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Peugeot will launch first production diesel-hybrid in Paris

Luca Ciferri - Automotive News Europe -- August 25, 2010 06:01 CET

PSA/Peugeot-Citroen SA will launch the world's first production diesel-electric hybrid car at the Paris auto show next month.

PSA is counting on diesel-electric hybrids and full-electric cars rather than gasoline-electric hybrids to help it expand its range of fuel-efficient, low-CO2 models in Europe. Toyota, Honda, BMW, Mercedes, Porsche and Volkswagen offer gasoline-electric hybrids in Europe.

The Peugeot 3008 HYbrid 4 crossover model combines performance – it offers 200 hp – with fuel efficiency – it uses 3.8 liters of diesel per 100km (62 U.S. mpg) and emits just 99 grams per kilometer of CO2.

The 3008 diesel-hybrid has a low CO2 level because it emits zero emissions when powered by its electric motor. PSA has not announced the car's full-electric range.

The crossover's 2.0-liter diesel engine provides 163 hp to drive the front wheels, while the remaining 37 hp come the electric motor used to power the 3008 HYbrid 4's rear wheels. By comparison, the smaller Audi A3, which does not have a hybrid system, emits 99g/km of CO2 but its 2.0-liter engine offers 140 hp of power.

Along with low emissions, the 3008 Hybrid 4 also offers four-wheel drive.

PSA has not revealed the starting price for the hybrid variant of the 3008, which goes on sale in Europe in spring 2011. The non-hybrid 3008 starts at 21,600 euros (about $26,500) in France.

PSA predicts that gasoline and diesel hybrids will account for 10 percent of the all European new-car sales by 2020 while full-electric cars will have a 4.5 percent share of the market.

“We think electric mobility is just for city driving and for suburban short trips, but for longer trips we think a diesel-hybrid is the most cost-effective solution,” PSA electric vehicles director Ayoul Grouvel told Automotive News Europe in an interview in June.

The 3008 Hybrid 4 has a stop-start system; a six-speed electronically controlled, automated manual transmission; nickel-metal hydride batteries from Sanyo Electric Co.; and an electric motor and high-voltage alternator from Robert Bosch GmbH.

The car will be made at PSA's French factories in Sochaux and Mulhouse.

While PSA is the first to offer a production-ready diesel-hybrid passenger car, Toyota Motor Corp. subsidiary Hino Motors Ltd. currently sells diesel-hybrid trucks. Hino started production of it diesel-hybrid powertrain in 1991, according to the company's Web site.

Honda to debut Jazz/Fit hybrid at Paris show

Paul McVeigh - Automotive News Europe -- August 25, 2010 17:26 CET

Honda will debut a hybrid version of its Jazz/Fit small car at the Paris auto show and launch sales in Europe early next year. The automaker said the Jazz hybrid will be the world's first small-segment hybrid.

The car has the same engine as the Honda Insight hybrid -- a 1.3-liter gasoline engine combined with a CVT, with an electric motor sandwiched between the two to create a parallel hybrid system.

The hybrid Jazz – like the Insight and Civic Hybrid models – will be capable of running on the electric motor alone under some medium and low speed conditions, Honda said in a statement.

Despite being taller than the Insight, the Jazz hybrid has comparable fuel consumption and CO2 levels, Honda said, adding that it will release fuel usage and emissions data at the Paris show.

The Jazz hybrid has new features that differentiate it from the current Jazz including revised headlights, clear rear lights, a new front grille, restyled bumpers and a chrome tailgate.

Inside, the cabin is also given a fresh look, with darker single color dashboard. The new hybrid is also available with leather trim, the first time this has been available on a Jazz model in Europe.

The five-door hatchback is sold as the Jazz in Europe, Africa and the Middle East and as the Fit in North and South America, China and Japan.

American Honda executives have said that there are no plans to sell a hybrid Fit in the U.S. market, because the Insight already fills that vehicle size and price point.

Audi to sell A1 outside Europe, boost output
Automotive News Europe -- August 25, 2010 11:44 CET  

BERLIN (Bloomberg) -- Volkswagen AG's Audi luxury brand will start selling the new A1 compact outside Europe next year and is increasing production to meet higher demand, Audi sales chief Peter Schwarzenbauer said.

The A1, originally built to sell only in Europe, will be expanded to markets globally in 2011, with the exception of China and the United States, he said.

Audi's smallest vehicle will be introduced in China at some point after 2011, Schwarzenbauer added. The car will go on sale in the United States “at the earliest” with the model's second-generation, he said.

The A1 goes on sale Aug. 27 in Europe. The car, which competes with BMW AG's 1 series and Daimler AG's Mercedes-Benz A class, will start at 15,800 euros in Germany.

Audi decided to expand sales of the A1 after a Web site the automaker set up for the car attracted more than 150,000 interested customers around the world, Schwarzenbauer said.

“We will expand our production capacities by 20 percent” for the A1, Schwarzenbauer said in an interview on Tuesday. Audi initially pledged to produce about 100,000 A1s annually at its Brussels factory.

Audi, which is targeting record sales of more than 1.08 million cars and SUVs this year, has a goal of dethroning BMW as the world's largest maker of luxury cars by 2015 when it wants to reach annual sales of 1.5 million vehicles.

BMW, Mercedes-Benz and Audi have boosted sales this year on surging demand in China, the world's largest car market, and a rebound in the United States.

Bridgestone: little impact from current yen levels

Reuters - Thursday, August 26

TOKYO, Aug 25 - Top Japanese tyre maker Bridgestone Corp <5108.T> said on Wednesday the yen's current level does not hugely affect its earnings or long-term business strategy because it has diversified its operations around the world.

"Foreign exchange rates at current levels do not do much harm to our earnings," President Shoshi Arakawa told a news conference.

"I think it is not necessary to review our sales or production strategy for the long term if the dollar stays around 85 yen," he said, adding that a stronger yen at such levels as 83 yen to the dollar would not prompt the company to review its strategy either.

"The recent strength of the yen has not prompted us to consider accelerating the shift of our Japanese operations or moving our headquarters abroad," he added.

The yen <JPY=> strengthened to a 15-year high against the dollar and a nine-year peak against the euro on Tuesday, threatening the outlook for a strong profit recovery at Japanese exporters like car and auto parts makers. [ID:nTOE67O027]

Bridgestone has forecast the dollar to average 91 yen and the euro 115 yen this year.

The greenback was trading around 84.60 yen at 0930 GMT on Wednesday.

Arakawa said that every one-yen decline in the dollar trims its annual revenues by 17 billion yen and operating profit by 1.8 billion yen.

Toyota plans 5 miliion cumulative hybrid sales by 2015
Automotive News Europe -- August 25, 2010 08:46 CET

TOKYO (Reuters) -- Toyota Motor Corp. said on Wednesday it wants to reach cumulative sales of 5 million hybrid vehicles in the early part of this decade.

Toyota, the pioneer in gasoline-electric hybrid vehicles, said earlier this month it had sold more than 2.68 million hybrid vehicles globally since it launched the first model in 1997.

The best-selling Prius and other models have received a boost in Japan especially in the last year thanks to government subsidies that favor hybrids over other fuel-efficient cars.

Toyota has a goal of selling at least 1 million hybrid vehicles a year in the early part of this decade, and plans to introduce a hybrid option across its whole lineup as early as possible in the 2020s.

Under a five-year environmental action plan to run through 2015 and released on Wednesday, the world's biggest automaker also said it would improve its vehicles' average fuel efficiency in all regions by 25 percent compared with 2005 levels.

Cheap Chinese tyres may flood Indian markets

Debdatta Das, August 24, 2010 (Mumbai)

Like most electronic appliances, China made tyres too, could soon be available in the domestic market.

In an unprecedented move the commerce ministry has accepted to review an export application from a Chinese radial bus and truck tyre exporter from China, thus, giving hope to over 300 Chinese tyre companies waiting to tap the Indian market.

NDTV has learnt from sources that Wei Fang Huadong Rubber Co Ltd had filed an application to export radial tyres to India. They have the capacity to export 10,000 tyres every month, much more than the average 2500 tyres capacity in the domestic market.

Wei Fang Huadong Rubber Co also plans to sell it in the Indian market for at least $49 cheaper than the domestic manufacturers.

The Chinese company's lawyer refused to comment saying: “Due to attorney-client confidentiality, we cannot respond to your queries. Also, we will not respond to market speculation."

It is the domestic industry that will be the worst impacted with rubber prices expected to go up and their repeated requests to the government to allow zero duty imports to access cheap Chinese tyres being shot down by the ministry.

“It will be damning for the industry and will have long standing repercussions for the industry," Ravi Budhhiraja of Tyres Manufacturers Association said.

The radial bus and truck industry in India has investments worth Rs. 12,000 crore in the pipeline and all are geared at ramping up production in the bus and truck segment. The segment may take a direct hit if the government allows Chinese exports without allowing the domestic industry to outsource from China.

Bridgestone: UK Truck Tyre Market is 6-8% up on Last Year

Created: August 26, 2010 06:53:00 AM

Bridgestone UK reports that the new tyre market is starting to show signs of recovery, with the company’s data indicating that the market is running 6 - 8 per cent up on the same time last year. At the height of the recession, it was noted that fleets were parking up some units and using the dormant vehicles’ tyres to keep running costs lower in a process commonly known as cannibalisation. These stocks are now said to be coming to an end and fleets are placing new orders. There also appears to be a genuine increase in tyre demands from fleets. This is mainly due to increases in haulage and delivery volumes. However, although this activity is seen as positive it is still well below the level prior to the recession.

Despite the recession, Bridgestone reports it has maintained its position as the market leader when it comes to new truck tyres. Roger Moulding, commercial marketing manager for Bridgestone UK commented: “I believe…we can attribute our success to our Total Tyre Management package.  Dealers are increasingly using this package to win fleets for themselves and Bridgestone.”

Further development of the package is expected over the next six months to include a new remote tyre pressure monitoring system, which Tyres & Accessories understands is currently being tested on selected fleets in the UK. The technology is said to be patent pending and part of pan-European project, driven by the demands of forward-looking markets such as the UK’s.

In addition November will see Bridgestone launch a new Ecopia fuel saving truck tyre. Ecopia will be Bridgestone’s first environmentally focused tyre and has been designed to not only provide fuel efficiency but to also include “increased durability, reduced impact of raw material extraction and tyre production along with considered casing disposal.” This rounded view of a tyre and its complete impact on the environment is a first for Bridgestone. The Ecopia range will be available in both new and retreaded tyres.

Bridgestone representatives also hope to announce news of further fleet acquisitions and retention shortly.

Regroove or retread?
In the midst of a highly competitive and tentatively recovering market place, tyre companies of all kinds are doing everything they can to extend the working life of their products and therefore demonstrate the mileage strength they offer. One increasingly common way of doing this is to regroove casings prior to retreading and therefore gain extra usage. However, Bridgestone doesn’t appear to be pushing regrooving as hard as its main competitor, Michelin preferring to promote the life of the casing as a whole above the tread of the tyre. While Michelin recently told T&A of increasing regrooving rates, Bridgestone representatives pragmatically point out that it can sometimes be better to get a good quality casing back rather than squeeze the last miles out of it through regrooving and risk exposing its cords.

This view suggests that getting the casing retreaded rather than that extra regroove is preferable to losing a valuable casing, which could carry the vehicle for tens of thousands more kilometres. But that is not to say that Bridgestone is unaware of the ecological and economical reasons for maximising casing life. In fact the firm is said to be “injecting a new philosophy into the ecology of truck tyres” with both the launch of it Ecopia product and enhancements in its retread range.

