4/25/09

Fiat Weighs Buying Stake in G.M.’s Opel Unit

Fiat Weighs Buying Stake in G.M.'s Opel Unit
By NELSON D. SCHWARTZ and DAVID JOLLY
Published: April 23, 2009

TURIN, Italy — Aiming to benefit from Detroit's problems and vault itself into the top tier of the car industry, the Italian automaker Fiat is eyeing a major stake in General Motors' Opel division in Europe, even as it simultaneously nears a deal to save Chrysler.

Fiat's chief executive, Sergio Marchionne, already in Washington for talks on the Chrysler deal, has raised the possibility of also acquiring Opel in talks with United States officials, a top government negotiator said Thursday.

Dueling Hybrid Pace Cars

Toyota announced this week that its Camry Hybrid would be the pace car for the Coca-Cola 600 at Lowes Motor Speedway on May 24, thus becoming the first hybrid pace car to serve from start to finish in a Nascar race. 


It seemed like a nice, if minor, marketing coup, timed to coincide with Earth Day. But could the announcement also have been a small tweak at Ford?

In case you forgot, Ford's Fusion Hybrid earned the distinction last November of being Nascar's first hybrid pace car when it led the field to the green flag at Homestead, Fla. But the hybrid gave way to the gas-powered Ford Fusion Sport after the start of the race, leaving room for Toyota to make its own Nascar milestone. 


4/23/09

Electric cars in the limelight at Shanghai expo2

China relies on imports for nearly half of its oil. "If China continues current growth rates it will almost double oil imports by 2030," said a McKinsey report released at the end of last year. "But greater use of electric cars would cut this growth by around a quarter."

Considering the huge green potential in China, German luxury carmaker Mercedes-Benz is showcasing its electric concept car BlueZERO, which can run on batteries or fuel cells.

"The flexible BlueZERO concept allows electro-mobility for every requirement, and highlights the fact that Mercedes-Benz is the world's only car manufacturer to already have in place all the key technologies for electric cars offering full everyday practicality," said Dieter Zetsche, chairman of Daimler AG and head of Mercedes-Benz.

Another German carmaker BMW is exhibiting its near-zero emission electric car Mini Cooper E at the show, slated for mass-production in 2010.

Japanese automaker Nissan and Toyota are also displaying their electric concept cars at the Shanghai auto show.


Electric cars in the limelight at Shanghai expo1

With concern of a green future and in answer to the Chinese government's appeal for energy-efficiency, global and domestic automobile manufacturers are showcasing their electric car models at the ongoing Shanghai auto show.


Troubled carmaker General Motors is displaying the production version of its Chevrolet Volt - a vehicle that delivers up to 64 km of gasoline and emission-free electric driving.

Battery and car supplier BYD Auto, backed by US billionaire investor Warren Buffett, has three electric models - F3DM, F6DM and e6 on display at the show.


The company has sold more than 80 F3DM electric cars, the first mass-produced model in the world, priced at around $22,000 each, to the Shenzhen government for tests before public use.


"We have cooperated with local government to set up around twenty 220V-charger pillars in parking lots around offices and residential areas," said Yang.

"The next step is to establish a charging station with 380V input. This will provide quick charging in 10 minutes and make the battery 70 percent full, enabling driving the car up to 70 km."


Hebei-based Great Wall Motor unveiled its GWKulla all-electric car, with plans to enter the market next year, while Chery debuted its concept battery car - the Riichi M1.

Electric cars in the limelight at Shanghai expo


The Volt, expected to be introduced in China by 2011, uses electricity stored in its 16-kWh, lithium-ion battery to move the wheels at all times and speeds.

 
"Bringing the Volt to China shortly after its debut in the United States in 2010 is part of GM's commitment to sharing our latest achievements in energy diversity with our second-largest market," said Kevin Wale, president and managing director of GM China. "It will take China one step closer to its goals of clean transportation and energy freedom."

4/22/09

Japanese car makers upbeat on 2009 China sales2

The back orders come even after Nissan boosted passenger sales by 36% from a year earlier in March, supported by brisk demand for its compact models such as the Tiida, as these vehicles benefit from a government step to halve the purchase tax on cars with 1.6-liter engines and smaller to 5%, Nakamura said.
He added that he will need to watch sales in April and May to see how long the tax break could remain effective.
Helped by the solid sales at the venture, Nissan Senior Vice President Andy Palmer told reporters at the auto show that his company has "a good chance" to beat its China sales target for this year of 570,000 vehicles. The target represents a 4.6% growth in sales.
Honda Motor Co., Japan's second biggest car maker, aims to boost its sales in China by 10% to 520,000 in 2009, Atsuyoshi Hyogo, a Honda senior managing director, told reporters at the auto show.
The targeted sales growth would follow a 12% jump that the company posted last year and also beat a 5% increase that the company expects for the country's overall auto market this year.
The company's product lineup is in "good condition," including models that Honda redesigned last year such as its flagship sedan Accord and the Fit compact, Hyogo said. The company will also roll out the newly designed Odyssey minivan in the later half of this year.

