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Tag: luxury cars

  • Toyota to Build Next Lexus EV in China Ahead of Japan Launch

    Toyota to Build Next Lexus EV in China Ahead of Japan Launch

    Toyota Motor plans to manufacture its next-generation Lexus electric vehicle in China ahead of Japan, deploying gigacasting technology in Shanghai to cut production costs.

    The decision breaks with the ¥36.9 trillion automaker’s established practice of debuting new Lexus platforms at domestic Japanese assembly plants before rolling them out overseas.

    Gigacasting and Supply Chain Shifts

    Toyota will base the new manufacturing operations in Shanghai to shorten production lead times and align output with local buyers. Adopting gigacasting techniques allows the factory to cast large single-piece structural components, reducing assembly steps and altering Toyota’s global cost structure for future battery-electric models.

    Targeting China first concentrates advanced manufacturing where volume demand for premium electric cars is concentrated. The rollout forms part of Toyota’s plan to use internal battery investments and tighter plant efficiency to protect profit margins as its electrified vehicle ratio rises.

    Price Pressures in Shanghai

    Lexus contends with severe retail rivalry across China from Tesla, BMW and local electric brands that continue to push aggressive discounting across the luxury segment. Building inside China removes import overheads and shortens delivery cycles, helping the brand defend showroom pricing and aftersales service value.

    The next operational milestone will be the integration of the gigacasting lines at the Shanghai facility as Toyota works to bring the platform into commercial production without straining operating cash flows.

  • 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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  • Luxury cars flooding Vietnamese market

    Luxury cars flooding Vietnamese market

    From now to 2020, Mercedes Benz Vietnam plans to double its sales agent network, an important step for the luxury car manufacturer to cement its position in the Vietnamese market.

    Speaking to local mass media on December 3, Choi Duk Jun, CEO of Mercedes Benz Vietnam, said together with the expansion of product items, the enlargement of sales agents will be a strategic move that helps Mercedes increase its market share in Vietnam.

    Mercedes Benz has the highest number of sales agents in Vietnam with 12 centers throughout the country.

    Sources said Rolls-Royce, a brand of German BMW, which also owns two other strong brands – BMW and Mini — is also preparing to enter the Vietnamese market.

    Toyota Vietnam has opened an authorized agent in the central region, raising the number of total sale agents in Vietnam to 44.

    Ford Vietnam has opened an authorized agent in Binh Duong province, while it has upgraded Pho Quang branch of Sai Gon Ford into a 3S branch. It is preparing to open another showroom, belonging to Sai Gon Ford, in the central business district 1 in HCMC.

    The new centers are reported as having investment capital of VND120 billion. The number of Ford’s sales agents and service centers in Vietnam has increased to 27.

    The Vietnamese market had its highest sale growth rate of 60,000 cars in 2016 compared to 2015.

    The sale of luxury cars and sports cars also increased sharply. Mercedes led the market segment with 4,401 cars sold in 2016, an increase of 22 percent over the year before.

    Meanwhile, Lexus sold 1,665 cars, up by 73 percent. Audi, Porsche and BMW  have not revealed the sales, but reported growth.

    A source said Porsche had fulfilled its yearly sales plan in Vietnam by mid-2016.

    The sales surprised many analysts, because prices had increased sharply.

    Lexus LX570, for example, saw the price increasing from VND5.7 billion to VND8 billion, while Maybach S600 was from VND10 billion to VND14 billion. Rolls Royce Phantom price soared from VND54 billion to VND84 billion.

    Oxfarm, a non-government organization, on January 12 released a report on inequality in Vietnam, pointing out that the income gap between the richest and poorest Vietnamese people is very large. The richest Vietnamese has the daily income higher than the 10 year-income of the poorest.

    In related news, Marquardt from Germany had a working session with Da Nang authorities on its plan to set up an automobile part factory in the city.

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