NINETY EIGHT REGENCY

Europeans win big from China's appetite for high-end cars September 14, 2010 - 11:45 pm ET China's rich are more likely to splurge on premium and superluxury cars than anyone else in the world. That finding comes from a recent report by Bernstein Research. London-based Bernstein analyst Max Warburton identified a premium car buyer as someone from a household with more than $100,000 (78,500 euros) of annual disposable income. In China, 231 out of every 1,000 car buyers who met that criterion in 2009 bought premium cars. Germany was No. 2 at 176 out of every 1,000 followed by the UK at 165. Spain ranked fourth (81) followed by Canada (59) and the United States (52) last year. China's lead is likely to grow. Warburton expects that 3.5 million people in China will have the financial means to buy a premium car by 2015, up from about 1.8 million today. Audi, BMW, Mercedes-Benz and Porsche accounted for roughly 80 percent of premium sales in China last year. Those numbers look great on a sales chart and even better on the balance sheet. “German premium automakers are probably already making over half of their profits in China,” Warburton said in the report, noting that the Germans already have beaten their full-year operating profit forecasts with their first-half results. Warburton predicts that China's premium car market will grow from about 400,000 units last year to 800,000 by 2015 and to 1.4 million by 2020. It's not just the premium carmakers that stand to benefit from China's booming wealth. Ferrari, Aston Martin, Bentley and others in that class also have the potential to make big gains from China's growing number of superluxury buyers, who Warburton classifies as people with liquid assets worth more than $1 million (785,000 euros). In China, there were 477,000 millionaires in 2009. By comparison, there were 2.90 million millionaires in the United States, 1.65 million in Japan and 862,000 in Germany. However, 206 out of every 1,000 millionaires in China bought a superluxury car in 2009, well ahead of the 157 in Germany, 120 in the UK, 99 in Spain, 93 in Canada and 78 in the United States. By 2015, China is forecast to have twice as many millionaires as now. Executives at Europe's top-end automakers are probably smiling just thinking about that. Read more: http://www.autonews.com/article/20100914/BLOG12/309149951/1296#ixzz0zbVwIQYu

Daimler to expand Renault-Nissan pact to EVs, exec says September 14, 2010 10:16 CET UPDATED: Sept. 14 15:30 CET STUTTGART (Reuters) -- German luxury carmaker Daimler AG is expanding its cooperation with Renault SA and Nissan Motor Co. to develop electric cars in a race to meet tightening emission reduction rules. Daimler's research chief, Thomas Weber, told Reuters in an interview its cooperation with Renault and Nissan "will be expanded to include all three partners as far as electric motors, batteries and powertrains are concerned". The move comes as carmakers and car parts suppliers rush to gain a foothold in the market for zero-emission vehicles as deadlines for lower emission levels near. Toyota Motor Corp. said on Monday it would offer a plug-in version of its Prius model positioned to be the cheapest green car of its kind by 2012. France's Renault, its Japanese partner Nissan and Daimler signed a cooperation deal in April initially focusing on small cars, light commercial vehicles and engines. The cooperation included so far the next-generation Smart ForTwo and Renault Twingo models, as well as the electric versions of the cars, plus the expansion of the Smart and Twingo model lines. Car emission standards are becoming stricter to fight global warming. Brussels targets an overall level of about 95 grams of CO2 per kilometer by 2020 for new cars sold in Europe. "We won't be able to meet the target of 95 grams CO2 in 2020 without electric vehicles with batteries and fuel cells," Weber said. But the new technology is still in its infancy and "it won't be easy to then also earn money with these cars," Weber added. That's why Daimler has decided to broaden its existing partnership with Renault and Nissan, hoping to cut costs by building scale. Daimler benefits from economies of scale for small three- and four-cylinder engines, Weber said. "We would have reached quantities of about 500,000 engines at most on our own. Together with Renault we are talking about several million." Weber added he expects Nissan to purchase a mid-five-digit number of diesel engines from Mercedes as part of the deal. Daimler shares were up 0.7 percent at 43.98 euros by 11:33 CET, outperforming the DJ Stoxx autos sector index. Cutting emissions Daimler will have to bring down its fleet's emissions to below 140g/km of CO2 by 2012 or else risk fines. Emissions of its fleet -- ranging from its Smart brand to the Mercedes S-class and E-class sedans -- equated to 160g/km of CO2 on average last year. To help get there Daimler agreed in March with China's BYD Co. to develop electric cars for China. Daimler said it aims to sell 150,000 to 200,000 zero-emission passenger cars in Europe by 2020. The carmaker sold just over a million cars overall last year. Sales of premium carmakers like Daimler are driven by soaring demand from China as living standards rise in the world's most populous nation. As a result, Daimler plans to produce more cars in China and to broaden its cooperation with German peer BMW to include purchasing car parts in China, Weber said. BMW procurement chief Herbert Diess told Reuters about such plans in an interview this month and said he expects to save about 100 million euros ($128.7 million) per year from 2012/2013 thanks to the cooperation with Daimler. Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100914/ANE/309149980/1193#ixzz0zW5gwPj7

