- Document: GM initially sought to repair air bag problems, not recall SUVs – DetN: General Motors Co. initially sought to repair 1.3 million SUVs for air bag problems through a customer service campaign, rather than a safety recall, according to a newly disclosed document.
- GM was reluctant to recall 1.2 million vehicles for airbag issue – Automotive News: Even after revealing that it waited years to recall cars in which faulty ignition switches caused airbags to fail, a General Motors document suggests the automaker last month remained reluctant to issue a recall for a long-known problem with airbags…
- JAPAN: Mazda ready to sell Flat Rock plant stake to Ford – Just-auto: Mazda CEO Masamichi Kogai has said the company is ready to begin talks with Ford to sell Mazda’s stake in a joint venture that operates the Flat Rock plant in Michigan, Reuters reported.
- Shaky Economy Threatens Russia Vehicle Sales, GM Manager Says – Wards: Russia’s economy faces a number of challenges, including a heavy reliance on oil and natural-gas exports, that may negatively affect future vehicle sales, says a GM senior manager.
- Volkswagen Extends Offer Period for Scania Shares – WSJ: Volkswagen has extended the deadline by three weeks on an offer to buy out minority investors in Swedish truck maker Scania after the German auto maker failed to meet its initial target of shareholder acceptance by April 25. [ There is more … ]
Archives for April 2014
Wednesday morning car news roundup, April 30, 2014
Tuesday morning car news roundup, April 29, 2014
This morning: Toyota to Texas, VW profits, GM fall-out, more
- QandA: Toyota’s Lentz on what triggered the move, and the upheaval ahead – Automotive News: In the wake of Toyota’s announcement that it is centralizing its U.S. operations in Plano, Texas, Toyota North America CEO Jim Lentz spoke exclusively with Automotive News West Coast Editor Mark Rechtin.
- Toyota to shift North American HQ to Texas, add jobs in Michigan – DetN: Toyota said it will move its North American headquarters from California to Texas — and shift 250 jobs to its technical center near Ann Arbor.
- Toyota to consolidate most U.S. operations in Texas – Automotive News: Toyota will consolidate its far-flung operations in the United States into a single campus in Plano, Texas, with a targeted move-in completion date of late 2017, the automaker said today.
- Toyota Will Shift 4,000 to New Offices in Texas – NY Times: The Japanese automaker said the move to new headquarters near Dallas in about three years would affect employees in California, Kentucky and New York.
- Toyota move to Texas is latest blow to Southern California – Reuters: Toyota Motor Corp. said it will move its U.S. sales headquarters from southern California to suburban Dallas, delivering the latest blow to California in a fight for jobs with arch-rival Texas, whose Governor Rick Perry has been actively poaching businesses from the Golden State.
- Senators Ramping Up Pressure on GM – thedetroitbureau.com: Senators Richard Blumenthal and Edward Markey continue to beat the drum to force General Motors to ask owners of the 2.6 million small cars it recalled to stop driving them immediately. The pair sent a letter to Transportation Secretary Anthony Foxx asking him to issue a “park-it-now” advisory for the vehicles.
- Two senators want feds to force GM to warn recall owners – DetN: Two U.S. senators want the NHTSA to force General Motors to warn owners of its 2.6 million recalled cars to stop driving them until the defective ignition switches are repaired.
Monday morning car news roundup, April 28, 2014
The big news today of course is Toyota’s move to Texas. Toyota HQ in Tokyo maintained radio silence all day, though.
- Toyota May Move Majority of California HQ to Texas – thedetroitbureau.com: Hoping to save money, Toyota Motor Co. reportedly plans to move a substantial portion of its U.S. corporate operations from Torrance, California to the suburbs of Dallas, according to several reports.
- US: Toyota to restructure sales and marketing unit – reports – Just-auto: Toyota is expected later on Monday (28 April) to announce a major restructure of its California-based US sales and marketing operation including voluntary layoffs.
- STXNEWS LATAM-Brazil car sales up 30 pct in April so far -industry – Reuters: Sales of new vehicles in Brazil have climbed about 30 percent so far this month from the same period of March, the president of national carmakers group Anfavea told journalists on Monday.