Bridgestone, Bandag and Bulldog Enhance Retread Production and Range

Created: August 26, 2010 06:59:00 AM

Bridgestone UK’s success in the retread market has seen some significant milestones reached in 2010, along with major investments in equipment and integration with both the Bandag and Bulldog product lines (for further details of how this is panning out across Europe see this month’s Retreading Special supplement). In the UK the integration has resulted in advancements into new sectors, one of which is waste management. SITA UK is one of its contract gains with Bridgestone providing tyres to support SITA’s core business of providing a range of recycling and resource management services to business and local authorities throughout the UK. They collect recycling and general waste from 12 million residents and 40,000 businesses across the country via 300 facilities.

Supporting the ongoing development of Bridgestone’s retread offering has involved the purchase of the Twin Head Alpha Builder in March of this year.  As a result of the purchase tyre production output has increased beyond expectations providing a reported 50 per cent improvement in hourly output against the previous machine.

The equipment allows for increased capacity and quality of output.  The machine means that it is capable of processing more sophisticated and tougher tread compounds.

David Gray, managing director Bulldog Remoulds, commented: “Both operators and management are pleased with its performance and the machine is running very efficiently. As a result of an industrial engineering exercise we have been able to exactly match work content within cycle to extrusion processing times thus giving us a balanced output that exactly meets management expectations and operator capability.”

Furthermore, Bridgestone UK had achieved record sales in June, which was quickly surpassed by July’s figures, a fantastic start to the summer months and evidence that the investment is proving to be a success.

Key to Bridgestone’s activities this year was ensuring that the Bridgestone and Bandag amalgamation process was completed successfully.  This has been developed and completed not only in terms of strengthening of Bandag as a business and brand with the support of Bridgestone, but also developing the Bridgestone retread range and integrating this with the Bandag product line.

Major changes to the product line are to be announced in the last quarter of 2010 including, for the first time ever, a Bridgestone branded range of retreads are to be launched. This will replace the current Qualitread brand. This change will complement the successful Bandag pre-cure range and hot retread range which will be finalised in the second half of 2010. Bridgestone announced at the TIP-ex show in May of this year the launch of the L355, M840 and M748, which the company says was the start of Bridgestone launching one of the most comprehensive retread ranges in the market.

Roadways Container Logistics (RCL) is one example of how the unified retread and new tyre product range can be used together. RCL has used Bridgestone tyres since 2002, committing to a full partnership in 2005. RCL operate nationally with 270 trucks and 610 trailers within their fleet. The firm reports that the Bridgestone M729 retread has achieved significant mileage figures, on average 270 – 300,000 km per tyre. The partnership is also said to have enabled RCL to reduce its overall truck tyre costs to under 1.1p per mile. The tyres operate under a variety of conditions including urban, regional and national trunking.

In summary Bridgestone’s retread production is said to be going “very well” due to the fact that the combination of a new Bridgestone tyre packaged with a matching retread is becoming “increasingly common.” As a result both the company’s output and sales are said to be “well ahead of plans” and Bridgestone Bulldog’s Lincolnshire retread output has been increasing each year in line with the company’s plans.

Independent Hails Labelling as “Bright New Future for the Tyre”

Created: August 25, 2010 04:04:00 PM

The Independent newspaper has hailed the forthcoming 2012 labelling legislation saying “drivers will soon be able to make a much more informed choice when buying tyres – and the product should be better too.” Asking the question “how did you choose your last set of tyres?” the report, written by the Independent’s David Wilkins pragmatically suggests “the chances are that you simply asked for the cheapest option or told the garage to fit tyres of the same brand and type as those being replaced” and confesses “The truth is that most of us lack the knowledge to make informed choices about the subject.”

The report goes on to highlight the fact that Michelin believes 30 per cent of the tyres on sale today will not qualify for a rating under the standards set for 2012, while up to 70 per cent of today's tyres probably wouldn't meet the next round of requirements planned for 2016.

However, while Wilkins’ and story was largely supportive of the labelling legislation it also highlighted some of the practical difficulties associated with it: “One area of potential difficulty concerns the method of displaying the mandated information about tyres in a way that makes it easily accessible to customers. It's easy to display the energy-efficiency ratings of a washing machine with a simple sticker, but tyres are handled extensively as they are delivered, loaded on to racks or rolled around a garage, reducing the chances of any sticker staying stuck for very long.” But it didn’t mention the fact that few consumers see the tyres they buy before purchase and that the details of the testing regime have yet to be confirmed.

Nevertheless, as Tyres & Accessories has discussed in some length within these pages, the report did refer to some of the potential knock-effects of the legislation. Quoting a particularly candid Michelin representative, Wilkins wrote: “One side-effect of the new regulations may be to make life more difficult for future importers of cheaper tyres from countries such as China. As one Michelin executive put it: ‘It is a consequence, but it is not an aim of the programme. Are we crying about it? No.’”

However, he was less sure that the new rules would have the desire effect: “I suspect, though, that established tyre-makers hoping that the new rules might actually make life easier for them, rather than more difficult, could be disappointed. Tyres from Japan and Korea, like the cars made in those countries, used to be regarded sceptically, but soon started to make the grade. I'm not sure that Chinese cars or tyres will be any different.”

Fiat CEO says Q3 going well; Alfa not for sale
Automotive News Europe -- August 26, 2010 14:16 CET  

RIMINI, Italy (Reuters) -- Fiat S.p.A.'s chief executive said on Thursday that the third quarter is proceeding well and confirmed the automaker could raise its outlook for 2010 at the end of the third quarter, sending its shares higher.

The third quarter is going "quite well" despite the weakness in Europe's car market, CEO Sergio Marchionne said on the sidelines of a conference here. Marchionne confirmed that Fiat, which has a 20 percent stake in U.S. carmaker Chrysler, would probably raise its full-year guidance at the end of the third quarter.

"We have seen an extremely weak European car market as of course was to be expected," Marchionne added. He also confirmed the Alfa Romeo brand is not for sale. "I said I will not sell it," he said.

Volkswagen AG is eyeing the potential acquisition of Alfa Romeo should Fiat consider putting it up for sale, Automotive News Europe's German sister publication Automobilwoche reported on Monday.

At 12:43 CET, Fiat shares were up 2 percent at 9.26 euros ($11.77) while the STOXX Europe 600 Auto index was up 1 percent.

Spyker says debts greater than assets

August 26, 2010 06:01 CET

AMSTERDAM (Reuters) -- Dutch luxury car maker Spyker Cars, which bought Sweden's Saab from General Motors Co. earlier this year, said it has more liabilities than assets.

Spyker said in a statement on its Web site the negative equity position as of June 30, 2010 reflects an International Financial Reporting Standards (IFRS) requirement to treat the $326 million of redeemable preference shares issued to General Motors as part of the Saab acquisition as liabilities instead of equity.

A Spyker spokesman on Wednesday said the company had nothing to add at the moment and said it would give more details in the half-year report, which will be published on Aug. 27.

Seperately, NYSE Euronext said it would not impose any listing measures on Spyker Cars while it was compliant with the exchange's regulations.

Those regulations stipulate that Spyker Cars must issue a statement within five days detailing its financial situation and why it has negative shareholders' equity.

The statement should also detail the company's solvency and liquidity position, short- and long-term prospects regarding its continued existence, measures taken and planned to improve its solvency and details of any credit facilities.

Spyker Cars, which has never made a profit, bought the larger Saab from GM earlier this year and is now working to revive the flagging brand.

The company's ability to finance the deal and the Saab turnaround have been an ongoing worry for investors.

Bridgestone supports students in 300mpg electric vehicle

26 August 2010 - ERJ staff report (DS)

Kansas City, Missouri -- A group of high school students from the DeLaSalle School in Kansas City, Missouri are petitioning to have their electric car accepted as a world record for fuel efficiency. The car tuns on Bridgestone tyres and was tested at Bridgestone's Texas Proving Grounds

The all-electric vehicle was built as a class project under the direction of instructor Steve Rees. With the help of automotive mentors, the students have created a plug-in electric car based on the chassis of a 2000 Lola Indy Car.

The students have developed a driveline, electric propulsion system and full, ultra light-weight aerodynamic body. The car, which is mounted on Bridgestone Ecopia EP100 tyres, showed remarkable results in testing— test runs reported efficiency levels that would be the equivalent of more than 300 miles per gallon. Steve Rees is currently petitioning Guinness World Records to consider the students' accomplishments as a new world record.

TURANZA AR 10...Bridgestone rolls out premium touring tyres

The TURANZA AR 10 lineup is designed to offer an unprecedented experience in supreme ride comfort, excellent wet braking performance, superior looks, low noise characteristics and superior dry performance.

India Infoline News Service / 12:35 , Aug 26, 2010

Bridgestone India, the World’s No.1 Tyre & Rubber manufacturer today announced the launch of TURANZA AR 10, brought to you from the house of the TURANZA, ultra luxury performance tyres, popular all over the world for its supreme touring experience.

The TURANZA AR 10lineup is designed to offer an unprecedented experience in excellent riding comfort, excellent wet braking performance, superior looks, low noise characteristics and superior dry performance.

The high performance lineup comprises of the 70 series and the 65 series .The sizes are as follows:

Announcing the launch,Vaibhav Saraf, General Manager-Sales and Marketing, Bridgestone India Pvt. Ltd. said, “At Bridgestone, it has always been our constant endeavor to innovate & expand our product portfolio & offer the latest technology products to our customers through our esteem Select network. In India, the tube type tyre demand is still higher than tube less tyres & availability of premium pattern in tube type category is very limited. Keeping the same in mind we are extremely pleased to announce the launch of Turanza AR10 Tube type.” 

These premium tyres will be made available for sale through our esteemed family channel partner “Select”.

The TURANZA AR 10is exclusively designed to meet strict specifications for superior comfort and road handling capabilities. With a worldwide reputation for excellent quality, the TURANZAAR 10 provides a premium touring experience for a wide variety of automobiles, not only luxury models.

Born from Bridgestone’s state of the art engineering process, innovative tread design and extensive usage of quality compound materials, the TURANZA AR 10 represents the brand’s passion for setting groundbreaking standards in performance touring tyres and unites comfort and handling at the highest levels.

Bridgestone opens the first Truck Tyre Centre in Bahrain

Bridgestone and AJM Kooheji Group BSC celebrated the inauguration of its first-of-a-kind service centre in Bahrain. The Bridgestone Truck Tyre Centre launched on 28th March 2010 at Ma'ameer is a unique facility that caters to the maintenance and services of large automotive road transports in the likes of Buses and Trucks.

Built on a 3250 square meter area, Bridgestone Truck Tyre Centre has the services and reception area occupying about 2500 square meters. The centre has dedicated bays for Truck or Bus Alignments besides wheel balancing, wheel alignments, branding and repairs. Besides the services available for Trucks & Buses, the centre also caters to Passenger Service Vehicles and Motorcycles.

The infrastructure adds to its uniqueness with a state-of-the-art Automotive Safety Test Lane that is the only one of its kind available in Bahrain. This technology functions to the needs of Brake and Suspension Checks on Passenger Car Vehicles. The facility also caters to car and truck wash. To service the customers, there are skilled and professionally trained technicians.

For the opening ceremony, Bridgestone Truck Tyre Centre had about 150 distinguished guests present to witness the launch of this massive facility. Mr. Shoichi Sakuma - President of Bridgestone Middle East and Africa FZE, Mr. Makoto Ono - Director of Sales & Commercial Tyre Marketing were in attendance along with Mr. C. K. Prasad - General Manager of Bridgestone - Gulf Branch and Mr. Yuji Fushimi - General Manager of Commercial Tyre Marketing to introduce the operations of the facility.