Ghosn had ‘no hesitation' in declining GM CEO offer Automotive News Europe -- September 10, 2010 06:01 CET (Bloomberg) -- Carlos Ghosn, Renault-Nissan CEO, said he had “no hesitation” in declining an offer last year from the U.S. government to lead General Motors Co. “Renault and Nissan were in the middle of the worst crisis in the auto industry,” Ghosn, 56, said in a statement. “To leave at that point would have been both disruptive and disloyal to both companies.” He said that “it was a gracious offer, but I had no hesitation to decline.” Ghosn confirmed the offer that came in 2009 from Steven Rattner, who then was head of President Obama's task force managing the reorganization of GM and Chrysler Group. Ghosn also said that he still sees potential benefits for his companies from an alliance with GM or another large automaker. Tom Wilkinson, a GM spokesman, declined to comment, and also said the company wouldn't discuss a forthcoming book by Rattner to be published on his experience leading the U.S. Treasury Department's auto task force. Alliances such as the one formed in 1999 between Renault and Nissan are preferable to mergers, Ghosn said. He discussed such an option with GM in 2006 that former GM CEO Rick Wagoner rebuffed. “The potential was clear and compelling for the alliance and, I still believe, for GM,” Ghosn said in the statement. “When Steve Rattner and I met last year amid the turmoil at GM, I felt it was a natural time to raise the subject again.” Potential synergies Nissan-Renault indentified from such an arrangement were “colossal,” Ghosn said today in an interview with CNN. Rattner “would not see this happening,” Ghosn said. “I don't think anything like this can work unless there is a mutual appetite,” Ghosn said. Ghosn also told CNN that reports he'd been approached to lead India's Tata Motors Ltd. were untrue. Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100910/COPY/309109996/1317#ixzz0z8YrfGlk

Mitsubishi's chief U.S. supply executive retires, won't be replaced Ryan Beene Automotive News -- September 9, 2010 - 12:01 am ET Mitsubishi Motors Corp.'s top supply chain executive in the United States has retired, and the automaker has no plans to hire a replacement. Sandra Gillespie, senior vice president of procurement and supply for Mitsubishi Motors North America's manufacturing unit, retired on Sept. 1, citing personal reasons, the company said. Gillespie, 56, had worked at Mitsubishi since 1989. Mitsubishi spokesman Dan Irvin said the automaker has no plans to replace Gillespie. Her responsibilities are being assumed by other U.S. supply chain personnel, he said. Gillespie's retirement comes at a pivotal time for Mitsubishi's U.S. manufacturing operations. Mitsubishi executives are expected to announce a new product or vehicle platform to be built at the company's Normal, Ill., assembly plant by the end of the year. The plant has produced 19,309 vehicles this year through Sept. 4, well below its 200,000-unit annual capacity, according to the Automotive News Data Center. Mitsubishi builds the Galant sedan, Endeavor SUV, Eclipse coupe and Eclipse Spyder -- all derived from the company's aging “PS” vehicle platform -- at the plant. The vehicles were once the bread-and-butter of Mitsubishi's U.S. vehicle lineup, but sales have fallen precipitously in recent years as the models have aged. Mitsubishi missed a Sept. 1 contractual deadline to commit new product to the plant under terms of its 2008 collective bargaining agreement with UAW-represented workers at the plant. Mitsubishi submitted a proposal to extend the new product deadline, but UAW workers at the plant voted it down in late August. As a result, Mitsubishi increased the base wage of workers at the plant to about $25.60 per hour, up from $24. Gillespie joined Mitsubishi in 1989 and took a lead role in establishing the automaker's U.S. service and parts business, which did not exist when she was hired. She later held a number of leadership roles in the company's manufacturing and supply chain operations until she was named to her most recent position in 2004. Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100909/OEM/100909895/1424#ixzz0z4cSm5tj

MITSUBISHI SUPPLY CHAIN CHIEF RESIGNS, U.S. OPERATIONS IN QUESTION By Drew Johnson Potentially putting Mitsubishi’s United States operations into question, the company’s top supply chain executive has announced her retirement. Mitsubishi has already announced that it will not restaff the position. Sandra Gillespie, senior vice president of procurement and supply for Mitsubishi Motors North America’s manufacturing unit, officially retired from her post on September 1. Gillespie, 56, has worked for Mitsubishi since 1989. Mitsubishi spokesman Dan Irvin confirmed that the Japanese automaker has no plans to hire a direct replacement for Gillespie. Instead, Gillespie’s former responsibilities will be shared by other members of the company’s supply chain team. The announcement comes at a crucial time for Mitsubishi as the automaker was expected to announce a new product for its Normal, Illinois plant by the end of the year. However, Gillespie’s retirement casts some doubt on that plan, with the door potentially open for Mitsubishi’s exit from the U.S. market. Adding fuel to the fire, Mitsubishi missed its September 1 UAW deadline to commit to a new product for the Normal plant. So far this year, Mitsubishi’s Normal plant has produced 19,309 vehicles – well below the plant’s annual capacity of 200,000 units. link: http://www.leftlanenews.com/mitsubishi-supply-chain-chief-resigns-u-s-operations-in-question.html

Renault-Nissan CEO confirms he turned down top job at GM David Shepardson / Detroit News Washington Bureau Washington -- Carlos Ghosn, the head of the Renault-Nissan alliance, confirmed today that he had been asked to become chief executive of General Motors Co. last year by the Obama administration. Former auto czar Steven Rattner writes in a new memoir that he asked Ghosn to run GM last summer and that Ghosn declined his offer. In an interview with CNN today, Ghosn confirmed he had turned down the top job at the Detroit automaker and also confirmed that he had asked Rattner to support a move to include GM in the Renault-Nissan alliance. Text DETNEWS to 64636 to get breaking news alerts on your phone. "He proposed for me to take the job as CEO of General Motors and I declined," Ghosn told CNN. "I declined for a very simple reason ... We still are in one of the worst downturns that the auto industry has faced in its history and I felt that I can't quit. I am responsible for Nissan and Renault." Ghosn said in the middle of a "storm -- you are in charge. You have to deliver, you have to get the company out of the storm. So it was not the time to leave." Ghosn also said that he still believed that a tie-up with GM and the Renault-Nissan alliance would make sense "to share in the synergies." Separately, Ghosn denied new speculation that he might leave to run Indian automaker Tata Motors, saying it was "not true." Rattner writes in "Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry" that will be published on Sept. 20 that he had two dinners with Ghosn -- one at his New York apartment and one in a private room at the Four Seasons Hotel in Washington. At the Washington dinner -- also attended by Ron Bloom (the administration's top auto adviser) -- Rattner said he offered the top job at GM to Ghosn after Rick Wagoner was ousted in March 2009. Ghosn had courted GM for a tie-up with the Renault-Nissan alliance in 2006. He was still interested in the U.S. automaker: "I would like GM to be part of our alliance," Ghosn said. Rattner wrote he politely rejected the idea, because there was too much overlap between GM and the Renault-Nissan alliance. But he asked Ghosn: "Would you be interested in becoming CEO of GM?" Ghosn declined. "I knew it was a long shot and was not surprised when he deftly demurred," Rattner wrote. From The Detroit News: http://detnews.com/article/20100909/AUTO01/9090473/1148/Renault-Nissan-CEO-confirms-he-turned-down-top-job-at-GM#ixzz0z3noCy8n

