Publication - automotivepurchasing.com
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Publication - automotivepurchasing.com
9FEBRUARY2015 The weekly round up of news and features in the automotive industry Fords adds 1,550 jobs to support demand for all-new F150 Nissan reports 23.6% rise in net income Retired Lockheed Martin executive elected to GM Board Jury finds Toyota at fault for crash Ford invests $2.6 billion in Valencia Auto industry cautiously optimistic for 2015 Johnson Controls renews strategic partnership agreement with Lectra International Auto Processing handles 5 millionth vehicle Infiniti gears up for premiere of QX30 Concept in Geneva www.automotivepurchasing.com Talking Points Taking on the big boy Earlier this week, in what seemed shockingly similar to the plot of a TV show, Toyota was found guilty of a fault in one of its vehicles causing a crash in the US in 2011 that resulted in the death of three people, injured two others and led to the conviction of an innocent man, Koau Fong Lee, who was imprisoned for eight years. On appeal, a 12-person jury, who took a long time in deliberating the verdict, came to a unanimous decision that the 1996 Toyota Camry that Lee was driving had a dangerous defect, causing sudden acceleration of the vehicle and the subsequent accident. The verdict orders the Japanese carmaker to pay a total of $11.44 million in compensation to all the plaintiffs. What I find absolutely outrageous in this case is that apart from having to spend two years in prison for a crime he did not commit, for 24 agonising months Lee was forced to think that his actions led to the death of three people, including a six-year-old girl, who after being rendered quadriplegic succumbed to her injuries 18 months later. From the beginning Lee maintained that there was something wrong with his Toyota Camry, but that angle was never really explored. After all, what good is the word of the common man against the big boys? And big they are. This is the world’s largest automaker we are talking about. The real reason that caused the problem with the accelerator was that Toyota allegedly switched suppliers to cut down costs, replacing a metal component with a plastic one. This also raises a lot of important questions within the auto industry, especially considering the steadily rising number of recalls. Takata and its customers are faced with massive recalls worldwide. While we have been consistent in blaming Takata for the six deaths allegedly related to the airbag defect and millions of recalls around the globe, have we ever paused to think that carmakers constantly cutting costs might have played a big part in the reduction of quality from the suppliers’ end? It is definitely worth a thought. ■ Bringing bargains to our back yard Low-cost country suppliers need to trans-plant as well as export. Not so long ago China and Indonesia were seen as the great new low-cost country (LCC) hopes, the source of components and systems so cheap that they could be shipped around the world and still come in with a very profitable margin for the OEM or Tier supplier, cheaper than buying locally. But the landscape has changed. During the 1990s and early 2000s, European, US, Japanese and Korean suppliers invested heavily - some of them spending more than 10% of their turnover on R&D. Companies like ZF, who developed the 6HP26 six-speed auto transmission on just an understanding with BMW and Jaguar that they would take it if it turned out well, were at the forefront of new vehicle system design and development. Then, as we know, came the downturn and while OEMs could not invest in as many new products and had to shut some facilities and lay off a lot of skilled people, suppliers had a much smaller financial cushion and many suffered very badly. But now, as vehicle systems become exponentially more complex and sophisticated, the ‘Western’ supplier community has really stepped up, making bold investments in new technologies in the connected car and high efficiency powertrain to name just two areas. And as labour rates have risen in the formerly LCCs, so the tide has turned for these Western suppliers; they can often meet and beat prices offered by their LCC competitors, when you factor in logistics costs. However the threat is still there, especially in simpler parts and systems; but to capitalise on their advantages, LCC suppliers have to move closer to their Western customers. Chinese OEMs have established both design and technical centres in Europe and the US, these companies’ next move must be to establish manufacturing ‘bridgeheads’ in these regions. How long before a Chinese, Indian or Malaysian supplier follows its OEM customer to North America, South America or Europe? With their proven capability of lean manufacturing of high-value and high quality parts, in more than likely a non-union plant, the LCC supplier trans-plant is a matter of when not if. ■ Bringing it all back home Year-end sales figures show a drop of 10.3% with worse expected. It was not long ago since Russia was forecast to overtake Germany as Europe’s leading car market. Foreign car makers poured billions into Russia in the hope that burgeoning sales would offset sluggish performance in other European markets. Year-end figures show a dramatically different picture. Total sales of new cars and light commercial vehicles fell to just under 2.5 million units compared with almost 2.8 million in 2013, a drop of 10.3%. Some of the world’s leading automakers such as Ford (-38%), General Motors (-26%), Volkswagen (-18%) and BMW (-17%) were among the hardest hit. Russia has been hit by a ‘perfect storm’ with the plunging oil price, devaluation of the rouble and western sanctions triggered by the Ukraine crisis combining to undermine what was always a fragile economy, dependent as it is on oil and gas revenues. Within the last few weeks, GM, Audi and Jaguar Land Rover have suspended deliveries of new vehicles to dealers as the rouble has collapsed by more than 40% since June last year. The near-impossibility of fixing retail prices at a profitable level has prompted these actions with BMW admitting that fourth quarter losses could total £117 million. Editor-in-Chief: Peter Wooding Group Editor: Simon Duval Smith News Editor: Trisha Chowdhury ASC Editor: Sam Ogle Advertising: Deryck Morris Production: Richard Sinfield 2 Editorial: News features | Editorial request [email protected] Advertising: [email protected] I fear there is worse to come. The World Bank has forecast that the price of crude oil may not recover to 2013 levels until 2025. More worrying still is the escalation of the Ukrainian crisis. It is reported that President Obama, for whom foreign policy has never been a strong suit, is considering providing weaponry to Ukraine to help combat the remorseless advance of Russian-backed separatists. Opponents of such a move, such as me, worry about escalating a conflict that would see NATO and Russia actively aiding opposing sides in battle for the first time since the Cold War. Vladimir Putin finds himself between a rock and a hard place, and we all know what happens when a rat is cornered. The Moscow-based Association of European Businesses sees the Russian auto market plummeting by a further 24% this year. Don’t bet against it. ■ Customer Services: New subscriptions | Renewals | Updates [email protected] +44 (0) 208 882 1330 © 2015 Three 6 Zero Limited www.automotivepurchasing.com All rights reserved. No part of this magazine may be reproduced or stored in a retrieval system without the written permission of the publishers. Whilst every care has been taken in compiling this publication, the publisher cannot accept responsibility for any inaccuracies or changes since going to press, or for consequential loss arising for such changes or inaccuracies, or for any other loss direct or consequential arising in connection with the information in this publication. The views expressed by the contributors are not necessarily also those of the publisher. E. & O.E. Bringing together America’s Best The Automotive Supply Chain Awards recognise excellence and innovation in the North American Supply Chain industry with entries coming from companies throughout the United States in categories such as Third Party Logistics, Shipping, Road Transport, Rail, Terminal and Ports Operators, Aftermarket Parts, IT Innovation and Vehicle Processing Centres. Open exclusively to companies operating within the United States, each category will have a panel of judges which will be composed of experienced, senior supply chain industry experts who will assess entries relevant to their specialist knowledge. Nominations are now open, so don’t delay in nominating your company, clients and colleagues for them to receive the recognition they deserve. The Categories Third Party Logistics Company Logistics Quality Shipping Company Most Supportive OEM Road Transport Company Purchasing Executive Rail Company The Leaders Awards - Gold Terminals and Ports Operator The Leaders Awards - Silver Aftermarket Parts Logistics Logistician IT Innovation Vehicle Processing Centre Environmental Awareness Outstanding Achievement Exclusive Sponsor JACK COOPER 22 April 2015 The Plaza Hotel | New York Nominations now open www.automotivesupplychain.org/northamerica www.automotivepurchasing.com 3 Camshaft problem results in fresh Porsche recalls in China OEM Nissan reports 23.6% rise in net Tier Suppliers income in the first nine months of FY2014 Supply Chain 9 February 2015 | OEM Nissan announced improved financial results for the nine months to December 31, 2014, as solid US sales, cost efficiencies and favorable currency movements contributed to a 23.6% rise in net income to 338.8 billion yen. Operating profit rose to 417.9 billion yen for the period, representing a 5.2% margin on net revenues that climbed 11.1% to 8.09 trillion yen. “Nissan delivered solid financial results in the first nine months of the fiscal year, reflecting rising US sales of our latest models and a normalizing yen-dollar exchange rate,” said Carlos Ghosn, President and Chief Executive Officer. “We anticipate good full-year results as our product offensive and positive momentum in North America and Western Europe offsets volatility in other markets. Given these trends, along with the continuing impact of currency movements and cost controls, we are today revising upward our full-year financial forecast.” Nissan now expects to report net income for the fiscal year of 420 billion yen on projected revenues of 11.15 trillion yen. The revised forecast follows a ninemonth period in which Nissan saw rapidly rising demand for models such as the Altima and Rogue in the US, where retail volumes rose 10.9% to 1.03 million units. Nissan also reported a 13.4% rise in European unit sales, reaching 534,000 units as the awardwinning Qashqai and new Pulsar helped lift customer orders. The double-digit sales increase in the US and Europe – outperforming the growth rate in total industry volumes – offset declines in Japan. In Nissan’s home market, a combination of higher sales tax and weak consumer confidence contributed to lower unit sales, which fell 10.5% to 417,000 vehicles. In China, where Nissan is the leading Japanese car brand, unit sales rose 5.2% to 879,000 units for the nine-month period. For the calendar year to December 31, sales were up 0.5% to 1.22 million units amid signs of slowing Chinese growth. Globally, Nissan sold 3,835,000 vehicles in the first nine months of fiscal 2014, a 4.4% rise year-on-year. Nissan made continued progress towards the goals of its Power 88 mid-term plan during the period: delivering synergy benefits from its Common Module Family, the vehicle architecture shared by the Qashqai, Rogue and X-Trail; unveiling new models including the Murano crossover and Titan pick-up truck; and maintaining its global leadership in electric vehicles with the best-selling LEAF and the e-NV200 van. The company also pressed ahead with the development of autonomous technologies, forging a research alliance with NASA, signing a technology licensing agreement with Hitachi Construction Machinery Co., Ltd. for commercial vehicles and winning awards for new systems such as Direct Adaptive Steering. Nissan’s Alliance strategy, based around its partnership with Renault, continued to deliver synergies and technology-sharing benefits. Total unit sales for the Alliance reached 8.5 million vehicles for the 2014 calendar year. Telematics/Connected Car Innovation People Environmental Finance & Markets Vehicle Launch/Concepts General Talking Points 4 9 February 2015 | OEM A fresh recall campaign in China has been issued by Porsche that affects a number of Panamera and Cayenne models. China’s quality regulator, General Administration of Quality Supervision, Inspection and Quarantine revealed that German carmaker Porsche will be recalling close to 14,571 vehicles in the country. The recall campaign that has been initiated as a result of defective camshaft adjusters is expected to affect some Panamera and Cayenne models, according to a statement released on the quality watchdog’s website. The list of cars recalled comprises several imported Panamera models made from April 2009 to September 2011 and two imported Cayenne models made from March 2010 to September 2011. The defect in the camshaft adjuster may cause the bolt on it to loosen or break, thus posing to be a potential safety hazard. Only last month, the German luxury carmaker announced a global recall of close to 13,500 cars. The recall campaign also affected many Panamera and Cayenne models and had to be undertaken as a result of a fault in the seal of the fuel tank, which could allow fuel to evaporate. S&P upgrade Mitsubishi rating to BB+ 9 February 2015 | OEM Standard & Poor’s Ratings Services today said that it has raised to ‘BB+’ from ‘BB’ its long-term corporate credit rating on Japan-based automaker Mitsubishi Motors Corp. The outlook on the long-term corporate credit rating is stable. Standard & Poor’s Ratings Services (S&P) has announced that it has upgraded Mitsubishi’s long-term corporate credit rating to ‘BB+’ from ‘BB’ in the following statement: “The upgrade reflects our expectation that Mitsubishi Motors is likely to maintain very low indebtedness over the next 24 months since it eliminated preferred shares in March 2014. Our expectation of very low indebtedness is based on the company’s good prospects of generating positive free operating cash flow through satisfactory profitability and prudent financial management, indicating that its cash flow is less exposed to industry volatility than in the past. “In our opinion, Mitsubishi Motors will likely continue to generate satisfactory profitability because of continued cost reductions and relatively solid sales performance. The company has consistently cut about ¥20 billion or more in purchasing costs every year over the past few years. Moreover, the company’s overall sales www.automotivepurchasing.com performance remains relatively solid despite a downturn in Southeast Asia, notably in Thailand. For fiscal 2014 (ending March 31, 2015), we assume its sales volume would be largely flat compared with the previous year. “We believe Mitsubishi Motors’ more prudent financial management will also support its improved financial standing. We expect the company to finance capital expenditures primarily with operating cash flow. Following the elimination of preferred shares, Mitsubishi Motors resumed dividends in fiscal 2014 for the first time in 16 years. Still, we expect dividends will not prevent the company from generating positive discretionary cash flow.” “Nevertheless, our assessment of Mitsubishi Motors’ business risk profile and negative comparable rating analysis incorporate the company’s relative weakness in its market presence, scale, and diversity compared with similarly rated peers such as General Motors Co. and Renault S.A.” www.automotivepurchasing.com 5 Study shows Scania supplies the most efficient alternative fuel technology 6 February 2015 | OEM Bioethanol is by far the most efficient alternative fuel technology in reducing CO2 emissions from heavy vehicles a major study carried out in Stockholm has found. Since 2010, a total of 50 alternativefuel trucks have operated in Stockholm in what has been one of the largest ever trials of renewable fuels for trucks. The Clean Truck project has been managed by the City of Stockholm in cooperation with fuel distributors and transport companies. The 50 trucks were operated on dual fuel (methane/diesel), hybrid electric-diesel and the bioethanol fuel ED95. When results were evaluated recently, the Scania bioethanol truck had emerged as the clear winner with a nearly 70% CO2 reduction. Initially, when forestry waste was used to produce ED95, the reduction was even higher, 90 percent. The Scania bioethanol trucks are operated by the Kyl- och Frysexpressen transport company in Stockholm, which carries out deliveries of fresh produce to food retailers in the area. “After having operated ED95 trucks for a few years, we still firmly consider them, by far, as the best alternative fuel available,” said Managing Director Robert Barkensjö. “Of the options that presently exist, there’s simply no reason to look at other solutions.” Barkensjö said that in his experience there is no difference between operating and driving a bioethanol compared with a diesel truck. What are the prerequisites for bioethanol operations? “None at all, besides the fact that you need a heavy vehicles licence,” Barkensjö says. Scania offers the broadest range of heavy vehicles for renewable fuels, including biogas, bioethanol and biodiesel. ED95 is an ethanol-based fuel for adapted diesel engines. It consists of 95 percent pure ethanol with the addition of ignition improver, lubricant and corrosion protection. Dacia goes on sale in Israel – the brand’s 44th market 6 February 2015 | OEM Dacia continues to develop in the Mediterranean Basin with the establishment of operations in Israel. The first Dacia sales outlet was opened in Tel Aviv on Wednesday, January 7, in the presence of François Mariotte, Sales & Marketing Director of Dacia, and Itzik Weitz, CEO of Carasso Motors. The event was attended by around 50 representatives of the Israeli media. Carasso Motors, the Renault group’s longtime partner in Israel, will be responsible for sales and aftersales service. In 2015, Dacia is expected to open two Dacia-branded sales outlets, as well as a number of sales corners in selected Renault dealerships across the country. Itzik Weitz, CEO of Carasso Motors, commented: “Our partnership with the Renault group has been going strong for more than 65 years. The Renault brand is growing in Israel and now has a 4.2% market share. The launch of Dacia will enable us to offer a new line of cars which will be complementary to the current Renault range.” “Dacia offers reliable, spacious cars fitted with modern equipment at very affordable prices. We will definitely find our place in the Israeli market,” noted François Mariotte, Sales & Marketing Director of Dacia. “Our simple, clear customer promise will help Dacia to build trust-based relationships in this new market.” In the new Dacia showroom, customers can now place their orders for the new Dacia Duster, Sandero Stepway, Lodgy and Dokker. As in every other country, Dacia vehicles are sold with a three-year/100,000km warranty. Following on from the UK, Ireland, Denmark, Norway, Cyprus and Malta in 2013, Israel will be the Dacia brand’s 44th national market. Key Chinese licensee continues relationship with MAN PSA Peugeot Citroën generated a €4.721 billion trade surplus for France in 2014 6 February 2015 | OEM Thanks to its solid manufacturing base in France, PSA Peugeot Citroën has once again made a positive contribution to France’s trade balance, with a surplus of €4.721 billion and a net export volume of 310,000 vehicles. Representing a 5.3% increase on 2013, this performance ranks PSA Peugeot Citroën 6 as the country’s third leading exporter. With more than 971,000 vehicles produced in France in 2014, PSA Peugeot Citroën is on track to meet its commitment under the New Social Contract with French trade unions to produce one million vehicles in France in 2016. To keep its strong manufacturing base in France, PSA Peugeot Citroën has undertaken an ambitious plant modernisation project, which involves optimising logistics, making facilities more compact and streamlining processes, in order to improve overall production efficiency. “The PSA Back in the Race plan is important for the company, its employees and its shareholders, but it’s also important for France because PSA is a major player in the economy,” said Carlos Tavares, Chairman of the PSA Peugeot Citroën Managing Board. “This is why we’re dedicated to boosting the competitiveness of our plants in France, every single day.” 6 February 2015 | OEM At a ceremony in Beijing on 2 February 2015, MAN Diesel & Turbo renewed its contract with Chinese two-stroke licensee, China State Shipbuilding Corporation (CSSC). The agreement runs for the next 10 years and covers the production of lowspeed engines at CSSC affiliates: CSSC – MES Diesel Co., Ltd (CMD), Hudong Heavy Machinery Co., Ltd (HHM) and CSSC Marine Power Co., Ltd (CMP). Klaus Engberg, Senior Vice President and Head of MAN Diesel & Turbo Two- Stroke Licensing said: “We have enjoyed a long, close cooperation with our Chinese partner, CSSC, that stretches all the way back to 1980. Over the years, CSSC has produced all sizes of MAN Diesel & Turbo engines, and was notably quick to embrace our ultra-longstroke G-engine.” www.automotivepurchasing.com Engberg added: “We view our relationship with CSSC as pivotal to our success in giving Chinese customers access to our technology. Accordingly, we are very happy and proud today to be able to officially announce the continuation of our excellent business relationship for the next decade.” Notable MAN Diesel & Turbo attendees at proceedings in the Chinese capital included Dr. Uwe Lauber – CEO, Thomas Knudsen, Head of Low Speed, Ole Grøne – Senior Vice President, Low-Speed Sales and Promotions, Klaus Engberg – Senior Vice President and Head of Two-Stroke Licensing, Götz Kassing – Managing Director, Shanghai, as well as other representatives from MAN Diesel & Turbo’s Shanghai office. CSSC was represented by Wu Qiang, Vice President, and the respective Presidents from its engine-building affiliates. Suzuki Celerio recalled following brake mishap 6 February 2015 | OEM Following tests by What Car? and Autocar magazines where the Celerio’s brakes failed mid-test, Suzuki has released a statement stating that the car will be recalled in UK, Ireland, Australia and New Zealand. Suzuki released a statement saying: “Following a condition experienced when carrying out an emergency braking test by a journalist from Autocar magazine on the 30th January, Suzuki carried out an immediate investigation into the cause of this condition. “As a direct result of this investigation and with immediate effect, Suzuki is recalling its UK Celerio models that went on official sale to the public on February 1st. This safety recall relates to retraction of the brake pedal and affects Right Hand Drive vehicles for UK, Ireland, Australia and New Zealand. It does not affect left hand drive vehicles or other right hand drive markets. “Suzuki is directly contacting its customers via its dealer network and will be providing a loan vehicle to them until full safety checks have been completed. As UK sales of the Celerio model have now been temporarily suspended, this of course applies to press vehicles. “The condition was experienced during an emergency brake test from very high speed and was conducted several times on a private road test facility. This test forms a part of the full test procedure carried out by What Car? and Autocar magazines.” The truth behind the Chrysler bailout 6 February 2015 | OEM Gualberto Ranieri, Senior Vice President Communications at Fiat Chrysler Automobiles (FCA) cleared the baseless allegations made against the group’s chief Sergio Marchionne in his blog post. Time has come to once and for all put to bed the urban legend that “Fiat SpA’s Sergio Marchionne gained control of Chrysler without spending a single dollar.” Let’s set the record straight and not purposely forget such essential facts as: a) in June 2009, Chrysler’s value was zero, to say the least; b) at that time, nobody was lining up in front of Chrysler’s Auburn Hills, Michigan, headquarters interested in buying a single stake in the automaker; c) since 2009, Fiat has made massive investments into Chrysler, including contributing its intellectual property and welcoming tens of thousands of dedicated new hires into the fold. And can we, at long last, refrain from referencing the all-too-frequent, selfcentered and hilarious interpretations of Chrysler by – among others – a failed contestant of the lengthy and highlypublicized three-way succession race for the coveted high throne at GE. Fiat S.p.A. paid more than $5.6 billion to acquire the full ownership of Chrysler Group LLC, recently renamed FCA US LLC. In detail, Fiat paid: $1.268 billion for an incremental equity call option, to acquire 16% of Chrysler; $500 million for the 6% formerly owned by the U.S. Treasury; $125 million to acquire the 1.5% formerly owned by the Canadian governments; $75 million to purchase the rights under an equity recapture agreement; and $3.65 billion to purchase the final 41.5% of equity interests in Chrysler Group that had been held by the UAW Retiree Medical Benefits Trust, also known as the VEBA. Additionally, please note that Ron Bloom, formerly a special assistant to President Obama, in an interview with Detroit radio personality Paul W. Smith, stated: “When Chrysler, the new company, says: We paid back every penny we borrowed − that is 100 percent correct.” This is the truth, plain and simple. All the rest is fiction, urban myth with the added and unsavory flavor of intellectual dishonesty. Further expansion of global production network: Mercedes-Benz breaks ground for new passenger cars plant 6 February 2015 | OEM Mercedes-Benz has celebrated the groundbreaking ceremony for a new passenger cars plant in Brazil and thereby continues to further expand its global production network. The new Mercedes-Benz plant in Iracemápolis near São Paulo will start production of the C-Class in the first quarter of 2016, and production of the GLA compact SUV will follow in the middle of the year. “Local production will even better allow us to tap the potentials of the emerging Brazilian market and to respond more flexibly to the wishes of our customers. In the first stage, we are aiming for an annual capacity of 20,000 vehicles. If the market will develop as hoped for, the plant has the potential for a further significant expansion in the future,” said Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management, on the occasion of the groundbreaking ceremony. The event was attended by numerous guests of honor from the areas of politics, administration, and economy as well as Philipp Schiemer, President of MercedesBenz do Brasil and CEO Latin America, and Dimitris Psillakis, Head of Passenger Cars Sales, Mercedes-Benz do Brasil. Mercedes-Benz is investing a total of BRL 500 million in the Iracemápolis plant with an annual capacity of 20,000 vehicles. Until the start of production, about 600 new jobs will be created at the plant. In addition, some 3,000 jobs are expected to be generated in the region predominantly with suppliers and service providers. “With the new Mercedes-Benz plant in Iracemápolis, we will be the only company producing the full vehicle range in Latin America – from passenger cars and vans to trucks and buses. The new plant in Iracemápolis is further proof to our commitment to Brazil. It also demonstrates we keep on investing to fulfil the wishes of our customers in the best possible manner. We are positive about the potentials of the Brazilian passenger cars market,” said Philipp Schiemer. In terms of selection and recruitment of its employees, Mercedes-Benz is cooperating with SENAI, the Brazilian national service for industrial training, which has more than 800 training centers nationwide. SENAI has set up a new training center in Iracemápolis that will start training in the first half of 2015 already. The recruitment process with a focus on the Iracemápolis region will start in the second quarter of 2015. “Together with SENAI, we want to recruit the best people for our plant. Additionally, we will send selected employees to our existing plants in Juiz de Fora, Germany, Hungary, and India, for targeted trainings. With this, we are ensuring the high MercedesBenz quality standards,” explained Markus Schäfer. The Iracemápolis plant’s level of automation will be significantly lower than in traditional Mercedes-Benz plants. “Machines don’t develop, build, or sell cars –people do. That’s why our focus is on our employees. With this approach, Iracemápolis will be one of the most flexible plants in our global production network, indicating our future trend,” said Schäfer. Are you one of America’s Best? www.automotivepurchasing.com Nominate Now... 7 The new MINI: the new original is now the new “Value Master” too Ford invests $2.6 billion in Valencia operations 6 February 2015 | OEM Ford announced it is completing the final part of a $2.6 billion investment in its Valencia, Spain, manufacturing operations, transforming it into one of the world’s most advanced, flexible and productive auto plants. 