During the launch, a plaque was unveiled by Mr. Shoichi Sakuma, Mr. Makoto Ono, Mr. Rohit Raina - Group CEO, AJM Kooheji Group BSC and Mr. Saleem Kooheji - Director, AJM Kooheji Group BSC which was given in recognition of the opening of Bridgestone Truck Tyre Centre on 28th March 2010. Souvenirs were also exchanged between Bridgestone Middle East and Africa FZE and AJM Kooheji Group BSC as tokens of appreciation for the successful launch of the infrastructure.

The guests invited for the launch joined along for the ribbon cutting and a walk-through of the facility where a briefing was given on the technology and services available.

Opel to start China sales this year

Paul McVeigh - Automotive News Europe -- August 26, 2010 11:01 CET  

MUNICH -- General Motors Co. will start selling cars under the Opel brand in China by the end of this year, Opel CEO Nick Reilly said in a newspaper interview.

China will be Opel's first new global market, followed by Australia and two Latin American countries, Reilly told the Frankfurter Allgemeine Zeitung in an interview published Thursday.

GM has in the past shied away from aggressively selling Opel cars in markets outside Europe because of fears that they could cannibalize sales of its other brands such as Chevrolet, Buick and Australia's Holden, which use Opel technology.

But Reilly, who headed GM's Asian operations in Shanghai before he became Opel CEO in November, has pushed for a change of strategy to reduce the brand's dependence on the stagnating European market, where Opel/Vauxhall car sales fell in the first six months by 4.5 percent to 536,258, according to ACEA, the European carmakers association.

In an interview with Berlin's Tagesspiegel daily newspaper in May, Reilly ruled out exporting Opels to the United States because the brand's cars have too much overlap with other GM cars sold in the U.S., such as the Opel Insignia-based Buick Regal.

In China, Opel could benefit from the strong image of German products and appeal to different buyers than GM's Chevrolet and Buick brands that are already sold in the world's largest auto market, he said.

Reilly said Opel will have to remain a non-volume seller in China because it could not match the low prices that China's buyers generally pay.

Opel cars will be sold through GM's existing dealers in China.

Renault India to launch 5 new cars over next 3 years
Automotive News Europe -- August 26, 2010 09:31 CET  

NEW DELHI (Reuters) -- Renault SA's Indian unit will launch five cars between mid-2011 and mid-2013, including small cars in 2012, its India head, Marc Nassif, said on Thursday, to cater to brisk demand in one of the world's fastest growing automobile markets.

Its small cars will be built on its alliance partner Nissan Motor Co.'s platform, Nassif said on the sidelines of an automobiles conference.

The cars will produced at its factory in the southern Indian city of Chennai and built jointly with Nissan. They will be Renault-branded, Nassif said, adding that they would be competitively priced.

In 2011, the company intends to introduce its Fluence sedan and the crossover Koleos in India.

Separately, Renault-Nissan is working with Indian two-wheeler maker Bajaj Auto to make a low-cost car, which would be designed by Bajaj and launched by late-2012.

Renault this year sold its stake in a joint venture with utility vehicles and tractor maker Mahindra & Mahindra Ltd., which made the Logan sedan, and now aims to compete in the subcompact car market in India on its own.

Nissan, which is 44 percent owned by Renault, started selling its compact Micra cars in in India in June.

The compact car segment in India, with cars measuring between 3400mm to 4000mm in length, is a rapidly expanding segment constituting more than 70 percent of the total car market.

Though top carmaker Maruti Suzuki still holds sway, global majors such as Toyota Motor Corp., Honda Motor Co., General Motors Co., Volkswagen AG and Ford Motor Co. are eyeing this lucrative sector.

GM's Chevrolet Beat and Ford's Figo compact cars already have seen runaway sales so far this year.

Renault's global sourcing from India is expected to rise 40 percent to 50 percent in the current financial year, Nassif said.

Hyundai to sell $1.17 billion of bonds backed by auto loans
Automotive News Europe -- August 17, 2010 15:02 CET  

NEW YORK (Bloomberg) -- Hyundai Motor Co. plans to sell $1.17 billion of bonds backed by auto loans, according to a person familiar with the transaction, who declined to be identified because the terms are private.

Banco Santander SA, Spain's biggest bank, plans to offer $700.5 million of similar securities, according to a person familiar with that sale.

Asset-backed bonds linked to consumer loans are benefiting from limited issuance and minimal risk of getting hurt by negative news, Bank of America Merrill Lynch analysts said in an Aug. 13 report.

Top-rated asset-backed bonds tied to auto loans yield about 62 basis points more than similar-maturity U.S. Treasuries, compared with 81 basis points on Dec. 31, according to Bank of America Merrill Lynch index data.

“The pace of spending over the past few months has exceeded the level of growth in consumer debt sectors,” according to the New York-based analysts led by Chris Flanagan and Theresa O'Neill. “Charge-offs, tighter underwriting standards, and more conservative behavior by consumers have led to historically low, negative growth in revolving debt.”

Sales of debt tied to consumer and business loans are at $63.8 billion, compared with $115.8 billion during the same time frame last year, according to Bank of America.

TYRE REPLACEMENT MARKET IN INDIA TO SURPASS Rs 200,000 MILLION BY FY'12

According to research report "The Indian Tyre Industry Forecast 2014" by TechSci Research, the replacement tyre market turnover in India will surpass Rs 200,000 million ($4.3 billion) by FY'12. The replacement segment, which constitutes more than 60 percent of the industry and a key focus area for the manufacturers due to higher margins, would continue to grow faster owing to the high growth of vehicle sales seen over the last few years. During FY'10, the overall volume sales in replacement segment were close to 50 million units and were dominated by sales of motorcycle tyres followed by truck/bus tyres. The Indian tyre manufacturers have developed vast network of dealers and distributors to increase their penetration in the market. The expanding distributor and dealer network has helped the manufacturers to tap the growing replacement market, and has enabled them to cater to consumers in the corners of the country. This network accounts for majority of the turnover of the tyre manufacturers in recent years.

 (TechSci Research [www.techsciresearch.com] - India - Aug. 18)

Volvo eyes China, partnerships to offset small size

Paul McVeigh - Automotive News Europe -- August 18, 2010 13:31 CET

Volvo will build emotional cars in the future and may look to cooperate with rivals to gain economies of scale, new CEO Stefan Jacoby said.

Jacoby, former CEO of Volkswagen's North American unit, was appointed to head Volvo after China's Zhejiang Geely Holding Group Co. earlier this month completed its purchase of the Swedish brand from its former U.S. parent Ford Motor Co. for $1.3 billion in cash.

Jacoby said his first priorities will be to "further sharpen" Volvo's brand positioning and look at opportunities in the Chinese market.
"We will be upscale but will not just copy rivals such as BMW, " Jacoby said during his first news conference for Volvo on Wednesday. "Volvo stands for safety, solidity and reliability but the emotional positioning of the brand is not sharp enough. Volvo needs to find a Swedish-based, unique positioning."

Jacoby, whose long career at VW saw him hold positions in Asia, said there are significant opportunities for Volvo in China, which overtook the United States as the world's biggest car market last year.

Geely's plan includes nearly doubling Volvo's annual global production including building a new plant in China while maintaining its operations in Europe to supply the international market.

Jacoby, 52, said Volvo's size could work to its advantage, making it nimbler than competitors. The company will have to look at smart, intelligent solutions to overcome the disadvantage of not having the economies of scale that bigger rivals have.
"There are opportunities to cooperate with suppliers, with maybe other competitors as well, but also, of course, to find synergies with our sister company Geely in the future," he said.

Analysts have questioned whether smaller brands such as Volvo, which saw sales fall to 334,808 cars last year from a record 458,323 units in 2007, can pay for the high costs of product development.

Jacoby is looking to return Volvo to a full-year profit for the first time since 2005. It posted a $653 million pretax loss last year.

He declined to provide guidance on earnings and sales though he noted the brand had generated a profit in its final two quarters under the Ford umbrella.

Geely has also said it is prepared to pump up to $900 million in capital into Volvo on top of what it paid Ford.

German-born Jacoby, who started his new job Monday, said he was first approached by Geely to head Volvo in June. "I was surprised to be offered the job. I liked working for VW in the U.S. in a challenging role," Jacoby said, adding that Geely Chairman Li Shufu's ambitious plans for Volvo "convinced me to take the job."

Jacoby takes over as Volvo CEO from Stephen Odell, who is now chairman and CEO of Ford of Europe.

Kia unveils electric city car concept

Paul McVeigh - Automotive News Europe -- August 18, 2010 12:14 CET

Kia has unveiled a concept for a three-seat electric city car that will debut at the Paris auto show next month.

Called the Pop, the zero-emissions car is just 3000mm long, the same length as the four-seat Toyota iQ minicar and 300mm longer than the two-seat Smart ForTwo.

Kia said the Pop aims to bring "innovative design chic and dramatic styling to the city car segment." The Pop has seating for two adults in the front and a single seat in the rear behind the front passenger.

Kia said it will release more details of the car at its launch in Paris on Sept. 30.

PIRELLI BEGINS FORMULA 1 TIRE TESTING  

Pirelli has begun its first Formula One tire development test with German driver Nick Heidfeld, who is to be Pirelli's official test driver, as it prepares for its return to Formula One for the first time in 20 years. Mr. Heidfeld will use Toyota's Formula One car from last year, the TF109, to test the new rubber that all the teams will use from 2011 onwards. The car provides contemporary technology and performance with which to test the new Pirelli P Zero Formula One tires to the limit, but does not hand an advantage to any current team, Pirelli officials said. Mr. Heidfeld will drive the car in a series of test sessions on several different circuits from August onwards. The tire development work will focus on finding the delicate compromise needed between performance, durability and spectacle next season, Pirelli said. Pirelli development testing is getting underway less than two months since Pirelli concluded a three-year agreement with the FIA as the sole tire supplier to the Formula One World Championship. In addition to this, Pirelli will also supply GP2 and GP3.

 (Pirelli Tire North America [www.us.pirelli.com] - Milan, Italy - Aug. 17)

GROUPTYRE LAUNCHES NEW E-COMMERCE INITIATIVE

Grouptyre, the U.K.'s leading independent tyre wholesaler, is launching the Good Tyre Guide, a unique e-commerce platform, which will not only make it easy for consumers to buy tyres via the Web, but one that is also purposedesigned to channel business to retailers so that they don't miss out on a share of the growing online marketplace. Consumers are increasingly happy to buy online - in 2009, U.K. shoppers spent 38 billion pounds ($59 billion). An interface between the tyre retailer and 32.8 million U.K. shoppers online, the Good Tyre Guide is essentially a shop that is open 24/7, and gives consumers the option of choosing from more than 7,000 tyre lines. Potential buyers can view tyre technical information online, and can access product features and benefits when viewing the available products. The major difference between the Good Tyre Guide and other Web sites that enable consumers to buy tyres online is the benefits it offers the trade. For more information, visit: www.goodtyreguide.com.