MITSUBISHI TO UP-SIZE, UPGRADE I-MIEV FOR U.S. MARKET By Mark Kleis As Mitsubishi continues to struggle in its attempt to maintain a foothold in the scrutinizing U.S. market, the Japanese automaker has decided to invest into up-sizing and upgrading its upcoming i-MiEV electric vehicle in order to better meet U.S. consumer demands. The i-MiEV, which first went on sale in Japan with a listing price equivalency over $50,000 in U.S. currency, is set to arrive in U.S. showrooms, but before it does, this EV will receive some additional content not found in the overseas models. Gregory Adams, Mitsubishi Motors North America head of marketing and product planning, also told Automotive News that in order to meet U.S. crash test standards additional width was needed – something also preferred by the American consumer (more interior volume). Adams did confirm that the U.S.-spec i-MiEV will gain much needed interior content, he did not specify exactly what will be added. What is known is that the overseas models lack cruise control, Bluetooth connectivity and navigation, all features likely to be added before the i-MiEV hits U.S. showrooms. Expect the U.S.-spec i-MiEV to retain its distinctive shape, which Adams says Americans want in an EV, as well as a price tag under $30,000 before the $7,500 federal tax credit is applied. link: http://www.leftlanenews.com/mitsubishi-to-up-size-upgrade-i-miev-for-u-s-market.html

The German SuperBrand Battle. Editor-in-Chief's Note: Audi (VW Group), BMW and Mercedes-Benz (Daimler) are locked in an all-out battle for prestige luxury bragging rights, and it's about to get even nastier. BMW (including its Mini brand) is out to increase its annual sales a staggering 55 percent by 2020, which equates to 2 million vehicles annually. They sold 1.29 million vehicles last year. And we all know VW's plan, which is to have Audi keep pouring on the coals and ratcheting up its sales numbers to pass BMW and Mercedes - while riding a huge wave of popularity in China - not to mention VW's plan to sell 800,000 vehicles in the U.S. by 2018. And Mercedes? They don't acknowledge the fact that BMW has blown right by them or that Audi has stolen their prestige thunder right out from under them. But that's what happens when you blow billions upon billions in F1 with virtually nothing to show for it, while Audi just keeps piling up victories - and credibility - at the 24 Hours of Le Mans. These German car companies are out to humiliate one another, but I would just like to remind them that volume isn't everything and we don't need to see one in every garage in every neighborhood across America. Memo to the German SuperBrands: Please look up the word "exclusivity" in your dictionaries (and by the way, get an actual dictionary that you have to physically pick-up and page through, it helps with retention) and then paste a copy of it on the wall of every executive office and worker-bee cubicle company-wide. And remember, being all things to all people isn't a marketing strategy, it's a recipe for disaster, right up there with "let's throw stuff up against the wall and see what sticks." And one more thing, if you out-sell your competition but lose your brand image in the process, you will lose everything. Focus, be consistent, don't ever waver from who you are and be true to your brand's soul. Do all of that and you'll be fine. Screw up any part of it and be prepared to suffer the consequences. - PMD

Report: Mitsubishi i-MiEV to be upgraded for the U.S. by Jeff Glucker (RSS feed) on Sep 7th 2010 at 9:32AM Mitsubishi is getting ready to roll out its electric i-MiEV in the United States, which is expected to arrive in late 2011. When it does land on our shores, it will be larger than its Japanese- and Euro-spec cousins. Gregory Adams, head of marketing and product planning for Mitsubishi Motors North America, states that the changes were required to meet U.S. crash regulations and to conform to our super-sized tastes. In addition to a roomier i-MiEV, U.S.-spec cars will feature an upgraded interior and a greater number of standard features. The electric egg-bus is expected to ring the register for less than $30,000, without the deduction of $7,500 for the electric vehicle federal tax credit. The European-spec i-MiEV will make its debut at the Paris Motor Show later this month and is expected to be sized and outfitted exactly like the version currently on sale in Japan. link: http://www.autoblog.com/2010/09/07/report-mitsubishi-i-miev-to-be-upgraded-in-the-u-s/

Audi, Mercedes forge ahead in China September 6, 2010 06:01 CET Print Email Reprints FRANKFURT (Reuters) -- Audi and Mercedes-Benz racked up more eye-popping sales in China in August, tapping into a rich vein of growth as living standards rise in the world's most populous nation. Audi said its China sales jumped by two-thirds to 22,350 units, bringing the total for the past eight months to nearly 152,800, a year-to-date gain of 63 percent. This puts China on track to eclipse Germany as Audi's single-largest market as domestic new-vehicle registrations amounted to 144,365 units through August, according to official data. Audi controls a much bigger slice of the market than rivals such as Mercedes and BMW. Daimler said sales of its Mercedes cars in China more than doubled last month to 13,400, bringing the year-to-date total to 88,500, up 129 percent. Mercedes said that its global volume growth showed sales heavily skewed toward lucrative models like the E-class station wagon and S-class flagship executive sedan, which would indicate another strong quarter of profits since these models contribute more heavily to earnings. "We expect sales to continue to develop favorably in the coming months as well. Worldwide, we want sales at Mercedes-Benz to grow at a double-digit rate in full-year 2010," said Mercedes sales chief Joachim Schmidt in a statement. Overall, Mercedes-Benz brand global vehicle sales grew by more than 22 percent to 81,000 vehicles. Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100906/ANE/309039974/1131#ixzz0ynP1EfCu

2 brands on move; 2 on hold Subaru is new darling; Mazda adds to lineup; questions dog Mitsubishi, Suzuki Ryan Beene Automotive News -- September 6, 2010 - 12:01 am ET High-flying Subaru has been outperforming the U.S. market for the past two years. But overall, Japan's smaller carmakers have had a tough time in the United States for much of the past decade. Getting the right products at the right time has been a struggle. Mazda and Subaru have been filling out their product lines, but at Mitsubishi and Suzuki, there seem to be more questions than answers. The Forester and Outback have led the charge for Subaru. Now the Japanese brand plans to add in late 2011 or early 2012 a sporty coupe developed with Toyota. Meanwhile, Subaru is concentrating on increasing interior space and adding features as its updates the rest of its lineup. Mazda Motor Corp. is beginning a new era, developing vehicles and powertrains more independently of Ford Motor Co. After launching the Mazda2 small car this summer, Mazda now has an entry in most major segments. Mazda also has a clear powertrain strategy, which it will begin to roll out with the fuel-efficient Sky gasoline direct-injection engine next year and a Sky turbodiesel in 2012. Mitsubishi is pursuing a new product strategy centered on building small cars and electric vehicles that can be sold globally. But a big question hovers over the company: What will Mitsubishi build at its assembly plant in Normal, Ill., which now produces the Galant, Eclipse and Endeavor, all based on the aging PS platform? Mitsubishi Motors Corp. President Osamu Masuko has said the company will announce by year end what will be built at the plant. There is also uncertainty at American Suzuki Motor Corp., which has seen sales drop 52 percent this year after a 54 percent decline in 2009. Suzuki's Swift small car, which had been expected to arrive in the United States this year, won't debut until some time in 2011. Automotive News will continue its report on the product plans of Japanese carmakers in the Sept. 27 issue, with news about Toyota, Lexus, Scion, Honda, Acura, Nissan and Infiniti. Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100906/OEM04/309069995/1216#ixzz0ylLdCm8R

I am so sorry. I know how frustrating that can be. I can imagine your frustration. I know your feelings and emotions. I am so sorry. Please let us know how this is resolved and worked out.

Chevrolet Cruze configurator goes live by Zach Bowman (RSS feed) on Sep 3rd, 2010 at 4:46PM Heads up, compact fans; the configurator for the 2011 Chevrolet Cruze has officially gone live. If you've got a few hot seconds to spare as your work week comes to a close, you can build up your new Bowtie fuel miser any way you so please. It doesn't take long to click off enough options to have the Cruze sitting pretty at just shy of $26,800 including destination. Of course, that kind of coin will fetch you a sunroof, spare tire, RS appearance package, navigation and just about everything else your heart could desire in LTZ trim. Of course, the frugal among you can sink your teeth into a $16,995 LS model, complete with a naturally aspirated 1.8-liter four-cylinder engine, six-speed manual transmission and not much else. If it were us laying down the coin, we'd probably hold off until we got word exactly how much Chevrolet is going to ask for the super-efficient Eco model. Thanks for the tip, Scott! link: http://www.autoblog.com/2010/09/03/chevrolet-cruze-configurator-goes-live/

Nos, I am glad you are still alive. That was a lot to hear. That was so sad. I hope the others are okay. Yes, life is short. All too often people take too much for granted. You are better physically I hope. I hope you get your cars you mentioned. I know we used to joke about a Chevrolet Aveo SS, but that may be come a reality as GM is going to make performance cars out of the next generation small cars. I hope you move forward and continue to pursue your goals and dreams. I noticed a lot of older members have been coming back lately. Thank you for letting people know what is going on with you. The last time I saw your name you were headed to college or in college. It has been that long. Please take care.

Commodore returns to Brazil Making an export splash: Brazillian racing legend Emerson Fittipaldi test drives the Holden-built sedan named in his honour, the Omega Fittipaldi. Holden set to export Commodore-based ‘Omega Fittipaldi’ sedan to South America 31 August 2010 By BYRON MATHIOUDAKIS GM HOLDEN is back in the Brazilian way with the resumption of Commodore exports to the big South American market. For now, only 600 VE Series II-based Chevrolet Omega vehicles will head to Brazil, in time for sales to commence in November. It is a two-way affair because Holden’s engineers at Fishermans Bend have received much-needed flex-fuel expertise and know-how from GM’s Chevrolet affiliate in Brazil, where about 45 per cent of fuel is ethanol. Only one engine will be offered initially – a variation of the 3.6-litre SIDI (Spark Ignition Direct Injection) V6 – with the capability to run up to 25 per cent ethanol (E25). Other details will be provided closer to the Omega’s media launch in Brazil in October. To be called the Omega Fittipaldi after Brazilian motor racing star, national hero and ethanol industry advocate and investor, Emerson Fittipaldi, it picks up from where the earlier VE-based model left off in 2008. Left: Emerson Fittipaldi at the wheel of the Omega Fittipaldi in Australia. Holden suspended exports to Brazil just one year after the VE was launched due to the global financial crisis. It had been supplying the country with Commodores since the VT-era model was introduced as the Omega B in 1998, as a replacement for the German Opel-based Omega A that ran from 1992. GM Brasil’s general director of sales and marketing, Ronaldo Znidarsis, said the Australian import is an important return for the Chevrolet brand. “The Omega has a great tradition in Brazil dating back to when it was produced by Chevrolet until today,” he said. “It represents luxury, sophistication and performance and is a very important nameplate for the Chevrolet brand in Brazil.” Holden chairman and managing director Mike Devereux said the latest Omega project was a small step in the recovery process after the challenges of the financial crisis, as well as a big step in the Aussie team’s ethanol education program. “We’re really pleased to work with Chevrolet Brazil and to rebuild small, targeted export programs which add value to Holden’s domestic business,” he said. “Holden’s Chevrolet Omega program for Brazil shows that niche export opportunities are beginning to emerge as we recover from the challenges of the global financial crisis. “Our work with Chevrolet Brazil over the past decade has taught us a great deal about the potential of bio-ethanol and the flex-fuel technology needed to make our locally-produced engines E85-compatible. “Those lessons have allowed us to develop cars capable of running on varying ethanol blends ranging from E10 all the way to E85 as well as how to work with fuel retailers to make bio-ethanol available commercially.” link: http://www.goauto.com.au/mellor/mellor.nsf/story2/20AE7EEB8B7D801CCA25778F0081487A