6 February 2015 | OEM Once again, the best investment on four wheels is a MINI. This was the result arrived at by automobile magazine “Auto Bild”, which has published the new “Value Master” ranking in its latest issue. With the new MINI Cooper 5 door, the British premium brand not only provides the “Value Master 2015” in the small car category but also the overall winner of all categories. This means that the five-door and five-seater body version of the new original in the premium small car segment is the model that offers the longest-lasting value on the German automobile market. The “Value Master” title is based on a forecast compiled by experts at the market research institute Schwacke that looks at the price that can be obtained in four years’ time for a car that was newly registered in 2015. An assessment is drawn up for each model that includes not just purchase price and vehicle properties but also numerous other factors such as running costs, time of market launch, brand image and the competitor situation within the segment as well as current trends in the automobile market and general economic developments. This analysis is used to determine which models offer the most lasting value in 13 vehicle categories. The new MINI Cooper 5 door takes over from the MINI Cooper S Countryman as the “Value Master 2015” in the small car segment, the latter having achieved the top ranking in 2014. In so doing it carries forward the success of the brand, which has dominated the small car category ever since 2005 with models such as the predecessor to the new MINI Cooper 3 door and the MINI Convertible, as well as regularly coming first in the overall ranking. The current forecast gives the new MINI Cooper 5 door an estimated resale value of 65.6 per cent of the original price. This is the highest percentage residual value of all models analysed this year. The “Value Master” ranking is an important decision-making aid to potential new car buyers. It indicates which models exhibit less difference between their original price and resale value and can therefore be regarded as a sound investment. The stability forecasts for MINI models are always especially favourable, showing that the original in the premium small car segment is highly popular in the used car market, too. The success of the new MINI Cooper 5 door shows that this tendency applies likewise to the latest model generation. The new MINI Cooper 5 door (combined fuel consumption: 4.8 - 4.7 l/100 km, combined CO2 emissions: 111 – 109 g/km) is powered by a 100 kW/136 hp 3-cylinder spark ignition engine of the latest generation with MINI TwinPower Turbo Technology. It sprints in 8.2 seconds from zero to 100 km/h and is also optionally available with a 6-speed Steptronic transmission. After the market launch of the new MINI One First 5 door in March 2015, there are now a total of seven engine types available for this model, too - four petrol and three diesel. They provide hallmark brand driving fun and exemplary efficiency in the new MINI 5 door, which also offers increased functionality and comfort with a wheelbase extended by 72 millimetres as compared to the new MINI 3 door, two additional doors and three seats at the rear. This makes the unmistakable MINI feeling attractive to additional target groups - and with particularly long-lasting value, too. Find us online... www.facebook.com/autopurchasing www.twitter.com/AutoPurchasing 8 The investment by Ford is the largest in the history of Spanish auto industry and will allow the Valencia plant to increase vehicle production by 40% this year to about 400,000 vehicles, and will have the capacity to potentially build up to 450,000 vehicles a year. Valencia also is today one of Spain’s top automotive exporters, with 80% of its production being exported worldwide. Ford now employs about 8,000 people at the facility, up from just below 5,000 in early 2013. Supplier operations supporting Valencia production also have added 1,500 jobs since 2013. “This world-class facility will help Ford’s accelerate its growth in Europe and around the world,” said Mark Fields, Ford President and Chief Executive Officer. “Valencia is not only a major hub of production – building vehicles and engines exported to 75 countries worldwide – but also a centre of innovation employing some of the industry’s most advanced lean, flexible and environmentally friendly manufacturing processes.” In 2015, Valencia will build six Ford nameplates and even more body styles. The plant currently builds the all-new Mondeo wagon, five-door, and four-door including the Mondeo Hybrid, Kuga SUV, Transit Connect light commercial vehicle and Tourneo Connect people-mover. The all-new S-MAX multi-activity vehicle, Galaxy sevenseat people-mover and the Vignale Mondeo go into production later this year. The investment consisted of an initial $1.25 billion announced in 2011, followed by a further $1.37 billion since 2013. Valencia will be the sole European production source for all six Ford nameplates assembled at the plant. Flexible, modern and efficient The Ford Valencia facility has produced more than 11 million vehicles and 15 million engines since production started in 1976. The plant was officially opened by King Juan Carlos and Henry Ford II helping Spain emerge from decades of isolation from the global economic stage. Almost 40 years later, the plant is at the forefront of Ford’s plan to accelerate the pace of the progress on its One Ford plan, deliver product excellence and incorporate innovation into every part of the business. A new 89,000 m2 bodyshop constructed over nearly eight months raises the plant’s vehicle production capability to about 2,000 units per day. For production of Mondeo and Mondeo Hybrid, the plant was retooled to deliver an industry-first application of hydroformed high strength steel. www.automotivepurchasing.com Ford has constructed an additional paint shop, installing automated paint processes that remove the need for paintdrying between application stages, and dirt detection technology. This improves quality while delivering energy and productivity savings. New assembly line processes make Valencia among Ford’s most efficient facilities, essential to managing the increased complexity of producing more models and derivatives than any Ford facility in Europe. For example, in line with the global Ford Production System, all production components are now transported alongside the vehicle in a pre-assembled kit, saving time and effort. Since 2011 more than 900 new robots have been installed in the Valencia bodyshops, and 34 in the final assembly areas to help deliver the highest quality standards. Nearly 600 highly skilled engineers are involved in supporting the high-tech production processes in Valencia. “Mondeo, S-MAX and Galaxy will grow the number of parts we manage from 7,000 to 18,000, requiring some fresh and innovative solutions,” said Tony Ades, operations manager, Valencia. “Strong relationships with unions and local government have been essential to developing a flexible facility that can respond quickly and efficiently to changes in demand for our vehicles, with a highly trained and motivated workforce able to operate across our assembly lines.” Last year, the plant contributed to Ford’s sustainability goals by recycling 3,850 tonnes of wood, paper and cardboard, and by improving its efficiency in water and electricity consumption per car by three per cent. Vignale Center Valencia will in 2015 also complete a new Vignale Center, a specially-created department dedicated to ensuring exacting levels of quality and fulfilling customer expectations of Ford’s new upscale Vignale product and ownership experience. Vignale debuts this year with the Ford Vignale Mondeo, and each vehicle will pass through an additional sign-off process where trained experts will assess criteria including paint finish and panel alignment assisted by the latest laser and camera technology. “Ford is the engine behind automotive industry growth in Spain,” said Jose Machado, chairman, Ford of Spain. “The combination of innovative product, forward-looking investment, strong local relationships, and hardworking, flexible employees will continue to deliver meaningful progress in improving our overall business in Europe.” FCA Mexico inaugurates new Mopar Borgward’s homecoming: The return Parts Distribution Center in Toluca, of a legend Mexico 6 February 2015 | OEM FCA Mexico has opened a new Mopar Parts Distribution Center in Toluca, Mexico. The new facility will store and distribute more than 65,000 service parts offered to FCA Mexico’s customers and the Mopar Dealer Network in Mexico. The inaugural event was hosted by Bruno Cattori, President and CEO of FCA Mexico; Pietro Gorlier, President and CEO of Mopar Service, Parts and Customer Care for Fiat Chrysler Automobiles and Eruviel Avila, Governor of the State of Mexico. The new Mopar Distribution Center expands over 484,375 square-feet. “It is an honor to inaugurate this new Mopar Parts Distribution Center in Toluca and continue to invest in the state of Mexico, where we as FCA Mexico have been present since 1968 with our Assembly Plant. This facility is a cornerstone for Fiat Chrysler Automobiles, and is a prime indicator of the region’s growth, strong supplier network and overall improvement of the competitiveness of Mexico in the automotive industry’s global scope,” said Bruno Cattori, President and CEO of FCA Mexico. The new Mopar Parts Distribution Center will fulfill shipments throughout Mexico and has the capacity to distribute 6,500 items. The Distribution Center will employ two shifts, creating 97 jobs. “This new facility is the result of a $13-million investment in infrastructure and equipment, and is another clear demonstration of our company’s commitment with Mexico,” said Pietro Gorlier, President and CEO - Mopar Brand Service, Parts and Customer Care, FCA Global. “This Distribution Center adequately meets the demanding process and logistics established by Fiat Chrysler Automobiles. These global processes will make it possible for our customers in Mexico to benefit from a faster and more efficient level of attention and service,” he said. Jaguar Land Rover reports third quarter results for 2014/15 fiscal year 5 February 2015 | OEM Jaguar Land Rover has today reported its third quarter results for the 2014/2015 fiscal year. Retails of 111,525 vehicles in the quarter generated £5,879 million of revenue, up £551 million compared to a year ago. Earnings Before Interest, Taxes, Depreciation and Amortisation(EBITDA) were £1,096 million for the quarter, up £79 million from a year ago with an EBITDA margin of 18.6 per cent, in line with increased revenue. Profit Before Tax was £685 million for the quarter, down £157 million on the prior year due to the effect of unfavourable revaluation of foreign currency debt and hedges, as well as higher depreciation and amortisation. In the fiscal year-to-date Profit Before Tax was £2,218 million, £293 million up on the previous year. Commenting on the results, Jaguar Land Rover Chief Executive Officer, Dr. Ralf Speth said: “This quarter has seen robust financial performance, further underpinning our ongoing investment in new product creation, capital expenditure and our international expansion strategy. With the official opening of new world-class facilities in China and UK and the start of construction in Brazil, Jaguar Land Rover is wellpositioned to deliver more great vehicles to our customers globally.” 5 February 2015 | OEM The legendary German car brand Borgward returns to the international automotive industry Borgward, one of the most innovative brands in car history, returns to the circle of internationally renowned car manufacturers after more than 50 years. On 3rd March 2015, the company will announce its exciting plans for the future and present its new business model to global media at the 85th Geneva International Motorshow. From 1919 to 1961, the Borgward Group wrote automotive history. As one of Germany’s largest and most successful car manufacturers of its time, Borgward created some of the most iconic cars of the early 20th century as well as a large range of commercial vehicles, trucks, buses, fire engines, boats, electric cars, sports cars and even helicopters. Innovation and bold ideas were always at the heart of the Bremen based company steered by the visionary entrepreneur Carl F.W. Borgward who continuously pioneered technical novelties that set new standards in the industry. The 1949 Borgward Hansa 1500 was the first German sedan with an aerodynamic pontoon body, the precursor of modern automotive styling. The Borgward Isabella TS of 1955 was the first road car combining the comfort of a family limousine with the agility and performance of a sports car. The Borgward P100 of 1959 was the first German passenger car featuring a revolutionary selfleveling air suspension. From 1950 to 1958 Borgward was also active in international motorsport. With the Borgward Hansa 1500 the team successfully competed in various racing series such as the famous 24 Hours of Le Mans, 1,000km of Nurburgring, Carrera Panamericana and the race of Montlhéry were it broke 12 records overall. Thirty years of innovative design, a production of more than one million vehicles retailed worldwide combined with the success of such automotive icons as the famous Isabella have driven Christian Borgward, grandson of Carl F.W. Borgward and President of Borgward AG, to plan the revival of the legendary brand. “Relaunching Borgward is a childhood dream come true for me”, says Borgward, inspired by the unique heritage of his grandfather’s legacy. Together with his partner Karlheinz L. Knöss and a team of highly skilled experts all over the world, Borgward has been working over a decade on the rebirth of the brand and his vision of turning it into a modern, profitable and world-class global car company again. “We began shaping and designing the future of Borgward nearly ten years ago and are now ready for the next step. Incorporating the values and cutting-edge technologies that Borgward stood for, combined with our ambition, drive and commitment to succeed, I believe we are now perfectly placed to open up this new chapter in Borgward’s history”, says Knöss. “Geneva is an important step into our promising future and we cannot wait to be back there”. The Salon de l’Automobile de Genève – one of the most prestigious car shows of the year – is the place where the Borgward Hansa 1500 was unveiled in 1949 as the very first automobile construction after the war. Are you one of America’s Best? www.automotivepurchasing.com Nominate Now... 9 Komatsu America launches the new PC360LC-11 hydraulic excavator 5 February 2015 | OEM Komatsu America has introduced the PC360LC-11 hydraulic excavator. With a net horsepower of 257 hp. (192 kW), the PC360LC-11 is powered by a Komatsu SAA6D114E-6 engine, which is EPA Tier 4 Final emissions certified. Komatsu’s Tier 4 Final engines are built on the solid foundation that started in 1996 with the introduction of Komatsu’s first Tier 1 engine. The culmination is today’s Tier 4 Final engine that is productive, dependable and efficient. This new excavator leverages Komatsu’s leadership in technology and innovation by delivering a more environmentally friendly engine that provides high levels of performance while reducing operating costs and improving fuel efficiency. With an operating weight between 78,645 lbs. (35,627 kg) and 80,547 lbs. (36,535 kg), the PC360LC-11 has upgraded cab features and an enhanced power mode for greater productivity and lower cost per ton. The excavator is equipped with the latest KOMTRAX® technology, which relays data such as fuel levels, Diesel Exhaust Fluid (DEF) levels, operating hours, location, cautions and maintenance alerts. A new Operator Identification System reports key operating information for multiple operators, and the new Auto Idle Shutdown function helps reduce idle time as well as operating costs. Komatsu EPA Tier 4 Final emission certified engine – productive, dependable, efficient Komatsu’s proven Tier 4 Interim foundation integrates a Selective Catalyst Reduction (SCR) system using DEF to meet EPA Tier 4 Final emission regulations for NOx emissions. The engine uses an advanced electronic control system to manage the air-flow rate, fuel injection, combustion parameters, and after treatment functions to optimise performance, reduce emissions, and provide advanced diagnostic capability. Komatsu continues to use its Komatsu Variable Geometry Turbocharger (KVGT) and an Exhaust Gas Recirculation (EGR) valve for precise temperature and air management control as well as longer component life. For reliability and durability in demanding conditions, Komatsu developed the entire 10 Porsche and Michelin raise the bar of performance driving system, including the control software that is critical to the effective operation of the aftertreatment system. Additionally, the control system is integrated into the machine’s on-board diagnostics systems and KOMTRAX, Komatsu’s standard telematics system. Highly Efficient Hydraulic System All major components on the new PC360LC-11 including the engine, hydraulic pumps, motors, and valves are exclusively designed and produced by Komatsu. This integrated design uses an efficient closed center load sensing hydraulic system and features a new enhanced power mode for improved performance and reduced cycle times. Operator Environment The PC360LC-11 cab provides a more comfortable and quieter work environment. The ISO 12117-2 ROPS certified cab, specifically designed for hydraulic excavators, gains strength from a reinforced box structure framework. The cab is mounted on viscous isolation dampers that provide low vibration levels. A standard heated air suspension high back seat with new fully adjustable armrests provides improved comfort. In addition to the standard AM/FM stereo radio, a remote located auxiliary input for connecting external devices is provided to play music through the cab speakers. Additionally there are two 12-volt power ports incorporated into the cab, and optional joysticks are available with proportional controls for attachment operation. For global support, the high-resolution 7” LCD color monitor features enhanced capabilities and displays information in 33 languages. The operator can easily select up to six working modes to match machine performance to the application. The monitor panel provides information on DEF fluid level, Eco guidance, operational records, fuel consumption history, and utilization information. A new display interface combines vehicle information with a wide landscape view from the standard rearview camera so the operator can easily view the working area directly behind the machine. 4 February 2015 | OEM Porsche Cars North America named Michelin the official tyre partner of its new Porsche Experience Centers which are slated to open this year in Atlanta and then later in Los Angeles. The centers will allow one-on-one instruction on unique Porsche test track modules and off-road courses that are purpose built to demonstrate the power, responsiveness and stability at the core of Porsche engineering. Michelin and Porsche have a long history of success and performance records with victories at the 24 Hours of Le Mans, 24 Hours of Nurburgring and the Paris to Dakar Rally. The two historic companies have also teamed up to shatter the Nurburgring production car lap record and are currently technical racing partners in the TUDOR United Sports Car Championship. “This is an innovative approach and we are excited to have Michelin onboard as our long standing partner,” said Andre Oosthuizen, Vice President of Marketing for Porsche Cars North America. “Automotive enthusiasts can experience Porsche and Michelin at their best in a controlled dynamic environment.” The Porsche Experience Centers will feature a wide range of driving experiences as well as a Human Performance Center, Driving Simulators, a fine dining restaurant and business meeting facilities. Vehicles expected to be used on site include the 911, Boxster, Cayman, Cayenne, Macan and Panamera. “The Michelin and Porsche relationship offers an incredible history of innovation and technological development that goes back decades,” said Pierre Barrard, director of marketing, Michelin North America. “The Porsche Experience Center will provide consumers an opportunity to see this partnership first hand as they push the limits of their abilities and experience these amazing vehicles.” In addition to experiencing Porsche vehicle performance with Michelin tires, visitors to the Porsche Experience Center will notice Michelin and its iconic Michelin Man present throughout the venue. Plans include a Michelin Man air inflation station, track signage and on-vehicle logos. Aerodynamically optimised, the McLaren 675LT stays true to the icon 4 February 2015 | OEM The 675LT, the first McLaren in nearly two decades to wear the LT – or ‘Longtail’ – name, will stay true to the spirit of its iconic predecessor with aerodynamically optimised, dramatically enhanced styling that results in 40% more downforce than the 650S which it will sit alongside in the McLaren Super Series. A total power output of 675PS (666bhp), and torque figure of 700 Nm (516 lb ft) plus a focus on weight saving will ensure an electrifying, engaging and visceral driving experience. These output figures are produced by a heavily revised 3.8-litre twin turbo V8 featuring lightweight components and new turbos. A controlled torque delivery of 600Nm (443 lb ft) ensures optimised acceleration and traction from a standing start in first gear, rising to the full 700Nm available from 5,500-6,500 rpm, through www.automotivepurchasing.com each of the other gears. A redesigned crossover exhaust system, bespoke to the 675LT, is formed from lightweight titanium. Two circular titanium exhaust pipes exit centrally through exposed bodywork below the rear ‘Longtail’ Airbrake. The new system is designed to optimise performance and reduce weight – another pillar of the LT ethos. Available as a coupé only, the 675LT will join the core range of McLaren supercars later this year as a more track focused alternative to the established 650S Coupé and Spider. Together, they form the newly named McLaren Super Series which sits above the recently announced Sports Series in the range. Further details of the McLaren 675LT, including its startling performance figures, will be released with the car’s global debut at the 85th International Geneva Motor Show, on Tuesday 3 March 2015. Ford announces new research collaborations driving innovation in mobility and autonomous vehicles 5 February 2015 | OEM Ford announced new research collaborations driving innovation in mobility and autonomous vehicles to help solve future global transportation challenges. This month, the Ford European Research & Innovation Centre, Aachen, Germany, and the Technology and Innovation Management Institute of RWTH Aachen University launch the Personal Mobility Experience Innovation project. The project aims to identify the features, technologies, services and solutions that could enable Ford to meet customers’ changing preferences and expectations for personal mobility and to help address societal challenges such as traffic congestion and environmental issues. “Without question, we are embarking on one of the most transformative eras in the history of the auto industry – and in the history of Ford,” said Mark Fields, Ford president and chief executive officer, during a keynote address to the International CAR Symposium in Bochum, Germany. “This can be a threat or an opportunity. We see it as an opportunity to provide real solutions and exciting new products for millions – and ultimately help change the way the world moves.” Ford also this year is contributing to the UK Autodrive initiative that is researching how driverless and connected cars can be integrated into everyday life. Both of these projects are elements of Ford Smart Mobility announced earlier this year to foster innovation in the areas of connectivity, mobility, autonomous vehicles, the customer experience and big data. Changing the future of mobility The Personal Mobility Experience Innovation project brings experts from Ford and the University together to study business models from a range of industries and the transformations made by other innovators, to learn how they could be applied to the automotive industry and help deliver mobility solutions. Ford will look at examples such as Apple and Amazon – who have expanded from being single product and service providers to delivering a wide range of hardware and software platforms and services. The project will identify how such approaches could deliver enhanced car-ownership experiences; new approaches to car-sharing and personalisation of mobility solutions; and create innovative features and new business opportunities. “This is an exciting time because while we are confronting real challenges to mobility as the world becomes more crowded and urbanised, we are also in the midst of a technological sea change that will help us find solutions,” said Pim van der Jagt, executive technical leader, Ford Research & Advanced Engineering. “This project is about tapping into the best thinking from other industries and sectors to deliver new mobility solutions.” Four megatrends are driving the company’s thinking around innovation in mobility: ■■ Urbanisation – By 2030, at least 41 megacities with populations of more than 10 million people are anticipated worldwide compared to 28 today, placing pressure on existing road infrastructures and creating a need for smarter cars, smarter roads and smarter cities ■■ Rapid growth of the global middle class – Experts suggest the global middle class will double in size to 4 billion by 2030. Many in this growing middle class will aspire to own a car, creating an obligation for automakers to address potential global gridlock ■■ Air quality issues – Increasing numbers of vehicles create the need for automakers to address air quality issues with more fuel efficient and alternative powertrains ■■ Changing consumer attitudes – Younger generations have different mobility habits – especially in Europe where integrated urban transit systems provide a credible alternative to car-ownership – creating a need for automakers to rethink how they remain relevant Autonomous cars Ford also today announced that during 2015 it will contribute to the UK governmentsponsored UK Autodrive initiative. Ford will work alongside other manufacturers to study how driverless and connected cars can be integrated into everyday life, and will provide two prototype cars with vehicle-to-vehicle communication capability to help test an innovative public transport system. Vehicle-to-vehicle and vehicle-toinfrastructure connectivity technologies such as those tested in real-world urban environments during the UK Autodrive initiative, also will contribute to the development of fully autonomous vehicles. Ford’s semi-autonomous vehicle features that are available today include Lane Keeping Aid, Adaptive Cruise Control, PreCollision Assist with Pedestrian Detection and Active Park Assist – with Traffic Jam Assist coming. A fleet of fully autonomous Ford Fusion Hybrid research vehicles is undergoing further development and ongoing road testing as Ford shifts its autonomous vehicle efforts from a research program into a vehicle development program. The vehicles use the same semi-autonomous technology available in Ford vehicles today, while adding four LiDAR sensors to generate a real-time 3D map of the surrounding environment. The vehicle can sense objects around it using the LiDAR sensors, and uses advanced algorithms in concert with high fidelity maps to help it determine where vehicles and pedestrians are located and to predict where they might move. “At Ford, we view ourselves as both a mobility and an auto company, as we drive innovation in every part of our business,” said Fields. “These new collaborations will help us better understand and anticipate customers’ wants and needs, especially on connectivity, mobility and autonomous vehicles. We are working to make these new technologies accessible to everyone, not just luxury customers.” BMW Group records 6.8% sales rise in the US 4 February 2015 | OEM Sales of BMW brand vehicles increased 4% in January for a total of 18,981 compared to 18,253 vehicles sold in January, 2014. “Coming after a record December and a record 2014 year-end result, the January numbers are a solid start for the new year and I am confident the trend will accelerate in the months ahead,” said Ludwig Willisch, President and CEO, BMW of North America. “I am especially pleased that MINI is again showing its strength as availability of its new models improves.” In January, notable vehicles sales included the BMW 3 and 4 series which increased 13.2% to 7,348 vehicles, the BMW 7 series increased 10.8% to 637 vehicles and the BMW X5 increased 16.7% to 3,214 vehicles. BMW Group Sales The BMW Group in the US (BMW and MINI combined) reported January sales of 22,209 vehicles, an increase of 6.8% from the 20,796 vehicles sold in the same month a year ago. MINI Brand Sales For January, MINI USA reports 3,228 automobiles sold, an increase of 26.9% from the 2,543 sold in the same month a year ago. Mitsubishi extends streak with January sales results 4 February 2015 | OEM Mitsubishi continues its sales momentum with January 2015 vehicle sales of 6,493 units, a 33.4% sales increase from January 2014. MMNA ended 2014 with a nearly 25% sales increase over the previous year and January marks the brand’s 11th consecutive month of year-over-year sales increases. The Mirage 5-door subcompact scored its best-ever month of sales since the vehicle was introduced in 2013 with 1,705 units sold. Outlander Sport continues to be the brand’s top-selling model recording 2,267 units sold, up 23.3% year-over-year with its best ever January. Sales of the Outlander crossover climbed to 1,003 units, up 6.6% and represented its best January sales month since 2007. The Lancer compact www.automotivepurchasing.com sports sedan demonstrated excellent momentum with sales of 1,515 units, a 68.3% increase from January 2014 and the fourth consecutive month of year-over-year sales increases. “After finishing 2014 with sales up nearly 25% over the previous year, we are off to a phenomenal start in 2015,” said Don Swearingen, Executive Vice President MMNA. “The Mirage had its best-ever sales month, Lancer sales are up significantly, Outlander Sport continues to lead the way and Outlander maintains solid sales traction.” 11 Fords adds 1,550 jobs to support demand for all-new F150 4 February 2015 | OEM As Ford ramps up production of the allnew F-150, the company announced it will add 1,550 new jobs across its Kansas City Assembly, Dearborn Stamping, Dearborn Diversified and Sterling Axle facilities in the first quarter of 2015. The new jobs will support production and growing customer demand for the recently launched 2015 Ford F-150. With these new jobs, Ford has reached its entry-level allowance outlined in the 2011 UAW-Ford collective bargaining agreement. As a result, approximately 300 to 500 workers – the first group of “new traditional” employees – will transition, based on attrition and growth, from their entry-level wage of $19.28 an hour to their new wage of $28.50 an hour. The majority of these employees work at Kansas City, Chicago and Louisville assembly facilities. “Thanks to stronger than expected customer demand, we’re adding 1,550 new workers to support additional F-150 production,” said Joe Hinrichs, Ford president, The Americas. “These jobs are further proof that customers recognize the all-new F-150 as the toughest, smartest, most capable F-150 ever. We sell every truck we can build, and we plan to build more.” Of the 1,550 new jobs, 900 are allocated for Kansas City Assembly and 500 will be added between Dearborn Stamping and Dearborn Diversified, with the remaining 150 jobs going to Sterling Axle. These jobs are in addition to the more than 5,000 hourly jobs Ford added across its U.S. manufacturing facilities in 2014. “This is very exciting news and these additional jobs will have an impact in communities all across our nation,” said Jimmy Settles, UAW vice president and director, National Ford Department. “This also represents a major milestone for employees hired under the entry level agreement, as many will now begin to convert to ‘new traditional’ wage status, as negotiated in the 2011 collective bargaining agreement.” The entry-level agreement negotiated as part of UAW-Ford collective bargaining has helped improve Ford’s competitiveness and enabled the company to invest more than $6.2 billion in its U.S. manufacturing facilities. Ford has hired more than 15,000 hourly UAW members – exceeding its goal of creating 12,000 hourly jobs in the United States by 2015. 