 (Grouptyre [www.grouptyre.co.uk] - United Kingdom - Aug. 17)

U.K. CAR COMPANIES CRITICIZE EU'S MANDATE ON TPMS

A number of car companies in the U.K. have criticized the European Union's decision to make vehicle tyre pressure monitoring systems (TPMS) compulsory by 2014, Wheels20.co.za reported. The criticism has focused on the suggestion that the technology is unnecessary and something for which car buyers would rather not pay. The rationale advanced is that a driver should take responsibility for tyre pressures. Consumer research says Schrader Electronics - Europe's leading developer of direct TPMS - has indicated very clearly that most drivers do not check tyre pressures or indeed tyre tread depth, and that up to 80 percent of cars on U.K. roads are running on either over or under-inflated tyres. These findings have been confirmed in a number of checks undertaken by Michelin. "Car companies have commented that there has only been a tiny uptake of TPMS on new car models," said Alfonso Di Pasquale of Schrader Electronics.

 (Wheels24.co.za - United Kingdom - Aug. 17)

SCHRADER ELECTRONICS CRITICIZES AUTO EXPRESS MAGAZINE ON TPMS ARTICLE

On Aug. 6, Auto Express, the U.K. weekly motoring magazine, posted an article, criticizing tire pressure monitoring systems (TPMS). Alfonso Di Pasquale of Schrader Electronics said, "The increase in cost mentioned in a news report" in Auto Express "is frankly misleading; we anticipate that the cost to the motorist should be no more than 100 euros ($129) per system, and this will reduce with economies of scale," he noted. "A suggestion in the same news item from the AA that a new sensor will have to be purchased if a tyre is replaced is equally incorrect, and even if this were the case, experience from the United States - where TPMS has been standard on all cars since 1997 – has indicated that a replacement sensor will cost around 20 euros ($26)," Mr. Di Pasquale continued. A further suggestion is that TPMS technology will not be able to identify other tyre related problems. Work undertaken by Schrader Electronics and Pirelli promises the birth of the "intelligent tyre" that will not only monitor tyre pressures but also tread depth and skidding potential.

 (Wheels20.co.za - United Kingdom - Aug. 17)

EUROPEAN NEW CAR MARKET DOWN 17.4% IN JULY; 1.5% YTD

Europe's new car market is officially 1.5 percent lower than 2009, according to the latest car sales analysis from JATO Dynamics. The market fell 17.4 percent in July versus July 2009. The end of scrappage schemes has played a significant role, with the U.K. and France joining Germany and Italy, in posting lower July sales figures, compared to the same period last year.

The lack of strong Central and Eastern Europe economies has also played a part year to date, with the first hopes of recovery only now being seen in Baltic markets and Hungary. Volkswagen is still the No. 1 brand with 120,420 units sold in July. Renault retained second place at 87,156 units. The one model to buck the downward trend most significantly is Volkswagen's Polo, which has posted sales gains in all major markets, versus July 2009, notably with a 40-percent increase in Germany in July, against an overall market contraction of 30.2 percent.

 (JATO Dynamics [www.jato.com] - United Kingdom - Aug. 17)

BRIDGESTONE AMERICAS AWARDS $5,000 SACHOLARSHIPS TO VIDEO CONTEST WINNERS                        

Three college students now have $5,000 for tuition, thanks to their winning video submissions in the Bridgestone Americas Safety Scholars Contest, now in its fourth year. The three winning videos beat out more than 1,300 other entries from 16-21 year-olds across the U.S. to become one of the 10 finalists. They then secured the most votes from the public to win the grand prize. More than 12,400 votes were cast online to determine the winners. The three grand prize winners and all top 10 finalists' videos can be viewed on www.safetyscholars.com. In addition to receiving a $5,000 college scholarship and a free set of Bridgestone-brand tires, the grand prize winners have the chance to have their video used as a public service announcement on television stations across the country. The three winning videos show the deadly dangers of texting while driving, the dangers of drinking and driving, and the dangers of speeding.

 (Bridgestone Americas Inc. - Nashville, Tenn. - Aug. 17)

CHINA PLEASED U.S. OVERTURNED DUTIES ON ITS OFF-ROAD TIRES

China welcomes the U.S. trade court's rejection of high countervailing duties on off-road tires imported from China, Ministry of Commerce spokesman Yao Jian said today (Aug. 17), People's Daily Online reported. The U.S. Court of International Trade (CIT) ruled that the U.S. Commerce Department's use of both antidumping and countervailing duties against those imports results in double counting because the department considers China a non-market economy. Mr. Yao said that the court's fair decision will help to make U.S. trade authorities to obey the laws and correct their mistakes. He noted that the U.S. Commerce Department's antidumping and countervailing investigations against tires imported from China are "discrimination" toward Chinese companies. The department's decision "clearly demonstrates its inability at this time to use improved technologies to determine whether, and to what degree, double counting occurs," Judge Jane Restani wrote in the decision.

 (People's Daily Online - China - Aug. 17)

REGISTRATION OPEN FOR TYRE SAFETY MONTH CAMPAIGN MATERIALS, SAYS TYRESAFE

Garages, tyre retailers, fleets and other interested organizations can now register to receive free point-of-sale materials for October's tyre safety month by visiting the TyreSafe Web site (www.tyresafe.org) or by calling the campaign hotline on 0845 301 6852. Building on the success of last year's campaign, this year's activities will focus on family audiences, highlighting the simplicity of checking tyre tread depth with a 20p coin. Materials available to the trade include a selection of posters for reception and waiting room areas, leaflets, Web site banner ads and a DVD giving an entertaining guide on how to perform the 20p test. In addition to providing campaign materials to the trade, TyreSafe is encouraging other organizations, particularly those with large fleets, to become involved and promote tyre safety to their own staff and customers. TyreSafe is the U.K.'s leading tyre safety organization.

 (TyreSafe [www.tyresafe.org] - London - Aug. 16)

GM agrees to take back French powertrain plant

August 16, 2010 15:50 CET

(Bloomberg) -- General Motors Co. agreed to repurchase a French powertrain plant near the eastern city of Strasbourg, it said in an e-mailed statement Monday.

The factory, which employs about 1,100 people, manufactures six-speed automatic transmissions for GM and BMW AG cars. Financial details weren’t disclosed.

The Strasbourg factory is under Motors Liquidation Co., the entity charged with selling off GM's unwanted assets to reduce its debts. After emerging from bankruptcy in the summer of 2009, GM opted to buy back the plant. On July 16, it offered to repurchase the plant for a symbolic one euro (about $1.28) on the condition that costs would be reduced by 10 percent.

FIRESTONE COMPLETE AUTO CARE STORES NAMED ARIZONA GREEN BUSINESSES

Six Firestone Complete Auto Care store locations in the Phoenix area were recently certified as "green shops" through the Automotive Service Association (ASA), which is part of Arizona's voluntary Green Business Automotive Program, administered in conjunction with the Arizona Department of Environmental Quality (ADEQ). Five other stores in the Tuscon area were re-certified as "green shops" by the ASA. The ASA classifies an automotive service provider as a green shop if it meets qualifications in two areas: pollution prevention and resource conservation. The specific criteria include using low-hazard solvents, recycling fluids, including oil, using energy-efficient lighting and other green office equipment, reducing paper use and conserving water.

 (Bridgestone Retail Operations L.L.C. - Tempe, Ariz. - Aug. 16)

TPMS IN CARS MAY COMPROMISE PRIVACY, POSE SECURITY THREAT, SAY RESEARCHERS

New wireless tire pressure monitoring systems (TPMS) in cars may compromise a driver's privacy and pose a security threat, warn researchers at Rutgers University. They have shown that wireless signals from TPMS can be intercepted 120 feet away from the car using a simple receiver despite the shielding provided by the metal car body. Since signals in TPMS include unique codes from each wheel sensor, this raises concerns that drivers' locations could be tracked more easily than through other means, such as capturing images of license plates. TPMS wireless transmissions also lack security protections common in basic computer networking, such as input validation, data encryption or authentication. The researchers have demonstrated how a transmitter that mimics, or "spoofs," the sensor signal can easily send false readings and trigger a car's dashboard warning display. This could prompt a driver into stopping the car when there is actually nothing wrong with the tires.

 (Rutgers University [news.rutgers.edu] - New Brunswick, N.J. - Aug. 16)

MORE ON POTENTIAL TPMS POSING SERIOUS SAFETY CONCERNS

"A spoofed signal could potentially cause serious safety concerns if stability control or anti-lock braking systems relied on the data," said Marco Gruteser, associate professor of electrical and computer engineering and a member of Rutgers University's Wireless Information Network Laboratory (WINLAB). "So we are sounding the alarm right now." The two systems that Rutgers examined are commonly used in vehicles manufactured during the past three years. "While we agree this technology is essential for driver safety, more can be done to improve security, such as using input validation or encryption," said Wade Trappe, a collaborator on the project, who is an associate professor of electrical and computer engineering and associate of WINLAB. In tests using their own cars, the researchers were able to send false signals from one car and trigger a "low tire pressure" light in another while driving next to each other at 35 mph. They were also able to trigger the dashboard "check tire pressure" light while driving next to each other at 65 mph. They also found that at least one TPMS could be damaged through spoofed wireless signals.

 (Rutgers University [news.rutgers.edu] - New Brunswick, N.J. - Aug. 16)

Bridgestone inaugurates Bandag system retread facility in Mabella

Bridgestone Middle East & Africa FZE has reinforced its position in Oman with the inauguration of Bandag retread facility in Mabella, which took place on the 2nd of August 2010. The new facility is Bridgestone outlet in Oman that provides reliable and safe retread service to the fleets of Oman.

The occasion was graced by the honorable presence of Mr. Shoichi Sakuma, President of Bridgestone Middle East & Africa FZE and senior officials from Bridgestone and Towell Auto Centre. The plaque was presented by Mr. Shoichi Sakuma to Mr. Hassan Kamer Sultan, Chairman of Towell Auto Centre LLC and services offered at the unique facility were demonstrated.

The facility has highly efficient machinery that has highest precision and effective in producing very reliable and safe retreads. The facility also provides excellent tyre repairs that will help the fleets to save. This unique Bandag system retreading is the only one available in Oman.

"It is a historic moment for Bridgestone Middle East & Africa FZE and Towell Auto Centre to have the Bandag retread facility established in Oman. It gives me great pride to be able to witness such a facility being extended to the people of Oman. Bridgestone is constantly looking at better ways to service customers by providing superior products and value-added services. World over, Bridgestone's performance has been momentous and this occasion not only reinforces the bond between Bridgestone and Towell Auto Center but also strengthens our stride to greater success. Apart from helping to reduce total cost of tyres, retreading also makes a major environmental contribution in terms of the more effective utilization of natural resources which inturn helps ensure a healthy environment for current and future generations" expressed Mr. Sakuma in his address.

Bridgestone's principle of "Closer to Customer" is quite obviously demonstrated with the addition of the facility. The new facility at Mabella is spacious and easily approachable. This enables Bridgestone to provide better service more efficiently.

"With this move we are anticipating the expansion of our existing list of customers, by moving closer to our customer base. Keeping in line with the principles of Bridgestone, our specialized service staff can now reach out with better efficiency and skill," says Mr. Kasturirangan, CEO, Towell Auto Centre.

The new Bandage retreading facility houses state-of-the-art equipment, which will be used by Towell Auto staff to provide cost effective solutions to its customers. Exclusively trained specialists for truck tyre retreading will assure the quality of the service.

Bridgestone has been at the forefront of world-class products and product innovations in the international market since 1931. Keeping in line with its concept of "Closer to Customers", Towell Auto Centre, the sole representative for Bridgestone in Oman has set up the first state of the art Bandag retread facility in Oman to provide excellent sales and service to their valuable customers.