Toyota, the world's biggest car maker, said it seeks to raise its sales in China "slightly" from its sales in 2008, without elaborating.
Continuing the company's efforts to boost sales in the major market, Toyota's Watanabe said at the press conference that his company will beef up its hybrid lineup by introducing the gasoline-electric powered Camry sedan "in the near future."
Japan's auto giant is also considering selling plug-in hybrids in China on a trial basis to enhance its low-emission product range, the president said.
Among other Japanese car makers, Mazda Motor Corp. (7261.TO) is targeting sales of 170,000 vehicles in China this year, a 33% increase, as it will roll out new products such as the redesigned Mazda6 sporty car and also expand its sales network to at least 250 dealers by the end of the year from 221 at the end of March.
"This is a market where about 85% of car purchasers buy vehicles for the first time in their life. So those people buy cars not to replace their old ones but because they need vehicles. (Auto demand in China) has only little to do with the global economic slump," Noriaki Yamada, chief operating officer at Mazda Motor China Co., told reporters at a dinner meeting in Shanghai. 

Japanese car makers upbeat on 2009 China sales1

Delayed quote dataAdd to portfolio
Analyst
Create alert Insider
Discuss
Financials
Sponsored by:
7201.TO, , ) aim to sell more vehicles this year than last year as they seek to attract customers with new models, and solid demand for small cars due to the government's measures to spark demand.

The sanguine views come as these top three Japanese car makers are set to report from later this month a sharp drop in profit, or losses for the fiscal year ended March as they are suffering from a sales slump in other major markets such as the U.S. and Japan.
"China's economy and auto industry are continuing their steady growth amid the global economy slowing down," Katsuaki Watanabe, Toyota president, said at a press conference at the Shanghai auto show.
The Chinese auto market is showing surprising resilience with sales in March climbing 5% to a record 1.11 million vehicles, helped by government stimulus initiatives to boost spending, such as tax cuts and other subsidies on auto purchases.
This is a major improvement from the last six months, when car sales slowed amid the global financial crisis. The country's vehicle sales growth slowed to 6.7% to 9.38 million units last year, marking the first non-double-digit growth rate in China's auto sales in almost a decade.
"We still have back orders for 20,000 cars," Kimiyasu Nakamura, president of Dongfeng Motor Co., told reporters at the Shanghai auto show. Dongfeng Motor is a joint venture in China set up by Nissan - Japan's third biggest car maker by volume - and Dongfeng Motor Corp. 

China Puts Its Electric Vehicles on Center Stage 2

 The car, called the F3DM, was launched at least a year ahead of a similar car planned by Toyota. But the gasoline engine in the BYD rattled and could be noisy when it kicked in, the reviewers said. The steering wheel also tends to get stiff when making turns because of the car's increased weight from the batteries. 

BYD has said it is aware of these issues and is working resolve them. "From what we have seen so far, [Chinese electric vehicle] technology is not that advanced" in terms of things like battery life, driving range and recharging, said Nick Reilly, head of GM Asia-Pacific operations, on Monday. "However, they have pretty good cost, and we know the Chinese government and these Chinese companies are investing a lot of money in battery technology, so I think it would be foolish of us to ignore them and believe that we are that far ahead." Some regulatory and market characteristics make China one of the most promising markets to experiment with electric cars. The government's regulations and policies for things like building electric-car charging stations can be changed more easily here than in places like the U.S. Most Chinese buyers also are purchasing cars for the first time and have not developed particular preferences. Still, "the challenge here is consumers are extremely value-oriented," said Raymond Bierzynski, head of GM Asia-Pacific engineering operations. "They're very much interested in the payback, so we have to be [make sure] value is there." 

One key move GM is counting on to make the Volt more affordable in China is government incentives, whether they are cash incentives for customers or subsidies for fleet purchases by government agencies. Another notable battery car, though its producer decided to skip the Shanghai show, is a super-low-cost, two-seat mini electric car that Chinese parts producer Wonder Auto Technology Inc. and Korean golf cart maker CT&T Co. are expected to begin producing jointly this summer. Though equipped with decidedly low-tech lead-acid batteries and having a top speed of only 60-to-65 kilometers an hour, the car can go 100 kilometers when fully charged, according to the two companies. The car's biggest appeal is its rock-bottom price of less than 40,000 yuan. Wonder Auto's chairman and CEO, Qingjie Zhao, believes the Chinese-Korean joint venture in Jinzhou (Liaoning province) could boost sales of the car to 50,000 vehicles a year within three years. 