12 Toughest, smartest, most capable F-150 ever The all-new F-150 is the toughest, smartest and most capable F-150 ever – boasting a military-grade, aluminum-alloy body and high-strength steel frame, and shedding up to 700 pounds for a lighter, more efficient truck than any previous F-150. These weight savings lead to customer benefits regardless of model configuration or engine choice. The innovative new truck can tow up to 1,100 more pounds and haul up to 530 more pounds than the 2014 model, and has the highest EPA-estimated fuel economy ratings of any full-size gasoline pickup on the market. When equipped with an available 2.7-liter EcoBoost® engine, the new F-150 4x2 has EPA-estimated fuel economy ratings of 19 mpg city, 26 mpg highway and 22 mpg combined. Actual mileage may vary. Numerous groundbreaking features debuted in the all-new F-150, including these class-exclusives: 360-degree camera view uses exterior cameras to create a bird’s-eye view of the truck to help drivers park, maneuver in tight spots, and navigate narrow roads and trails Integrated loading ramps enable easy loading of ATVs, motorcycles and mowers BoxLink™ cargo management system combines metal brackets and custom cleats to secure a variety of accessories in the cargo box – from ramps to storage bins to bed dividers Trailer hitch assist adds a new rearview camera feature that incorporates a dynamic line based on steering wheel angle in the display to help customers line up their truck and trailer with no spotter or need to exit the vehicle Remote tailgate allows for tailgate to be locked, unlocked and released with the key fob To manufacture the all-new Ford F-150, the truck team designed an innovative process that includes the latest in advanced materials and in forming and joining technologies. The new manufacturing process called for the overhaul of both Dearborn Truck and Kansas City Assembly facilities. Dearborn Truck saw its largest manufacturing transformation in decades wherein legacy manufacturing equipment was replaced with the latest in production technology. Changeover at the facility was completed last fall. Kansas City Assembly is currently undergoing a similar renovation that is scheduled to be complete in early 2015. Combined, the two plants will have capacity to produce more than 700,000 trucks per year for availability in 90 markets globally. F-150 is part of Ford F-Series, celebrating its 38th straight year as America’s bestselling truck and 33rd straight year as America’s best-selling vehicle. Ford sold 753,851 trucks in 2014. The all-new F-150 is off to a tremendous start. In January, Ford F-Series had its strongest sales month since 2004, which was the company’s best sales year for the F-150 ever. Renault-Nissan Alliance sales rise for fifth straight year in 2014 to 8.5 million vehicles 4 February 2015 | OEM The Renault-Nissan Alliance sold a record 8,470,610 vehicles in 2014 amid rising sales in the United States and Western Europe. Sales rose for the fifth straight year, up 2.5% compared with the previous year. Together, Renault, Nissan and AVTOVAZ, Russia’s largest automaker, account for one in 10 cars sold worldwide. “Robust demand in the United States, the recovery in Western Europe and an array of compelling new models contributed to another year of rising sales for the Alliance in 2014,” said Carlos Ghosn, Alliance Chairman and CEO. “We remain well-positioned and optimistic about the long-term prospects in the global growth markets, despite the recent declines in Russia and Brazil.” Renault SAS, Europe’s third-largest automaker, sold 2,712,432 vehicles worldwide in 2014, up 3.2% from 2013. In Western Europe, Renault sales totaled 1,464,611, up 12.5%, more than double the overall market. Renault’s market share in Europe reached 10%, up 0.6 percentage points. Dacia was Europe’s fastest-growing brand, gaining 0.4 percentage points of market share. Renault sales outside Western Europe fell 5.9% to 1,247,821 vehicles due to the economic slowdown in many of its markets. Despite the slowdown, Renault posted its highest market share ever in Brazil and Russia, its second and third largest markets after France. Nissan sold a record 5,310,064 cars and trucks worldwide, up 4.1%. Nissan continued to sell more than 1 million vehicles in its two largest markets, the United States and China. AVTOVAZ sold 448,114 vehicles, down 16.3% due to the overall market slowdown in Russia. The Renault-Nissan Alliance has a majority stake in AVTOVAZ, which sells cars under the LADA brand, through a joint venture with state corporation Rostec. Together, the Renault-Nissan Alliance and AVTOVAZ sell about one in three cars in Russia. Renault-Nissan market highlights The Alliance’s top 10 markets in 2014 were the United States, China, Russia, Japan, France, Mexico, Brazil, UK, Germany and Italy. In China, the world’s largest auto market, Nissan, through its local partner Dongfeng Motor, sold 1,221,598 vehicles, up 0.5%. Nissan is the leading Japanese carmaker in China with a 5.5% market share. In 2016, Renault will start producing vehicles in China with Nissan’s long-term partner Dongfeng Motor. The new joint venture plant in Wuhan will have an initial production capacity of 150,000 vehicles a year, with the potential to double that figure in the future. In the United States, Nissan sold a record 1,386,895 vehicles, up 11.1%, resulting in a record market share of 8.4%. Nissan also set annual sales records for Altima, Rogue, Versa, Juke, NV200 and the 100 percent electric Nissan LEAF. www.automotivepurchasing.com Despite the economic downturn in Russia, the Alliance posted a market share of 30.7%, up 1.1 percentage points. AVTOVAZ sold 387,307 vehicles in Russia, down 15%. AVTOVAZ’s market share stood at 15.5 percent, down 0.9 percentage points. Renault sold 194,531 vehicles, down 7.4 percent, but its market share grew to a record 7.9 percent, up 0.3 percentage points, thanks to the success of the Duster SUV and the successful launch of three new models: New Logan, New Sandero and Sandero Stepway. Nissan sold 182,412 vehicles, up 17.7 percent. Nissan held a market share of 7.3 percent, up 1.8 percentage points. In Japan, Nissan’s home market, Nissan sold 670,263 vehicles, down 1.3%. Nissan’s market share stood at 12 percent. In France, Renault’s home market, Renault sold 577,601 vehicles, up 5.5%. Its market share totaled 26.6%, up 1.3 percentage points. Clio was the best-selling car in the market, while Captur was the best-selling crossover. In Mexico, Nissan posted record sales of 293,204 vehicles, up 10.9%, outpacing the overall industry. Nissan is the number one brand in Mexico with a market share of 25.8%. In Brazil, Renault sold 237,187 vehicles, up 0.3%. Renault’s market share stood at a record 7.1%. Zero-emission highlights The Renault-Nissan Alliance sold 82,602 electric vehicles in 2014, up 24% compared with previous year, giving it a global market share of 56%. Nissan LEAF was the world’s best-selling EV with 61,507 sales, while Renault led in Europe with 17,813 sales. The Alliance has sold a cumulative 217,365 electric vehicles worldwide since December 2010, when Nissan LEAF – the first massmarketed Alliance EV - went on sale. The top markets for Nissan LEAF are the United States with 72,322 vehicles sold since its launch, Japan with 48,641 sales and Europe with 33,481 sales. Meanwhile, Renault has sold a cumulative 56,499 electric vehicles worldwide since its first EV, the Kangoo Z.E., went on sale in October 2011. The Alliance sells about one out of two electric vehicles worldwide, including Twizy, Renault’s two-seater urban commuter vehicle and the Nissan e-NV200 van on sale in Europe and Japan since 2014. Kia Motors America announces record January sales 4 February 2015 | OEM Kia Motors America’s (KMA) record-setting momentum carried into 2015 with best-ever January sales of 38,299 vehicles, up 3.5% over the same period last year. Kia’s strong start was led by the US-built Optima and the iconic Soul urban passenger vehicle, and coincided with the arrival of the more capable and refined third generation of the popular US-built Sorento CUV. “Yahoo called Kia one of the ‘hottest brands’ in the industry in early January, and as economic conditions continue to improve, our record-setting January performance proved them right as more and more customers entered the market and considered Kia for the first time,” said Michael Sprague, Executive Vice President, Sales & Marketing, KMA. “Kia has one of the youngest and bestlooking lineups in the business, including the completely redesigned Sedona, which brings unmatched styling and amenities to the segment and sold nearly four times as many units as the outgoing model did in January 2014.” To announce the arrival of the all-new 2016 Sorento, KMA aired a 60-second spot titled “Perfect Getaway” in the third quarter of Super Bowl XLIX, which replaced the usual action movie mayhem with the Sorento’s capability to handle any adventureseeker’s lifestyle. A phased rollout of the multi-platform marketing campaign will incorporate TV, cinema, digital and social media. Mercedes-Benz delivers record January sales volume with 24,619 units, up 8.9% Start of 2015 pay negotiations at Volkswagen 4 February 2015 | OEM The negotiating committees of Volkswagen AG and the IG Metall trade union met today in Hanover for the start of pay negotiations. The leader of the Volkswagen committee, Martin Rosik, Head of Human Resources of the Volkswagen Passenger Car brand, said: “There is growing uncertainty in many regions of the world. Risks that were already apparent during the 2013 pay negotiations have become more pronounced. We also face new risks in 2015. As a result, it is more important than ever before to ensure that our competitiveness is not jeopardised. A reasonable pay settlement is essential.” “In many regions, the political and economic situation is becoming increasingly unstable. Countries such as Russia, Brazil or Argentina are in crisis. And severe exchange rate fluctuations are also making our business more difficult,” said Rosik. “We have explained our analysis to IG Metall and have offered to develop the right answers to the situation together with the employee representatives.” Rosik described the situation in Europe, Volkswagen’s domestic market, as follows: “Unemployment continues to depress the mood of consumers in Southern Europe. New passenger car registrations in Western Europe are as low as they were 20 years ago.” He added that more and more investment in future-oriented technologies was required. “And Asian manufacturers continue to enter the market aggressively – with cars that they can make in the Far East or Central and Eastern Europe at much lower labor expenses than is possible at our German plants.” Rosik stated: “Volkswagen will continue to make cars in Germany in the future. We can only be successful if we find the right solutions together. More than ever before, this means that we need to keep costs under control.” The collective agreement of Volkswagen AG applies to about 115,000 employees at the Wolfsburg, Brunswick, Hanover, Salzgitter, Emden and Kassel plants as well as Volkswagen Financial Services AG. Negotiations are due to continue on February 12, 2015. Volvo Cars’ global sales up 1.6%, growth in all key markets 4 February 2015 | OEM Volvo Cars posted a 19th consecutive month of retail sales growth in January with Europe, China and the United States all recording sales increases compared to January 2014. 4 February 2015 | OEM Mercedes-Benz reported a record January sales volume of 24,619, increasing 8.9% from the 22,604 units sold in January 2014. Adding 1,505 units for Sprinter Vans and 492 units at smart, MBUSA achieved its highest January to date with a grand total of 26,616 vehicles, up 9% from a year ago. “On the heels of record sales in 2014, a best-ever January is the perfect way to kick off the New Year,” said Stephen Cannon, President and CEO of MBUSA. “Our product offensive continues in 2015 with the launch of the Mercedes-Maybach S600, a fully redesigned light truck lineup and the hero of our Super Bowl spot this year, the MercedesAMG GT S. Stay tuned.” Mercedes-Benz volume leaders in January included the C-, E- and M-Class model lines. The new C-Class took the lead at 6,236, up 8.5% from the 5,748 units sold the same month last year. The E-Class followed with sales of 4,336, while the brand’s best-selling sport utility, the M-Class, rounded out the top three with an increase of 11.3% to 3,144. At the high end, sales of the flagship S-Class increased 22.2% from January 2014 to 1,566. Mercedes-Benz AMG high-performance models sold 790 units in January, while the brand’s BlueTEC diesel lineup finished the month at 942. Separately, Mercedes-Benz Certified PreOwned (MBCPO) models recorded their best January ever with sales of 9,456, up 13.9% from the 8,305 units sold the same month last year. Sales of Volvo Cars in Europe rose 4.9% versus the same month last year. Most European markets did well, with the United Kingdom being the main growth driver; up 34.4% versus January 2014. Sweden remains a growing market for Volvo Cars with retail sales of 3,628 cars, up 0.2% from the same month last year, and Volvo Cars retains its 20% market share. The Volvo XC60 and XC70 crossovers were the best-selling models. China also reported growth with January sales of 5,879 cars, up 0.7% versus January last year. Volvo Cars’ best-selling models in China were the XC60 and the S60L. Sales in the United States were up by 0.1% to 3,795 cars in January. The bestselling models were the Volvo XC60 and S60. www.automotivepurchasing.com “2014 was a good year and we continue the positive trend into 2015 with our 19th month of consecutive growth,” says Alain Visser, Senior Vice President Marketing, Sales and Customer Service at Volvo Cars. “The fact that we have received over 15,000 pre-orders for the all new XC90 before its arrival in showrooms shows promise for Volvo Cars’ future.” The Volvo XC60 was the best-selling mode in January with 10,403 sold cars (2014: 8,947), followed by the Volvo V40 and V40 Cross Country for which deliveries reached a total of 6,990 cars (2014: 6,575). The V60 and V60 Cross Country models were third best selling at 3,989 cars (2014: 4,628). Sales figures by model can be found in the Sales Volumes section of the Global Newsroom. 13 Subaru of America reports record January sales 4 February 2015 | OEM Subaru reported 40,812 vehicle sales for January 2015, a 24% increase over January 2014. These results continue the company’s sales momentum from 2014 where Subaru achieved six consecutive years of record sales and exceeded 500,000 annual sales – a first in company history. January marked the 11th consecutive month of 40,000+ vehicle sales for the company. Forester, WRX/STI, Legacy, Outback, and XV Crosstrek sales were notably strong as each model line achieved its best January ever. WRX/STI and Legacy sales for January 2015 increased 59 and 41% respectively over January 2014. The XV Crosstrek small CUV also added 6,513 sales to the month’s total. All seven 2015 Subaru models recently earned safety awards from the Insurance Institute for Highway Safety (IIHS) – two with Top Safety Pick and five with Top Safety Pick+ including the Forester, Legacy, Outback, Impreza, and XV Crosstrek, when equipped with optional EyeSight Driver Assist Technology. In January, Subaru also earned Kelley Blue Book’s prestigious 2015 Best Resale Value Brand Award and three vehicle segment awards – Compact Car Category: 2015 Subaru Impreza; Sporty Compact Car Category: 2015 Subaru WRX; and Mid-Size Car Category: 2015 Subaru Legacy. “We are off to a strong start to 2015 by having the best January sales in our franchise’s history and we expect strong demand to continue throughout the year,” said Thomas J. Doll, President and Chief Operating Officer, Subaru of America. “We are excited to see strong sales across our entire model line, as well as achieve the sale of our seven millionth vehicle.” Jeff Walters, Senior Vice President of Sales said: “Subaru continues to receive outstanding accolades from the Insurance Institute for Highway Safety and the automotive press for our products. These favorable reviews are increasing the positive image and awareness of our products among the American buying public and help drive the demand we are seeing in our retail stores.” Toyota’s America sales soar in 2014 Mercedes-Benz USA announces details of new corporate headquarters in Atlanta 4 February 2015 | OEM MBUSA to occupy interim office space in Central Perimeter before opening new, state-of-the-art facility in 2018. At a press conference at the Georgia State Capitol, Mercedes-Benz USA (MBUSA) announced the permanent and interim locations for its new corporate headquarters in Atlanta. Company President and CEO Stephen Cannon made the announcement with Georgia Governor Nathan Deal. MBUSA, which is currently headquartered in Montvale, New Jersey, will construct a new, state-of-the-art headquarters facility on a greenfield site located at the corner of Abernathy and Barfield roads in Sandy Springs, expected to be completed in early 2018. Set near the intersection of Georgia 400 and Interstate 285, the approximately 12-acre parcel rests in one of Atlanta’s largest and most sought-after commercial districts, offering numerous hotel, retail and restaurant options with easy access to public transit and Hartsfield–Jackson Atlanta International Airport. “Mercedes-Benz is a marquis brand which deserves a marquis setting,” Cannon said. “Our ambition is to be more than just a great car company – we want to be among the best companies in the world, and Atlanta will serve as the perfect foundation to foster that ambition for the future. We are looking forward to calling Atlanta home.” Beginning July 2015, the company will move into temporary office space at Sterling Pointe II, a 186,000-square-foot, Class A office building at the Perimeter Center complex in the neighboring city of Dunwoody. “Mercedes-Benz USA’s planned headquarters location in Sandy Springs is great for the city, metro Atlanta and for the entire state of Georgia,” said Governor Deal. “I want to thank Mercedes-Benz USA and its leadership team for its decision to call Georgia home.” As part of the relocation, the automaker plans to hire hundreds of new employees from the Atlanta area. MBUSA will continue to maintain several operational business units in both Montvale and Robbinsville, New Jersey. Additional details on the new Sandy Springs facility, as well as MBUSA’s Atlanta recruiting efforts, will be released in the coming weeks. 1% growth for Hyundai North America this January 3 February 2015 | OEM Toyota USA reported January 2015 sales of 169,194, an increase of 15.6% from January 2014 on a volume basis. With one additional selling day in January 2015, sales were up 11.2 percent on a daily selling rate (DSR) basis. Toyota division posted January 2015 sales of 146,063 units, up 13.5 %. “The year is off to a strong start as the sales momentum we saw in 2014 continued into January,” said Bill Fay, Toyota division group Vice President and General Manager. 14 “Highlander, RAV4 and Corolla all set January records. “Lexus reported January 2015 sales of 23,131 units, a 31.2% increase. “January was a great way for our dealers to start the year, with their third straight record month and an industry leading 31 percent sales increase,” said Jeff Bracken, Lexus group vice president and general manager. “We saw good growth throughout our lineup and received an added boost from the all-new NX luxury compact utility vehicles and RC coupes.” 4 February 2015 | OEM Hyundai Motor America reported its best January in company history, selling 44,505 units for the month, up 1% versus the same period last year. This is the seventh consecutive year of increased sales during the month of January. “With consumer confidence at a seven year high and gasoline and energy prices on the decline, more car buyers will be heading into the dealerships in 2015,” said Bob www.automotivepurchasing.com Pradzinski, Vice President, National Sales. “Consumers are doing their homework - making sound, educated purchasing decisions – and looking for vehicles that equate to ‘more for less’. The search for value was one of the key drivers of Hyundai’s record setting January sales success as high-performing, quality vehicles such as Genesis, Sonata and Santa Fe continue to offer consumers unprecedented values.” The all-new award-winning Genesis sedan, now available with Hyundai’s HTRAC AWD system, saw sales gains in the mid-west and eastern part of the country in January, as the snow piled up. Genesis sedan sales were up 76 percent for the month, resulting in Genesis’ best January. Sonata, our midsize sedan was up 26 percent and Santa Fe, Hyundai’s CUV, was up 15 percent. Porsche reports January sales - up 27% over 2014 Jury finds Toyota at fault for crash that sent innocent man to prison; awards $11,440,000 4 February 2015 | OEM Bob Hilliard, of Hilliard Munoz Gonzales, has won the lawsuit against Toyota in which he proved its 1996 Camry was defectively dangerous and caused a 2006 deadly accident. 4 February 2015 | OEM US Porsche dealers sell 3,937 vehicles in January. Porsche Cars North America (PCNA), importer and distributor in the United States of Porsche 918 Spyder, 911, Boxster and Cayman sports cars, Macan and Cayenne SUVs, and the Panamera four-door sports sedan line-up, announced January 2015 sales of 3,937 vehicles. PCNA kicked off the year successfully with record January sales, up 27.2% over January 2014 (3,096). “It’s greatly encouraging that we are able to carry the momentum of last year’s record sales into the start of 2015,” said Detlev von Platen, President and CEO, Porsche Cars North America. “The 911 range with the new GTS models was an especially impressive performer this month with 1,052 deliveries.” The 911 model line’s strong demand in January put its sales up 32.8% over last January. In January, the Cayenne had 1,116 deliveries, and the sporty Macan recorded sales of 796 with demand still outpacing availability. The Panamera sports sedan had 437 deliveries. The mid-engine Boxster and Cayman models had a combined 502 deliveries. Porsche Approved Certified Pre-Owned vehicle sales in the US were 1,023 for January 2015, an increase of 26.6% from the same period last year. GM’s US sales up by 18% 3 February 2015 | OEM General Motors (GM) in the United States delivered 202,786 vehicles last month for the company’s best January sales in seven years. Total sales were up 18% compared to a year ago. Retail sales were up 14% and fleet deliveries were up 32%. “Consumers feel very good because more people are working, the US economy is expanding and fuel prices are low,” said Kurt McNeil, US Vice President of Sales Operations. “Consumer and commercial demand for trucks and crossovers is really driving our business, and our move into the small crossover segment with the Chevrolet Trax and Buick Encore, and mid-size pickups with the Chevrolet Colorado and GMC Canyon, was well-timed.” Year-over-year pickup deliveries increased 42%, following last month’s 43% increase. Large pickup sales were up 22% and more than 8,000 all-new mid-size trucks were delivered. GM is the only US-based automaker competing in this segment. Sales of crossovers and SUVs were up 36 percent year over year, with the Chevrolet Equinox and Traverse, the GMC Terrain and the Buick Encore all posting their highest January sales ever. Chevrolet will unveil a redesigned Equinox at the Chicago Auto Show on February 12. The verdict, returned after 21 days of testimony, and 4 days of deliberations, further vindicates Koau Fong Lee, who was wrongfully imprisoned for the crash that caused the deaths of three people, and serious injuries to two others. After the grueling 3 week trial in front of Judge Ann Montgomery in federal court in Minneapolis, Minnesota a 12-person jury unanimously agreed with Hilliard and found the Toyota Camry was defectively dangerous and a direct cause of the accident. The jury found 60% responsibility on Toyota. The jury awarded all plaintiffs a total of: $11,440,000. The underlying accident On June 10, 2006, Lee was driving home from a church function with his pregnant wife, young child, brother and elderly father when his car began to accelerate by itself. The racing engine overpowered the braking system’s ability to stop it. Though Lee tried his best to maneuver his out of control and accelerating vehicle around cars that had stopped at the approaching traffic light, he failed in his attempt and crashed into an Oldsmobile Ciera, instantly killing two people and rendering a six-year-old girl quadriplegic, who died the following year. Two other passengers in the Oldsmobile suffered serious injuries. Lee and his family were not seriously injured. Hilliard helped free Lee from prison Even though there were no drugs or alcohol involved and the accident happened on a clear Saturday afternoon, Lee always maintained that something had gone suddenly wrong with his Toyota. However, in 2008 a criminal jury convicted Lee of criminally negligent homicide and he was sentenced to 8 years in prison. At the time of the criminal trial there was little known about sudden acceleration in Toyota vehicles and Lee’s criminal attorney presented no evidence on this issue. For 2 and a half years Koua Fong Lee sat in prison, away from his wife and four kids. Lee had five more years to serve when Hilliard and his co-counsel, Minneapolis based attorney Brent Schafer, put on evidence at a hearing seeking to overturn Lee’s conviction that the 1996 Toyota Camry was defective. At the end of the hearing the same Judge who sentenced Lee to 8 years in prison ordered his conviction vacated and granted his immediate release. The prosecutor declined to re-charge Lee. Filing of the lawsuit After Lee was released from prison, Hilliard filed a lawsuit against Toyota. Joining Lee in this lawsuit were his wife, Panghoua, his daughter Jemee, his brother Nong, and his father Nhia. Also in the lawsuit were www.automotivepurchasing.com the Oldsmobile front seat passenger who was severely injured, Quincy Adams. The Oldsmobile back seat passenger, Jasmine Adams who was also severely injured, and Bridgette Trice on behalf of the Estate of Devyn Bolton, the little girl who was in the middle back seat of the Oldsmobile and was rendered a quadriplegic from the accident, dying 18 months later. Evidence of the defect at trial Hilliard put on expert testimony to show that the accelerator on Lee’s 1996 Toyota Camry suddenly and unexpectedly stuck in the near wide-open position, causing the car to accelerate. He also called to testify three independent witnesses who had experienced similar events in their 1996 Toyota Camry, a doctor, a Blackhawk helicopter pilot currently deployed in Kuwait and a former CFO of an university. ”Shame on Toyota”, says Hilliard “Finally, through this jury’s verdict, Justice, though slow, has come to Koua Fong Lee. Mr. Lee and his family, as well as the other victims of this accident, have experienced a journey biblical in its sadness and anguish. I know there were times when they could not have ever dared hope this day would find them.” For years after the accident, the Lees, Hmong immigrants, who came to the United States to start a new life, were overwhelmed and bullied--first by the criminal justice system and then by Toyota,” Hilliard said. “Shame on Toyota for wrongly attempting to once again lay the guilt of this accident on Koua. From opening statements through closing arguments, Toyota, who spent tens of millions of dollars on this case, tried to again frame my client. I thank the jury for its courage, for its careful analysis of the testimony and evidence but mostly for its verdict. As I have always known, and now, as the world knows and as the jury has confirmed, the lives lost and the horrible consequences of that tragic day in 2006 are a direct result of this dangerous and defective 1996 Toyota Camry, and not Koua Fong Lee,” Hilliard said. Vindication “Koua will never be able to regain the years he languished in prison. The other innocent victims and their families who were in the Oldsmobile will never completely recover from this terrible crash. Still, there is some peace, some hope that comes from being reminded of the healing power of our justice system. These 12 brave individuals on this jury stared down Toyota, the world’s largest car company, and delivered the strong and sweet sound of Justice through their verdict,” says Hilliard. 