- SOUTH KOREA: Kia posts gains in sales and revenue – Just-auto: Kia Motors has reported improved business performance in Q1, 2014 despite flat trading in the domestic market and a strong KRW-US$ exchange rate.
- INDIA: Maruti Suzuki full year exports slump 16% – Just-auto: Exports by Indian market leader Maruti Suzuki slumped 15.8% to 101,352 units in fiscal year 2013/2014 as total sales fell 1.4% to 1,155,041 vehicles.
- How Lincoln Plans to Win in China – Wards: Lincoln isn’t aiming to elbow aside the Mercedes S-Class or AudiA6. It wants to cash in on the increasing popularity ofCUVs and SUVs to grab a slice of what soon will be the largest luxury pie in the world. [ There is more … ]
Friday morning car news roundup, April 25, 2014
- Ford Earnings Fall Nearly 40% – thedetroitbureau.com: Ford Motor Co. reported a 39% drop in earnings for the first quarter of 2014, but the maker says the decline reflects the costs of its biggest product offensive in 50 years, setting it up for better numbers ahead, reports TheDetroitBureau.com.
- Ford posts weaker-than-expected profit as warranty costs rise – Reuters: Ford Motor Co posted lower-than-expected first-quarter profit on Friday as the No. 2 U.S. automaker saw higher warranty costs in North America for older vehicles by $400 million.
- Ford profits fall on increased North American costs – DetN: Ford posted a profit of $989 million during the first three months of 2014, down from $1.6 billion during the same period last year. First-quarter profit dropped nearly 39%.
- Ford posts weaker-than-expected profit as warranty reserves rise – Reuters: Ford Motor Co posted lower-than-expected first-quarter profit on Friday as the No. 2 U.S. automaker increased warranty reserves in North America for older vehicles by $400 million.
- Honda forecasts sharp slowdown in profit growth – Automotive News: Honda on Friday forecast a 3.6 percent rise in net profit for the year ending March 31, below analyst estimates and a sharp slowdown from last year, as foreign exchange rates stabilize after a steep decline in the yen boosted earnings.
- SWEDEN: FKG sees supplier hope in Iran as relations improve – Just-auto: Scandinavian supplier body, FKG, says it sees “waves on the water” in terms of improving relations between Iran and the West that could garner real opportunities for suppliers.
- JAPAN: Denso full year operating income up 44% – Just-auto: Denso’s consolidated net sales for the fiscal year ending 31 March 2014, totalled JPY4.1trillion (US$39.8bn), a 14.4% increase from the fiscal year ending 31 March 2013. The company’s consolidated operating income totalled was JPY377.7bn, a 44% increase.
- JAPAN: New models boost Mazda operating profit – Just-auto: Mazda has reported a 238% increase in operating income for the fiscal full year to 31 March, 2014, booking a JPY182.1bn profit, up JPY128.2bn year on year. [ There is more … ]
Thursday morning car news roundup, April 24, 2014
Dominating the news this morning: GM results:
- US: Despite recalls, GM posts $100m first quarter net profit – Just-auto: Despite suggestions it might even book a loss due to recall costs, General Motors on Thursday said first quarter net income was US$0.1bn ($100m), or $0.06 a share, beating analysts’ estimates by a couple of cents.
- GM profit slashed over recall costs – FT: The ignition switch crisis is taking its toll at the carmaker, which has reported its worst performance since returning to public listing in 2010
- Hammered by Recalls, GM in the Black – Just Barely – thedetroitbureau.com: After writing down $1.3 billion to cover the cost of recalls, GM saw first quarter earnings fall more than 85%,though it was still able to squeak out a modest profit. But what about the longer term? TheDetroitBureau.com looks beyond today’s numbers at what GM faces going forward.
- GM posts lower profit after recall; truck pricing strong – Reuters: General Motors Co said on Thursday that first-quarter profit tumbled 88 percent after a massive recall due to defective ignition switches, but results still topped expectations on strong pricing for its redesigned pickup trucks in North America.