Merging Malaysia’s National Car Companies Hard to Justify, Analysts Say By Mack Chrysler WardsAuto.com, Aug 31, 2010 9:00 AM To unite Malaysia’s two national car companies or not; that is the question, but just how seriously such a move should be considered is unclear. Industry analysts believe a pairing of Proton Holdings Bhd and Perusahaan Otomobile Kedua Nasional Sdn Bhd (Perodua) would be awkward at best and hard to justify on several important counts. As national companies, both auto makers have been indulged and overprotected by the government for years, safely ensconced behind a wall of tariff barriers, tax exemptions, rebates, subsidies and other special privileges. Yet, they have developed quite differently in character, composition and conduct. The coddling has left Proton handicapped by outdated technology, a limited lineup, overcapacity and lack of scale. Its shrinking market share has slid from a peak of 57% in 1993 to 30.6% of the passenger-car segment and 27.7% of total Malaysian vehicle sales in 2009. Perodua, in a joint venture with Daihatsu Motor Co. Ltd., a subsidiary of Toyota Motor Corp., has benefitted from Japanese management skills and modern technology, climbing past Proton in 2006 to become Malaysia’s largest vehicle maker, with 34.6% of the car segment and 31.3% of total domestic sales last year. More than 30 non-national auto makers competed for the remaining 41% of the market. “Perodua has adopted Japanese ways of doing things, whereas Proton operates very much like a government unit,” says Ruechuorn ‘May’ Arthapan, director, J.D. Power Asia-Pacific Automotive Forecasting. “It is not easy to find a fit between the two companies because of their different products, cultures and work practices.” Proton share of passenger-car segment down from 57% in 1993 to 30.6% in 2009. Adds Hajime Yamamoto, a director of IHS Automotive: “Proton badly needs to get modern technology from a global OEM but is having difficulty finding a foreign partner.” He cites the unsuccessful search for a strategic tie-up with several major auto makers, including Volkswagen AG, PSA Peugeot Citroen and General Motors Co., all of which failed primarily because Malaysian negotiators would not yield management control. Proton’s off-and-on negotiations since 2004 with the German auto maker ended earlier this year, and VW recently signed a memorandum of understanding with DRC-Hicom Bhd to begin complete-knocked-down assembly of its cars in Malaysia in 2011. Malaysian authorities now are trying a new tack, with Perodua proposed as the missing link Proton needs to be more competitive and successful. Prime Minister Najim Razak floated the idea of merging or consolidating the national car companies in July at Proton’s 25th birthday celebration. But there are suspicions Mahathir bin Mohamad, Proton’s founder who served as the country’s prime minister for 22 years and still holds political clout, may be behind the audacious proposal. “Proton was the first national car company, the brainchild of Dr. Mahathir, and it is obviously more Malaysian than Perodua, in a joint venture with a Japanese company,” Yamamoto says. Details are sketchy but Arthapan believes the intention is to merge Proton with Perodua, “creating one, stronger national car company in a structure that would leave Proton in control, with access to Daihatsu and Toyota technology and knowhow.” Two of the main principles have spoken out and opinions differ. While Perodua has serious doubts about such a union, Proton understandably favors exploring a deal. Proton’s Managing Director Syed Zainal recently told reporters both auto makers “have a strong desire to explore collaboration and consolidation.” But Perodua Managing Director Aminar Rashid Salleh tactfully tells the Bernama news agency he welcomes any form of collaboration, while suggesting the differing business models would make a merger impossible. “Perodua prefers to operate alone, not help their rival, and does not have any reason to assist Proton,” Yamamoto says, following a recent trip to Kuala Lumpur. “Daihatsu wants to concentrate on making their successful joint venture more competitive and doesn’t want anything to do with Proton’s problems.” Arthapan agrees. “Perodua and Daihatsu are not enthusiastic, since it would be difficult to find any synergies in a merger.” In theory, at least, the Malaysian government could force through a merger, but this is not considered likely for practical as well as political reasons. “I don’t think the government can really push that hard,” says Yamamoto. “Daihatsu would put less, not more, resources into a merged company, or might even withdraw from the joint venture. And many people feel Perodua would be finished without Japanese technology and management knowhow.” About all Proton has to bring to the negotiating table for any tie-up is massive overcapacity, and even this has doubtful value. The main Shah Alam plant can produce 230,000 vehicles annually. The newer Tanjung Malim, built in 2003 with a design capacity of 1 million units a year, currently is equipped to build 100,000. These numbers compare with Proton sales of 148,031 vehicles in 2009. J.D. Power Asia-Pacific estimates the company’s sales will be flat this year at 148,489 and drop to 145,498 in 2015. “Only Proton has low-capacity utilization,” says Athapan. “Other auto makers in Malaysia are fully utilizing their installed capacity and may have to add more shifts to meet demand.” The Malaysian Automobile Assn. says capacity utilization is 215% at UMW Toyota Motor Sdn Bhd, 202% at Honda Malaysia Sdn Bhd and 164% at Perodua, compared with 54% at Proton’s Shah Alam facility and 42% at Tanjung Malim. Tapping into Proton’s excess capacity reportedly has no appeal for Perodua, which appears to have ample in-house capabilities. J.D. Power estimates the auto maker’s sales will climb 12.6% in 2010, compared with the prior year, to 187,764 vehicles, rising to 205,864 in 2015. However, the combined output of both car companies is relatively small, and analysts in Kuala Lumpur dismiss claims a merger or consolidation would enhance economies of scale, reduce costs or help exports. Proton has ambitious plans to expand exports into Southeast Asia, China, India, the Middle East and North Africa, but the competition in these regions is stiff. Plus, hitting an export target of 20% of production, up from 9% last year, will be difficult to reach. Perodua exports are negligible, just 0.34% of production in 2009, and likely to remain so, Yamamoto says. “Daihatsu managers do not think Perodua is very competitive in global or regional markets and want to concentrate on the Malaysian market.” Given the current health of each national car company and the difference in their prospects, analysts believe a union would benefit Proton at the expense of Perodua. The most industry experts see materializing on the positive side might be an expansion in the working relationship between the two auto makers, which already includes Perodua’s production of up to 120,000 cylinder heads annually for Proton. “Commonizing some parts might be looked into to give suppliers more economies of scale, but that is easier said than done, involving a lot of redesigning and re-engineering,” says Arthapan. Adds Yamamoto: “More cooperation between the two national car companies is possible, but cooperation won’t solve Proton’s basic problems.” And although a decision on the proposed merger or consolidation reportedly is expected by year’s end, Arthapan is skeptical. “So far, it’s just talk,” she says. Things still are in an early stage, and it likely will take a long time for the Malaysian government to reach a decision. No one will be surprised at an announcement in December that more time is needed to study the pros and cons of the proposal. “This is a long-term push to make Proton more competitive,” Arthapan says. “With government support, the car company can continue to operate indefinitely.” link: http://wardsauto.com/ar/merging_malaysias_companies_100831/