"A plug-in hybrid selling for 150,000 yuan is a pipe dream for farmers. It would take five to 10 years before they become truly affordable for everyday folk," Mr. Zhao said. "But low-cost commuter EVs like ours is already a reality, within the reach of thrifty farmers." —Ellen Zhu contributed to this article. Write to Norihiko Shirouzu at norihiko.shirouzu@wsj.com

China Puts Its Electric Vehicles on Center Stage 1

Associated Press A model poses next to a new BYD e6 electric vehicle at the Shanghai International Auto Show. The aggressive plans illustrate China's growing commitment to electrified vehicles and its strategy to support auto makers developing various types of electric cars and components with research subsidies. The government sees environmental upsides and a chance for its car makers to gain ground on foreign rivals, since electric vehicles are simpler to engineer than gasoline-engine ones. 


Electric vehicles are "definitely affordable and environmentally friendly technology, and we think there's a huge potential market in China for them," Li Shufu, Geely's chairman, said in an interview Monday. Making electric vehicles affordable will be critical for them to have an impact on the environment, as vehicle ownership continues to rise quickly. The hundreds of thousands of new cars being added every year to roads in China could further damage already shaky air quality if they are oil-based vehicles.

 The battery-powered cars that Chinese companies are showing are intended to be much less expensive than those planned by big foreign companies. Great Wall Motor Co., based in northern China's Hebei province, on Monday unveiled its planned GWKulla all-electric car, which will likely be one of China's cheapest battery-powered cars when it hits showrooms as early as next year. Its expected price tag is between 60,000 yuan and 70,000 yuan, or about $8,780 to $10,250. The GWKulla, a short, curvy compact, runs on lithium-ion batteries and can go 160 kilometers (99 miles) when fully charged, the company says. Chery showed a tiny battery car, the Riichi M1, that boasts similar technology and performance, and is likely to be priced under 100,000 yuan.


 Geely's Panda, which Geely executive Frank Zhao said the company plans to launch in China as early as October, will be similarly priced. Those prices are much lower than that of General Motors Corp.'s Chevrolet Volt plug-in hybrid, which is expected to sell for $40,000 when it goes on sales in the U.S. in late 2010. GM plans to launch the Volt in China in 2011. Chinese auto makers also showed other types of "new energy" vehicles, including regular gasoline-electric hybrids to compete with Toyota Motor Corp.'s Prius hybrid. Among the most notable: a gas-electric hybrid Shanghai Automotive Industry Corp. plans to launch by the end of next year. China's technologies for electric vehicles, especially batteries, are still lagging behind in some important ways. And while many of the cars being shown this week in Shanghai are touted as "cutting edge" by their producers, it remains unclear how well they will perform -- and how Chinese consumers will react to such "new energy" cars. In early testing, reviewers said a plug-in electric hybrid sedan from China's BYD Co. launched late last year had some kinks.

4/21/09

China Puts Its Electric Vehicles on Center Stage

SHANGHAI -- Chinese auto makers are unveiling a slew of battery-powered cars and other energy-efficient vehicles at this week's auto show here that could make them more globally competitive and eventually help address the air pollution that chokes many Chinese cities.

Alternative-fuel cars were some of the hottest items on display at the Shanghai auto show from homegrown companies like Geely Automobile Holdings Ltd., Brilliance Jinbei Automobile Co. and Chery Automobile Co.


Some of the new and updated models, such as a battery-powered version of Geely's Panda hatchback, may hit the market as early as October, and in some cases they might carry price tags low enough for farmers and other rural residents with limited financial means.


Japanese car makers upbeat on 2009 China sales

SHANGHAI (MarketWatch) -- Japanese car makers are upbeat about vehicle sales growth in China this year even amid the global economic slowdown, as they hope the country's steady economic growth will help encourage consumers to buy new cars, underscoring a rare bright spot in sluggish Japan's auto industry.
Toyota Motor Corp. (7203.TO:7203.TO
News , chart , profile , more
Last:

Delayed quote dataAdd to portfolio
Analyst
Create alert Insider
Discuss
Financials
Sponsored by:
7203.TO, , ) , Honda Motor Co. (7267.TO:7267.TO
News , chart , profile , more
Last:
Delayed quote dataAdd to portfolio
Analyst
Create alert Insider
Discuss
Financials
Sponsored by:
7203.TO , ) and Nissan Motor Co. (7201.TO:7201.TO
News , chart , profile , more
Last: