goldman Sachs Group have reached an agreement for the launch of the Apple Card in the first half of August, a person familiar with both companies claims.

    According to people familiar with the matter, the Apple Card was a complex project that “involved the mixing of two very different corporate cultures as the companies split up responsibilities for the project and worked together on the new technology.”

    To use the new Apple Card, iPhone users will have to sign up for the card using the Wallet app, which has been recently added support for this specific feature.

    It’s worth mentioning that the Apple Card uses a cash-back rewards structure instead of points, which means users will get 1% on purchases made with the physical card, 2% for Apple Pay transactions and 3% for purchases of Apple products and services.

    Keep in mind that while the Apple Card has been designed to be used mainly via Apple Pay, the Cupertino-based company said users will be offered physical cards for merchants that don’t accept Apple Pay.

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  • Tesla To Soon Get Netflix, YouTube Streaming Support

    Tesla To Soon Get Netflix, YouTube Streaming Support

    Tesla CEO Elon Musk has confirmed that people would be soon able to stream videos on digital platforms like Netflix and YouTube in parked Tesla electric vehicles. “Ability to stream YouTube and Netflix when car is stopped coming to your Tesla soon! Has an amazingly immersive, cinematic feel due to the comfy seats & surround sound audio,” Musk wrote on his Twitter handle.

    “When full self-driving is approved by regulators, we will enable video while moving,” he added.

    The desire to allow drivers and passengers to watch video is not a total surprise – Musk noted at E3 that the ability to watch YouTube was coming, The Verge said.

    Tesla has already unveiled games that drivers can play on the displays in their cars. The games also only work when the car is stationary so that the player can use the steering wheel as a controller.

    On Friday, the company announced that chess game is also coming to the Tesla Arcade.

    But there are huge concerns that come along with such features.

    Test vehicles are required to have a driver behind the wheel to take over in case something goes wrong, and even as self-driving technology improves, it’s hard to imagine that going away completely, the report said.

    In March 2017, an Uber self-driving car crashed into pedestrian in Arizona as the driver was watching The Voice on content streaming platform Hulu and lost track of the road.

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  • Renault Cuts Revenue Goal After Weaker First Half

    Renault Cuts Revenue Goal After Weaker First Half

    Renault warned that revenue may decline this year, scrapping a previous goal, after first-half profit was hit by weakening car demand and an earnings collapse at alliance partner Nissan in the wake of the Carlos Ghosn scandal.

    Net income slumped by more than half to 970 million euros ($1.08 billion) in January-June as revenue fell 6.4% to 28.05 billion, the French carmaker said on Friday. Operating profit also dropped by 13.6% to 1.654 billion euros.

    “Given the degradation in demand, the group now expects 2019 revenues to be close to last year’s,” Renault predicted – abandoning an earlier pledge to increase revenue before currency effects.

    A broad-based downturn has rattled the sector, prompting profit warnings and compounding challenges for Renault and Nissan as they struggle to turn the page on the Ghosn era. Their former alliance boss is now awaiting trial in Japan on financial misconduct he denies.

    Renault’s bottom line was hit by an 826 million-euro drop in earnings from its 43.4%-owned alliance partner. Nissan is cutting 12,500 jobs globally after an earnings collapse that it is keen to blame on Ghosn’s leadership.

    But Renault’s own performance – reflected an operating margin that declined to 5.9% from 6.4% – contrasts less favourably with domestic rival PSA Group. The Peugeot maker defied the downturn with a record 8.7% profit margin unveiled on Wednesday.

    Renault blamed falling sales in France, as well as Turkey and Argentina, for a 7.7% revenue drop at its core automotive business – whose profit margin slid to 4% from 4.5%.

    Operating free cash flow also suffered, coming in at a negative 716 million euros as investment jumped by 742 million euros to 2.91 billion euros. The company nonetheless reiterated pledges to deliver positive full-year cash flow and a margin close to 6 percent.