15 Ford previewed Ford Focus 3 February 2015 | OEM Ford previewed the all-new Ford Focus RS, a high-performance road car that debuts the innovative Ford Performance All-WheelDrive, delivering class-leading cornering speed, thrilling performance and unbridled driving enjoyment. The Focus RS – equipped with a special 2.3-litre EcoBoost engine engineered to produce well in excess of 320PS – is the latest vehicle to be unveiled as part of a new era of Ford performance that will bring more than 12 performance vehicles to global customers by 2020. In addition to pleasing enthusiasts, these vehicles help deliver the company’s One Ford plan for profitable growth, product excellence and innovation in every part of its business. “The all-new Focus RS is a serious machine with high-performance technology and innovative engineering that sets a new benchmark for driving exhilaration on the road and track,” said Raj Nair, group vice president, Global Product Development, Ford Motor Company. “The RS line has a proud history of technical breakthroughs that have migrated to mainstream Fords to benefit all of our customers, and the new Focus RS is no exception. It’s a great example of our passion for innovation through performance and creating vehicles that make people’s hearts pound.” Developed by a small team of Ford Performance engineers in Europe and US, the new Focus RS is the third generation of Focus RS cars, following models launched in 2002 and 2009. It will be the 30th car to wear the legendary RS badge, following such technology trendsetters as the 16-valve 1970 Escort RS1600, the turbocharged Sierra RS Cosworth of 1985 with its radical aerodynamics, and the four-wheel-drive 1992 Escort RS Cosworth. Sporting a dramatic exterior design that delivers enhanced aerodynamics and cooling, the new Focus RS offers technologies new to the RS marque including Ford SYNC connectivity. The all-new Focus RS is the first ever RS model that will be sold around the world and will be produced for all markets at Ford’s Saarlouis, Germany, manufacturing plant beginning late this year. “The new Focus RS represents Ford at its passionate best – delivering innovation, unmatched driving dynamics and stunning performance that was previously the sole province of high-priced performance luxury marques and exotics,” said Jim Farley, president, Ford of Europe, Middle East and Africa. “We are acutely aware of the benchmarks we have set ourselves with RS performance models through the years, and rest assured that this new car raises the game to a new level. “Just as important is the fact that with technologies such as EcoBoost, we are able to demonstrate how an innovation that powers almost every car in our range can also be the heartbeat of our finest performance cars.” Gymkhana and World Rallycross star Ken Block was brought on as a consultant on the all-new Focus RS and joined the Ford Performance team at the preview event in Cologne, Germany – the city where the RS legend was born in 1968 with the Ford 15M RS. FCA reported 31% profit in 2014 3 February 2015 | OEM FCA US LLC, formerly Chrysler Group LLC, reported preliminary full-year 2014 net income of $1.2 billion, including $1.2 billion of unfavorable infrequent items. The result compares with net income of $2.8 billion in 2013, when the Company realised a net favourable effect from infrequent items, including a benefit of $962 million related to the release of valuation allowances on deferred tax assets. Adjusted net income for 2014 was $2.4 billion, up 31% from $1.8 billion in 2013. For 2014, adjusted net income excludes a $504 million loss on extinguishment of debt related to the prepayment of a note held by the UAW Retiree Medical Benefits Trust (VEBA Trust Note) and a $672 million charge for commitments associated with the January 2014 memorandum of understanding signed with the UAW. Net revenues were $83.1 billion for the year, up 15% from $72.1 billion in 2013. The year-over-year improvement was driven by increased shipments of vehicles such as the Jeep Cherokee and Ram pickups. Modified operating profit was $3.5 billion for the year, or 4.2% of net revenues, up 10% from $3.2 billion in the prior year, or 4.4% of net revenues. The increase was mainly the result of higher shipment volumes, improved net pricing and purchasing efficiencies, partially offset by higher industrial costs mainly related to base material costs for vehicle content enhancements, as well as higher warranty and recall costs. Modified EBITDA was $6.4 billion for the year, or 7.7% of net revenues, up 8% compared with $5.9 billion a year earlier, or 8.2% of net revenues. Cash at December 31, 2014, was $14.5 billion, up from $13.6 billion at September 30, 2014, and $13.3 billion at December 31, 2013. Total available liquidity as of December 31, 2014, was $15.8 billion, including $1.3 billion available under an undrawn committed revolving credit facility. The increase in cash also included the $1.9 billion special distribution paid to Fiat and the VEBA Trust last January. Free cash flow for the year was $3.3 billion. Financial liabilities at December 31, 2014, totaled $12.8 billion compared with $12.9 billion at September 30, 2014, and $12.3 billion at Dec. 31, 2013. The increase from a year ago was primarily due to the refinancing of the VEBA Trust Note in the first quarter of 2014. Net industrial cash increased to $1.8 billion at the end of 2014 from $680 million at September 30, 2014, and $1 billion at December 31, 2013. Interest expense for the year was $842 million, down from $1 billion in the prior year, primarily due to the refinancing of the VEBA Trust Note in January 2014 and debt repricing actions in 2013. Worldwide shipments were 2.9 million vehicles for the year, including 49,000 contract manufactured vehicles, an increase of 12% from a year earlier, when the Company shipped 2.6 million vehicles, including 60,000 contract manufactured vehicles. Worldwide sales were 2.8 million vehicles for the year, up 15% from 2.4 million vehicles sold in 2013, driven largely by an 18 % increase in the Company’s U.S. retail sales. In addition, the Jeep brand reported an all-time sales record of more than 1 million vehicles sold during the year. US fleet sales as a percentage of total US sales were 21% for the year, down from 22% in 2013. The Company’s US market share was 12.4% in 2014, up from 11.4 % in 2013; market share in Canada was 15.4%, up from 14.6% a year earlier. US dealers’ days’ supply of inventory at the end of December 2014 was 72 days, comparable with the 71 days at the end of September 2014, and lower than the 79 days at the end of December 2013. Full-year 2014 sales outside North America increased 17% from 2013, to 363,000 vehicles, including 55,000 vehicles manufactured by FCA US and sold as Fiat and Lancia branded models outside North America. Kia to reveal new Picanto at 2015 Geneva Show 2 February 2015 | OEM Kia Motors Europe will unveil the enhanced Kia Picanto at the 85th Salon International de l’Automobile in Geneva on 3 March 2015. Kia’s stylish A-segment city hatchback features a range of dynamic and visual improvements to maintain its competitiveness. The enhanced Kia Picanto boasts redesigned front and rear bumpers to enhance the car’s bold looks, as well as updates to Kia’s hallmark ‘tiger-nose’ grille. Buyers can now choose a new 14-inch alloy wheel design, and the inclusion of an 16 optional sport pack makes the upgraded car stand out as one of the best-looking vehicles in the A-segment, in both three- and fivedoor variants. Inside, the Picanto is now fitted with new chrome accents surrounding the driver’s instrument binnacle and dashboard air vents, and a new cloth upholstery pattern boosts the car’s youthful appeal. At the centre of the dashboard, a more modern fascia now surrounds the Picanto’s audio system. Premium features and greater customisation A range of optional premium features are being introduced to the Kia Picanto for the first time, including the latest generation of Kia’s AVN (audio-video navigation) system with a large 7.0-inch display screen (available from Q3). Customers can also specify a cruise control and speed limiter system to improve long distance comfort for the driver. In addition, the enhanced model now offers a series of three interior colour packs, allowing owners to customise their Picanto and stand out from the crowd. The sportylooking Red Pack features black artificial leather and red cloth seats and high-gloss red and black door panel inserts. The vibrant, trendy Yellow Pack features black artificial leather and cloth seat upholstery with yellow stitching, as well as a bright yellow dashboard and steering wheel trim. Finally, the premium Brown Pack offers classy brown artificial leather seats, brown door trim and high-gloss piano black dashboard trim. Footwell illumination is fitted to the Picanto when buyers specify one of the three colour packs. Improved braking performance and Euro 6-compliant engines Occupant safety is further improved in the enhanced Picanto, with larger brakes reducing the car’s stopping distance. New larger 252 mm front brakes (increased from www.automotivepurchasing.com 241 mm) are available as an option, allowing the car to stop from 100 km/h in just 37 meters - an improvement of 2 meters. The upgraded Picanto has received a series of small modifications to its 1.0-litre MPI (Multi-Point Injection) engine, ensuring the car meets strict Euro 6 emissions standards. Enhanced Picanto on-sale in Q1 2015 The Picanto is manufactured at Kia’s Seosan manufacturing facility in Korea, and is among the brand’s best-selling models in Europe, with 51,102 units sold in 2014. The enhanced model will go on sale across Europe in by the end of March 2015, and will be sold with Kia’s unique 7-Year, 150,000 km warranty for complete peace of mind. Honda kicks off 2015 with record January sales Ford records best January since 2004 3 February 2015 | OEM American Honda reported a new January record on Honda and Acura vehicle sales of 102,184 units, an increase of 11.5% versus January 2014. Overall AHM light trucks led sales gains for both brands and set a January record, increasing 25.2% on sales of 52,169 vehicles. The Honda brand set a January record, up 11.6% for the month while recording sales of 90,202 vehicles. The Acura brand posted sales of 11,982 units in January, increasing 10.7% over the same period last year. Honda 2015 began on a strong note for the Honda Division with record monthly sales for the brand, its light trucks and three key models, CR-V, Fit and Pilot. ■■ CR-V continued to build on its leadership as 2014’s undisputed best-selling SUV in America, as the Honda’s top-selling model in January with record monthly sales of 23,211 units, up 27.3%. ■■ Fit continued to bring record numbers of new buyers to the Honda brand, setting a new January record, up an amazing 85.8% with 5,802 vehicles sold in January. ■■ Pilot nearly doubled January 2014 sales while setting a new monthly record with 12,315 sold, up 97.9% . ■■ Accord sales of 21,011 vehicles grew by 2.0% in January ■■ Led by record CR-V and Pilot sales, Honda Division light truck sales surged to a new record of 44,271 units, up 27.7% . “The new year is off to a strong start with three core models selling at record pace, and this is only the beginning,” said Jeff Conrad, Honda division Senior Vice President and General Manager. “With an all-new HR-V crossover coming in a few months, an all-new Pilot debuting at the Chicago Auto Show next week and more big news on the horizon, this is going to be an epic year for Honda.” Acura The Acura Division posted its best January sales result since 2007 on the strength of record sales of the MDX and RDX and another strong showing from the all-new TLX performance luxury sedan. ■■ MDX set its second consecutive January sales record on sales of 4,381 vehicles, up 3.3%. It was the brand’s best-selling vehicle in January. ■■ RDX set its third consecutive January sales record, up 28.8% with sales of 3,517 vehicles for the month. ■■ The all-new TLX sold 2,892 vehicles in its first January, easily besting the combined sales of its two predecessors in January 2014 by 27.9%. (Acura TL and TSX combined to sell 2,261 vehicles in January 2014.) “With a major mid-cycle refresh for the ILX gateway model on the way, it’s great to begin the year with such strong sales,” said Mike Accavitti, Acura division senior vice president and general manager. “MDX and RDX are packing a stronger 1-2 punch than ever to create new energy and momentum for the Acura brand that we look forward to carrying through 2015.” Škoda Superb’s design true to its name 3 February 2015 | OEM Ford posted a 15% sales increase in the US in January, with sales of 178,351 vehicles. Retail sales of 128,666 vehicles marked a 13% increase, providing the best retail January results since 2004. Retail passenger car sales were up 6 percent, utilities saw a 10% increase, and trucks gained 23%. “Customer demand is strong for our newest vehicles, driving retail sales gains across our lineup in January,” said Erich Merkle, US sales analyst. “Momentum is especially strong for our F-Series pickup, with the all-new F-150 the hottest product on our dealer lots in January.” F-Series, America’s best-selling truck for the 38th straight year, posted sales gains of 17% in January, with 54,370 trucks sold last month. This was F-Series’ best January sales volume since 2004 – an all-time annual record sales year for F-Series. Part of F-Series’ strength is the all-new F-150. It is the toughest, smartest, most capable F-150 ever, with best-in-class payload, towing and gasoline fuel economy and recently named 2015 North American Truck of the Year. It is averaging just 12 days on dealer lots. High-end Platinum and King Ranch F-150 are turning even faster, averaging just 9 and 10 days on dealer lots, respectively. Transit Connect sales also increased 72% last month, for record January sales with 3,689 vehicles. Combined, Ford sales of Transit, E-Series, and Transit Connect totaled 13,377 vans, marking Ford’s best January sales results for vans since 2001. Escape sales of 20,054 vehicles increased 3% last month versus a year ago, for the utility’s best-ever January. Explorer sales of 14,995 vehicles were up 28%, marking its best January sales since 2005. Mustang sales more than doubled last month with sales of 8,694 vehicles. This represents a 124% increase versus last year and marks Mustang’s best January sales since 2007. Lincoln sales increased 11% last month versus January 2014, with 6,619 vehicles sold, providing Lincoln with its best January results in five years. MKC continues to build Lincoln momentum, along with Navigator, which realized a 144% sales increase for the month. For more information about advertising opportunities, please contact: 3 February 2015 | OEM Škoda is once again demonstrating the design and emotional power of the brand with the latest version of its flagship model, the Superb. The new Škoda Superb combines spaciousness, functionality and design in a truly unique way. Škoda already gave some hints as to the future of the brand’s design language last year, when it presented the Škoda VisionC show car at the Geneva Motor Show. The new Superb brings these innovations to series production. Škoda is now presenting the specific details of the third-generation Superb with a closer look at the vehicle’s interior. The aim of Škoda’s engineers and designers was to create a superior inner space, with a more modern, elegant and sophisticated look. With further improvements to the interior dimensions, Škoda has brought the qualities of higherclass vehicles into the automotive mid-class. With the vehicle’s unrivalled amount of room, new level of comfort, new technical solutions and high-quality, precise workmanship, the new Škoda Superb is truly setting standards in its segment. Deryck Morris +44 (0) 208 882 1330 or email: [email protected] www.automotivepurchasing.com 17 Ford supports new degree apprenticeship programme in technology Prestigious design award for new Kia Sorento 3 February 2015 | OEM Kia continues to reel in awards for its outstanding design. Now the Kia Sorento, the brand’s flagship SUV, has received the prestigious ‘iF Design Award’ for the first time. 2 February 2015 | OEM Ford will be among the first UK employers to develop and offer a new Governmentbacked degree apprentice programme to A-level school leavers seeking an alternative to the traditional university route. Ford is continuing its long-standing commitment to providing apprenticeships through the development of this new degree programme, which provides theoretical and practical education in the digital and software field. Ford has introduced its own Higher Apprenticeship programmes over the last two years, designed to encourage a new generation of engineers and professionals into the automotive industry, providing a full degree-level qualification with high-quality training in a range of engineering skills. Ford introduced its own Higher Apprenticeship in IT in September 2014. This programme provides a path towards a Batchelor of Science (BSc Hons.) degree in IT Management for Business (ITMB), and is delivered with the University of Greenwich. The new programme will be developed by Ford, along with other leading technology employers and top universities. The Government will subsidise some tuition costs and fees, while employers taking part in the scheme will provide undergraduates with an opportunity to ‘earn and learn’ through a paid apprentice role with practical training. These new IT degree apprenticeships will be available at a number of universities across the UK, including Loughborough, one of the original universities selected by Ford to participate in the Blue Oval Scholarship programme.* In recognition of its commitment to apprenticeship programmes, Ford has been listed among the City & Guilds Top 100 Apprentice Employers for 2014 – the fourth successive year that Ford has made the list. This follows earlier success in 2014, having been named as the South East regional winners of the Macro Employer of the year in the 2014 National Apprenticeship Awards. Tessa Hougham, Ford Apprenticeship Manager, said: “Ford’s Advanced and Higher apprenticeship programmes have produced some of the UK’s best engineers and innovators, and we’re proud to be among the first to support these new Government-backed apprenticeships in the digital sector.” Are you one of America’s Best? The judges of the globally-recognised design awards programme honoured the third generation of the Sorento, which goes on sale across Europe in March 2015, with an award in the ‘Product’ category. As well as awarding the car for the overall quality of its design, the jury rated the car on criteria such as finish, degree of innovation, environmental impact and safety. The all-new Kia Sorento is the seventh Kia model to secure an iF Design Award. In every year since 2010, at least one of the coveted awards has been scooped by Kia, with previous winners from the brand including the Kia Venga, Sportage, Optima, Picanto, pro_cee’d and Soul. “I am very proud of this award for the Kia Sorento because it is recognition of the great advance in quality we have succeeded in achieving in this model,” said Peter Schreyer, President and Chief Design Officer of Kia Motors Corporation and Hyundai Motor Company. “The Kia Sorento unites the classic poise of an SUV with a premium look and feel that is particularly tangible in the cabin. It offers the very highest design quality and excellent value for money. This is largely the achievement of our international design teams – which is also why I am so delighted with this award.” The new Kia Sorento was developed by the Kia design team in Namyang, Korean, assisted by the Kia Design Centres in Frankfurt, Germany and Irvine, California. Great versatility, high-tech features and new all-wheel-drive system The new Kia Sorento is a stylish and practical SUV with exceptional versatility and practicality. The smoother, sweptback profile and deeply sculpted surfaces give the Kia Sorento a lithe, elegant appearance. The spacious interior follows the horizontal lines of the overall design concept and delivers a luxurious look and feel with top-quality materials throughout the cabin. Nominate Now... 18 www.automotivepurchasing.com The new Kia Sorento, which is available with five or seven seats, has a longer wheelbase and provides more passenger room than its predecessor. The luggage area is larger, and thanks to the sliding, 60:40-split seat row it is even more versatile, holding up to 1,732 litres. The Kia Sorento has a powerful and efficient 200 ps (147 kW) 2.2-litre turbodiesel engine, while four-wheel drive versions are fitted with Kia’s new Dynamax All-Wheel-Drive system with torque vectoring. High-tech specifications and a range of premium features, including the 360-degree Around View Monitor and smart parking system make it easy to manoeuvre and park. Buyers can also choose from the latest safety assistance systems, from lane departure warning to rear cross traffic alert and traffic sign recognition, through to adaptive cruise control. The iF product design award Since it was launched in 1953, the annual iF Design Award has become one of the world’s most important prizes for excellence in design. The award has its origins in the ‘Formgerechte Industrieerzeugnisse’ (Good Industrial Design) product shows initiated by the Hannover Messe, and is now one of the world’s largest design competitions. The iF Design Award is presented in five disciplines. In 2015, companies from 53 countries participated in the iF design awards programme, submitting 4,783 designs. The new Kia Sorento was honoured in the ‘Automobiles / Vehicles / Bikes’ category. The official presentation ceremony for the 2015 iF Design Awards will take place on February 27, 2015 in Munich, during the Munich Creative Business Week. A selection of the winning products will also go on display at the iF design exhibition in Hamburg’s HafenCity. Groundbreaking McLaren Super Series continues to break records 2 February 2015 | OEM McLaren celebrated the build of the 5,000th model based on the groundbreaking carbon fibre MonoCell chassis, which forms the recently announced McLaren Super Series, in only the fourth full year of vehicle production. Launched initially with the 12C in 2011, and followed by the 12C Spider and then the 650S and Asia-only 625C, the Super Series is now the highest volume carbon fibre supercar range ever. This milestone comes shortly after McLaren announced a third consecutive growth in sales, with more than 1,400 Super Series models being delivered during 2014. The 5,000th car, a Volcano Yellow 650S Coupé commissioned for a customer in Australia rolled from the assembly line in the McLaren Production Centre on Monday 2nd February. It was joined at the end of the production line by the first production 12C, which has now become part of the McLaren Heritage Collection. Production of the 12C began at the start of 2011, with these early models assembled by approximately 30 employees in a designated manufacturing facility within the McLaren Technology Centre. Deliveries commenced globally from June, before the state-of-the-art McLaren Production Centre opened its doors in November, becoming the birthplace of all McLaren roadcars. The bespoke facility was designed by Foster + Partners, and combines outstanding quality with highly efficient production methods. It is now a home to over 500 employees working across the manufacturing and logistics operations. In March 2014, the assembly line was updated to accommodate the production requirements for the new McLaren 650S in response to strong customer demand. “McLaren has come a long way in four short years. The completion of the 5,000th vehicle in the Super Series is a fantastic milestone for the brand. The 12C was, and still is, a groundbreaking supercar and, true to the values of McLaren, we have continued to develop and build on this great product into the 650S which has delighted our customers and won countless awards across the world,” said Mike Flewitt, Chief Executive Officer at McLaren Automotive. “We have built a solid foundation for the business, delivering record numbers year on year, and I look forward to our next production milestone with the addition of the 675LT to the Super Series, and the new Sports Series later in the year.” The McLaren Super Series forms the core range of McLaren supercar offering and sits above the recently announced Sports Series in the model hierarchy. The family of models will be soon expanded with the recently-announced McLaren 675LT, confirmed for global reveal at the 2015 International Geneva Motor Show in March. The announcement follows an internal staff ceremony attended by over 1,400 employees at the McLaren Production Centre in Woking, Surrey. Fresh airbag-related recalls affect 2.12 million cars in the US 2 February 2015 | OEM US Transportation Secretary Anthony Foxx announced the recall of more than 2.12 million Acura, Dodge, Jeep, Honda, Pontiac, and Toyota vehicles for a defect that may cause airbags to deploy inadvertently. The recalls will provide vehicle owners with a new remedy after the manufacturers’ original attempts to fix the defects proved ineffective in some vehicles. “Keeping the traveling public safe is our number one priority, and we expect the manufacturers to get this remedy right to prevent injury to drivers and their families,” Foxx said. The new recalls cover 2.12 million Acura MDX, Dodge Viper, Jeep Grand Cherokee and Liberty, Honda Odyssey, Pontiac Vibe, Toyota Corolla, Toyota Matrix and Toyota Avalon models made in the early 2000s. The vehicles were subject to earlier recalls to address a problem with an electronic component manufactured by TRW that caused some airbags to deploy inadvertently – that is, in the absence of a crash. NHTSA discovered through the monitoring of incoming data from consumers and automakers that some vehicles remedied under the previous recalls may have experienced inadvertent deployments. NHTSA urged all three automakers to issue new recalls to implement a more effective remedy. NHTSA has identified about 40 vehicles in which airbags deployed unexpectedly after receiving the original remedy. Action by consumers is especially important because about 1 million Toyota and Honda vehicles involved in these new recalls are also subject to a recall related to defective Takata airbags that may deploy www.automotivepurchasing.com with enough explosive force to cause injury or even death to vehicle occupants. Because of the dangers involved in an inadvertent deployment, and because some of the vehicles involved may also have defective Takata airbags, NHTSA urges consumers who were covered by the original recalls to take their vehicles to their local dealer for the original remedy. That remedy significantly reduces the chance of an airbag deployment that presents a safety risk. “This is unfortunately a complicated issue for consumers, who may have to return to their dealer more than once,” said NHTSA Administrator Mark Rosekind. “But this is an urgent safety issue, and all consumers with vehicles covered by the previous recalls should have that remedy installed. Even though it’s a temporary solution until the new remedy is available, they and their families will be safer if they take the time to learn if their vehicle is covered and follow their manufacturers’ instructions. A hassle is much better than a family tragedy.” NHTSA will take a series of additional steps to ensure safety, including: ■■ Seeking additional information from TRW, which made the electronic part believed to be involved in the inadvertent deployments, about the potential defect, its causes, and whether other makes or models might be affected. ■■ Seeking information from the automakers about how quickly they can make the new, more effective remedy available. “NHTSA is committed to using every tool available to make our roads safer, and that includes using our authority and influence to make sure companies are doing what they should do to protect safety,” Rosekind said. 19 Retired Lockheed Martin executive elected to GM Board People Mahindra announces new leadership Environmental team at Mahindra Reva Maini will have a wider role in the group and will be responsible for incubating new technology ventures and he will lead other technology initiatives of the group. He will continue to be associated with Mahindra Reva and Formula-E Racing in an advisory capacity. Speaking on the appointment, Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra, said: “Chetan Maini has been synonymous with electric vehicle technology and his vision and expertise has been instrumental in pioneering innovations in this space. Chetan is globally recognised for this achievement and I wish to place on record our sincere appreciation for his immense contribution to electric vehicles evolution. While welcoming Arvind to the Mahindra family, I am sure he will take Mahindra Reva to newer heights with his diverse international exposure, technical background and proven ability to drive innovation and growth”. A post graduate in Mechanical Engineering and an MBA from the University of Michigan, Mathew comes with over two decades of experience with Ford. He is credited with playing a major role in the development of new vehicle and power train program for Ford India and went on to become the President and Managing Director of Ford India in 2005. Finance & Markets Vehicle Launch/Concepts 6 February 2015 | People Mahindra & Mahindra announced that Chetan Maini will move to a new role within Mahindra Group, while Arvind Mathew takes over as the new CEO of Mahindra Reva. Mahindra & Mahindra (M&M), India’s leading SUV manufacturer, announced that Chetan Maini, CEO, Mahindra Reva would be moving to a new and diversified role within the group. The company has also announced the appointment of Arvind Mathew as the incoming Chief Executive Officer of its electric vehicle subsidiary, Mahindra Reva. Both the roles of Chetan Maini as well as Arvind Mathew would be effective May 1, 2015. General Talking Points 6 February 2015 | People General Motors (GM) announced the election of Linda Gooden, former Executive Vice President of Lockheed Martin Corporation, to its board of directors effective February 5. Gooden began her 40-year career at the former Packard Electric Division of GM. She gained 34 years of experience at Lockheed Martin and held several senior management positions. In 2010, she was appointed to the National Security Telecommunications Advisory Committee by President Barack Obama. “Linda brings proven leadership and significant experience in information technology and expertise in operations and strategic planning,” said GM Chairman Tim Solso. “Her background in the aerospace and defense industry provides a diverse perspective that will greatly benefit our board.” Under Gooden’s leadership, Lockheed expanded its IT capabilities beyond government customers to international and commercial markets. During her tenure as president of Lockheed’s IT division, Gooden grew the organisation to become a multibillion-dollar business. She was responsible for integrated information technology solutions, cyber solutions and services to support worldwide missions for civil, defense, intelligence and other government customers. Gooden retired from Lockheed Martin in 2013. She currently serves on several public company boards including Automatic Data Processing; WGL Holdings, a public utility holding company; and Washington Gas Light Company, a subsidiary of WGL Holdings. Gooden received a computer technology degree from Youngstown State University and a Bachelor of Science degree in Business Administration and Master of Business Administration from the University of Maryland. The addition of Gooden brings the GM Board to 13 members. Remy International makes changes to its Board of Directors Former Jaguar Land Rover executive now heading FCA India 4 February 2015 | People Fiat Chrysler Automobiles (FCA) India announced the appointment of Kevin Flynn as the new President and Managing Director for India Operations. The appointment is effective immediately. Flynn replaces Nagesh Basavanhalli, who left the company to pursue other interests. Flynn is a veteran of the automobile industry with 30 years of international and multi-brand experience. He joins FCA from 20 Jaguar Land Rover, where he served as Managing Director of Jaguar Land Rover South Africa & Sub Sahara Africa. Flynn will be responsible for strengthening the overall sales of the Fiat brand in India and the new brands that will be introduced in the country. His role also includes the management of service, parts and customer care across more than 132 dealerships in 98 cities across 24 states in India. Fiat will be introducing the Abarth brand in 2015, which will have its own brand identity. Commenting on the appointment, John Kett, Vice President and General Manager, APAC Operations, FCA said: “Kevin is a strong, strategic and dynamic leader with the ability to shape brand and business culture. With his breadth of experience and focus on customer experience, we are confident that Kevin will drive FCA India into the next phase of growth.” 