- GM profit plunges on outlays for safety recalls – Automotive News: GM’s first-quarter net income sank 86 percent from a year earlier to $125 million amid heavy costs related to safety recalls of 7 million vehicles.
- US: General Motors’ $10bn profit aspiration fades with recalls – Just-auto: The first quarter costs associated with recalling almost 2.6m cars in the first quarter have ended General Motors’ dream of making a record $10bn profit, a media report said.
In other news:
- JAPAN: Mitsubishi upbeat as full year sales and income grow – Just-auto: Mitsubishi Motors Corporation has forecast continued growth in sales and income for the coming financial year after booking a 15% increase in net sales to JPY2.09 trillion (US$20.4bn) for fiscal 2013/2014.
- Europe “coming back” says automotive supplier body chief – Just-auto: Scandinavian automotive supplier body, FKG, says Europe is “coming back” as fledgling economic recovery across the Continent gathers pace.
Does Beijing-Shanghai Tension Spell Trouble For GM and VW?
Ever since the dramatic 2012 downfall of the colorful Chongqing party leader Bo Xilai, the Western press has been fascinated with China’s “princeling” plutocrats and the Central Government’s efforts to restrain them. No wonder: the battle is China’s basic political division, pitting the bureaucratic and ideological power of the Beijing Central government against the economic power of Southern Chinese entrepreneurs centered around Shanghai. Under former Shanghai mayor Jiang Zemin, China opened rapidly to the foreign investment that spurred decades of florid economic expansion… and sowed the seeds of China’s major political problems, corruption, inequality and environmental ruin. The downfall of Bo Xilai, a protege of Jiang Zemin’s Shanghai clique and member of its successor “Princeling” clique, was taken as a sign that Xi Jinping is serious about continuing Hu Jintao’s campaign against the ill-gotten gains of the Shanghai boom… a signal that is growing louder as the investigations widen.
Why the ten-cent lecture on Chinese politics? Shanghai’s automotive star rose alongside Jiang Zemin’s, and the city with which the he is synonymous has become one of China’s biggest automotive players and partner to the two biggest foreign presences in China, Volkswagen and GM. If Xi Jinping’s reform movement continues to target Shanghai and its Princelings, and especially if the investigations draw closer to Zemin himself, automakers could find themselves on awkward ground. Caught between the guanxi (connections) culture of the world’s new largest market for cars and the Foreign Corrupt Practices Act of what is still the most profitable market for cars, automakers with Shanghai exposure have reason for concern.
Wednesday morning car news roundup, April 23, 2014
Very mixed bag so far this morning:
- US: Golf off Ford CEO Mulally’s next-move list – report – Just-auto: Speculation is continuing to swirl around what Ford CEO Alan Mulally will do next but it apparently won’t be retirement golf in Florida.
- US: Single complaints prompt NHTSA Chevrolet brake and Bosch Leaf charger probes – Just-auto: The NHTSA has opened preliminary investigations into the 2014 Chevrolet Impala and a Bosch fast charger used with a 2013 Nissan Leaf model sold in the US after receiving just one complaint each about automatic braking and battery recharging respectively.
- Tesla seeks workers for ex-Chrysler property in Calif. – Automotive News: Tesla Motors Inc. has leased an idled parts-distribution center in rural California where it plans to hire engineers and technicians as the maker of luxury electric cars expands operations.
- US: Improved profits fettle Ford’s Fitch rating – Just-auto: Fitch Ratings has affirmed Ford Motor Company and its Ford Motor Credit captive finance subsidiary at ‘BBB-‘ and revised its rating outlook for both to ‘positive’ from ‘stable’.
- New GM struggles to shake off the past – FT: A court ruling that the company deliberately hid the seriousness of safety problems could allow plaintiffs to sue the post-bankruptcy GM for losses
- Report – Ssangyong X100 mini SUV Jan 2015 launch confirmed, seven seat variant in late 2015 – Indian Autos Blog: Top officials at Mahindra-owned Ssangyong Motor have revealed to a media gathering at the 2014 Beijing Auto Show this week that the Ssangyong X100, previewed by the Concept XLV, will be launched next year. The five-seat Ssangyong X100, which is Europe-bound, will launch next January if the schedule is unhindered.