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  • Elon Musk’s Boring Co. Raises $120 Million In First Outside Investment

    Elon Musk’s Boring Co. Raises $120 Million In First Outside Investment

    Elon Musk’s Boring Co. has raised its first outside investment to fund the development of tunnel-based transportation systems. The company authorized the sale of $120 million in stock, according to a securities filing that was obtained by the Prime Unicorn Index, a company that tracks the performance of private U.S. companies, and reviewed by Bloomberg News. The investment is in addition to the $113 million the company raised last year.

    “We are delighted to be an investor in Boring,” said Steve Jurvetson, a venture capitalist with Future Ventures and a director on the boards of Musk’s Tesla Inc. and Space Exploration Technologies Corp. “Boring is a great example of the disruptive playbook we look for.”

    The investment values the company at about $920 million after the new cash injection, according to a Boring Co. spokesman. The chief investors in the round were 8VC, Vy Capital, Craft Ventures, Valor Capital and DFJ.

    Boring’s best-known funding efforts involve less traditional methods including the sale of hats and flamethrowers, which raised $1 million and $10 million, respectively, for the business.

    In May, Boring won its first commercial transportation contract, a $48.7 million mile-long project to shuttle visitors around the Las Vegas Convention Center. The project will provide an important test of whether it can really dig more cheaply than competitors and navigate the government bureaucracy involved in municipal projects.

    Boring Co. has also built a test tunnel near its headquarters in Hawthorne, California. A hoped-for tunnel in Los Angeles was scuttled after opposition from neighborhood groups. In Chicago, a proposed tunnel’s future is in doubt due to the departure of its biggest supporter, former Mayor Rahm Emanuel. A potential project connecting Washington D.C. and Baltimore is in the environmental review process.

    Jurvetson said Boring latest investment was its first big fundraising effort beyond tapping into money from Musk and company insiders.

    Jurvetson, 52, is a long-time friend of Musk’s who has invested early in his companies, including Tesla and SpaceX. Formerly a venture capitalist at DFJ, he resigned from the firm in November 2017 amid allegations of harassment that he has denied. He returned to Tesla’s board from a leave of absence in April.

    “The four-largest tunnel companies in the U.S. were founded in the 1800s,” Jurvetson said. “Like the automotive and aerospace sectors, they haven’t faced a disruptive new entrant in their management’s collective life-time.”

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  • Volkswagen Second-Quarter Operating Profit Up 30% As SUV Push Pays Off

    Volkswagen Second-Quarter Operating Profit Up 30% As SUV Push Pays Off

    Volkswagen Group shares rose 2 percent after the carmaker posted a 30 percent rise in second-quarter operating profit despite a drop in vehicle sales as rising demand for sports utility vehicles and premium brands boosted margins. Volkswagen bucked a trend of falling demand for passenger cars by launching a range of higher-margin sports utility vehicles at a time when demand for sedans is falling. Daimler, Aston Martin, and supplier Continental warned on profits this week. “Very solid and clean set of numbers, marginally ahead of consensus,” Jefferies analyst Philippe Houchois said about Volkswagen’s earnings in a note on Thursday.

    The Wolfsburg, Germany-based company’s operating profit rose to 5.13 billion euros ($5.71 billion), up from 3.94 billion euros in the second quarter last year. It was boosted by the absence of a diesel charge VW booked in the year-earlier period.

    Volkswagen reiterated it expects vehicle deliveries in 2019 to exceed a prior-year figure and for revenue in the passenger cars and commercial vehicles divisions to grow at least 5%.

    VW said it continues to expect an operating return on sales in the passenger cars area and the group of between 6.5% and 7.5%. It reiterated that after special items, it expects the operating return on sales to be at the lower end of the expected range for the group and the passenger cars business area.

    Peugeot said on Wednesday it had delivered an operating margin of 8.7 percent in the first half of 2019, without releasing a more detailed breakdown of quarterly results.

    By contrast, Volkswagen Group’s operating return on sales rose to 7.2% in the first half, up from 6.8% in the year-earlier period.

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