Bridgestone launches site for awareness on Road Safety www.thinkbeforeyoudrive.in

- Bridgestone India, the World’s No.1 Tyre & Rubber manufacturer today launched their micro site www.thinkbeforeyoudrive.in on road safety. The site has been launched in keeping with the corporate mandate of creating and ensuring awareness about safety while driving on the roads.

Online PR News – 16-August-2010 – Bridgestone India, the World’s No.1 Tyre & Rubber manufacturer today launched their micro site www.thinkbeforeyoudrive.in on road safety. The site has been launched in keeping with the corporate mandate of creating and ensuring awareness about safety while driving on the roads. Bridgestone India has been focused on creating consciousness amongst riders and drivers across the country and has been consistently conducting safety modules on the importance of adhering to traffic rules and road safety.

“THINK BEFORE YOU DRIVE” is a global road safety initiative which started in 2005 by the company with the goal of promoting simple road safety messages to drivers.

The campaign promotes simple road safety messages:
• Highlight actions that take a few seconds but could save your life
• Identify the main risk factors that can result in serious or fatal crashes

The site is a complete guide to road safety and clearly defines guidelines to vehicular maintenance and protection. Furthermore, the site provides tips on ensuring child safety in a vehicle, it elucidates the importance of wearing a seat belt, seating norms and correct posture to avoid injuries due to whiplash and upkeep of tyres. The site also provides a crash test demo which can be used for further safety details.

One can join the thinkbeforeyoudrive group on Facebook and Twitter and explore more about the campaign, play games and participate in contests.
Bridgestone India is reaching out to the target audience by advertising on various online platforms like:
• General sites like Rediff, Yahoo, Cricbuzz, Carwale
• Search engines like Google & yahoo
• Social media like Face book, twitter, you tube etc.

Through the digital platform, the company plans to reach out to more than 20 Mn people through Search and social media platforms

One of the interesting features of the micro site is the Survivor race. Bridgestone has introduced an online game to draw attention of drivers across the country which is aptly christened as “Survivor Race”. You can play the game online which lets you understand how drivers can keep their cars safe in trying conditions. In this race, there are various obstacles that let you hone your driving skills and in the end you can choose to publish your score on popular social networking site, Facebook.

Speaking on the occasion, Mr. Vaibhav Saraf, GM - Sales & Marketing, Bridgestone India said, ”As part of our global ideology, we have always been a responsible corporate. Apart from being the provider of the best quality tyres and automotive accessories, we believe in ensuring road safety and that our customers receive value added information through our efforts. The thinkbeforeyoudrive campaign is one of our attempts at ensuring that our consumers stay safe and responsible. We are targeting more than 5 Lacs unique visitors through various platforms to visit the Microsite. “

About Bridgestone India:

Bridgestone India Pvt. Ltd started its operations in 1996. In March 1998 with setup of its manufacturing facility in Kheda, Madhya Pradesh, Bridgestone achieved its objective of running Indian manufactured Bridgestone tyres on Indian Roads. In a short stint of 13 years Bridgestone India Pvt. Ltd is one of the leading tyre companies in both the OEM & Replacement market.

Rubber Retreats on Strong Yen, Concern Slowing Economy May Weaken Demand

By Supunnabul Suwannakij - Aug 15, 2010

Rubber declined as the Japanese currency strengthened and on concern that demand for the commodity used to make auto tires may weaken.

January-delivery rubber in Tokyo fell as much as 1.3 percent to 277.2 yen a kilogram ($3,230 a metric ton) on the Tokyo Commodity Exchange before trading at 278.8 yen at 11:06 a.m. local time. The contract lost 0.5 percent last week, the first weekly drop in four.

“The dollar is weakening against the yen and stocks are coming down, so sentiment isn’t so strong today,” Roka Komiya, rubber trader at Marubeni Corp. in Singapore, said today. Investors are also concerned that the global economic recovery may be slowing, reducing demand for rubber, he said.

The yen rose against all of its major counterparts after a report showed Japan’s gross domestic product grew at a slower- than-expected pace and before data forecast to show German investor confidence fell.

Japan’s GDP expanded at an annualized 0.4 percent rate in the three months to June 30, according to government data today. That compares with the median economist estimate for 2.3 percent growth in a Bloomberg News survey.

Rubber stockpiles in Japan expanded to 3,275 tons as of July 31 from a record low of 2,628 tons on July 20, according to Rubber Trade Association of Japan data.

Natural rubber inventories in China expanded for a third week by 1,667 tons to 21,875 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said Aug. 13.

“Higher stockpiles reflected improved car sales in China, which will help cushion any downside in the market today,” Varut Rungkhum, an analyst at Agro Wealth Ltd., said today by phone from Bangkok.

China’s auto sales may rise to 16 million this year, the China Association of Automobile Manufacturers said Aug. 10, boosting its forecast from a previous estimate of 15 million. China’s passenger-car sales rose 13.6 percent to 946,200 in July, the association said.

January-delivery rubber in Shanghai dropped 0.8 percent to 24,640 yuan ($3,622 a ton).

Audi, Mercedes, BMW rely on China as Germany stalls

August 16, 2010 06:01 CET

SHANGHAI (Bloomberg) -- BMW AG, the world’s largest luxury carmaker, Volkswagen AG’s Audi unit and Daimler AG's Mercedes-Benz brand are making up for faltering sales at home by selling more cars in China even as industrywide demand cools in the world’s largest auto market.

Audi sold 53 percent more cars in China in July compared with a year earlier, while Daimler, the world’s second-largest luxury-car maker, tripled sales of its Mercedes-Benz brand to 14,500 vehicles and BMW raised its deliveries 82 percent to 13,852, the companies said this month. Sales of Audi and Mercedes fell in Germany for the month, while BMW sales increased 4 percent.

Demand for upscale cars in China may outstrip the overall car market during 2010 as a growing number of wealthy Chinese boost demand for upscale models. Research group J.D. Power & Associates estimates sales of luxury vehicles in the nation will rise at almost double the industry pace of 20 percent to 530,000 units this year and reach 1.1 million by 2015.

“Limited competition, very strong growth and a willingness to spend money. That combination is just explosive,” said Michael Dunne, president of automotive research firm Dunne & Co. Rich Chinese are “declaring their success to their friends, family and colleagues with what kind of car they are driving,” he said.

Quarterly profit
Sales in China are helping the German automakers increase profit even as car sales during the first six months of the years rose just 0.6 percent in Europe, their most important region by deliveries.

Vehicle registrations in Germany fell 30 percent in July, according to figures from the Federal Motor Vehicle Office in Flensburg.

Volkswagen reported its biggest quarterly profit in two years on July 29 in part because of demand in China for Audi models.

Audi’s China sales have outstripped growth in other markets, the company said in a statement last week. Sales of its cars, including the Q5 premium medium SUV and A8L sedan, surged 53 percent to 20,537 vehicles in China, while the brand’s sales grew 7.7 percent worldwide.

BMW, which sells the 3-, 5- and 7-series models in China, reported its best quarterly profit in two and a half years, the company said in a statement this month.

Deliveries in China more than doubled in the first half and accounted for about 11 percent of all sales, BMW Chief Financial Officer Friedrich Eichiner said on an Aug. 3 conference call.

Daimler raises profit outlook
Daimler raised its 2010 operating profit forecast to 6 billion euros ($7.8 billion) on July 27 after beating quarterly estimates. It cited higher sales in China and the United States.

Non-luxury automakers are faring less well in China as the government takes steps to cool the economy and higher inflation cuts disposable incomes.

Industrywide growth slowed to 13.6 percent in July, the lowest in 16 months, the China Association of Automobile Manufacturers said on Aug. 9. Sales may begin shrinking as early as next month, according to Daiwa Institute of Research.

Ford Motor Co. and Zhejiang Geely Holding Group Co. said this month that sales in July fell from a year earlier, while BYD Co., the Chinese automaker backed by Warren Buffett, cut its full-year sales forecast by 25 percent to 600,000 vehicles from 800,000 on Aug. 4.

Still, luxury sales will continue to advance as the number of wealthy Chinese increases and automakers extensively offer their latest models, said Jenny Gu, a Shanghai-based analyst at J.D. Power.
“Luxury car-market sales growth will slow as the base grows," she said, "but it will still be faster than the overall passenger car market.”

JLR helps Tata Motors' July sales rise 36%
Automotive News Europe -- August 16, 2010 10:16 CET  

MUMBAI (Reuters) -- India's Tata Motors Ltd. said on Monday its global vehicle sales in July rose 36 percent from a year earlier to 90,646 units. Jaguar and Land Rover sales in the month rose 30 percent to 19,386 units, it said in a statement.

The company, India's biggest truck maker, also makes utility vehicles and cars, including the world's cheapest car Nano.

Ford of Europe sales down 22% in July

Douglas A. Bolduc - Automotive News Europe -- August 13, 2010 15:00 CET

Ford of Europe’s sales fell for the fourth-consecutive month in July as registrations were down 22.3 percent to 97,800 vehicles in the company's main 19 European markets.

Ford has warned that it expects its 2010 sales in Europe to decline because of the end of scrapping incentives and because it will not use deep discounts to maintain volumes achieved in 2009.

"High discounts on new cars – as many of our competitors are continuing to offer – can have the negative effect of lowering the residual value, of a vehicle and imply a risk to the investment a customer has made when buying a new car," Ingvar Sviggum, Ford of Europe’s vice president of marketing, sales and service, said in a statement Friday. "I believe such unsustainable heavy discounting only damages brand reputation and further weakens the market."

Last month Sviggum said that since the scrapping programs ended in places such as Germany, Italy and the UK, some rivals have been offering discounts of 30 percent to 50 percent.

Government-sponsored scrapping programs launched last year in key European markets such as Germany and Italy re-energized the industry, leading to a strong surge in sales and production in the second half of last year.

Automakers have been unable to match the pace of the artificially inflated sales. According to Ford's data, overall sales in its main 19 markets were down 16 percent to 1,178,700 units.

Ford registered 815,100 vehicles in its traditional 19 European markets in the first seven months of 2010, 57,000 units or 6.5 percent below 2009. By comparison, overall sales in those markets slipped 1 percent to 9,460,000.

Ford's year-to-date July market share in its main markets was 8.6 percent, down by 0.5 percentage points compared to the same period in 2009.

DeLaSalle Electric Car built in collaboration with Bridgestone Americas' Technical Center 

This new electric car is built by students from the DeLaSalle School in Kansas City, Mo., in collaboration with engineers from Bridgestone Americas' Technical Center in Akron, Ohio. The DeLaSalle electric car has just completed testing on Bridgestone's Texas Proving Grounds and its developers believe it may have set a new world record for efficiency.

The DeLaSalle electric car was built as a class project under the supervision of instructor Steve Rees. The DeLaSalle electric car is a plug-in electric built on the chassis 2000 Lola Indy Car.

The students have developed the DeLaSalle electric car's driveline, electric propulsion system and the full, ultra light-weight aerodynamic body. Dressed with Bridgestone Ecopia EP100 tires, the DeLaSalle electric car managed to get during testing an efficiency equivalent to a 300 mpg fuel consumption. 

USW PROTESTS COURT RULING ON CHINESE OTR DUTIES

The United Steelworkers (USW) has issued a response to queries on the U.S. Court of International Trade's (CIT) ruling on Aug. 4 that rejected double duties on imported Chinese OTR tires. The court ruled that the U.S. Commerce Department's use of both antidumping and countervailing duties against those imports results in double counting because the department considers China a non-market economy. In a prepared statement, the USW said: "We confirm the OTR trade case is now on remand to the U.S. Commerce Dept., and under USW protest, our government will need to file results that comply with the CIT instructions. We then expect our government to appeal the ruling to the U.S. Court of Appeals for the Federal Circuit. We do not anticipate anything to be actually implemented, or for that matter - the CVD law to stop applying to China - until we get a final decision from the appeals court."