- US: Toyota Mississippi exports first Corollas – Just-auto: Toyota has begun exporting Corollas built at its Mississippi plant for the first time.
- GERMANY: First four-cylinder Porsche since 1995 – Just-auto: Unlike the V4 in its new 919 WEC racer, the four-cylinder engine in the just-announced Macan is made by the Volkswagen Group, not Porsche.
- Toyota’s global sales top VW, GM for 3rd straight quarter – Automotive News: Toyota outsold VW Group and GM for a third straight quarter. Toyota sold 2.58 million units in the January-to-March period, it said today. Second place is too close to call as GM and VW said they each sold about 2.4 million vehicles.
- CHINA: Toyota adds local hybrid capacity – Just-auto: Toyota, the global leader in hybrid vehicles, will start to source hybrid components in China for its locally produced Corolla and Levin models from next year rather than import them from Japan.
- Audi plans hot new RS3 hatch for Paris motor show – Autocar: Year-end debut for hot new Audi RS3, which sits on lightweight MQB platform and gets new engine upgrades to outrun Mercedes and BMW rivals.
- Mercedes plans C450 AMG Sport for 2015 – Autocar: New performance-orientated C-class to join range next year, with twin-turbo V6 engine and 367bhpMercedes-Benz is planning to extend its new C-class line-up with a performance-orientated C450 AMG Sport.
- Land Rover launches LWB Range Rover Hybrid in Beijing – Autocar: China’s first ever diesel-electric hybrid goes on sale in May in LWB form, with 186mm of extra interior space and CO2 emissions of 169g/kmA long-wheelbase version of the Range Rover Hybrid has made its debut at the Beijing motor show.
- Scania Shareholder Alecta Rejects VW Bid – WSJ: Swedish pension fund Alecta said it would reject Volkswagen’s offer to buy out minority shareholders in truck maker Scania.
- Fields to take Ford wheel at prime stage – Automotive News: When Mark Fields took charge of Ford’s Americas operations nine years ago, it was a major repair job with record losses and a brush with bankruptcy. Today, Ford’s North American operations are the envy of the industry.
- Chinese-owned Fisker hopes to relaunch Karma in 2015 – DetN: A plan for Fisker Automotive Inc. is solidifying that would put the company’s gas-electric hybrid Karma luxury automobile back on the road in mid-2015, according to its newly appointed interim president.
- Vote Rejecting UAW at Plant Is Certified – WSJ: The NLRB certified a February election in which the UAW was rejected by workers at a Volkswagen plant in Tennessee, bringing to an end a two-month battle over the result.
Tuesday morning car news roundup, April 22, 2014
Making headlines this morning: Beijing, Mulally, UAW, and more.
- Auto China Opens in Beijing – NY Times: This year’s edition of the biennial show includes many models custom-tailored to the Chinese market.
- BEIJING SHOW: Audi pushes PHEVs for China – Just-auto: Audi has shown the production version of its A3 e-tron plug-in hybrid at the Beijing Motor Show and confirmed that it will build the Audi A6L e-tron (long-wheelbase version) sedan in China.
- BEIJING SHOW: Toyota plans heavy investments in China – Just-auto: Toyota announced it plans a substantial expansion of its production base in mainland China, as it as it looks to make ground on key rivals such as General Motors and Volkswagen in the world’s largest vehicle market.
- Automakers unveil China-focused models in Beijing – DetN: Ford Motor Co. unveiled a new Escort sedan designed in China for global sale at a Beijing auto show that highlighted the growing influence of Chinese tastes on the industry.
- Mercedes-Benz Concept Coupe SUV points to a larger crossover lineup – KBB: Unveiled at the Beijing auto show, the Mercedes-Benz Concept Coupe SUV indicates that the German automaker is looking to expand its lineup of crossover SUVs with a sporty 4-door designed to rival the similarly conceived BMW X6.