5 February 2015 | People Remy International announced that its Board of Directors has named John H. Weber Chairman of the Board. The Board also appointed new independent members, Karl G. Glassman and Charles G. “Chip” McClure. Glassman was designated as a Class II member of the Board, while McClure was designated as a Class III member. The Board appointed Glassman and McClure to serve on the Nominating and Corporate Governance Committee. Karl brings valuable manufacturing experience and a global perspective to the Remy Board having held senior executive positions with a diversified manufacturer like Leggett & Platt and serving on the Board of Directors of the National Association of Manufacturers. Chip brings strong, global knowledge of the automotive industry having previously www.automotivepurchasing.com held board and senior executive positions with Meritor, Federal-Mogul and Detroit Diesel, and currently serves on the board of directors of the Penske Corporation and DTE Energy. Remy International’s President and CEO Jay Pittas stated: “We are delighted to have John serve as our Board Chairman. His familiarity with the business and industry experience will certainly serve Remy well. We are also very pleased to have two industry veterans in Karl and Chip join our Board. The Nominating Committee actively sought out candidates to complement the current board composition, looking for proven expertise in global operations. Clearly, these appointments fit the desired profile and bring a wealth of experience to our company. I look forward to working with the Board to set and execute our strategy and maximize shareholder value.” Latest issue out now www.automotivesupplychain.org Jaguar Land Rover Exclusive Interview David Dyke and Gareth Williams January-March 2015 BMW Volkswagen Nissan Delivering the ultimate driving machine Looking to expand in Chattanooga Seeking to maximise the potential of the Alliance issue13-cover.indd 1 19/12/2014 11:10:57 To receive the latest issue of Automotive Supply Chain magazine in print Click here to subscribe www.automotivepurchasing.com 21 DENSO gets new President and CEO as well as a new Chairman 3 February 2015 | People DENSO announced plans to elect Koji Arima as new President and CEO after the annual shareholders meeting in June. Current President and CEO Nobuaki Katoh will be promoted to Chairman. “I am both honored and determined to lead DENSO to further success as we continue to focus on developing world-first technologies, innovations in manufacturing, and true globalisation,” Arima said. “I am dedicated to meeting the needs of our current and future customers, as well as fostering a sense of community and collaboration among DENSO’s 140,000 global employees.” Arima joined DENSO in 1981, after earning a bachelor’s degree in Engineering from Kyoto University in Kyoto, Japan. He currently serves as Senior Executive Director of DENSO’s Manufacturing Innovation Center. Before assuming leadership of the Manufacturing Innovation Center, Arima’s assignments included serving as president of DENSO Manufacturing Italia and as Executive Director of DENSO’s Engine Electrical Systems Business Unit. Additional overseas experience included a stint at DENSO Manufacturing Tennessee in Maryville, Tennessee. Katoh has served as DENSO’s President and CEO since June 2008. Katoh led DENSO through the economic recession that followed the Lehman Brothers bankruptcy and the instability caused by the Great East Japan Earthquake, focusing on sustainable growth and increasing localisation. “It has been my honor and pleasure to serve as DENSO’s President for the past seven years,” said Katoh. “Arima has the qualities DENSO needs to stay competitive in the rapidly changing global business environment -- a clear vision for the future, strong leadership and global experience, and broad business perspective.” Standard Motor Products announces new President 2 February 2015 | People Standard Motor Products, an automotive replacement parts manufacturer and distributor, announced that its Board of Directors has appointed Eric Sills as President of the Company. Sills, 46, is currently Vice President Global Operations. Sills will now join the Office of the Chief Executive, where he will serve together with Lawrence Sills, Chairman and CEO; John Gethin, COO; and James Burke, Vice President Finance and CFO. William Turner, Standard Motor Products’ Presiding Independent Director, stated: “We are very pleased to announce this appointment. Eric joined the Company in 1991, and has taken on leadership roles of increasing responsibility. He is currently responsible for all manufacturing, distribution, engineering and supply chain management both in the U.S. and worldwide. Under Eric’s leadership, the 22 Company has increased manufacturing capacity, expanded production in low cost areas, enhanced its global supply chain, and successfully integrated eight acquisitions in the past three years. All these have played a major role in increasing the Company’s profitability. In addition, during his 24 years with the Company, Eric has acquired extensive knowledge of the customers and the industry. “In his new position, he will continue to be responsible for his current activities while becoming increasingly involved in sales, marketing, and finance. Our Board believes that Eric’s experience, expertise, and proven leadership will make him an ideal candidate to help lead the company into the future.” Eric Sills earned an MBA from Columbia University and a BA from Bowdoin College. He is the son of Lawrence Sills, Standard’s Chairman and Chief Executive Officer. Aston Martin announces management change 2 February 2015 | People Aston Martin (UK) announced that experienced finance professional, Vikram Bhatia, will assume the responsibilities of Chief Financial Officer (CFO) with immediate effect, reporting to Chief Executive Officer, Dr Andy Palmer. Bhatia trained with Deloitte and has more than 30 years’ experience, spanning blue chip and private equity organisations. Dr Palmer said: “I’m pleased to confirm that Vikram will join Aston Martin as CFO at this important time. Vikram inherits an experienced and professional financial team that, together, will contribute to the transformational management group I’m building to tackle the most ambitious investment period in our 102-year history.” Former CFO, Hanno Kirner, has left the company to assume a position at a British plc outside the automotive industry. Palmer added: “We thank Hanno for his valuable contribution to Aston Martin and wish him well in his new challenge.” David Kneisler elected Chairman of Automotive Industry Action Group 2 February 2015 | People Dana announced that David Kneisler, Vice President, global quality, has been elected Chairman of the Automotive Industry Action Group (AIAG). AIAG is a not-for-profit, member-supported organisation that works collaboratively with automotive and manufacturing companies, suppliers, and service providers to help them operate at peak performance. Kneisler, a 20year Dana veteran, joined the AIAG board in 2006 and has served as Vice Chairman for the past two years. “Dana’s involvement with AIAG is a winwin scenario, as we work with our customers, industry peers, and the automotive supply base as a whole to improve safety, quality, and efficiency,” said Kneisler. “As a supplier, ‘seamless, efficient, and responsible’ resonates. Anything that we can do as an industry to positively impact product safety or quality, or to improve industry efficiency, benefits the OEMs, the entire supply base, and the consumer.” Kneisler has served in multiple roles www.automotivepurchasing.com with Dana including program management, plant management, and in quality roles before becoming Vice President of Global Quality in 2007. Kneisler’s responsibilities include global governance for strategic and operational quality, co-chair of Dana’s Product Safety Committee, and leadership for Dana’s Technical Problem Solving / Reliability Engineering, Quality Systems, and Supplier Development groups. “David’s dedication to our industry and his commitment to collaborating with our Dana colleagues and with customers at all levels has made a significant impact on AIAG, and on Dana,” said George Constand, Dana’s Chief Technical and Quality Officer. “We proudly support AIAG, and I am pleased David has been recognised for his contributions.” Kneisler earned a Bachelor of Science degree in business administration from Michigan Technological University in 1983, followed by a master’s degree in business administration from the University of Michigan-Flint in 1987. ZAP and Jonway Auto will be OEM by Dong Feng Motor Corporation Tier Suppliers MJ Allen receives £5.75 million Supply Chain funding package from HSBC 6 February 2015 | Tier Suppliers The Kent-based engineering company specialising in metals design and manufacturing has expanded its export markets thanks to a funding package worth almost £6 million from HSBC. MJ Allen, which specialises in architectural metalworks, automotive components and transmission systems design, and other metal products was provided £3.7 million in invoice financing along with a £1.7 million commercial mortgage and £1.35 million in equipment finance. The funding package has been used to support the company’s expansion into new overseas markets, including Portugal and Bosnia, and is expected to boost profits by 60 per cent by 2020. MJ Allen switched to HSBC in 2014 as it was looking for a partner to help grow internationally. The business currently exports to 42 countries, and is considering using HSBC’s loan facilities to expand through acquisition, particularly in Europe, where 40 per cent of its metal automotive products are sold. Tim Allen, Managing Director of MJ Allen, said: “We switched to HSBC as we were eyeing exporting into new markets, both in Europe and the rest of the world. We felt HSBC would be a good partner to help us as we grow our global footprint.” “Fortunately we’re now in 42 markets, and expect that number to grow to 50 by 2020. Thanks to the equipment finance we received from HSBC for our casting and machining division, we can now produce 20 per cent more to satisfy growing order numbers. We’re particularly optimistic on Europe, where we are seeing increasing demand.” Rhydian Davies, HSBC Regional Director for UK Corporates in the South & East, said: “MJ Allen’s success speaks for itself. Last year, they won HSBC’s Regional Global Connections competition in the South & East, as well as the Kent Invicta Chamber of Commerce Business Commitment to the Environment Award. They are a great example of what an ambitious British business can achieve.” “Despite the challenging times in Europe, for example, MJ Allen continues to find opportunities to export to the region. At HSBC, we are proud to be able to support companies such as MJ Allen implement their expansion plans and export overseas.” Telematics/Connected Car Innovation People Environmental Agility joins forces with Clean Energy Finance & Markets Vehicle Launch/Concepts General 6 February 2015 | Tier Suppliers Agility Fuel Systems and Clean Energy announce joint CNG fuel system sales programme. Agility Fuel Systems, the leading designer and producer of natural gas fuel storage and delivery systems for heavy duty trucks and buses, and Clean Energy Fuels, the leading provider of natural gas fuel for the transportation industry in North America, announced today a joint CNG fuel system sales program to reduce the incremental cost of heavy-duty natural gas trucks. Under the program, Agility and Clean Energy will work with trucking customers and offer CNG fuel systems installed at a substantially reduced cost when there is a natural gas fueling agreement. “Our goal is to give heavy-duty natural gas truckers a ‘diesel-like’ experience, which means it is as easy to buy, fuel and use with the added benefit of using cleaner and less expensive natural gas,” said Barry Engle, CEO of Agility. “We are excited to partner with Clean Energy and will work together to drive adoption of natural gas as a fuel for heavy duty vehicles.” Clean Energy continues to open locations throughout its nationwide network of natural gas fueling stations to serve America’s truckers. This program reduces the incremental cost for operators and is the latest initiative to remove barriers to the widespread adoption of natural gas fueling throughout the trucking industry. “Reducing the upfront cost of switching to natural gas is critical for America’s trucking industry,” said Brett Lindsay, Regional Vice President of Clean Energy. “Our Fuel System sales program with Agility addresses this issue directly and is another compelling product offering to help fleet operators make the switch to natural gas.” 6 February 2015 | Tier Suppliers ZAP and Jonway Auto’s EV Minivan will be OEM by Dong Feng Motor Corporation, one of the four China’s Largest Auto Group through Shi Kong, Zhejiang. ZAP, an Electric Vehicle (EV) automotive company incorporated in California Bay Area, and Jonway Auto signed an OEM contract on February 2 for 5000 units of ZAP Jonway’s EV Minivans that will be sold under the brand of Dong Feng Motor Corporation, one of the top Auto enterprise groups in China through its partner Shi Kong (SKIO Matrix) Electric Vehicle Company, based in Hangzhou, Zhejiang Province. Shi Kong is the integrator and agent for Jonway’s EV minivan to Dong Feng Automobile, one of the top four state owned auto manufacturers in China and also the second automobile company established by the Chinese government. Dong Feng is the joint venture partner of Honda, Nissan and Citroen/Peugeot. ZAP Jonway’s EV minivan will be typed approved as a delivery van with the enhanced battery capacity specified by Dong Feng Motor Corporation and integrated by its partner Shi Kong. Jonway’s type approved passenger EV minivan will be the platform for getting certification for the newly configured delivery van to be sold into Dong Feng’s massive nationwide auto dealership network. Jonway’s EV minivan will be the first EV minivan to be offered by Dong Feng for mass market in volume production. ZAP Jonway’s EV minivan will be configured as a cargo van with passenger seats removed to allow room for cargo and also additional battery capacity to operate over 300km in range per recharge. The batteries used will be supplied by Tianjin Lishan Battery, which is a long time strategic partner of ZAP and Jonway Auto. This volume contract of 5000 vehicles is for the first year after completing certification of the new configuration. Jonway and Shi Kong are targeting delivery of these EV minivans for Dong Feng in June 2015. Therefore, the sales of Jonway’s EV minivan with the Dong Feng OEM label will begin second half of 2015, through its partner Shi Kong (SKIO Matrix). Nomad is wipered-out! 4 February 2015 | Tier Suppliers Ariel’s stunning new Nomad all-terrain car made its debut at the Autosport International show in Birmingham in January and will offer a completely different type of all-terrain high performance driving when it is released for sale in the summer. The Ariel Nomad is able to reach 60mph in a blistering 3.4 seconds; with a top speed of 125mph, the car is powered by a 2.4 litre Honda engine that has been configured with Ariel electronics, with an end result of 235bhp at 7200rpm. With this being such a unique vehicle aesthetically, and its sister car the Ariel Atom being an iconic sports car, B Hepworth and Co Ltd, a Midlands-based manufacturer of high performance bespoke windscreen wiper systems was excited to have the opportunity to work with Ariel to develop the Nomad’s wiper system. The project began in 2012; dual pendulum wrap-over wipers and wiper arms with a 50Nm motor were used, but there were some complex challenges for their design team to overcome, most notably packaging the system around the structure of the vehicle. Martyn Groves of B Hepworth commented “Our expertise in developing and building bespoke, high quality wiper systems, whilst simultaneously being a UK manufacturer meant that we were the ideal choice. With Ariel being a well-known name amongst petrol head and sports-car enthusiasts worldwide it was an exciting project to be involved in and a perfect way to show our flexibility to design bespoke wiper systems” Ariel Director Simon Saunders thinks that the Nomad will be bought mainly for recreational driving, both on and off-road, but also feels that the car could compete “with honour” in the Dakar Rally. The Nomad has been tested on well known WRC stages, winch challenge courses and closed forest roads and so far the Nomad has shown excellent levels of performance, adding up to a whole new kind of driving fun. Talking Points www.automotivepurchasing.com 23 Johnson Controls renews strategic partnership agreement with Lectra 6 February 2015 | Tier Suppliers Johnson Controls has extended its partnership with Lectra for three more years, according to a statement released on February 5. Lectra, the world leader in integrated technology solutions dedicated to industries using soft materials—fabrics, leather, technical textiles and composite materials—is has announced that Johnson Controls has reaffirmed its confidence in Lectra by extending their global partnership agreement for an additional three years. To preserve and strengthen its position as a market leader, Johnson Controls will acquire all of its high ply fabric cutting equipment and related services exclusively from Lectra. Johnson Controls is the world’s largest complete automotive seating supplier, providing innovative, stylish seating systems to vehicle manufacturers worldwide. The company supplies over 50 million cars every year from 220 production plants worldwide. During the first 10 years of the agreement, Lectra supported Johnson Controls in transforming their automotive trim cutting rooms worldwide, as they abandoned traditional die presses in favor of more flexible automated cutting. The company now has more than 180 Vector® solutions installed worldwide. Johnson Controls’ adoption of the Vector solution—ideal for high-volume cutting of a wide variety of automotive seat materials—and the resulting increase in production flexibility, throughput and material efficiency has provided the seating supplier with a significant advantage in the highly competitive automotive industry. The renewal of this agreement is testament to the role of Lectra’s customer care, expertise and state-of-the-art technology in enabling a company such as Johnson Controls to improve its operational and manufacturing performance. The continuing collaboration will focus on optimizing the agility of Johnson Controls’ production processes, a strategic necessity in the increasingly complex automotive parts supply business. “At Johnson Controls, we are continually investing in technologies and solutions that will allow us to produce more efficiently, while still providing our customers with consistent quality products. Extending this agreement underscores the value of our relationship with Lectra to help us achieve our strategic objectives,” says Willy van-Looy, Global Director, Advanced Manufacturing Engineering, Trim Operations, Johnson Controls. As part of the new agreement, Johnson Controls will also migrate to the latest generation of Lectra services for all of its Lectra equipment. Working 24 hours a day, the company cannot afford to lose production through unexpected stoppages. Lectra’s expertise and technology, combined with its predictive maintenance services, deliver maximum uptime of the cutting solutions, reduce the cost per cut piece and ensure Johnson Controls has the ability to honor their commitment to deliver on time. “It is an honor for Lectra to have such a long-standing relationship with Johnson Controls, one that is based on a common culture of innovation and bestpractice sharing. With Lectra’s 40 years’ of expertise and experience in developing and implementing the most advanced technology solutions, and Johnson Control’s skillful application of them to manufacture their seating systems, we are confident that this will continue to be a rewarding collaboration between our two companies,” says Daniel Harari, Lectra CEO. Find us online... www.facebook.com/autopurchasing www.twitter.com/AutoPurchasing 24 “Electric cars are good, but connected electric cars are better,” says Bosch CEO Denner 4 February 2015 | Tier Suppliers Powertrain electrification is picking up pace. The currently low oil price will not change that fact. This was the message underlined by Dr. Volkmar Denner, Chairman of the Board of Management of Robert Bosch GmbH, at the Car Symposium in Bochum, Germany. Bosch expects roughly 15% of all new cars built worldwide to have at least a hybrid powertrain by 2025. For the Bosch CEO, advances in battery technology are the key to lower vehicle prices. Denner, whose responsibilities on the board of management include research and advance development, believes that by 2020 batteries will deliver twice as much energy density for half the present cost. Electrification enhances the attractiveness of combustion engines The EU has set strict fleet CO2 targets for 2021. For this reason alone, Bosch expects hybrid powertrains to become the standard for SUVs. This will give diesel and gasoline engines an extra boost. “Electrification will take combustion engines to new heights,” Denner said. With electric support, the combustion engines of the future will consume significantly less fuel and be even cleaner. And the additional torque from the electric motor will add to driving enjoyment. Moreover, falling battery prices will make hybrids considerably more affordable. Denner used the example of China to show how important it is in a mass market for electric cars to be suitable for everyday use. There are already more than 120 million electric scooters on China’s roads. And in China, Bosch sells the electric wheel hub drive for such e-scooters. With a top speed of 40 kph, this popular form of transport is fast enough for the traffic conditions in megacities. And their range of roughly 50 kilometers is sufficient for everyday journeys. “The reason these two-wheelers are such a success is that they are a perfect match for Chinese commuters’ needs,” Denner said. And because they are designed to meet these needs, many models are less expensive than two-wheelers with combustion engines. According to Denner, the task now is to make such tailor-made solutions possible for cars as well. www.automotivepurchasing.com One app to recharge the battery, nationwide The main factor helping to make electromobility convenient will be connecting vehicles with the internet of things. “Electric cars are good but connected electric cars are better,” Denner said. At the moment, recharging vehicles is complicated. But this is expected to become much more convenient. Bosch Software Innovations, the Bosch Group’s software and systems unit, has developed an app that makes it significantly easier to reserve the charge spots of different providers and pay for the electricity. Up to now, doing this would have required a different customer card for each provider. Now all drivers need is a smartphone, the app, and a PayPal account to recharge anywhere in Germany. Bosch also complements this with a software platform that links 80 percent of all charge spots in Germany. As this example shows, Bosch no longer sees itself solely as a supplier of automotive components. The company is now combining its expertise in all three mobility domains – automation, electrification, and connectivity – and will in the future be offering its customers integrated mobility solutions. Fun as a reason to buy: e-bikes show the way However, rational arguments alone are not enough to win drivers over to electric powertrains. In Bosch’s view, emotion and fun play a decisive role. The example of e-bike drives illustrates this. Bosch’s “electric tailwind” makes riding a bike a joy – for serious athletes as well as recreational cyclists. Bosch is now the European market leader in this area, and its e-bike drives feature in more than 50 bike brands. “The e-bike is the most successful electric vehicle in the EU,” Denner said, adding that customers pay considerably more on average for e-bikes than they do for classic ones. “For more than 100 years, riding a bike was a mechanical process. No one saw any reason to change it. Then along came the e-bike, and completely redefined a market everyone thought would never change,” Denner said. The same could be true for the auto industry, he added. The Bosch CEO stressed that the supplier of technology and services will be using its comprehensive systems and connectivity know-how to take electromobility a decisive step forward. www.automotivepurchasing.com 25 China’s tier 1s improve infotainment products and capabilities says strategy analytics 5 February 2015 | Tier Suppliers China’s domination of the global vehicle manufacturing marketplace, forecast to be the largest vehicle producing region in 2015 with production of 24.6 million units, is increasingly reflected in the shift of industry investment to the East. In 2017, China will overtake North America to become the number two OEM infotainment market. The fast growth of the automotive infotainment market in China is creating huge opportunities as well as significant challenges for Tier 1 infotainment suppliers. This rapid market growth means plenty of business for all. And China’s rapid growth has meant that many import OEMs have had to develop systems specifically for the Chinese market that reflect unique local market conditions, including human machine interfaces and vehicle connectivity. Strategy Analytics’ Automotive Multimedia and Communications Systems (AMCS) service’s report, titled China: Tier 1 Infotainment Supplier Overview, provides descriptions and analysis of 21 Tier 1 infotainment suppliers, illustrates their operations in China, identifies the major products they are providing to OEM customers, and discusses industry projects they’re involved with. For the major Tier 1s, the report also provides analysis of their respective business strategies and competitive positions. “As non-Chinese OEMs become involved in the entry-level market, it will make more sense for them to consider domestic Tier 1 suppliers since the major pressure in the entry level market will be cost,” said Kevin Li, Senior Analyst with Strategy Analytics’ Automotive Multimedia and Communications Systems service. “Meanwhile, domestic product quality is improving. Beyond this, domestic OEMs are penetrating the mid-range market, so the non-Chinese Tier 1 suppliers can also be involved in domestic OEMs’ business.” The fast growth of the infotainment market in China is creating huge opportunities and significant challenges for Tier 1 infotainment suppliers. The rules of the game are changing rapidly with domestic suppliers and new arrivals from outside China competing and partnering on a wide range of projects. Further complicating the active development of the local market is the rapidly changing nature of in-vehicle infotainment, which is creating opportunities for new kinds of Tier 1 suppliers including wireless carriers, content providers and marketing companies — further challenging the traditional Tier 1 leaders, such as Continental, Harman, Panasonic, and Bosch. “Chinese customers are looking for infotainment solutions that combine high quality, reliable technology, and reasonable cost,” said Richard Robinson, Director for Strategy Analytics’ Automotive Multimedia and Communications Systems service. “Rising complexity and the need to deploy solutions in shorter timeframes to meet consumer demands are driving the need for more flexible solutions. Tier 1 suppliers need to meet these expectations in order to provide infotainment solutions that deliver great in-vehicle experiences.” Are you one of America’s Best? Nominate Now... 26 BorgWarner begins research and development at new engineering center in Brazil 5 February 2015 | Tier Suppliers BorgWarner strengthens its position as a leading supplier of advanced turbocharging and thermal systems technologies with its new engineering center in Itatiba City BorgWarner expands its product leadership in highly engineered engine and drivetrain components with the start of research and development at its new engineering center in Itatiba City, Brazil. BorgWarner’s state-of-the-art 21,500-square-foot (2,000-square-meter) engineering center provides capabilities for application engineering and research and development to create new technologies for the rapidly growing Brazilian automotive market. Totaling over 226,000 square feet (21,000 square meters), the campus in Itatiba also includes a production facility to manufacture several environmentally friendly technologies for passenger cars and commercial vehicles such as turbochargers, viscous fans and fan drives, engine timing systems and emissions technologies. “With our new engineering center in Itatiba City, we are strengthening our position as a leading supplier of advanced powertrain solutions engineered to improve fuel economy, reduce emissions and increase performance,” said James R. Verrier, President and Chief Executive Officer, BorgWarner. “Driven by Brazil’s INOVAR-AUTO regulations, BorgWarner supports customers with fast-to-market solutions and introduces new technologies precisely tailored to the needs of the market.” BorgWarner’s campus in Itatiba City is strategically located close to major development regions, only 80 km northwest of Sao Paulo. The new engineering center features two engine test stands to quickly develop and validate new technologies locally to meet the unique specifications of the Brazilian market. For example, BorgWarner’s leading turbocharging technologies are optimised for flex fuel engines that use Brazilian fuel containing either 20-25% ethanol or 100% ethanol. With the ability to further expand its testing capabilities with up to four engine test benches in the future, the new engineering center is another important element of BorgWarner’s efforts to provide fuel-efficient technologies that reduce emissions and enhance performance for vehicles around the globe. TI to drive innovation for IoT, industrial and automotive applications at embedded world 4 February 2015 | Tier Suppliers At embedded world in Nuremberg, Germany, Texas Instruments (TI) will demonstrate how its embedded processing and analog technologies are driving innovation in embedded system designs. On February 24-26, visitors can experience how TI technology is providing new capabilities for the Internet of Things (IoT), new experiences in industrial and home automation, and innovation in automotive and ultra-low power applications. Additionally, attendees can talk with TI design experts and explore its LaunchPad evaluation kits, BeagleBoards and SensorTag ecosystems in the hands-on workbench area, evaluate several TI Designs reference designs and get a personal near field communications (NFC) bio-patch that can measure skin humidity and temperature. www.automotivepurchasing.com Additionally, the following key demonstrations can be found in TI’s booth: ■■ IoT sensor network: Experince the industry’s broadest portfolio of “IoT-ready” products including microcontrollers, processors, wired and wireless connectivity technologies, sensors, and mixed-signal and power management solutions. ■■ Automotive power steering: See TI’s all-in-one automotive power steering technology in a single car demonstrating various solutions including: ADAS, infotainment, instrument cluster, Electronic Power Steering (EPS), Safety and sensors. ■■ Industrial communication: Learn how TI’s Sitara™ AM335x Industrial Communications Engine (ICE) enables up to five industrial protocols. Mentor Graphics announces Automotive Ethernet support for its AUTOSAR design solutions 4 February 2015 | Tier Suppliers Mentor Graphics Corporation announced the availability of Automotive Ethernet support in the Volcano VSA product for network design of both AUTOSAR-based and non-AUTOSAR electronic control units (ECUs). Increasingly, in areas in which high bandwidth and reliable performance are essential Ethernet is being used. These include advanced driver assistance systems (ADAS), vehicle network backbones, audio video bridging (AVB) systems, and diagnostic communication over Internet Protocol (DoIP). The Mentor Volcano VSA tool addresses the network-wide timing analysis challenges where a mixture of CAN, FlexRay, and Ethernet-based network busses co-exist. The AUTOSAR standard supports timing definition for all elements in a mixed-topology network. The Volcano VSA tool addresses the challenge of accounting for the many different timing paths. “The rapid growth of software and electronic systems in today’s vehicles has meant that existing vehicle network technologies are not able to handle the data communication load created,” said Scot Morrison, General Manager, Embedded Runtime Solutions, Mentor Graphics. “The high-bandwidth capabilities of an Ethernet network, along with competitive manufacturing costs, have made it a good choice for many ECU interfaces within a modern vehicle. Our Volcano VSA design tools will allow engineers to efficiently design hybrid networks utilising Ethernet, CAN, LIN and FlexRay technologies.” AUTOSAR (AUTomotive Open System ARchitecture) is an open and standardised automotive software architecture, jointly developed by automobile manufacturers, suppliers and tool developers. Users of Volcano VSA are now able to develop and integrate networking functions in an AUTOSAR environment. SunEdison commissions 7.72 MW solar system for Brakes India 4 February 2015 | Tier Suppliers SunEdison have installed a solar power plant for Brake India that will generate 7.72 megawatts of electricity. SunEdison, the world’s largest renewable energy company, and Brakes India Limited (BIL), a leading manufacturer of Automotive and Non-Automotive Braking Systems and Ferrous Castings in India, announced that they have installed a solar power plant that will generate 7.72 megawatts of electricity at Brake India’s facilities in Munanjipatti in the state of Tamil Nadu. “We are proud to be working with the leading automotive supplier Brakes India to lower their carbon emissions and electricity costs,” stated Pashupathy Gopalan, President of SunEdison Asia-Pacific. “Solar is a great way for commercial consumers in Tamil Nadu to generate reliable, low cost electricity.” Gopalan added: “This system also happens to be the largest solar power plant built to date under the Group Captive Scheme inIndia.” “SunEdison was an obvious choice for Brakes India when we began our search for procuring solar power,” said S. Kesavan, CEO of Brakes India. “SunEdison’s size, scale, technology and track record of delivering worry-free solar were all very convincing factors in our decision. This SunEdison system is built with state-of-the-art trackers which will allow us to harness more energy from the sun. This collaboration with SunEdison strongly supports our commitment to clean and renewable energy.” Brakes India approached SunEdison to develop this project to be in compliance with the Solar Purchase Requirement set out by Tamil Nadu Electricity Regulatory Commission (TNERC) and the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), which states that high tension wire customers must source 6% of their energy use from solar. SunEdison will provide financing and install the solar system, which features advanced trackers and high efficiency solar panels to maximize the amount of electricity generated. The system will generate more than 14 million kWh of electricity a year, which will offset more than 6% of Brakes India’s electricity use. The system is built in accordance with the Group Capture Scheme legislation that was introduced by the Electricity Act of 2003, which allows customers to purchase electricity directly from an independent power provider without involving the local energy distribution company. Faurecia Fraser plant celebrates Ford Q1 Certification 4 February 2015 | Tier Suppliers Faurecia, North America’s sixth-largest automotive supplier, announced that its interior systems manufacturing facility in Fraser has been awarded Q1 certification from Ford. Faurecia and Ford celebrated the accomplishment today. The 793 employee facility, which opened in 2006, manufactures the door panel, center console and other interior components for the Ford Focus. To achieve Q1 certification, Ford suppliers must meet stringent criteria, including: International Organisation of Standardisation (TS 16949 & ISO 14001) certification, proper implementation of quality operating and management systems, as well as environmental management systems and customer endorsements. “Receiving Ford Q1 certification does more than guarantee that the Fraser plant is in-line with Ford’s rigorous quality standards,” Manfred Kwade, President of Faurecia Interior Systems (FIS) North America, said. “The recognition is proof of Faurecia’s commitment to our customers and excellence in automotive manufacturing.” Joe Lupinski, Fraser’s Plant Manager, added that earning this achievement demonstrates the effectiveness of the Faurecia Excellence System (FES). The pragmatic operating system ensures excellence and continuous improvement in quality, cost and delivery are instilled in every stage of the manufacturing process. “FES principles guide us, allowing us to meet our customers’ requests,” Lupinski said. “Because FES gives us the tools to empower our employees and deliver quality products, we can adapt as the customer needs. We are able to apply Fraser’s collective experience and know-how to support continuous improvement both with Ford and within Faurecia through the mindset and language of FES.” In North America, FIS produces a complete line of automotive interior products from its Auburn Hills, Michigan, R&D center and 12 manufacturing facilities. Brose UK aims to fill engineering skills gap with new Training Academy 2 February 2015 | Tier Suppliers Brose UK, one of the fastest growing automotive suppliers in the UK’s West Midlands, has highlighted its commitment to developing the best manufacturing talent by investing up to £3m in its new Training Academy between now and 2018. The internationally operating mechatronics specialist is looking to address the skills shortage by providing existing and new workers with access to continuous development courses, technical training and support with soft skills. This investment, which has been supported by a £1.49m grant from the Government’s new Skills Fund, has been channeled into developing flexible training to support the business, incorporating new E-learning stations, employing specialist trainers and creating modular training cells. Staff can now gain the skills they are going to need to work on current and future platforms. The Academy will also play a pivotal role in driving the firm’s approach to graduates, apprentices and interns, with 25 currently employed and a further 20 due to start in 2015... the majority sourced from nearby schools, colleges and Universities. “We have more than doubled the size of our operations in Coventry over the last eighteen months, taking on another 200 people and opening two additional sites in the City,” explained Ruth Owen, HR Director at Brose UK. “This growth comes with its own set of challenges and we are continually looking at new ways to develop existing members of staff and also ensure that the new people joining us fit seamlessly into the Brose culture of teamwork and world class www.automotivepurchasing.com manufacturing.” The Training Academy will identify and develop specific training for each member of staff, whether that is leadership and management, technical upskilling or even learning best practice manufacturing techniques on the modular cells the company has set up. Ruth continued: “The support we’ve received from Government has been crucial and certainly helped us to accelerate the introduction of this initiative by nearly a year. It also gives us the perfect platform to go after new car models and platforms knowing we’ve got the right infrastructure in place to train and develop our engineers.” Brose’s ‘Apprentice of the Year’ Brose has always supported apprentices and the Academy will provide further structure to the programme, which includes the company’s Apprentice of the Year Award. Electrical and Electronic Maintenance apprentice Sam Egginton is one of the company’s brightest manufacturing stars having just received this title. “I’ve already completed my BTEC part of the course and am now progressing toward my Higher National Certificate, which will be completed next year. Working at Brose has given me a great platform to develop my skills in a real hands-on manner. I’ve learned a lot from shadowing more experienced members of our team,” explainedEgginton. “Every day is different and I’m continually being given greater responsibility. For example, I’m now the first point of contact for the majority of building issues and recently played a major role in project managing the facilities layout of our third plant. You can’t buy that sort of experience.” 27 Jebsen and CleanOil collaborate to produce highquality recycled lube oil 4 February 2015 | Tier Suppliers In support of the government’s promotion of clean energy for China, Jebsen Group and CleanOil Investment are cooperating to produce high-quality recycled base oil and lubrication oil for industrial and automotive applications. The two partners are currently building a state-of-the-art oil refinery in Gaolan Port Economic Zone, Zhuhai. Taking advantage of CleanOil’s operational and technical expertise and patented oil re-refining technology, the new plant will recycle used lube oil to produce Group II base oil and high-quality lube oil for cars, trucks and industrial machinery. Production is expected to begin by the second half of 2015, with the plant eventually producing 20,000 tons of oil per year. Jebsen Group will draw on its knowledge of China’s automotive aftermarket and its China-wide sales and distribution network of industrial products in the region to support the new business and meet growing demand for recycled lube oil. “As a technology innovator, CleanOil is pleased to combine our strengths with Jebsen Group to support China’s green growth. Jebsen’s expertise and reach in the industrial and automotive sectors will help us grow the market for high-quality recycled lube oil to benefit the environment and contribute to China’s continuing economic growth,” said Antony Louis Marden, Chairman of CleanOil Investment. At present, around 60-70% of China’s annual lube oil consumption of around 8 million tons is collected for re-processing, but less than 10 percent of this is re-refined as lube base oil. This percentage is set to rise as the practice of burning recycled lube oil or distilling it into low-grade fuel is phased out. At the same time, soaring private car use in China is contributing to a rise in demand for lube base oil of around 10 percent per year, which also increases the volume of used oil available for recycling. Closed loop recycling of lube oil at the new CleanOil plant will efficiently produce high-quality base oil of an industry-accepted standard without causing secondary pollution. This will satisfy market demand for lube oil while reducing reliance on imported base oil. It will also help to prevent used oil being dumped, avoiding possible pollution of land and waterways or reused in a manner that can contribute to poor air quality. 28 Said Hans Michael Jebsen, Chairman of Jebsen Group: “Since over a century, Jebsen has served the evolving Chinese markets and consumers. Jebsen firmly believes in the continuing growth of China and is investing in businesses that brings the Chinese consumers a healthier and more varied and fulfilling lifestyle. Environmentally sound recycled lube oil represents a valuable addition to our portfolio of products and the business is an excellent fit for our expertise as a leader in China’s industrial sector for over 100 years. We are delighted to partner with CleanOil to offer a highly efficient and environmentally friendly way to reclaim and reuse spent oils. By establishing this new business and by developing the national market for recycled lube oil, we are furthering our commitment to a greener and more sustainable China.” As a socially responsible company, Jebsen Group works with partners and employees to support energy saving, waste reduction and ensure compliance to environmental laws. In 2009 Jebsen established a carbon emissions objective to reduce carbon intensity (carbon emissions per unit revenue) by 20 percent by 2013. Despite operating a growing company, Jebsen reduced its carbon intensity by 22 percent by 2013. It has also invested in carbon-offsetting projects and purchased carbon credits to now achieve carbon neutrality for a second consecutive year. Products produced by Jebsen Group and its joint-venture companies also contribute to environmental conservation. For example, balancer shafts produced by Mitec-Jebsen, a Jebsen joint venture founded in 2007, reduce fuel consumption; oil pumps produced by Jebsen-TCG, which was set up in 2011, increase fuel efficiency, reduce carbon emissions and extend engine life; and fuel pump housings manufactured by MSR-Jebsen, which was established in 2012, enhance fuel efficiency. KJR to purchase new plant, equipment following record demand 4 February 2015 | Tier Suppliers Coventry-based manufacturer of high specification car interiors for the automotive industry, K J Ryan (KJR), has announced that it is to purchase new plant and equipment to cater for strong demand from clients such as Bentley and McLaren following a £1.1 million funding deal from Santander Corporate & Commercial. Established in 2007, KJR has become a leading supplier of specialist parts both directly to car manufacturers and also leading original equipment manufacturers (OEMs) such as Magna and Lear Corporation. On top of Bentley and McLaren, the firm also counts marques such as Jaguar Land Rover and Toyota as key customers. KJR has enjoyed strong growth over the past eight years, successfully weathering the downturn in the automotive sector in 2008, and is currently experiencing record sales. To cater for this demand, the funding package from Santander Corporate & Commercial will help KJR to purchase specialist new plant and tooling equipment – it will also provide additional working capital to support the firm’s target of increasing annual turnover by around 50% over the next three to four years. Kevin Ryan, Chairman of K J Ryan Ltd, said: “With the outlook for the automotive manufacturing sector stronger than ever, we are excited to be able to significantly improve our facilities to support our growth strategy. The funding from Santander has been invaluable, providing us also with greater headroom in the day-to-day working capital cycle as well as enabling us to better showcase our capabilities to major manufacturers.” Michael Durkin, Relationship Director, Santander Corporate & Commercial, said: “KJ Ryan is a great local UK success story, and we are delighted to be able to support the firm as it looks to grow further. It works with some of the leading brands and suppliers in the UK automotive industry and, given the high quality nature of its products and its service, it is unsurprising that it is experiencing heightened demand.” Lear issues statement to Marcato Capital Management 4 February 2015 | Tier Suppliers Lear, a leading global supplier of automotive seating and electrical distribution systems, today issued the following statement in response to Marcato Capital Management. Lear’s Board of Directors and Management team are committed to delivering superior shareholder value and have a proven record of delivering significant value to shareholders: ■■ Since 2011, Lear has returned more than $2.1 billion to shareholders in the form of share repurchases and dividends; www.automotivepurchasing.com ■■ Since 2010, Lear has achieved a total shareholder return of 203%, which is approximately double the return for the S&P 500 over the same time period; and ■■ In 2014, Lear’s total shareholder return of 22% outperformed the S&P 500’s return of 14%. Building sustainable shareholder value is a foremost priority for Lear. Lear’s shareholders have benefitted from the Company’s successful execution of its balanced strategy: investing in the business, pursuing value enhancing acquisitions, maintaining a strong and flexible balance sheet and returning capital to shareholders. This strategy is delivering consistently improving financial results and driving superior returns for shareholders. 2014 was another excellent year for Lear as the Company achieved its 5th consecutive year of higher sales and adjusted earnings per share and strong cash flow. Lear’s Board and Management team are open to the views of its shareholders and will review the suggestions submitted by Marcato this morning. We will continue to prioritise delivering significant value to our shareholders and customers. International WorkStar now available with Cummins ISB6.7 engine 3 February 2015 | Tier Suppliers International Truck announced today the availability of the International WorkStar vocational truck powered by the Cummins ISB6.7 engine. The WorkStar is the second International truck model to feature the ISB6.7 as an engine option, following the International DuraStar which has been in market with Cummins ISB6.7 since December 2013. “Adding the market-accepted Cummins ISB6.7 to our vocational line-up is a key part of our strategy to offer our customers the most comprehensive options of proven components in the industry,” said Bill Kozek, Navistar president, Truck and Parts. “The addition of the Cummins ISB6.7 to our WorkStar model provides customers with a winning combination of uptime, performance, productivity and durability.” International WorkStar Features Built on the same battle-tested truck platform as the International MaxxPro MRAP (Mine-Resistant Ambush-Protected) armored vehicle, the WorkStar has the strength and sophistication to take on the challenges of any environment. The WorkStar boasts multiple-frame rail options, a double-sided galvanized steel cab protected by an extensive five-step corrosion protection, and comes standard with the Diamond Logic electrical system—the most advanced multiplexing architecture available in commercial trucks. The WorkStar features unique advantages like a hood and radiator package with available integral front frame extension and front engine power take-off (FEPTO) without requiring modifications to the radiator or horsepower restrictions. The WorkStar also features one of the roomiest cabs in the industry and offers both standard and high-visibility sloped-hood configurations for enhanced driver comfort and ease of operation. The addition of the Cummins ISB 6.7-liter engine now expands the WorkStar model’s robust powertrain options, which include Navistar’s proprietary 9.3-liter and 13-liter offerings. WorkStar is also available with a suite of traditional manual and automated-manual transmission offerings from Eaton and fully-automatic offerings from Allison. The ISB, which is rated up to 325 horsepower and 750 lb.-ft. of torque, with higher ratings available for fire and emergency applications, features flexible horsepower and torque ratings for mediumduty applications. “When you put it together, the International WorkStar is the right truck for the toughest of jobs,” said David Hillman, general manager, severe service trucks. “With the WorkStar, customers don’t have to compromise. They can have it all—efficiency, comfort, functionality, productivity, and now the proven Cummins ISB6.7 engine.” BorgWarner receives supplier award from Mercedes-Benz Brazil 3 February 2015 | Tier Suppliers BorgWarner announced that its Turbo Systems has received a supplier award from Mercedes-Benz. BorgWarner’s Turbo Systems facility in Itatiba City, Brazil, was presented with the 2014 Mercedes-Benz Brazil Interaction Award in the category of Innovation Technology for the successful launch of various turbochargers for the new MercedesBenz Euro 5 engines in South America. “At BorgWarner, we are driven to deliver innovative powertrain solutions that improve fuel economy, emissions and performance for a cleaner, more energy-efficient world,” said Frederic Lissalde, President and General Manager, BorgWarner Turbo Systems. “We have been developing and producing turbochargers for Mercedes-Benz trucks and buses in South America over the past 40 years. We are very pleased to receive this prestigious award from Mercedes-Benz Brazil.” Lightning Hybrids receives US patent for hydraulic brake regeneration system 3 February 2015 | Tier Suppliers Lightning Hybrids, designer and manufacturer of hydraulic brake regeneration systems for medium- and heavy-duty fleet vehicles, announced it has been awarded a full US utility patent for the fourth generation of its parallel hybrid system. “This patent award illustrates not only our innovation, but also our efforts to find new opportunities in an area historically dominated by large companies,” said Tim Reeser, Lightning Hybrids president and co-founder. “It separates us from the crowd of others who have worked on previous hybrid technologies and clearly establishes Lightning Hybrids as the international leader and innovator in the hydraulic hybrid space.” The patent, specifically for a “hydraulic regeneration apparatus,” was awarded January 21. The regeneration apparatus or hybrid system, which the patent grants exclusive rights and inventor status to Lightning Hybrids, uses hydraulic pumps and accumulators to capture braking energy and regenerate it for accelerating a vehicle. Dan Johnson, Lightning Hybrids cofounder and CTO who co-invented the new patented system with senior controls engineer, Jonathan Reynolds, said the new patent built on previous generations and focused on making the system more efficient. “Eliminating a lot of the parts in the system was a big goal,” Johnson said. “By doing that, we were able to dramatically increase the efficiencies of the system. The higher the efficiency, the more we can decrease emissions and increase fuel savings.” Johnson said a primary goal for the new patent was making the system lighter by using more aluminum in its construction and by having fewer parts. “Fewer parts means a significant cost savings, and a lighter system www.automotivepurchasing.com means higher efficiency overall. It means fleets are able to have a higher payload, allowing them to effectually do the work they’re on the road to do in a cleaner, more efficient way.” Reaching the fourth generation of Lightning Hybrids’ parallel hybrid system was the result of six years of work. Reynolds said the project was an engineering venture. “Designing any system from the ground up is challenging,” he said. “This hydraulic hybrid system was particularly perplexing because we had to create so many of the building blocks. Several parts in our system did not exist before – at least not in the form we needed. Lightning Hybrids has faced many challenges and met them with successful engineering solutions.” Reynolds said new manufacturing processes were instrumental in achieving Lightning Hybrids’ patent goal. “Advanced manufacturing technologies helped us iterate our designs quickly to get to a finished product,” he said. “We have utilised 3D printing, 3D scanning, CNC machining, carbon fiber manufacturing, thermal imaging and in-house PCB etching – all of which have helped us make some great breakthroughs, but real progress primarily comes from being dedicated to innovate.” Lightning Hybrids’ system provides 50% to 90% reduction in harmful emissions as well as fuel efficiency gains by regenerating braking energy. The Lightning Hybrids system does not have batteries. Instead, it safely and efficiently stores energy mechanically in composite hydraulic accumulators, which are a fraction of the cost and weight of batteries. The company said it has filed for international patent protection for the system and expects it to be awarded yet this year. 29 Vehicle Launch/Concepts Export of all-new Triton pickup truck General begins in Thailand Talking Points 9 February 2015 | Vehicle Launch/Concepts Mitsubishi Motors Corporation (MMC) announced that Mitsubishi Motors Thailand (MMTh) has commenced the export of the all-new Triton pickup truck - one of MMC’s top sellers. A commemoration ceremony was held at the Laem Chabang Port near MMTh’s Laem Chabang Plant with government officials and other related parties along with Tetsuro Aikawa, MMC President & COO in attendance. Worldwide versatility The all-new Triton has been developed to be the “Ultimate Sport Utility Truck,” combining comfortable interior space of a passenger car with the functionality and reliability of a pickup. The all-new Triton went on sale in Thailand in November 2014. MMC plans to roll out the all-new Triton starting in the Philippines, then sequentially in ASEAN, Oceania, the Middle East, Europe, Africa, and Latin America, eventually exporting to some 150 countries. MMTh importance as global production hub At the ceremony, Aikawa emphasised the importance of MMTh: “MMTh started exporting pickup trucks in 1991 and has exported over 1.6 million units so far. Thanks to the Thai government’s consistent policies on fostering the automobile industry here, we have achieved growth and expansion with Thailand positioned as our pickup truck production and export hub. Moving on we will grow together with the Thai automobile industry” Laem Chabang: MMC’s largest producer The Laem Chabang Plant holds the largest production capacity among other MMC manufacturing plants, totaling a cumulative production of 3.5 million units and exports of over 2.5 million units, growing steadily as a global production hub. Infiniti gears up for premiere of QX30 Concept in Geneva 5 February 2015 | Vehicle Launch/Concepts Infiniti will take the covers off the QX30 Concept at the Geneva International Motor Show next month. The QX30 Concept is the Infiniti design vision which will inspire a new premium 30 compact crossover targeted at a new generation of premium customers. Set to be revealed at Infiniti’s press conference, scheduled for 14:30 on 3 March in Geneva, the QX30 Concept aims to reignite the premium compact segment with a distinctive approach to design that looks beyond the practicality and conformity expected of the segment. The potential customers for such a concept are searching for a product to suit their ‘urban week and get-away weekend’ lifestyle and the QX30’s compact footprint matches that. Combining the sleek lines of a coupe with the rugged looks and commanding seating position of a crossover, the QX30 Concept foreshadows an urban explorer which is equally at home in the city as it is on the open road. 2015 Ford Edge Sport steals the thunder from all other Edge models 9 February 2015 | Vehicle Launch/Concepts 2015 Ford Edge Sport is the most powerful Edge yet, thanks to a 2.7-liter EcoBoost V6 making 315 horsepower and 350 lb.-ft. of torque. The 2015 Ford Edge Sport has been officially SAE-certified as the most powerful Edge ever, with the highest horsepower and torque ratings yet. Powered by Ford’s newest EcoBoost engine – a 2.7-liter V6 – the 2015 Ford Edge Sport builds on its reputation as the modern utility vehicle for people who want to have fun behind the wheel and look good doing it. “The 2015 Edge Sport is exactly what it says it is – a utility vehicle that not only looks beautiful, but is a spirited performer,” said Cristina Aquino, Ford Edge Consumer Marketing Manager. “Ford customer research showed there was a strong desire for more in terms of power and content, and with the redesign of Ford Edge, we wanted to give customers a true sport version, which meant bringing the 2.7-liter EcoBoost V6 along for the ride.” New Edge Sport boasts real performance Edge Sport’s 2.7-liter EcoBoost V6 engine delivers a 10% increase in horsepower over the previous standard engine, a 3.7-liter V6, and a 25% increase in torque – for a total of 315 horsepower and 350 lb.-ft. Peak torque output is available at 2,750 rpm, far lower in the performance band than the 2014 model, for a better performance feel. The previous engine generated peak torque at 4,000 rpm. With final ratings approved, the frontwheel-drive Edge Sport returns EPAestimated test cycle fuel economy ratings of 18 mpg city, 27 mpg highway and 21 mpg combined. EPA-estimated ratings for the all-wheel-drive model are 17 mpg city, 24 mpg highway and 20 mpg combined. Actual mileage will vary. Even with improved performance, fuel economy estimates are either equal to or better than the 2014 model Edge Sport. Using the same compacted graphite iron as Ford’s 6.7-liter Power Stroke, the cylinder block of the 2.7-liter EcoBoost has a stiff and compact design that results in an impressive amount of power and torque for its size, while enabling refined noise, vibration and harshness control. A diecast aluminum engine-block ladder frame and composite oil pan help save weight www.automotivepurchasing.com through the use of advanced materials where they are needed most. The Edge Sport suspension has been upgraded with front and rear antiroll bars that are 15% stiffer than the base model. Unique rear monotube dampers are larger in diameter, while coil springs are 10% stiffer and offer 20% less body roll than the previous-generation setup. Enhanced damping gives Edge Sport improved roadholding capability – providing the driver with more control, sharper steering and greater confidence. Edge Sport rides on 20-inch standard polished aluminum wheels with magnetic low-gloss painted pockets; 21-inch premium painted tarnished dark low-gloss aluminum wheels are available, as well as a summer-only tire option with the 21-inch wheels. The vehicle is equipped with Active Noise Cancellation technology to manage and enhance the sound of the 2.7-liter EcoBoost engine. The system uses microphones strategically placed throughout the cabin to generate opposing sound waves. These waves are directed through the audio system to enhance overall cabin ambience. Powerful looks set Edge Sport apart</ subhead The 2015 Edge Sport includes features that set it apart on the road and define it as a performance-inspired utility vehicle with attitude. The new Edge has a stronger, more athletic shape with standard LED taillamps and LED signature lighting. The 2015 Edge is also available in new colors Electric Spice, Bronze Fire Metallic and Magnetic. The interior features leather-trimmed sport seats with perforated suede inserts, aluminum brake and accelerator pedal covers, ambient lighting and metalplated accents throughout. Other interior appointments include Ford SYNC with 8-inch LCD touch screen in the center stack, two configurable LCD screens in the instrument cluster and a media hub containing two USB ports, an SD card reader and an auxiliary input jack. A 12-speaker Sony audio system is standard. Vauxhall to unleash new Corsa VXR in Geneva Porsche GT family welcomes a new member 4 February 2015 | Vehicle Launch/Concepts Porsche’s GT family is proud to announce the addition of an exciting new member: the Cayman GT4. This is the first Porsche GT sports car based on the Cayman and features components of the 911 GT3. 