 (United Steelworkers [www.usw.org] - Washington, D.C. - Aug. 13)

Rubber Rallies for First Time in Five Days on Crude Oil Gain, Yen Decline

By Jae Hur - Aug 13, 2010 9:07 AM GMT+0200 Fri Aug 13 07:07:27 GMT 2010

Rubber climbed for the first time in five days, trimming this week’s loss, as crude oil rallied and the yen dropped, boosting the appeal of the commodity used to make tires.

January-delivery rubber in Tokyo gained as much as 2.1 percent to 282 yen a kilogram ($3,275 a metric ton) on the Tokyo Commodity Exchange before closing at 280.8 yen. The contract lost 0.5 percent this week, the first weekly drop in four.

“It’s a technical rebound, backed by a weaker yen and a rally in oil prices,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone. “Lower stockpiles have also lent support to the market.”

Crude oil rallied from a one-month low and traded at $76.68 a barrel in New York after falling as U.S. applications for unemployment benefits rose. Initial jobless claims in the U.S. rose by 2,000 to 484,000 last week, the highest level since February. Lower oil prices make natural rubber less attractive than rival synthetic products made from petroleum.

The yen fell for a second day after comments by Japanese officials stoked speculation they’ll act to curb the currency’s gains to protect the nation’s economic recovery. A stronger Japanese currency reduces the appetite for yen-based contracts.

The yen slipped to 86.06 per dollar at 4:06 p.m. in Tokyo from 85.90 in New York yesterday. It reached 84.73 on Aug. 11, the strongest since July 1995.

Natural rubber stockpiles in Japan expanded to 3,275 tons as of July 31 from a record low of 2,628 tons on July 20, according to data from the Rubber Trade Association of Japan.

“Even though stockpiles increased at the end of last month, it is still considered very low,” Sugata said. Inventories were at 7,288 tons at the end of January.

Natural rubber prices are likely to remain near current levels at $3 a kilogram for the next two months because of tight supply and increasing demand, according to the International Rubber Consortium Ltd.

January-delivery rubber in Shanghai rose 1.6 percent to 24,870 yuan ($3,662 a ton), the first gain in three days. The contract gained 0.7 percent this week.

VW posts slowest monthly sales growth for 2010

Automaker reaches 4 million car sales by July for first time

August 13, 2010 13:31 CET - UPDATED: Aug. 13 15:40 CET

FRANKFURT (Reuters) -- Volkswagen AG warned that business is becoming "difficult" after reporting its weakest monthly growth rate so far this year.

The world's third-largest carmaker said on Friday it had delivered 572,200 vehicles in July, up 2.9 percent from a year earlier, a sharp deceleration from the double-digit pace seen in previous months.
"Over the coming months we will continue on our growth path with our model range and will perform better than the competition. However, this will be a challenge, given an operating environment that is again becoming difficult," sales chief Christian Klingler said in a statement.

"Now that incentive programs have come to an end, the global automotive market is expected to decline in the second half of the year. There will not be a return to the high pre-crisis levels this year," he said, referring to the scrapping incentive program mainly seen in Europe.

Nonetheless, group vehicle sales eclipsed the 4 million mark for the first time ever during the first seven months through July, thanks mainly to the success of its core VW and Audi brands in China.
"Apart from the Golf family and the Tiguan, demand in China for the very successful Lavida, Passat Lingyu, Jetta and New Bora models was particularly high," Volkswagen said in the statement.

Volkswagen aims to overtake Toyota Motor Corp. in deliveries and profitability in 2018.

VW's troubled Spanish brand, Seat, managed to grow only 2.3 percent through July, significantly underperforming the 13.4 percent growth in the global auto market.

Even though sales have rebounded in Spain, Seat's weak brand image means it is being squeezed in its core domestic market between low-end upstarts such as Renault SA's Dacia and General Motors Co.s Chevrolet and the more aspirational brands such as Peugeot and its own sister marquee Volkswagen brand.

Bridgestone AKRON TECHNICAL CENTER construction on schedule

By Jim Mackinnon - Beacon Journal staff writer - POSTED: 06:04 p.m. EDT, Jul 28, 2010

Bridgestone Americas Inc.'s new $100 million Akron Technical Center has moved from the abstract to the concrete. Of course, it still has a way to go before it's finished.

Some 50 workers currently are doing concrete footer and basement work on the new facility on the grounds of the tire company's research and technology center off South Main Street. The ceremonial groundbreaking was in February.

''We're on schedule,'' spokesman Dan MacDonald said Wednesday.

Structural steel should begin going up in August, followed by the installation of glass in the late fall. When the steel and glass work ramps up, the number of people working at the site might grow to as many as 200, MacDonald said.

The building should be finished by Jan. 1, 2012. Employees will move in shortly afterward from the nearby current technical center building housed in what once had been Firestone Tire & Rubber Co.'s corporate headquarters and a tire factory.

The design work was done by Canton-based Sol Harris/Day Architects Inc. The Ruhlin Co., in Sharon Center, is the general contractor. Most, if not all, of the current subcontractors are from the Akron area, Bridgestone Americas said.

Bridgestone Americas Inc.'s new $100 million Akron Technical Center has moved from the abstract to the concrete. Of course, it still has a way to go before it's finished.

SUMITOMO TO BUILD NEW TIRE FACTORY IN CHINA

Sumitomo Rubber Industries (SRI) Ltd. announced today (July 28) that it will build a new tire factory in China to meet the rapid demand of the country's surging car production. The company is investing a total of 267 billion yen ($297 million) in the project. Construction is expected to begin in September, with production start-up scheduled for July 2012, and output reaching 15,000 units a day by the end of 2014. By the end of 2017, production is expected to double to 30,000 units a day. This will be SRI's second tire plant in China; the other one opened in 2004 in Changshu City, Jiangsu, producing auto, light-truck and truck/bus radials.

 (Sumitomo Rubber Industries Ltd. [www.3.srigroup.co.jp] - Kobe, Japan - July 28)

Rubber Climbs to Two-Week High On Speculation China Demand to Keep Growing

By Aya Takada and Supunnabul Suwannakij - Jul 29, 2010

Rubber advanced to a two-week high on speculation that demand in China, the world’s largest consumer, will keep growing after Sumitomo Rubber Industries Ltd. said it will expand tire output in the nation.

Futures in Tokyo climbed as much as 2.1 percent to the highest level since July 12. The price has gained 1.4 percent in July, heading for the first monthly advance since March.

Sumitomo Rubber, Japan’s second-largest tire maker after Bridgestone Corp., will invest $297 million to set up a factory in Hunan province, the company said in a statement yesterday. It will be the company’s second factory in China and start production in July 2012, it said.

“The news added to expectations that China’s raw-material demand will continue to grow, backed by a rapid expansion in the nation’s economy,” Hisaaki Tasaka, an analyst at broker ACE Koeki Co. in Tokyo, said today by phone.

January-delivery rubber increased as much as 5.7 yen to 274.3 yen per kilogram ($3,138 a metric ton) on the Tokyo Commodity Exchange before settling at 272.9 yen.

Gains in futures were limited as Asian stocks extended a global decline after the Federal Reserve said U.S. economic growth slowed in some areas, raising concern that the recovery of the world’s largest economy may weaken.

“Economic activity has continued to increase, on balance, since the previous survey,” the central bank said in its Beige Book business survey, noting that two of the Fed’s 12 districts reported the economy “held steady” and two said the pace of expansion slowed.

‘Unusually Uncertain’

The report underscored the Fed’s view that the recovery, while still moving forward, is progressing at a slower pace than earlier in the year. Fed Chairman Ben S. Bernanke said in congressional testimony last week that the central bank expects “continued moderate growth” and noted that the economic outlook remains “unusually uncertain.”

Low inventory levels in China and Japan continued to provide support to rubber prices, said Roka Komiya, a rubber trader at Marubeni Corp. in Singapore. “That is the factor driving gains of nearby contracts,” he said.

In the cash market, Thai prices extended gains as heavy rains in the nation’s rubber-growing southern provinces limited supply, according to the Rubber Research Institute of Thailand. The price rose 1 percent to 103.4 baht ($3.21) per kilogram.

January-delivery rubber on the Shanghai Futures Exchange gained 1.8 percent to close at 23,735 yuan ($3,503) a ton.

To contact the reporters on this story: Aya Takada in Tokyo at atakada2@bloomberg.net; Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net

Hyundai sees European car demand shrinking in the second-half

Automotive News Europe -- July 29, 2010 07:46 CET

SEOUL (Reuters) -- Hyundai Motor Co. expects car demand in Europe to shrink in the second half as government incentives for new cars are phased out.

Hyundai expects to maintain strong growth with new models and is likely to exceed its business targets, executive vice president Lee Won-hee told investors on Thursday. But the group including affiliate Kia Motors Corp.may face a tougher road ahead in the second half on worries over the strength of the U.S. and European economies as well as rising raw material costs.

Hyundai's European sales grew by 10.2 percent to 191,338 units in the first six months compared with last year, boosting the brand's market share to 2.6 percent from 2.3 percent, according to industry association ACEA. Kia's sales rose 12.9 percent to 138,357, increasing its market share to 1.8 percent from 1.6 percent

Hyundai sees sales growth in China slowing down slightly in the second half, although it would still be strong.

The Korean automaker said its quarterly net profit rose 71 percent to a record high, beating estimates on healthy demand in the United States and China.
"We aim to reduce costs and increase market share with new product launches in the second half to fight uncertainties stemming from the potential global economic slowdown," Hyundai said in a statement.

China, which surpassed the United States to become the world's top auto market last year, could see an easing economy due to expected monetary tightening later in this year.

In the second quarter, Hyundai's volume sales to China rose 17.4 percent from a year earlier, while domestic volume sales fell 17.5 percent during the same period, the company said.

Hyundai's U.S. volume sales during the April-June jumped 32.6 percent from a year earlier and its market share rose to a record 5.2 percent in June, despite sharply reduced incentives given to customers in the country.

New models, such as a revamped version of its best-selling Elantra compact, will help Hyundai recapture domestic customers from its competitors, analysts said.

Hyundai reported a record net profit of 1.39 trillion won ($1.17 billion) in the second quarter, compared with a consensus estimate of 1.1 trillion won by 23 analysts on Thomson Reuters. That compared with a 811.9 billion won profit a year earlier and the previous record of 1.13 trillion won in the first quarter of 2010.

Quarterly operating profit stood at 863.3 billion won, above a forecast of 801.3 billion won profit.

Since the beginning of the year, shares of Hyundai have risen about 20 percent, versus a 5 percent gain in the wider market.

Porsche to build $650,000 Spyder plug-in hybrid supercar

July 29, 2010 06:01 CET

(Bloomberg) -- Porsche AG's supervisory board approved production of the 918 Spyder plug-in hybrid sports car, a model that accelerates to 100 kilometers an hour in 3.2 seconds and may top the Carrera GT as the manufacturer's costliest vehicle.

Porsche plans to develop the vehicle at its Weissach research facility near Stuttgart, Germany, where the carmaker is based, the company said. The car will be built at the main plant in Zuffenhausen.

"This is also a very important commitment to Germany as a manufacturing base,” Porsche CEO Michael Macht said in a statement. He said the mid-engine 918 Spyder will be built in a limited series.

The 918 Spyder was one of three hybrid models Porsche presented at the Geneva auto show in March. It has attracted at least 2,000 non-binding submissions of interest, people familiar with the matter said. Porsche needed at least 1,000 sales pledges to sign off on building the car, development chief Wolfgang Duerheimer said in April.

The 918 Spyder Geneva concept had CO2 emissions of just 70 g/km, corresponding to fuel consumption of 94.1 mpg (3.0 liters/100 km).
“The introduction of hybrids is now happening at all carmakers, with all models and Porsche has above average carbon dioxide emissions,” said Daniel Schwarz an analyst at Commerzbank AG in Frankfurt. “It would also make sense to do it with the Cayenne as you would get the best results as far as carbon dioxide emissions are concerned.”

The supercar may be priced at about 500,000 euros ($650,000), topping the 453,000-euro Carrera GT of which no more than 1,500 units were produced. The 918 Spyder may be introduced as early as 2013, according to Tim Schuldt, an analyst at Equinet AG in Frankfurt.

The two-seater car accelerates to a top speed of 320 kilometers (199 miles) per hour, relying on a 500-horsepower V-8 engine and electric drive-systems that allow the vehicle to run up to 25 kilometers on electric power.

Porsche agreed with worker representations last week on measures to preserve jobs and improve productivity through 2015. The accord includes a pledge to build the 918 Spyder if the car draws sufficient interest, people familiar with the matter said.

Porsche plans to add models with a goal of doubling annual sales to as many as 150,000 vehicles over the medium term, and benefit from savings from a planned merger with Volkswagen AG.

UK pledges $67 million in electric car subsidies
Automotive News Europe -- July 28, 2010 11:16 CET  

LONDON (Reuters) – The UK government will commit £43 million ($66.73 million) over 18 months to subsidize the uptake of electric cars, the department for transport said.

British motorists will receive up to £5,000 towards the purchase of a low-carbon car from January 2011 to March 2012, Transport Secretary Philip Hammond said.

The amount committed on Wednesday is less than the £250 million pledged by the previous Labour government over a five-year period.

However, a transport department press officer denied that the new government had cut the number of cars it could subsidize.
"There is no reduction in funding for the first 18 months, but after that it will be reviewed," the press officer said.
"It's a £5,000 incentive but it is up to 25 percent of the value of the car. The amount awarded could be less than £5,000 if cars come to market cheaper so the money will go further," the press officer added.

The transport secretary said the government will review the level of funding regularly to ensure Britain remains competitive and taxpayers get value for money.
"The first review will be in January 2012, at which point we will set the level for subsequent years," he said in a statement.

In its review, the government will consider whether the cost of vehicles has come down to determine whether a new subsidy level should be set.

Renault, which plans to launch a four-model Z.E. (Zero Emission) family of electric cars in the next few years, welcomed the UK subsidies.

The first of its full-electric vehicles will be a Kangoo car-derived van launching in mid-2011. In 2012, it will be joined by the Fluence four-door sedan, then a city vehicle based on the two-seater Twizy concept and a five-door minicar.

Renault UK Managing Director Thierry Sybord said with the financial incentive in place, the carmaker "is even more excited about encouraging as many people as possible to consider using electric vehicles to drive down vehicle emissions."

PSA targets 2010 profit after strong first half

July 28, 2010 08:16 CET

PARIS (Reuters) -- PSA/Peugeot-Citroen is targeting full-year recurring operating income of 1.5 billion euros ($1.9 billion) after first-half sales surged and it swung back to profit.

Carmakers hit hard by an industry crisis are increasingly upbeat, thanks to growth in emerging markets combined with signs of an underlying recovery in car demand in Europe now that most scrapping incentive schemes have run out.

PSA, which last year launched a plan to boost profitability, partly through growth in lucrative emerging markets, said it was now confident it would generate half its vehicle sales outside Europe by 2015, compared with a third at the start of the year.

The company now sees the European market as a whole falling 7 percent in the full year, compared with a previous forecast of a 9 percent fall, PSA said in a statement on Wednesday.

It repeated that it expects the Chinese market to show double-digit percentage growth, while Latin America should see high single-digit growth.

PSA had previously not given a full-year profitability forecast, citing uncertainty, and had simply said, most recently in April, that it expected "significant" first-half operating income. The carmaker posted first-half recurring operating income of 1.137 billion euros, compared with a recurring operating loss of 826 million euros in the year-earlier period.

First-half operating income reached 1.068 billion euros, up from a 1.332 billion operating loss in the year-earlier period.

Net income was 680 million euros, up from a 962 million-euro net loss a year ago.

France-based PSA is Europe's second-largest carmaker behind Germany's Volkswagen AG

French rival Renault is due to report half-year results on Friday. PSA earlier this month reported a rise in first-half vehicle sales, boosted by new model launches and strong growth in China.

Daimler raises 2010 EBIT target to 6B euros

July 27, 2010 12:31 CET

FRANKFURT (Bloomberg) -- Daimler AG, the world's second-largest maker of luxury cars, raised its 2010 operating profit forecast to 6 billion euros ($7.8 billion) after higher sales in China and the United States helped the carmaker beat quarterly estimates.

The maker of Mercedes-Benz cars, which said July 16 it would increase its target today, previously aimed for full-year earnings before interest and taxes of more than 4 billion euros. The Stuttgart-based automaker reported an operating loss in 2009 of 1.51 billion euros.

Daimler and German luxury rivals BMW AG and Audi AG are benefitting from a jump in demand in China and a recovering U.S. market. Daimler, also the world's largest maker of heavy trucks, has continually raised targets in 2010 as the global economic recovery spurs demand.

“The guidance is surprisingly strong -- 6 billion euros is clearly at the upper end of the expected range,” said Marc-Rene Tonn, an analyst at M.M. Warburg in Hamburg who recommends buying the shares. “In the face of the fact that sales usually slow down in the second half they seem to be very confident.”

Before today's announcement, Daimler had jumped 19 percent since April 19, the day the company began raising forecasts. The shares fell as much as 1.21 euros, or 2.8 percent, to 41.95 euros and traded at 42.34 euros as of 12:26 CET in Frankfurt.

Profit advances
Second-quarter net income attributable to shareholders was 1.25 billion euros compared with a loss of 1.02 billion euros a year earlier, the company said Tuesday. The carmaker was expected to post profit of 1.03 billion euros, according to the average estimate of eight analysts surveyed by Bloomberg.

Daimler said July 16 that its second-quarter EBIT reached 2.1 billion euros, while sales jumped 28 percent to 25.1 billion euros. Daimler first lifted forecasts in April, raising targets for the Mercedes-Benz division twice within two months, as the global economic recovery feeds demand.

The carmaker is trying to regain the top position it relinquished to BMW in 2005 and hold off advances by Volkswagen AG's Audi.
“Daimler came out of the crisis faster than just about any other competitor, and their margins are already on an absolute top-level, comparable with the boom years before the crisis,” said Tim Schuldt, an analyst with Equinet AG in Frankfurt with a “buy” recommendation on the shares.

Raised forecast
BMW two weeks ago raised its 2010 forecast, predicting sales will rise about 10 percent to more than 1.4 million cars and SUVs, while the operating margin at the automotive unit will exceed 5 percent.

BMW increased first-half group deliveries 13 percent while Mercedes-Benz posted a 12 percent gain. Six-month deliveries at Ingolstadt-based Audi, which aims to dethrone BMW by 2015, advanced 19 percent.

Mercedes-Benz, BMW and Audi are adding workers and cutting summer factory breaks to boost production as demand for luxury cars returns quicker than they had planned.

Daimler has hired 1,800 temporary workers and added Saturday shifts at German assembly plants making the SLS gullwing supercar, GLK SUV and E-class convertible. Audi is running extra shifts, while BMW has added 5,000 temporary workers.
“Our strategy is paying off," CEO Dieter Zetsche said in Tuesday's statement. "We have a very dynamic development of unit sales and revenue in all divisions.”

Audi CEO is 'positively surprised' by first-half results

July 27, 2010 09:01 CET - UPDATED: July 27 12:15 CET

MUNICH (Reuters) -- Volkswagen's premium car maker, Audi, expects sales this year to be significantly above 1 million vehicles, the unit's boss said. "We are positively surprised by how we've started in 2010," Audi CEO Rupert Stadler said late on Monday in remarks set for release on Tuesday.

"We will also have a good second half of the year," he said, adding that he would give a more precise sales forecast with Audi's first-half report on Friday.

Audi sold 554,950 vehicles in the first half, up 19.1 percent from the first six months of 2009. The automaker is on course to beat its previous full-year sales record of 1,003,469 units set in 2008. The automaker's sales slipped 5.4 percent to 949,700 last year.

Hutchinson takes top non-tyre slot

European heavy truck registrations up 17% in June

23 July 2010 - ERJ staff report (RD)

Brussels -- Registrations of new heavy commercial vehicles were up by 17.3 percent in June according to figures from the ACEA -- the federation of European vehicle makers.

A 22 July ACEA statement said 14 843 new heavy trucks were registered, marking the first increase in two years, “and rebounding from very low levels,” the statement said. With the exception of the UK, which reported a 2.9 percent drop, all countries recorded an increase in new registrations with Germany recording a 43.7 percent increase. Heavy trucks are commercial vehicles over 16 tonnes, excluding buses and coaches.

Truck registrations, commercial vehicles over 3.5 tonnes, were up 16.6 percent compared to the same month last year. Looking at the most important markets, France grew by 1.0 percent, the UK by 5.1 percent, Spain by 8.6 percent, Italy by 8.7 percent and Germany by 35.2 percent.

Light commercial vehicle registrations increased 12.9 percent, compared to the June 2009, with growth ranging from 3.7 percent in Italy to 14.4 percent in France, 17.1 percent in the UK, 17.6 percent in Germany and 21.5 percent in Spain, ACEA said.

Overall, new registrations in June for all segments were up 13.2 percent in the EU with a total of 166 929 new registrations. Over the first half of the year, the statement said, the market expanded 4.3 percent with 887 862 new registration recorded in the first six months of 2010.

EUROPEAN COMMERCIAL VEHICLE REGISTRATIONS UP 4.3% IN 2010 FIRST HALF

Over the first half-year, new registrations for all segments of commercial vehicles in the EU expanded by 4.3 percent with 887,862 units, according to the European Automobile Manufacturers' Association (ACEA). In June, new commercial vehicle registrations rose 13.6 percent with 166,929 units. New van registrations in the first six months totaled 758,241 units, up 8.0 percent over the same year-ago period. In June, new van registrations were up 12.9 percent over June 2009, totaling 141,528 units. From January to June, the heavy trucks segment recorded a total of 75,977 new registrations, down 15.9 percent from the first semester of 2009. In June, the segment expanded by 17.3 percent with 14,843 new vehicles registered. Six months into the year, the truck category was down 13.4 percent, totaling 113,240 new registrations. In June, 22,318 new trucks were registered, up 16 percent from June 2009. New bus and coach registrations were up 4.9 percent in June, totaling 3,083 units, while most countries recorded a downturn from January to June. 

 (European Automobile Manufacturers' Association [www.acea.be] - Brussels, Belgium - July 23)

CATERPILLAR Q2 PROFITS UP 91%; SALES INCREASE 31%; RAISES 2010 OUTLOOK

Caterpillar Inc. has reported a second-quarter profit of $1.09 per share, an increase of $0.49 per share from a profit of $0.60 per share in Q2 2009. Profit of $707 million was 91 percent higher than the second-quarter 2009 profit of $371 million. Sales and revenues of $10.409 billion were up 31 percent from $7.975 billion in Q2 2009.