Happy birthday and we hope to see more of you soon.

Report: Mahindra says it has terminated U.S. dealer agreement by Jonathon Ramsey (RSS feed) on Aug 28th, 2010 at 11:25AM Mahindra's four-year saga with Global Vehicles is taking so many turns, it should get a telenovela on Univision. When we recently posted that the Pik-Up finally received EPA certification, GV and its dealer network were excited and ready to go. However, commenters on that post noted a message on Mahindra's site indicating that the company's relationship with GV was kaput. Mahindra hasn't said a word since, but Global Vehicles and the dealers have let folks know that they aren't impressed and that they have no idea what Mahindra thinks it's doing. Global Vehicles' official response was, "such attempted termination is invalid under applicable laws of the United States and the State of Georgia, something which Mahindra continues to disregard." And a dealer who's got a showroom ready to sell Pik-Ups in December said, "If they're still coming in December of this year like they've said they are, they're coming through my dealership, and that's all there is to it." GV has taken the unusual step of initiating arbitration in the United Kingdom, in the belief that legal action here could further delay the anticipated retail sale date. We'll wait to hear what Mahindra has to say on the matter, and we're sure that the folks waiting to buy a TR20 or TR40 Pik-Up hope Mahinda talks soon -- and with some good news this time. link: http://www.autoblog.com/2010/08/28/report-mahindra-says-it-has-terminated-u-s-dealer-agreement/

Spy Shots: 2011 Ram 1500 Hybrid uncloaked by Frank Filipponio (RSS feed) on Aug 28th 2010 at 1:29PM 2011 Ram 1500 Hybrid captured by Rich Truesdell of Automotive Traveler While recently shooting some cloaked Chrysler and Hyundai prototypes, Automotive Traveler's Rich Truesdell came across several completely undisguised Ram 1500 pickups the other day. As Rich tells it: Upon closer examination, I figured out why: They are near-production-ready versions of the rumored 2-Mode Hybrid version. Judging by the complete lack of cloaking, I'd assume they are undergoing final validation, possibly to establish their published tow ratings. Don't be surprised if the Ram is an early-introduction 2012 model to reach showrooms in the spring. We've talked about these hybrid pickups before, and if a schedule posted at Allpar is to be believed, Chrysler will kick off production of this new Ram 1500 Hybrid on November 16, so they may be badged as MY2011 Ram 1500 Hemi Hybrids and not MY2012 as Rich supposes. Either way, the hybrid Ram is expected to employ the same 5.7-liter Hemi V8, two-mode hybrid powertrain that was used in the short-lived Dodge Durango/Chrysler Aspen hybrids in 2008, backed by a transmission supplied to Chrysler by General Motors. Expected mileage ratings should be similar to GM's hybrid trucks, with a city number of about 21 to 22 mpg. Check out Automotive Traveler for more photos of the 2011 Ram 1500 Hemi Hybrid. link: http://www.autoblog.com/2010/08/28/spy-shots-2011-dodge-ram-two-mode-hemi-hybrid-spotted/