5 February 2015 | Vehicle Launch/Concepts Vauxhall will take the wraps off the new Corsa VXR, its ultra-powerful small hothatch, at the 2015 Geneva Motor Show in March. Benefiting from the significant revisions in technology, interior/exterior design and chassis showcased in the recently launched New Corsa, the VXR is set to raise the bar for small, fast hatchbacks when it appears in UK showrooms in May. Headline performance figures are 0-60mph in 6.5 seconds and a top speed of 143mph – quicker than the outgoing car, but more importantly the VXR produces its 245Nm of torque from lower revs (between 1,900rpm and 5,800rpm, compared with 2,250rpm to 5,500rpm for the outgoing Nürburgring and ClubSport models). This makes the VXR a potent performer between 50-75mph, which it can dispatch in just 6.6 seconds in fifth gear. An overboost facility provides an additional 35Nm of torque, ideal for swift and safe overtaking. Maximum power from its 1.6-litre turbocharged engine is 205PS, while the Corsa VXR achieves 37.7mpg on the combined cycle with CO2 emissions of 174g/km. As before, power is delivered to the front wheels via a second-generation six-speed transmission with a short, fluid gearchange. Vauxhall has worked closely with damper-supplier, Koni, to develop a new technology, known as Frequency Selective Damping (FSD) for the new Corsa VXR. FSD allows damping forces to adapt to the car’s movements, ensuring that body control is maintained when the car is driven fast, but ride quality is optimised at lower speeds. In addition, the car’s ride height has been lowered by 10mm all round. For the first time, Vauxhall is offering a two-stage switchable electronic stability programme (ESP) and traction control (TC) with the Corsa VXR. In Competition Mode the traction control is inactive, while the ESP is relaxed to allow less intervention. For track use, the ESP can be fully disabled. Revisions have been made to the new Corsa VXR’s steering, making it more direct and precise, with improved feedback through the wheel. Michelin 215/45 R17 tyres are standard, as are 308mm front brake discs. Standard bi-xenon lighting and a choice of six exterior colours help the new Corsa VXR stand out in its class. An aggressive new front-end design features large air intakes and an aluminium-framed opening below the headlights. A small scoop is located below the bonnet and side-sill extensions enhance the Corsa VXR’s performance credentials still further. At the rear, a rear spoiler provides meaningful downforce over the back axle, and twin Remus exhaust pipes further distinguish it from regular Corsas. Six exterior colours – including Flash Blue, which is unique to the Corsa VXR – are available for the Corsa VXR. The car’s cabin has standard Recaro seats, a leather, flat-bottomed steering wheel, sports pedals, as well as a VXR gear-lever and instruments. A heated front windscreen and Intellilink connectivity for Apple iOS and Android smartphones are also standard. Clocking a lap time of 7 minutes and 40 seconds on the North Loop of the Nurburgring, the Cayman GT4 earns the same lap time as the 2011 911 GT3 and positions itself as the new benchmark atop its market segment. The Cayman GT4 clearly demonstrates Porsche’s dedication and passion to continue to promote truly industry-leading two-door sports cars in the future – sports cars that are developed at the Motorsport department in Weissach. The engine, chassis, brakes, and aerodynamic design of the Cayman GT4 are configured for maximum driving dynamics while retaining the versatility and everyday utility that are typical of the two-seater Porsche coupe. Powered by a 385 hp 3.8-liter flat-six engine derived from the 911 Carrera S engine, the Cayman GT4 transmits its power solely through a sixspeed manual transmission with dynamic gearbox mounts. Zero to 60 mph is accomplished in 4.2 seconds; its top track speed is 183 mph. The chassis – which features a 30 mm lower ride height and a generously sized brake system – consists almost entirely of components from the 911 GT3. Ready for the race track: The first Porsche Cayman with added downforce at both axles The exterior of the Cayman GT4 highlights it as a member of the Porsche GT family and provides a clear distinction to related mid-engine coupes. Three pronounced inlet openings at the front and a large fixed rear wing are part of an aerodynamic package which is systematically designed for downforce. Upon request, the performance capabilities of Cayman GT4 can be taken even further. Available options include the Porsche Ceramic Composite Brake (PCCB) system, full bucket seats made of carbon fiber composite, and a custom Sport Chrono Package featuring a Track Precision app. The interior of the Cayman GT4 focuses on maximizing the experience of unfiltered driving enjoyment for both driver and passenger. Standard sport seats, which are upholstered in a combination of leather and Alcantara, offer excellent lateral support. The new Cayman GT4 sport steering wheel guarantees ideal control and direct steering feedback due to its compact dimensions. Technical aspects of this new GT sports car are based on the 911 GT3. As a midengine sports car and a prime example of driving dynamics in its class, it follows the conceptual tradition of such cars as the 904 GTS, 911 GT1, Carrera GT and 918 Spyder. GT sports cars engineered by Porsche embody the most passionate connection possible between everyday driving and Porsche’s competition heritage and highlight the sporty core of the brand: Intelligent Performance. The Porsche Cayman GT4 celebrates its world premiere in early March at the Geneva International Motor Show. Performance Package For Corsa VXR customers keen to enhance their car’s dynamics still further, Vauxhall is offering an optional Performance Package, which includes certain features previously seen in the outgoing Nürburgring and ClubSport models. Highlights include a Drexler limited-slip differential, larger 330mm-diameter Brembo front brake discs, 18-inch alloy wheels and more focused FSD damper settings. Hyundai gives a sneak peek of the all-new Tuscan 3 February 2015 | Vehicle Launch/Concepts Hyundai has unveiled its first hints about the design of the upcoming All-New Tucson, compact SUV, which will premiere at the 2015 Geneva Motor Show, on March 3. Commenting on the All-New Tucson, Peter Schreyer, President and Chief Design Officer of Hyundai Motor Group, said: “Our new compact SUV will be a big step forward for the Hyundai brand globally. The All-New Tucson has a bold and athletic presence and a proud stance. Its design is characterised by flowing surfaces, bold proportions, sharp lines and – most important – our brand signature hexagonal grille.” The strong, sporty SUV appearance is enhanced by the upright silhouette and sleek character line. At the front, Hyundai Motor’s distinctive chrome-framed hexagonal grille is connected to the headlamp clusters creating a powerful impression. With more than one million SUV sales in Europe since the introduction of the first Santa Fe in the early 2000s, Hyundai Motor has established its credibility in the SUV segment. www.automotivepurchasing.com 31 Ferrari 488 GTB: extreme power 3 February 2015 | Vehicle Launch/Concepts The new V8 debuts at Geneva: track-level performance and responsiveness for the road. Forty years on from the unveiling of its first ever mid-rear-engined V8 model, the 308 GTB, the Prancing Horse opens a new chapter in its 8-cylinder history. The Ferrari 488 GTB provides track-level performance that can be enjoyed to the full even by non-professional drivers in everyday use. Its response times, nimbleness and onthe-limit driving guarantee a unique sense of exhilaration and unparalleled driving pleasure. The new berlinetta brilliantly encapsulates Ferrari’s experience in both F1 and the WEC, where the 458 GT holds the World Championship title and has won its category in the last two editions of the 24 Hours of Le Mans. The new model also exploits to the full the know-how gleaned by Ferrari technicians over the last decade through the XX programme which makes extreme track-only cars available to gentleman test-drivers. The data yielded has made a significant contribution to the refinement of the electronic and vehicle control systems so that drivers can make the most of the incredible performance of this new car. The Ferrari 488 GTB’s new 3902 cc V8 turbo is at the top of its class for power output, torque and response times, making it the new benchmark for this kind of architecture. The engine unleashes 670 cv at 8,000 rpm along with 760 Nm of maximum torque in seventh gear and a response time to the accelerator of just 0.8 seconds at 2,000 rpm. These figures are sufficient to allow the Ferrari 488 GTB to accelerate from 0-200 km/h in an astonishing 8.3 seconds and, when combined with the radical innovations introduced on all aspects of the car’s performance, lap the Fiorano track in just 1’23”. The gearbox features Variable Torque Management which unleashes the engine’s massive torque smoothly and powerfully right across the rev range, while specific gear ratios deliver incredibly progressive acceleration when the driver floors the throttle. As is always the case, Ferrari’s engineers have dedicated great attention to perfecting the 488 GTB’s sound, creating a new soundtrack that is full, clear and totally distinctive, as expected from any Prancing Horse engine. The car’s aerodynamics also made a pivotal contribution to performance: its 1.67 efficiency figure is a new record for a production Ferrari, and is the fruit of 50 per cent more downforce than the previous model and reduced drag. The greatest challenge was achieving these two goals simultaneously. Several innovative elements were specifically 32 developed to do so, not least a double front spoiler, base bleed side intakes and, at the rear, active aerodynamics coupled with a blown spoiler. The aerodynamic underbody, which incorporates vortex generators, is highly sophisticated, too. The Ferrari 488 GTB’s subsystems and electronic controls make its power and performance instantly available and controllable. It is, in fact, the most responsive production model there is, with razor-sharp response times comparable to those of a track car. The evolved version of Ferrari’s side slip angle control system (Side Slip Control 2 - SSC2) is more precise and less invasive, providing greater longitudinal acceleration out of corners. Aside from integrating with the car’s F1-Trac and E-Diff, the SSC2 now also controls the active dampers which renders the car’s dynamic behaviour during complex manoeuvres even flatter and more stable. Designed by the Ferrari Styling Centre, the new car features very sculptural flanks which are the key to its character. Its large signature air intake scallop is a nod to the original 308 GTB and is divided into two sections by a splitter. The wide front spoiler features a double profile to improve the thermal efficiency of the radiators positioned at the sides. At the centre two pylons are combined with a deflector which channels air towards the flat underbody. The broad, low tail is also dominated by aerodynamic solutions, including an innovative blown spoiler which generates downforce without increasing drag. This works in conjunction with an aggressive ramp angle for the diffuser which features active flaps. The greater height required for the diffuser was achieved by repositioning the exhaust tailpipes. The circular LED tail lights have also been redesigned. In the cabin, the seamless integration of the new satellite control clusters, angled air vents and instrument panel heightens the sense that the cockpit is completely tailored around the driver. Usability was the key word in the design, leading to an extremely sporty ambience that in no way compromises on comfort. There are plenty of classic Ferrari styling elements too, such as the clear separation between the dashboard and tunnel, the multifunctional steering wheel, the control switch bridge and wraparound seats. The graphics and interface of the infotainment screen have also been completely redesigned while the design of the car’s new key takes its inspiration from the car’s cylinder banks and allows keyless starts. The Ferrari 488 GTB will make its world debut at the International Geneva Motor Show in March Lexus announces Geneva launches 3 February 2015 | Vehicle Launch/Concepts The 2015 Geneva Motor Show will host a European introduction of the recent addition to the Lexus high-performance F-brand, the new GS F. World Premiered at this year’s Detroit MS, the GS F is a refined four-door coupe with the speed and agility of a premium sports car. Equipped with a normally-aspirated 5.0l V8 engine, the GS F produces maximum power of 477PS and maximum torque of 530Nm. The GS F is the first Lexus to include the new comprehensive Lexus Safety System +. World Premiered at 2014 Los Angeles Motor Show, the LF-C2 concept will also have its European Premiere at this year’s Geneva MS. The concept is a design study in the form of a 2+2 roadster that explores key styling themes involved in the Lexus brand’s future, bolder styling direction. The LF-C2 is a luxury Grand Touring concept inspired by Lexus’ passion for driving. Its open-air design derives from a pure sports coupe idea. Finally, during the Lexus press conference on March 3, 2015, a new Lexus concept will have its World Premiere. Nissan introduces the NP300 Navara to the Philippines 3 February 2015 | Vehicle Launch/Concepts Nissan announced the launch of the all-new NP300 Navara in the Philippines. Following the global launch in Thailand last July, the Philippines is the second market to add the all-new Navara to its sales roster. “With the all-new NP300 Navara, we will raise the bar in the pickup segment here,” said Toru Hasegawa, Corporate Vice President of Nissan and President of Nissan Motor Asia Pacific at the launch event. “I believe Navara is matchless in the market, with its smart solutions for Filipino drivers. Striking and tough-looking on the outside and offering premium comfort and convenience on the inside, the Navara delivers a ride as smooth as that of a sedan, whether on city streets or challenging terrains.” The 12th generation Nissan Navara has a bold design, tougher body and smarter features representing 80 years of building reliable pickups for 180 markets worldwide. Among the distinctive design features of the all-new NP300 Navara are first-in-class www.automotivepurchasing.com boomerang-shaped LED daytime running headlamps, the “V-motion” motif that flows from the grille into the hood for a dynamic character line, doors defined by convex and concave surfaces and a high beltline. Inside, the NP300 Navara offers comfort with a premium interior and convenience with numerous innovative features. Navara’s 7-speed automatic sport transmission delivers fuel efficiency at low speeds and smooth acceleration and shifting. The all-new NP300 Navara also delivers top level safety technology systems including Vehicle Dynamic Control, Active Brake Limited Slip, Hill Start Assist, Hill Descent Control and Traction Control. The launch of this much anticipated pickup follows the successful introductions of the mid-size Altima sedan, compact Sylphy sedan and the X-Trail SUV in the Philippines in 2014. Bookings for the all-new Nissan NP300 Navara are now available, and delivery starts at the end of February. Nuovo Doblò Cargo: “the better way to work” Renault reveals Kadjar - Captur’s big brother 2 February 2015 | Vehicle Launch/Concepts Presented today to the international press, the Nuovo Doblò Cargo, fourth generation of the Fiat Professional model, now more functional, with more performance and more value. These are the guidelines that allowed Fiat Professional to design a vehicle at the top of its class in terms of performance, functional characteristics, load capacity, productivity, fuel economy and low running costs. On the heels of the world début at the 2014 Hanover Motor Show, the Nuovo Doblò Cargo is now available to the wider public with a completely updated interior and exterior design reflecting classic carlike specifications. To get an idea, take a look at the ultra-modern distinctive front end, the bigger front grille and the many new components (bumpers, bonnet, headlights and tail-light clusters). A comprehensive update also for the passenger compartment, with new dashboard, fabrics, steering wheel, instrument panel graphics and door panels. Likewise, the functionality-driven configuration is visible in a series of specific ergonomic solutions, from the multifunction front bench seat for driver and two passengers, the quieter interior, the new infotainment and navigation sytems and the gateway device. Also, as in the previous generation the Nuovo Doblò Cargo’s load capacity and volume are both at the top of the category. The second aim in developing the new Fiat Professional vehicle was performance, as evident from the improved torque response during city driving (up to 40%). In addition, the Nuovo Doblò Cargo ensures the best handling and driving comfort in its class, thanks especially to the Bi-link independent rear suspension (exclusive contents for the segment). The range also extends to include the new “EcoJet” version - equipped with the 90 hp Multijet II 1.3 or 105 hp Multijet II 1.6 - which combines reduced running costs and low fuel consumption (improvement of up to 15%). The major functional and performance evolution combined with development initiatives aimed at reducing the total cost of ownership (including all costs from purchase to sale) make the Nuovo Doblò Cargo reliable, distinctive and more valuable for Fiat Professional customers. The entire package is sweetened by the comprehensive range of services and accessories created in collaboration with Mopar, in addition to the affordable financing solutions developed by FCA Bank. Depending on the market the range is composed of 4 bodies (Cargo, Combi, WorkUp and Load platform), 2 roof heights and 2 wheelbases. Power is provided by a choice of six turbodiesel engines - MultiJet II 1.3 (75 and 90 hp), Multijet II 1.6 (100 and 105 hp), 90 hp Multijet II 1.6 with robotised gearbox and 135 hp Multijet 2.0 - plus three petrol engines: 95 hp 1.4, 120 hp TurboJet 1.4 and 120 hp TurboJet 1.4 bi-fuel (petrol/ natural gas). The offering is the broadest in the segment, with versions and solutions from vans to special vehicles and versions converted for specific applications. Scion of a winning model (Doblò has been chosen by more than 1.4 million customers since 2000), the Nuovo Doblò Cargo aims to consolidate its leadership in this market sector, which accounts for 25% of all light commercial vehicles in Europe. Sold in more than 80 countries worldwide, including North America in the form of the Promaster City in the RAM range, the Nuovo Doblò Cargo becomes a “global” vehicle - just like the Nuovo Ducato - that’s destined to bolster FCA’s growth in the light commercial vehicles sector. Like the previous generations, the Nuovo Doblò Cargo is manufactured in Turkey in the Tofaş plant in Bursa, one of the best automotive industrial sites in the world, as confirmed by the award of a World Class Manufacturing gold medal. 2 February 2015 | Vehicle Launch/Concepts Buoyed by the success of Captur, Renault is continuing its offensive in the world of crossovers with the launch of Kadjar, the brand’s first C-segment crossover. In a fast-growing and extremely popular area of the market, Kadjar will boost Renault’s ambitions on the international stage, as it is due to go on sale initially in Europe and in many African and Mediterranean Basin countries, followed by China. This sibling to Captur shakes up established thinking by bringing an innovative and attractive proposition to the crossover market. The Renault Kadjar stands out through its fluid, athletic exterior styling. Meanwhile, its interior is both sporty and refined, courtesy of the quality of the materials employed and the attention that has gone into its finish. Available with either four- or two-wheeldrive transmission, the Renault Kadjar encourages adventure while at the same time delivering easy manoeuvrability in town thanks to its compact footprint (4.45 metres long x 1.84 metres wide). Furnished with high-quality interior appointments and modern equipment, the Renault Kadjar offers advanced connectivity with the R-Link 2® multimedia system, along with a relaxed experience behind the wheel, courtesy of the latest driving aids. The Renault Kadjar also benefits from a range of particularly efficient engines which position it at the forefront of the segment in terms of low fuel consumption and CO2 emissions. The Renault Kadjar will be unveiled to the public at the 85th Geneva Motor Show which opens to the public on March 5, 2015. It will go on sale in the summer in both Europe and a high number of countries in Africa and the Mediterranean Basin region and is scheduled to appear in RHD form in the UK in the Autumn. For more information about advertising opportunities, please contact: Deryck Morris +44 (0) 208 882 1330 or email: [email protected] www.automotivepurchasing.com 33 Teamsters authorise strike action at Canadian Pacific Supply Chain WWL launches first Post Panamax Telematics/Connected Car Vessel - Thermopylae Innovation People 9 February 2015 | Supply Chain Measuring in at 36.5 m wide and 199.99 m long, the Thermopylae provides the right capacity and fulfils WWL’s frontrunner commitment to the environment. Wallenius Wilhelmsen Logistics welcomes into operation the M/V Thermopylae, the first of its new generation of Post Panamax HERO (High Efficiency RoRo) PCTC vessels. The Thermopylae features five liftable car decks, allowing for more configurations for cargo of various sizes and hence increased capacity for cars, trucks, equipment and breakbulk. The vessels more shallow draft allows her to call ports with shallower depths, increasing her scope of service geographically. Taking steps towards the Orcelle vision of zero-emission shipping, the Thermopylae design includes emission reducing features such as a streamlined bow, new Promas rudder and an engine configured to allow the vessel to operate more efficiently in a wider range of speeds and drafts. In addition, the vessel is fitted with an Exhaust Gas Cleaning System that reduces sulphur emissions to below 0.1% in compliance with ECA regulations. This system also removes 70% of particulate matter, significantly reducing NOx emissions. According to Fridtjof Naess, Chief Operating Officer Ocean for WWL: “These Post Panamax vessels are designed to meet customer demands for capacity as well quality and efficiency in both handling and operation. They also illustrate our quest to continuously reduce our environmental impact, and feature optimized hull design and a number of energy saving solutions to ensure efficient operation.” The Thermopylae’s maiden voyage will be from Asia to Europe, starting in the port of Hitachinaka, Japan and finishing in Bremerhaven, Germany. The vessel has been built at the Hyundai Samho Heavy Industries shipyard in Mokpo, South Korea. She is the first of in total eight HERO post panamax vessels that will commence service for WWL in the years 2015-2017. Environmental Finance & Markets Vehicle Launch/Concepts General 9 February 2015 | Supply Chain Teamsters Rail members vote 93% in favour of strike action if necessary to achieve a negotiated contract. The Teamsters Canada Rail Conference (TCRC) members employed as Locomotive Engineers, Conductors, Trainmen and Yardmen throughout Canada has provided their National Bargaining Committee with a resounding demonstration of support. The membership have voted 93% in favour of taking strike action in order to obtain a negotiated settlement with Canadian Pacific Railway. The Teamsters Union and CP are within the 21 day cooling off period as provided for within the Canada Labour Code. A strike or lockout is possible as early as February 15. TCRC President Douglas Finnson is particularly proud of the TCRC membership and the tremendous show of solidarity and support for the bargaining committee. “The bargaining committee is strengthened by the determination of the membership to fight for their rights to maintain a safe working environment, and to obtain acceptable improvements in their working lives.” “CP has adopted a style of labour relations based on confrontation and establishing a culture of fear among the employees, including management”, explains TCRC President Finnson. In 2013 CIRB Decision 679 the Canada Industrial Relations Board (CIRB) found CP guilty of violating the Canada Labour Code stating the following; “ By it’s actions, the employer has made it virtually impossible for the labour-relations system to work as it should.” In subsequent months CP has been found guilty by the CIRB of multiple charges of unfair labour practices against the Unionised workers at CP. The most recent finding of guilt against CP was January 9, 2015. “CP has provoked confrontation with their Unionised employees as often as they can, and their style of labour relations has resulted in the most massive contract rejection in the history of the railway industry”, explains TCRC President Finnson. The Soo Line is an American subsidiary of CP, where 97 % of the American based Conductors recently rejected a contract proposal from CP negotiators. Unifor who represents the CP Shop Crafts, and other mechanical workers voted 97% in favour of strike action last month, and now the Teamsters members similarly provide their bargaining committee with an unprecedented 93% level of support. The Teamsters Canada Rail Conference is scheduled to bargain with CP in Montreal with the Assistance of Mediators from Federal Mediation and Conciliation Services, February 10 to 14. International Auto Processing handles 5 millionth vehicle 5 February 2015 | Supply Chain Milestone reached after 28 years of service at Port of Brunswick. A silver Hyundai Genesis rolling down the ramp of the Wallenius Wilhelmsen vessel Isolde became the 5 millionth vehicle handled by International Auto Processing at the Port of Brunswick. “On behalf of the GPA, I would like to congratulate IAP, a long-time partner at the Port of Brunswick,” said Georgia Ports Authority Executive Director Curtis Foltz. “This important milestone exemplifies IAP’s reliability and the trust automakers have in their service.” International Auto Processing began its Colonel’s Island operation in 1986, with its first shipment of 567 Yugos (all in red). “Over the years, more and more carmakers have seen the value in using Colonel’s Island as a gateway to the Southeastern U.S. market, helping IAP and the Port of Brunswick to achieve phenomenal growth over three decades as a ro/ro facility,” said Robert Miller, president and CEO of International Auto Processing. Having grown to employ 250 full-time workers and up to 100 in flexible staffing, IAP now serves Audi, Bentley, General Motors, Honda, Hyundai, Kia, MercedesBenz, Toyota and Volkswagen. In addition to receiving and storing new vehicles, IAP acts as an extension of the factory floor. The company performs quality checks, installs over 100 various accessories, and washes and prepares the vehicles for transportation to dealers. “In 2014, we handled more than 450,000 vehicles,” Miller said. “Most of the import vehicles handled by IAP are delivered to the six-state Southeast area, although some customers serve dealerships as far west as Texas and as far north as the mid-Atlantic states.” Talking Points 34 Imports arrive from Europe, Asia and Mexico. Exports account for about a third of IAP’s volume. “These are vehicles manufactured in the U.S. and then exported to Europe, Asia, Central and South America,” he said, adding the vehicle handling process has evolved from its start three decades ago. The port now ranks as the busiest in the nation for the import of new vehicles and the No. 2 U.S. port in total import-export trade. By the end of 2014, GPA terminals in Brunswick and Savannah surpassed 7 million vehicles moved since 1986. Other changes at the Port of Brunswick include additional ship berths, and the new, higher Sydney Lanier Bridge spanning the Brunswick River, which cleared the way for today’s larger roll-on/roll-off vessels. Since the inception of the Brunswick autoport, IAP has been joined by three other auto processors: AMPORTS, Atlantic www.automotivepurchasing.com Vehicle Processors, and Mercedes-Benz USA. In FY2014, four processors served 20 automotive manufacturers, moving 674,327 vehicles over Colonel’s Island - an 8.3 percent (51,625-unit) improvement over fiscal year 2013. Including Port of Savannah Ro/Ro, Georgia deepwater ports moved 700,702 units in FY2014. Bringing together America’s Best The Automotive Supply Chain Awards recognise excellence and innovation in the North American Supply Chain industry with entries coming from companies throughout the United States in categories such as Third Party Logistics, Shipping, Road Transport, Rail, Terminal and Ports Operators, Aftermarket Parts, IT Innovation and Vehicle Processing Centres. Open exclusively to companies operating within the United States, each category will have a panel of judges which will be composed of experienced, senior supply chain industry experts who will assess entries relevant to their specialist knowledge. Nominations are now open, so don’t delay in nominating your company, clients and colleagues for them to receive the recognition they deserve. The Categories Third Party Logistics Company Logistics Quality Shipping Company Most Supportive OEM Road Transport Company Purchasing Executive Rail Company The Leaders Awards - Gold Terminals and Ports Operator The Leaders Awards - Silver Aftermarket Parts Logistics Logistician IT Innovation Vehicle Processing Centre Environmental Awareness Outstanding Achievement Exclusive Sponsor JACK COOPER 22 April 2015 The Plaza Hotel | New York Nominations now open www.automotivesupplychain.org/northamerica www.automotivepurchasing.com 35 Union Pacific BoD elect Lance Fritz Union Pacific announces 10% President and Chief Executive Officer dividend increase for first quarter 2015 and a $4.3 billion capital plan for 2015 6 February 2015 | Supply Chain Union Pacific’s Board of Directors elected Lance M. Fritz President and Chief Executive Officer, effective immediately. He also was elected to the company’s board of directors. Fritz had been President and Chief Operating Officer since February 6, 2014. Fritz, 52, succeeds John J. (Jack) Koraleski, who was named Executive Chairman. “Lance has the right combination of leadership skills, experience and expertise required to lead one of America’s largest and most successful companies,” said Steven Rogel, Union Pacific’s Lead Independent Director. “The board regularly reviews and updates its robust management succession plan, and we are confident Union Pacific will continue to deliver industry-leading customer service and strong shareholder returns under Lance’s guidance.” “I am humbled and privileged to have the opportunity to lead Union Pacific,” Fritz said. “Our experienced leadership team is unparalleled and will continue to play a key role in shaping Union Pacific’s strategy. They join me in sharing all of our employees’ passion for our mission to serve customers, shareholders and communities.” Fritz was executive vice president – Operations from 2010-2014, and previously served as Vice President – Labor Relations. Prior to that, he was Regional Vice President - Southern Region after serving as Regional Vice President – Northern Region. He began his career with Union Pacific in Marketing and Sales as Vice President and General Manager - Energy. Before joining Union Pacific, Fritz worked for Fiskars, Cooper Industries, and General Electric. He serves on a number of industry boards and committees, and is Chairman of the United Way of the Midlands Board of Directors. Koraleski, 64, was appointed President and CEO in March 2012. An Omaha native, he was elected to the Board of Directors in July 2012 and as Chairman of the Board in March 2014. He joined the railroad in 1972. “Jack’s leadership helped guide Union Pacific to unprecedented financial performance with 12 consecutive quarters of record earnings results,” Rogel said. “More importantly, Jack steered Union Pacific through an unexpected and challenging leadership transition period. We are incredibly grateful for his energy, efforts and dedication.” New CEVA Logistics warehouse in Gdynia, Poland 6 February 2015 | Supply Chain CEVA Logistics, one of the world’s leading supply chain management companies, has opened a new, multi-user warehouse next to the sea port of Gdynia in northern Poland. During the last few years, northern Poland has undergone substantial development of its sea ports, with significant investments in port infrastructure. Improvements at Gdynia have included enhanced road and rail access to the hinterland and central- and eastern Europe, and the construction of a new quay, as elements in a programme to develop and accommodate LCL, FCL and breakbulk traffic. The strategic location of the site, on the Baltic coast, will enable CEVA to support the strengthening and streamlining of customers’ supply chains via Gdynia and other Baltic ports to destinations worldwide. CEVA is particularly targeting freight 36 management and contract logistics customers from the industrial, automotive and technology sectors. CEVA’s services at the Gdynia station will include storage, ocean-, surface- and multimodal freight management of exports and imports, customs brokerage, container consolidation and container de-stuffing. Says Piotr Zborowski, CEVA’s Executive Vice President, Central Europe: “Encouraged by the success of our operations at CEVA’s multi-customer facility in Bielsko-Biała, southern Poland, we have invested in this new facility to bring similar service levels to customers in the north. “This is an important step to support our goal to be the most professional logistics company in Poland, providing the highest possible standards for our customers.” 