As a result, the equipment manufacturer is improving its outlook for 2010. Sales and revenues are now expected to be in a range of $39 billion to $42 billion, with a midpoint of $40.5 billion. The increased 2010 profit outlook is a range of $3.15 to $3.85 per share, with a midpoint of $3.50 per share. The previous sales and revenues outlook was a range of $38 billion to $42 billion, and the previous profit outlook range was $2.50 to $3.25 per share.

 (Caterpillar Inc. [www.cat.com] - Peoria, Ill. - July 23)

European Used Tyre Recovery Rate Reaches 96%

Created: July 22, 2010 09:21:00 AM

ETRMA, the European Tyre & Rubber Manufacturers’ Association, claims that the market for tyre derived products has become one that is “sustainable and economically viable.” Despite that fact that the recession is having a negative impact on the supply of end-of-life tyres to sorting and recycling companies, the ETRMA confirms that a positive trend in the management of end of life tyres is occurring, and the European recovery rate has now reached 96 per cent. “This achievement also promotes Europe as one of the most advanced regions in the world in the recycling and recovery of tyres,” claims the ETRMA in a press statement.

The principal advance, explains the ETRMA, has been the growth in the number of environmentally-friendly and cost-effective options for recycling tyres; End of life tyres derived products are now increasingly regarded as a useful resource for various recycling options. The ETRMA adds that, in 2010, 14 different tyre manufacturer established end of life tyre management companies operated throughout Europe. These firms were mandated to collect and organise the treatment of a quantity of end of life tyres equivalent to the volume of new tyres collectively sold by these companies, according to the principle of ‘one new tyre sold one worn tyre recovered’.

The UK reportedly treats 100 per cent of its end of life tyres. Of the total 479,000 tonnes of end of life tyres arising in the UK during 2009, 8.5 per cent was retreaded, while 45.1 per cent was processed into other materials. Another 24.0 per cent of UK end of life tyres was utilised as a source of energy. The remainder were reused (19.0 per cent) or exported. This last use of end of life tyres is, however, a contentious issue. Germany, for example, exported 69,000 tonnes of end of life tyres during 2009 – 12.1 per cent of its annual total arisings and 20,000 tonnes more than it retreaded. Many believe the exporting of end of life tyres simply shifts the responsibility for processing a waste product onto someone else.

Yet as the ETRMA explains, the ambition of European tyre manufacturers is to “further reinforce the healthy and economically viable tyre recycling market.” To this end, the ETRMA is supporting the development of product standards for end-of-life derived products. A brand new technical specification has just been adopted at CEN2 level; these product standards help to improve the reliability of the supply chain, which is very important for the recycling and recovery operators. The said vision of ETRMA members is that the continued evolution of ELT collection and treatment will drive down the cost of recycling, and contribute to a more sustainable environment.

GERMAN LOSSES PLAY CENTRAL ROLE IN EUROPEAN NEW CAR SALES

European new car sales have fallen again in June, down 6.5 percent, vs. June 2009, dragging down the overal YtD figure to just 1.1 percent above the same period last year, according to the latest monthly analysis from the world's leading provider of automotive intelligence, JATO Dynamics. The continued weakness in German and Italian new car markets (down 32.3% and 19.1%, respectively) is the main contributing factor to lower sales volumes, which is also affected by the lack of strong Central and Eastern Europe economies. One brand that has been a net benefit over the past year is Renault. In June 2009, Renault was fifth in new car sales YtD; it is now second and just 196,694 units behind Volkswagen, with its Clio and Megane both up again in June. Opel/Vauxhall Astra is performing strongly in many European markets, pushing the brand to third in overall sales. The German new car market is in severe postscrappage decline.

 (JATO Dynamics [www.jato.com] - United Kingdom - July 20)

India Car Tyre Market to Grow 8.8% by 2014

Created: July 20, 2010 02:10:00 PM

Market research firm RNCOS is predicting that the Indian passenger car tyre market will grow an impressive compound annual growth rate (CAGR) of 8.8 per cent 2010 and 2014. According to the “Indian Tyre Industry Analysis”, the Indian tyre industry is one of the fastest growing industries in the world.

“Our research has revealed that tyre manufacturers are also ramping up their production capacities in line with the growing automobile sales. Various green-field plants are currently under pipeline to add new capacities and the implementation of brown-field projects is underway to cater to rising demand. The green-field units are expected to come into stream in the next 2-3 years. In passenger car tyres segment, almost 100 per cent capacity additions will be in radial tyre segment,” company representatives said in an announcement publicising the new report.

Furthermore, the tubeless tyre segment is said to be developing fast. The penetration of tubeless tyres in the passenger vehicle segment has been estimated at around 14 per cent, but it is said to be growing rapidly.

Fiat reports second-quarter profit on truck rebound

July 21, 2010 08:16 CET - UPDATED: JULY 21 14:00 CET

MILAN (Bloomberg) -- Fiat S.p.A., which acquired 20 percent of Chrysler Group last year, returned to a quarterly profit on higher sales of trucks and agricultural machines and said it may raise its full-year forecast.

Second-quarter net income was 90 million euros ($116 million), compared with a 168 million-euro loss a year earlier, Fiat said in a statement today. Trading profit, or earnings before interest, taxes and one-time gains or losses, more than doubled to 651 million euros, beating the 359 million-euro average estimate of 11 analysts compiled by Bloomberg.

A recovery in demand for the company's Iveco trucks and New Holland tractors made up for slower demand for cars in Europe after governments ended scrappage programs. Fiat CEO Sergio Marchionne is holding back on new models this year as the auto industry emerges from its worst crisis in decades.

“These are very good numbers,” said Philippe Houchois, an analyst at UBS AG in London who has a “neutral” rating on the stock. “The beat probably comes from the light commercial vehicles, for example the Fiat Ducato, which can be very profitable.”

Fiat confirmed Wednesday its forecast for full-year revenue of more than 50 billion euros and a trading profit of 1.1 billion euros to 1.2 billion euros. It is “highly probable” that the guidance could be improved when Fiat announces third-quarter results, the company said.

Spinoff approved
Fiat's board approved the spinoff of its truckmaking and agricultural units before the end of the year. CNH Global NV, Iveco and the some industrial and marine operations will be become a new company called Fiat Industrial S.p.A.

For every existing Fiat share, the owner will get one share in the new unit, which will be listed on the Milan stock exchange before the end of the year. The deal allows Marchionne to focus on Fiat's auto business as there are limited synergies between the two divisions, said Daniel Schwarz, an analyst with Commerzbank AG in Frankfurt.

Amsterdam-based CNH reported Wednesday that its second-quarter operating profit more than doubled to $330 million and said it may raise a full-year forecast later this year.

Eight Italian and international banks have offered a 4 billion-euro financing package to help replace inter-company loans and provide working capital, Fiat said Wednesday.

Net industrial debt fell by about 1 billion euros to 3.7 billion euros during the quarter, Fiat said.

Second-quarter revenue rose 13 percent to 14.8 billion euros, beating the average estimate of 13.3 billion euros by analysts. Trucks sales rose 18 percent, while revenue from construction and agricultural equipment climbed 16 percent. Auto sales rose 6.7 percent.

Deliveries of passenger cars fell 12 percent to 455,100 in the quarter, led by a slump in demand in Germany and Italy. Light commercial vehicle sales rose 30 percent to 99,200, helped by the Doblo and Fiorino vans.

‘Moment of truth'
“This is the moment of truth: Can you sell fewer cars and make more money?” said Jose Asumendi, an analyst at RBS in London. “Marchionne made it clear he was going to be disciplined about costs and offering incentives.”

Fiat said it expects improvement in all of its operations in the second half except the auto business, as demand is still hurt by the discontinuation of government incentives.

European auto sales fell for a third consecutive month in June, led by Fiat, Ford Motor Co. and Toyota Motor Corp. Fiat recorded the biggest June decline among the major manufacturers, with sales falling 20 percent, according to industry association ACEA.

Volkswagen AG, BMW AG and Daimler AG's Mercedes-Benz have boosted sales this year on surging demand in China, the world's largest auto market. A rebound in demand for premium models has benefitted the luxury carmakers and largely bypassed Fiat, whose best-selling cars are lower-priced small models such as the Punto and Panda.

Fiat “is continuing to apply the rigorous cost-containment discipline” that was introduced during 2008, the carmaker said in its statement.

Chrysler cooperation
Fiat this year is equipping more of its cars with reduced-emission MultiAir engines, rolling out a version of the 500 minicar with a new two-cylinder engine and beginning sales of the Giulietta hatchback under the Alfa Romeo brand.

Cooperation with Chrysler is slated to include both companies' use of the Giulietta compact platform as the basis for new models. Chrysler will provide its Italian partner with an SUV this year as well as five more vehicles for Fiat or its Lancia division in 2011, according to April presentations on Fiat's website.

Second-quarter earnings were helped by a stronger U.S. dollar and Brazilian real against the euro, which translate into higher sales when converted back into the local currency.

Fiat, which employs more than 190,000 people, is Italy's biggest manufacturer. As Europe's fourth-largest economy shrank 5.3 percent last year, Fiat is increasingly relying on emerging markets such as Brazil to increase sales.

Fiat's share of the Italian market shrank to 30 percent, down 4.1 percentage points, in the second quarter as the lack of eco-incentives hurt sales of Puntos and the Pandas.

Toyota to cut Japan production starting in October
Automotive News Europe -- July 21, 2010 10:46 CET  

TOKYO (Reuters) -- Toyota Motor Corp. plans to reduce its domestic vehicle production by about 20 percent starting in October as it expects a drop in demand after the Japanese government ends subsidies on purchasing so-called "eco cars," the Kyodo news agency said on Wednesday.

Toyota plans to make fewer than 12,000 vehicles a day starting in October, with the end of subsidies on more environmentally friendly vehicles in late September, the report said.

That compares with the company's domestic production plan of 14,000 vehicles a day between July and September.

Toyota, however, is likely to stick to its annual domestic production target of 3.2 million units in the current fiscal year to March as it expects a bounce in sales after October, the report continued.

Toyota spokeswoman Mieko Iwasaki said the report was not based on information from the firm.

U.S. CAR, TRUCK SALES UP BY 17.0% IN FIRST HALF OF 2010

Car and light-truck sales in the U.S. were up by 17.0 percent in the first half of 2010, reaching a total of 5,614,280 units sold, according to the latest figures supplied by JATO Dynamics, the world's leading provider of automotive intelligence. Despite continuingly difficult economic conditions, some consumer confidence appears to be returning to car buyers in the market. Only the budget-car segment, sporty cars and compact pick-ups failed to post a sales improvement. A notable strong improvement was posted in the compact-SUV segment, which was up 31.5 percent. Ford was once again the market's best-selling brand, with a strong recovery of 30.4 percent over the same 2009 period.

The Toyota Camry model remains the best-selling car with 154,239 units sold, representing a 2.7-percent improvement over the same period last year. The best-selling truck is once again Ford's F-Series truck, which sold 240,345 examples, 33.8 percent up over last year's period. 

 (JATO Dynamics [www.jato.com] - United Kingdom - July 19)

Strong Danish car sales point to economic recovery

July 19, 2010 13:00 CET

COPENHAGEN (Reuters) -- Sales of new cars in Denmark rose 29 percent in June from the same month last year, data showed on Monday, and analysts said the figures pointed to a recovery in private consumption.

Private households bought 7,300 cars and companies bought 7,200 in June, Denmark's statistics office said.
 

Daimler won't be split in two, trucks chief says

Automotive News -- July 17, 2010 - 6:51 am ET