Nissan, Hyundai reportedly duking it out for No. 2 Asian automaker in U.S. by Chris Shunk (RSS feed) on Aug 30th 2010 at 9:32AM Nissan has long been the number three Asian automaker in the U.S., lagging behind both Honda and Toyota on the sales charts. But the Japanese automaker has been on a bit of a roll of late, with 10 straight months of sales gains and an aggressive product onslaught planned for the next 24 months. Nissan would love to unseat Honda to finally sneak up to the number two slot in the States, but a funny thing's happening: Hyundai is doing its best to push Nissan down to number four. Nissan and Hyundai are currently in a dead heat in U.S. auto sales. Through July, Nissan has sold 522,669 cars and trucks, while Hyundai, when combined with Kia sales, has moved 515,316 vehicles. Hyundai has a treasure-trove of new product on dealer lots lead by the outstanding Sonata sedan. New products like the Kia Sportage and the Elantra are poised to battle hard for increased market share in their perspective segments. Nissan is countering with a new Juke in October, followed by the Leaf EV and the Quest minivan, and wrapping up with another six significantly upgraded vehicles by 2012. So who do we think will win the battle for number two? Hyundai appears to have most of the momentum at the moment, but Nissan has a larger customer base – at the moment. In fact, we'd be surprised if either automaker surpasses Honda in the next couple years. link: http://www.autoblog.com/2010/08/30/nissan-hyundai-reportedly-duking-it-out-for-no-2-asian-automak/

Mahindra Tries To Dump Its Importer, U.S. Launch Left In Limbo By Richard Read Reporter August 27th, 2010 Things were going so well for Mahindra: Americans were ready for the pickups they'd been promising, the Environmental Protection Agency gave the company's diesels the green light, and Mahindra's U.S. importer, Global Vehicles, had put together a nationwide network of dealers to sell the trucks. Then things went south -- but not, as Georgia's Global Vehicles was expecting, Deep South. Yesterday, in a very brief post to its U.S. website, Mahindra said it had dropped Global as its American importer. Tensions between the two companies had been on the rise since Global sued Mahindra for not getting its pickups certified for the U.S. market quickly enough. Now, Mahindra's U.S. launch is left in limbo and 350+ dealers are left in the lurch. This raises the possibility of a second lawsuit from Global, which has spent countless hours and $35 million in prepping for Mahindra's stateside arrival. A spokesman for the importer says that "such attempted termination is invalid under applicable laws of the United States and the State of Georgia, something which Mahindra continues to disregard." We're not lawyers -- well, most of us aren't -- but if Mahindra wants to roll onto U.S. lots anytime soon, it could be Global's way or the highway, figuratively speaking. [AutoNews] link: http://www.thecarconnection.com/marty-blog/1048720_mahindra-tries-to-dump-its-importer-u-s-launch-left-in-limbo

2011 MAHINDRA APPALACHIAN SEPTEMBER 22ND, 2009MARCH 12TH, 2009 By Mark Kleis Proving to be the longest lasting, most unpredictable rumor in the auto industry – handily ousting the Amarok flip-flop for top honors – Mahindra has yet again hit a major snag in its seemingly doomed quest to come to the U.S. It was only one week ago that Leftlane reported on the passing of the EPA emissions testing for the Mahindra truck, seemingly clearing the way for the small diesel-powered pickup to come stateside. But what we (and apparently all but a single Indian media outlet – Frontier India) missed was a small disclaimer on Mahindra’s media site that said the agreement between Mahindra and its long-standing U.S. distributor had been terminated. “Mahindra’s relationship with Global Vehicles Inc (GV) has ended, the agreement dated 26th September 2006 between Mahindra and GV having terminated.” The termination of the agreement no doubt stems from the fact that GV Inc recently sued Mahindra for allegedly sandbagging the importation of the vehicles in an effort to shed the distributor from its duties. Global Vehicles U.S.A., Mahindra’s now-former U.S. distributor, says it has signed up 345 dealers nationwide – and in doing so incurred $35 million in costs. It is unclear if or how GV Inc will go about reimbursement from Mahindra regarding its losses. About the Mahindra pickup truck Sitting on Mahindra’s Scorpion platform, we’ll be seeing 2-door and 4-door trucks in both two-wheel drive and 4-wheel drive versions arriving on our shores in early 2010. A Mahindra SUV will reportedly follow about a year later – likely for the 2012 model year. We’ve waited almost two years to catch a glimpse of the U.S.-spec Mahindra TR40 crew cab pickup you see in these pictures. The Indian-built diesel pickup has several refinements that set it apart from the rest of the Mahindra’s Scorpion-platform trucks sold overseas. The U.S. truck adds a front bumper guard — that’s similar to an aftermarket guard — as standard equipment, and a stamped-steel rear bumper. Both enhancements are needed to pass low-speed crash tests, which call for the front and rear bumpers to survive 2.5 mph direct and 1.5 mph corner impacts without damage. The trucks have standard stability control and four-wheel disc brakes. Inside the TR40, you can see the 6-speed automatic transmission shifter that manages the 2.2-liter mHawk diesel engine, and it comes with a manual setting. Official power numbers haven’t been released, but it is expected to produce between 140 and 150 horsepower, along with an impressive 300 lb.-ft of torque. The interior trim is very similar to the Australian version of the Mahindra, but is reportedly being developed exclusively for the American market. The center console between the seats includes three cupholders, power window controls and the four-wheel drive switchgear. The small pickup will yield an impressive 2,600 pound payload capacity with the 7.5-foot cargo box – roughly a thousand pounds more than the Toyota Tacoma. The Mahindra TR40 and two-door TR20 pickups were scheduled to go on sale in the U.S. in February, under the production model name of Appalachian – but now it is not clear if that will still occur. The starting price is expected to be from $20,000 to $25,000. Should the truck actually make it to the U.S., expect a diesel-hybrid version of the truck to follow a year later, and with a few-thousand dollar premium to go along with it. link: http://www.leftlanenews.com/mahindra-appalachian-2010.html

Mahindra & Mahindra Agrees to Buy Controlling Stake in Korea's Ssangyong By Sookyung Seo - Aug 23, 2010 2:46 AM CT Mahindra & Mahindra Ltd., India’s largest sport-utility vehicle maker, may jointly build new cars with Ssangyong Motor Co. if it takes control of the South Korean automaker. The two companies will work together and share technology, said Pawan Goenka, president of Mumbai-based Mahindra’s automotive and farm-equipment division, speaking to reporters after the two companies signed a preliminary agreement concerning the acquisition in Seoul today. The Indian company will help Ssangyong “develop new product and modernize their lineups,” he said. Mahindra, chosen as the preferred bidder for Ssangyong earlier this month, may revitalize the company after the Pyeongtaek, South Korea-based maker of Rexton SUVs failed under the control of its previous foreign owner. China’s SAIC Motor Corp., which bought a 49 percent stake of Ssangyong in 2004 for $500 million, was criticized by unions and small shareholders for not investing enough in the venture. “Some people have doubts about Mahindra’s ability to revive Ssangyong after SAIC, which is a bigger company than Mahindra, failed to do so,” Ahn Soo Woong, a Seoul-based analyst at LIG Investment & Securities Co., said last week. “So far, Mahindra has shown strong commitment to the deal.” Ssangyong rose 6.9 percent to close at 10,850 won in Seoul trading. Global Expansion Taking a stake in Ssangyong, which is operating under bankruptcy protection, may help Mahindra become a leading maker of SUVs, Goenka said. “We believe that Ssangyong and Mahindra make a powerful combination to create a global SUV brand,” he said. The two will also benefit from their combined scale, he said. Mahindra, based in Mumbai, didn’t disclose the size of its bid for Ssangyong, which has a market value of 396 billion won ($340 million), according to Bloomberg data. MoneyToday, a Korean-language online newspaper, said earlier this month Mahindra offered 535 billion won for a controlling stake, citing an unidentified industry official. Mahindra has a plan to invest about $2 billion over the next three years for product development and plant expansion, as well as acquiring a controlling stake in Ssangyong, Goenka said. link: http://www.bloomberg.com/news/2010-08-23/mahindra-signs-preliminary-agreement-to-purchase-stake-in-ssangyong-motor.html

Four Nissan, Toyota SUVs Offer Lackluster Rollover Protection By Bengt Halvorson Deputy Editor August 19th, 2010 2010 Toyota 4Runner TrailEnlarge PhotoSeveral popular mid-size SUVs from Nissan and Toyota—the 2010 Nissan Xterra, Toyota FJ Cruiser, Toyota 4Runner, and Nissan Pathfinder—have earned only lackluster rollover ratings in the latest round of testing from the Insurance Institute for Highway Safety (IIHS). But these ratings, just released from insurance-funded testing authority, don't say anything about the vehicles' propensity to roll over (unlike those from the federal government); rather, they gauge the likelihood of serious injury and the amount of structural protection that a vehicle will provide in the event of a rollover. In the IIHS rollover (roof crush) test, a metal plate presses against a particular area of the roof that's crucial for resisting rollover injuries, and the peak force is measured before deforming five inches. That's then represented as a ratio to the vehicle's weight. In order to earn a top 'good' score in the IIHS test, a vehicle needs to achieve a strength-to-weight ratio of at least 4.0. Current federal standards require a ratio of 1.5, but a new standard to be phased in by 2016 will require twice that. Overall, the 2010 Nissan Xterra, Toyota FJ Cruiser, and Toyota 4Runner earned 'acceptable ratings The 4Runner was the best in this bunch, able to withstand 3.87 times its weight; the Toyota FJ Cruiser took 3.47 times its weight, while the Xterra managed 3.28. Meanwhile, the heavier 2010 Nissan Pathfinder could withstand just 3.07 times its weight, earning a 'marginal' rating in the test. Earlier in the year, the 2010 Nissan Frontier pickup, with which it's closely related, earned a top 'good' rating. Since rollovers are still more likely for SUVs as a vehicle class—even with electronic stability control, there's more of a chance that the vehicle might be 'tripped' by a curb or soft shoulder—rollover protection should be even more of a concern when shopping for a next vehicle. A number of vehicles in this class—including the Jeep Liberty, Dodge Nitro, Toyota Highlander, Toyota Venza, Jeep Grand Cherokee, Dodge Journey, Ford Flex, Kia Sorento, Chevrolet Equinox, and GMC Terrain—have earned top scores in the roof test, and only the Honda Pilot, Mitsubishi Endeavor, and Honda Accord Crosstour have managed lower scores in this so-called 'Midsize SUVs' category. link: http://www.thecarconnection.com/marty-blog/1048480_four-nissan-toyota-suvs-offer-lackluster-rollover-protection

SPIED: 2011 Dodge Durango Ain't Ready to Throw Away its Camouflage Just Yet WEDNESDAY, AUGUST 18, 2010 Even though Dodge has started playing the striptease photo game with the 2011 Durango, the Detroit carmaker is still keeping test cars under cover for apparent reasons. Forum member GM4Life from 'Cheers and Gears' bagged these photos of a camouflaged prototype of the seven (or eight) seater crossover on the highway somewhere near Denver, Colorado. The new generation of the Durango, now a unibody crossover model based on the mechanicals and platform of the latest Jeep Grand Cherokee, will be built alongside its sister Jeep model at the Chrysler Group's Jefferson North plant in Detroit. Set to compete against Ford's new Explorer, the Durango will most likely hit showrooms by the end of the year. Photos: Cheers and Gears link: http://carscoop.blogspot.com/2010/08/spied-2011-dodge-durango-ain-ready-to.html