6 February 2015 | Supply Chain Union Pacific announced that its Board of Directors voted today to increase the quarterly dividend on the company’s common shares by 10% to 55 cents per share. The increased dividend is payable March 30, 2015, to shareholders of record February 27, 2015. The Board also approved the Company’s 2015 capital program of approximately $4.3 billion, up about $200 million versus 2014, driven primarily by equipment acquisitions and infrastructure investments. Spending on Positive Train Control is also expected to increase to $450 million, versus $385 million in 2014. “As we generate strong cash flow, we are returning more cash to our shareholders while also making significant capital investments that add value for our customers,” said Rob Knight, Union Pacific Chief Financial Officer. “We invest today for the opportunity to drive further returns for our shareholders in the future.” Shareholders should note that the payment date of March 30, 2015, at the end of the first quarter, reflects a change in the Company’s prior practice of making dividend payments at the beginning of the subsequent quarter. This new timing better aligns the cash payment of the dividend with the financial results of the quarter for which it was declared. Union Pacific has paid dividends on its common stock for 116 consecutive years. Opel wins renowned ‘2015 VDA Logistics Award’ 6 February 2015 | Supply Chain Opel has once again been recognised for its innovative drive. At the Third Forum Automotive Logistics in Leipzig, jurychairman Professor Dr. Wolfgang Stölzle presented Michael Scholl, Director Supply Chain at Opel with the ‘2015 VDA Logistics Award. It is the eighth time that the German Association of the Automotive Industry (VDA) has presented the award to a company for its intelligent logistics system that can serve as a model for other players in the automotive industry. “The system assists us to meet customer requirements on schedule while staying flexible. It also allows us to optimise the value chain and the production program. We can react quickly and flexibly to changing conditions while maintaining complete transparency,” said Michael Scholl, Director Supply Chain at Opel, at the award ceremony in Leipzig. Vehicle orders and material supply are the two central areas of work for logistics experts in the automotive industry. Opel succeeded in creating a close network between these two areas both organisationally and procedurally. The most important feature of the new system is that incoming vehicle orders for the production plants are controlled simultaneously in real-time www.automotivepurchasing.com under consideration of material availability, especially the material pipeline of overseas suppliers. Thus, order scheduling is no longer sequential but instead integrated. This also enables Opel to react quicker to changing conditions. “This innovative solution is further proof for our ‘change your mind´ approach at Opel and our willingness to change the corporate culture. We changed organizational structures and, thanks to a cross-divisional team, introduced a system that allows outstanding flexibility – for the benefit of our customers,” said Katherine Worthen, Vice President, Purchasing and Supply Chain, Opel Group GmbH. The new system offers countless advantages such as transparency, flexibility, low material stocks and reduction of special material shipment to name but a few. Elsewhere, the customer also benefits from it because vehicle delivery dates can be maintained with even higher accuracy. The system was developed by a crossdivisional Opel team, consisting of experts from logistics, materials management, order management, and IT in cooperation with IT service provider Flexis AG from Stuttgart. It enables a future period preview of 40 weeks and considers roughly 45,000 part numbers for 20 Opel models made in seven European production plants. FTA: London Safer Lorry Scheme needs more work 6 February 2015 | Supply Chain The Freight Transport Association (FTA) has responded to the Transport for London (TfL) announcement today that their Safer Lorry Scheme, which will require sideguards and additional mirrors on almost all HGVs operating in the capital, will go live on 1 September 2015. In its assessment of the final detail of the Scheme - FTA has stated that compliance costs to industry have been minimised by TfL’s sensible approach to its implementation, but still considers that this has not necessarily been the best way of improving cyclist safety – and that could possibly be better spent on increased enforcement against those not complying with safety requirements. FTA’s Head of Policy for London Natalie Chapman commented: “FTA is pleased to see that the necessary exemptions and concessions for the vehicles for which this equipment is either not possible or not legal have been included within the requirements of the London Safer Lorry Scheme. However, in principle we believe that this kind of blunt regulatory tool is not the best way to improve cyclist safety. We still think that the money and effort spent on this scheme would have been better spent on increased enforcement against the small proportion of lorries that don’t comply with existing regulations.” The Safer Lorry Scheme will operate 24 hours a day, seven days a week and says that HGVs without safety equipment stated within it will be banned from all roads in Greater London from the beginning of September. The Scheme will require all vehicles of more than 3.5 tonnes to be fitted with sideguards, along with Class V and Class VI mirrors giving the driver a better view of cyclists and pedestrians around their vehicle. FTA now advises all operators to ensure that any lorry that may need to access Great London in future has sideguards and Class V and VI mirrors fitted before 1 September unless it is subject to one of the remaining exemptions or concessions. The Safer Lorry Scheme will be enforced by the police, the Driver and Vehicle Standards Agency and the joint TfL-funded Industrial HGV Taskforce. The maximum fine for each breach of the ban will be £1000. The operator will also be referred for investigation to the relevant Traffic Commissioner, who is responsible for the licensing and regulation of HGV operators. Norbert Dentressangle secures multimillion pounds renewal with JCB 5 February 2015 | Supply Chain Norbert Dentressangle has been reappointed in a three-year, multi-million pounds contract renewal with JCB to manage the delivery of aftermarket parts to a network of more than 100 dealer depots. JCB is the world’s third largest manufacturer of construction equipment, producing over 300 types of machines. The company employs over 12,000 people on four continents and sells products in 150 countries. JCB has dealers throughout the UK that handle maintenance and servicing, as well as supplying parts, for the iconic yellow diggers and its range of heavy plant machinery. These parts are delivered via Norbert Dentressangle’s Night Distribution service, providing a quick turnaround on repairs and servicing, which is vital to minimise onsite downtime if machinery is out of operation. Operating five nights a week, the transport specialist makes evening collections of stock parts and VOR (vehicle off-road) orders from JCB’s World Parts Centre (WPC) in Uttoxeter, Staffordshire. Using its dedicated fleet, Norbert Dentressangle then trunks aftersales product to its depot network across the UK. Orders are packed into pallet boxes by JCB and integrated into the shareduser network for through the night delivery to ensure dealers receive orders before they open at 7am the next day. As part of Norbert Dentressangle’s commitment to deliver further distribution improvements, the company has invested in an aerodynamic supercube trailer with Euro 6 vehicle to manage increased outbound volumes from the WPC on a key transport route. Using Norbert Dentressangle’s bespoke order tracking web-portal, JCB management has real time access to delivery data and can easily access all proof of delivery (POD) information. Chris Buckler – Operations Director, JCB Service, said: “With the upswing in the construction sector, Norbert Dentressangle has been able to use its flexible solution to effectively meet the increased demand from service dealers across the UK.” Ryder introduces first heavy duty truck specification designed for women drivers 5 February 2015 | Supply Chain Ryder System, a leader in commercial fleet management and supply chain solutions, announced that it will offer customers a female-friendly vehicle package for lease – the first of its kind in the industry. With the help of various OEMs and Women in Trucking Association (WIT), a non-profit organization established to encourage the employment of women in the trucking industry, Ryder is making available a custom vehicle design, including 15 unique specifications, to better meet the needs of female drivers. These same ergonomic specifications will also provide a benefit for many male drivers in the industry. The ergonomic vehicles include features such as adjusted height and placement of cab grab handles, adjustable seatbelt shoulder straps, improved placement of dash cluster gauges, and better access to oil and coolant checks and fill ports. Upon customer request, and depending upon the OEM model of vehicle, Ryder can also include the following options: ■■ ergonomically designed seats and adjustable armrest ■■ hood lift/closure assistance mechanism ■■ automated transmissions ■■ 5th Wheel configurations with lower pull pressures to open the locking mechanism ■■ automated 5th wheel locking mechanisms ■■ automatic landing gear operators for trailers ■■ a cab security system that offers personal protection while a driver is in his/her sleeper berth “Ryder is one of the largest purchasers of heavy duty trucks in North America and has a great deal of visibility into the needs of the professional truck driver,” said Steve Schmotzer, Region Fleet Manager, PACCAR. “There really is no one in a more suitable position to provide feedback on this issue to manufacturers than Ryder. We are proud to support this initiative, which is critical to addressing a pressing industry need.” Women may be the key to unlocking the driver shortage, which is currently estimated to be between 20,000 and 25,000 drivers, and expected to reach 239,000 by 2022. Only five percent of professional truck drivers in the U.S. are women. Ryder is committed to identifying truck design gaps and influencing improvements in future vehicle designs that make driving a more attractive career option for women. For example, the Company is currently encouraging OEMs to make adjustable foot pedal height a standard feature in future truck models. This is one item identified by female truck drivers as an important need according to a recent survey conducted by Women In Trucking Association. “This custom truck package is not only more ergonomically friendly to women, but will also benefit other drivers with the same types of needs,” said Scott Perry, Vice President of Supply Management and Global Fuel Products, Ryder. “Our intent is to not only help attract more women to the industry, but also to make the vehicles easier and safer for a broader range of drivers to operate. As an industry leader, we feel a responsibility to leverage our influence and find creative ways to deal with the professional truck driver shortage.” “Addressing driver comfort and truck cab design to accommodate the typically smaller stature of women is one of the issues where Women In Trucking Association is prompting changes,” said Ellen Voie, President and CEO, Women In Trucking. “We are so pleased to see Ryder’s efforts in moving these ergonomic challenges into the forefront of the manufacturers’ design changes,” Voie added. Find us online... www.facebook.com/autopurchasing www.twitter.com/AutoPurchasing www.automotivepurchasing.com 37 New Orbis plant in Silao strengthens presence in Latin America 5 February 2015 | Supply Chain ORBIS has announced the opening of its newest manufacturing facility, in Silao, Guanajuato, Mexico. A Grand Opening took place on February 4, attended by the local government, ORBIS partners and employees, as well as local media. Silao is 390 km/250 miles northwest of Mexico City. ORBIS is North America’s leader in reusable packaging and is a subsidiary of family-owned Menasha Corporation, which was founded in 1849. The 265,000 sq. foot plant employs approximately 140 people and enables ORBIS to be more responsive with a growing customer base in Latin America. The new plant is also the first ORBIS facility to offer injection and structural foam molding, as well as dunnage fabrication, all under one roof. ORBIS will manufacture plastic containers, pallets, BulkPak containers and its ORBIShield dunnage product line offerings at this plant. In addition, ORBIS has introduced a brand new line of fabric dunnage which provides a unique protective solution for the most challenging packaging requirements – specifically in the automotive supply chain. In anticipation of the opening, ORBIS partnered with Instituto Estatal de Capacitación (IECA), a technical training school in Silao, Guanajuato, Mexico to create a hands-on training program that provided new plant employees with general manufacturing and technical knowledge. “I am very pleased to make this investment in the future of ORBIS Corporation in Mexico,” said Bill Ash, President, ORBIS Corporation. “The new facility features best-in-class design for efficient product flow, productivity and environmental sustainability. With our dedicated team of employees, ORBIS is well-positioned to serve our customers with local manufacturing and design expertise, resources and capabilities, while improving our service reach. This strong local presence will help us best serve our leading customers in the automotive, food and beverage sectors throughout Latin America.” ORBIS has approximately 40 sales, service and manufacturing locations in North America, Europe and Asia and 1,900 employees worldwide. In addition to this plant in Silao, ORBIS operates four service centers throughout Mexico. New Head of Operations at TVS 2 February 2015 | Supply Chain TVS Supply Chain Solutions continues to grow and invest in the best people which has led to the appointment of a new Head of Operations. Darren Watson joins TVS with vast experience in the aftermarket supply chain, and will oversee all internal stock and transport processes as well as ensuring all client service level agreements and KPI’s are achieved. In addition, Darren will be responsible for the implementation of a continuous improvement programme across all TVS sites to ensure they consistently maintain the highest levels of service quality. Darren’s background is predominately in high volume aftermarket emissions manufacturing, where he managed product availability, but his experience also extends to effective leadership of productivity, quality, health and safety, MRO spend, material control, and purchasing across a number of facilities. Martin Warington, Business Development Director at TVS Supply Chain Solutions, said: “At TVS, it is vitally important that we constantly look at ways to help drive the brand forward by offering our customers the highest levels of industry expertise, thought leadership and innovation. “Darren brings with him a wealth of experience and knowledge and will be a huge asset in helping to differentiate our business from the competition. I wish him all the best in what I’m sure will be a promising career at TVS Supply Chain Solutions.” Hollysys announced a significant high-speed rail signaling contract win valued at US$ 95 million TNT’s Outlook strategy in full implementation mode 3 February 2015 | Supply Chain In the course of 2014, TNT appointed a new management team and launched its new Outlook strategy with the aim of bringing the company back to sustainable value creation. In September 2014, TNT updated the market that it will take three to five years to realise the full benefits of the Outlook 38 investment and restructuring programs. The Outlook strategy is in full implementation mode. In the process of completing the assessment of its fourth quarter 2014 results, to be published on February 17, TNT reassessed its tax assets and liabilities. As a consequence, TNT’s bottom line net income in the fourth quarter will include nonrecurring tax expense items totaling €77 million, which include a €67 million non-cash valuation allowance on deferred tax assets. Furthermore, TNT is changing its accounting treatment for the PIS/COFINS taxes in Brazil. This reclassification will result in €17 million lower reported operating income for the full year 2014 of which €5 million in Q4 2014, but with no impact on net income. TNT will give a full update on its Outlook strategy on 18 February during the Capital Markets Day. The company will provide financial guidance for the next three to five years when it announces its fourth quarter results. 2 February 2015 | Supply Chain Hollysys, a leading provider of automation and control technologies and applications in China, announced that it signed a significant contract to provide Automatic Train Protection (ATP) equipment and system. The contract is to provide Automatic Train Protection (ATP) equipment and system to 40 sets of high-speed trains in 200250km/h and 80 sets of high-speed trains in 300-350km/h respectively, valued at approximately RMB 580 million or USD $95 million. The delivery of the products is expected to be finished by June 2015. Besides this contract award, Hollysys’ management also expects another supplementary ATP contract to be signed in the near term. The on-board signaling equipment ATP (Automatic Train Protection) works together www.automotivepurchasing.com with the ground-based signaling equipment TCC (Train Control Center), as the critical control elements in the high-speed railway signaling systems to ensure the safety and reliability of the high-speed railway operation. Hollysys’ management commented: “We feel excited about the significant high-speed rail contract win, which demonstrates our solid technology capability and key market position. In the future, Hollysys will continue to work closely with the China Railway Corporation and national railway authorities, leveraging its strong R&D capability, effective management and high-quality products and service, make more contribution to China’s railway construction and explore the vast rail and subway opportunities both in China and abroad, and create value for our shareholders.” CN says unionised maintenance-ofCN announces plan to buy back way employees in Canada ratify new shares through a private agreement four-year labour agreement 2 February 2015 | Supply Chain CN announced today that members of the United Steelworkers (USW) union Local 2004 have ratified a four-year labour agreement covering approximately 3,000 maintenance-of-way employees who inspect, maintain and repair CN’s track, bridges and structures in Canada. The new agreement was reached prior to the expiry of the previous agreement and is retroactive to Jan. 1, 2015. Jim Vena, CN executive vice-president and chief operating officer, said: “We commend the USW leaders and membership for reaching and ratifying an amicable and mutually beneficial collective agreement with the company before its expiration. The agreement recognizes the value of negotiating an early deal, and it delivers solid wage and benefits improvements to union members, along with work-rule changes that will increase the efficiency of CN and its employees in maintaining and improving the company’s rail infrastructure critical to Canada.” 2 February 2015 | Supply Chain CN announced that it intends to purchase for cancellation up to 1.2 million of its common shares pursuant to a private agreement between CN and an arm’slength third-party seller. The purchase will form part of CN’s repurchase program for up to 28 million shares announced on Oct. 21, 2014. Such purchase will be made pursuant and subject to the terms of an issuer bid exemption order issued by the Autorité des marchés financiers (Order) and will take place before March 31, 2015. In accordance with the Order, CN’s purchases under such private agreements will not exceed, in the aggregate, one-third of the maximum number of shares that it may purchase under its share repurchase program, or 9,333,333 common shares. The price that CN will pay for any common shares purchased by it under such agreements will be negotiated by CN and the third-party seller and will be at a discount to the prevailing market price of CN’s common shares on the Toronto Stock Exchange at the time of the purchase. Information regarding each purchase, including the number of common shares purchased and aggregate purchase price, will be available on the System for Electronic Document Analysis and Retrieval (SEDAR) following the completion of any such purchase. Norfolk Southern and Brotherhood of Locomotive Engineers and Trainmen reach new five-year collective bargaining agreement Bringing together America’s Best The Automotive Supply Chain Awards recognise excellence and innovation in the North American Supply Chain industry with entries coming from companies throughout the United States in categories such as Third Party Logistics, Shipping, Road Transport, Rail, Terminal and Ports Operators, Aftermarket Parts, IT Innovation and Vehicle Processing Centres. Open exclusively to companies operating within the United States, each category will have a panel of judges which will be composed of experienced, senior supply chain industry experts who will assess entries relevant to their specialist knowledge. Nominations are now open, so don’t delay in nominating your company, clients and colleagues for them to receive the recognition they deserve. The Categories 2 February 2015 | Supply Chain Norfolk Southern and the Brotherhood of Locomotive Engineers and Trainmen reached a new collective bargaining agreement that continues to link engineer compensation to corporate performance through 2019. The agreement, which covers approximately 4,600 locomotive engineers, provides engineers with an annual bonus opportunity based on corporate performance and for the first time includes individual incentive opportunities based on personal performance. The agreement also includes changes to improve engineer work scheduling, which will help ensure that NS has a more stable and available workforce while providing employees with more predictable schedules. “The new agreement builds on our long history of collaborative problem-solving with the BLET, and it will have a positive impact on employees, our customers and the long-term success of the company,” said Norfolk Southern Labor Relations Vice President Scott Weaver. “We thank the BLET for its continued partnership throughout this process.” Third Party Logistics Company Logistics Quality Shipping Company Most Supportive OEM Road Transport Company Purchasing Executive Rail Company The Leaders Awards - Gold Terminals and Ports Operator The Leaders Awards - Silver Aftermarket Parts Logistics Logistician IT Innovation Vehicle Processing Centre Environmental Awareness Outstanding Achievement Exclusive Sponsor JACK COOPER 22 April 2015 The Plaza Hotel | New York Nominations now open www.automotivesupplychain.org/northamerica www.automotivepurchasing.com 39 Škoda ups production post 2014 success General Proton and PT ACL to collaborate on the ‘Indonesian National Car’ Talking Points 9 February 2015 | General Proton Holdings Berhad announced the signing of a Memorandum of Understanding (MoU) with PT. Adiperkasa Citra Lestari to establish cooperation ties between Malaysia and Indonesia in relation to the development and manufacturing of Indonesia National Car. Signing on behalf of Proton was Chief Executive Officer, Dato’ Abdul Harith Abdullah and witnessed by the Malaysian Ambassador to the Republic of Indonesia, H.E. Dato’ Seri Zahrain Mohamed Hashim whilst signing on behalf of PT ACL was Chief Executive Officer, Abdullah Mahmud Hendropriyono and witnessed by Indonesian Ambassador to Malaysia, H.E. Herman Prayitno. The historic event was held in the presence of the Prime Minister of Malaysia, Yang Amat Berhormat Dato’ Sri Mohd Najib Tun Abdul Razak; Indonesian President, His Excellency Joko Widodo; and PROTON Chairman, Yang Amat Berbahagia Tun Dr Mahathir Mohamad at the Proton Centre of Excellence in Subang Jaya, today. The MoU is aimed at furthering business opportunities between both companies of the two neighbouring countries in areas relating to the development and manufacturing of the proposed vehicle project. Under the MoU, a feasibility study will be conducted to explore specific areas of cooperation between the two companies, including the potential development and manufacturing of the project in the Republic of Indonesia. “The collaboration will be good as both nations specifically work together to develop products for the larger market. Furthermore, Proton, which has the facilities, capabilities and technology know-how in design, development and manufacturing of cars, is the only company in the ASEAN region with a Research & Development (R&D) facility in-house. No other countries in this region have their own national car project other than providing manufacturing and assembly services. Therefore, we are pleased with the opportunities this MoU presents as this collaboration allows both nations and companies to provide knowledge-transfer and mutual sharing of expertise in the area of automotive whilst strengthening the bilateral ties among the countries,” said Dato’ Harith. 40 “The MoU serves as a positive start to both nations. As the region’s major player in the automotive market, Proton welcomes such cooperation with PT ACL for the benefit of all. Closer ties between both companies will surely facilitate international and regional investments, spurring more automotive markets activity and economic development,” he added. Meanwhile, Abdullah Mahmud said the MoU was a major development for the Indonesian automotive industry where the collaboration will offer a wider job opportunity to its people. “We are very happy to be working with Proton and Malaysia in this project. With the expertise that Proton has and our similar culture and environment, we are confident that PROTON can help to train and develop a pool of specialist workforce for our automotive industry. This collaboration when materialised will not only spur the Indonesian automotive industry further but also expand knowledge and capabilities of our people,” he said. With the collaboration potential, both companies will come out with a feasibility study in the overall areas of the automotive operations and business, including the commercial and technical aspects of the project. Apart from that, the Parties would also evaluate and work together to develop plans on localisation activities, purchasing activities, engineering and design activities, logistic services, market studies and other relevant processes relating to the project. Subject to the completion of a successful feasibility study, Proton and PT ACL will sign a definitive joint venture agreement for the proposed project. “This is another important and significant milestone for Proton as we embark on yet another strategic partnership for a greater vision. Proton is ever willing to assist Indonesia and any country that wants to grow together with the company, with the blessings of the Malaysian Government. To this end, we certainly look forward towards detailing out our plans and the feasibility study on this collaboration to achieve what we hope will provide synergy to the future plans of the Parties,” added Dato’ Harith. 3 February 2015 | General Škoda’s new models are doing exceptionally well. In 2014 the Czech carmaker sold more than one million vehicles for the first time in a single year. Accordingly, Škoda production is now shifting up a gear: At the main plant in Mladá Boleslav, Škoda has recently upped the manufacturing capacities for the new Škoda Fabia and Fabia Combi (estate), as well as the Škoda Rapid Spaceback. Up to 1200 of these models now run off the MBII production line every day in three shifts. Previously, a maximum of 800 vehicles could be produced on a daily basis in two shifts. Škoda has created an additional 800 new jobs to staff the third shift. “The young Škoda model range is doing exceptionally well on the market,” says Škoda Michael Oeljeklaus, Škoda Production Director. “Our production is at full throttle – especially at our main plant in Mladá Boleslav. Over the coming years, Škoda plans to increase sales to at least 1.5 million per year. To this end, we will continue to invest in our domestic and international production capacities.” The current expansion in production capacities at the MBII line in Mladá Boleslav were necessary due to the growing success of the Fabia and Rapid Spaceback. Škoda had begun expanding and technologically upgrading key areas of the Fabia production halls in Mladá Boleslav as early as summer 2014. This was when the new, ultra-modern facility was finished, enabling the new assistance systems to be configured. The paint shop was also extended and partially redeveloped. Škoda operates two production lines in Mladá Boleslav: The Fabia, Fabia Combi (estate) and Rapid Spaceback are manufactured on the MBII line; the Octavia, Octavia Combi (estate) and Rapid saloon run off the other line. The production capacity currently stands at 1200 cars per day. By expanding their production capacities at the main plant in Mladá Boleslav, the Czech manufacturer is once again demonstrating their importance as an employer and major industrial investor in the Czech Republic. Since 1991, Škoda has invested more than 280 billion Czech Crowns into the manufacturing processes and factories at the locations of Mladá Boleslav, Kvasiny and Vrchlabí. In 2014, the respective investments totalled 362 million euros. Last autumn, Škoda and the Volkswagen Group invested 45 million euros alone in the newly opened Škoda Engine Centre – one of the largest industrial investments of recent years in the Czech Republic. The Fabia’s market launch was extremely successful. The small car is setting standards in its segment, and has won a number of international awards; in the Czech Republic, the new Škoda Fabia was voted ‘Car of the year 2015’. In the UK, the model received the renowned title ‘What Car? Car of the Year 2015’. The Škoda Rapid Spaceback has also taken the consumer market by storm. In 2014 sales of the Rapid Spaceback increased nine fold over the previous year, with a total of 72,000 sold around the world (2013: 8000). The brand’s first compact hatchback model offers fresh-dynamic designs, lots of room, a host of ‘Simply Clever’ ideas, the highest safety, low fuel consumption and is great value for money. For more information about advertising opportunities, please contact: Deryck Morris +44 (0) 208 882 1330 www.automotivepurchasing.com or email: [email protected] Telematics/Connected Car Connected car transforming the talent landscape in the automotive industry SanDisk offers storage solutions for nex-gen cars Innovation 3 February 2015 | Telematics/Connected Car SanDisk, a global leader in flash storage solutions, today introduced a new suite of robust, automotive grade NAND flash solutions designed for next-generation ‘connected cars’ and automotive infotainment systems. SanDisk Automotive storage solutions are optimised to bring reliable, highperformance storage to a wide range of in-vehicle applications, including 3D mapping and advanced OEM vehicles on the road worldwide will have some form of wireless network connection by 2020, amounting to more than 250 million connected vehicles in service”. “Flash is enabling dramatic innovation in the auto industry and is expected to transform the car into one of the most connected devices we own,” said Drew Henry, Senior Vice President and General Manager, Mobile and Connected Solutions, SanDisk. “Our vertical integration and deep flash expertise uniquely enables us to architect our automotive grade storage solutions to provide the responsiveness needed to support new and emerging connected applications, as well as offer the reliability and trusted performance that’s absolutely critical for the automotive market.” The SanDisk Automotive portfolio of storage solutions includes an automotive grade SanDisk SD card and iNAND embedded flash drive (EFD), which are available to automotive manufacturers in capacities up to 64GB2. Leveraging SanDisk’s innovative proprietary flash storage architectures, these solutions bring superior experiences to data-intensive automotive infotainment and connected car applications, enabling maps to load fast, improving touch-screen responsiveness, and reducing potential interference from driving on uneven or rough roadways. People Tier Suppliers Environmental Supply Chain augmented reality in navigation systems, entertainment systems, intuitive driver assist technology, data event recorders, and more. By providing the responsiveness and capacity of SanDisk flash storage technology, SanDisk Automotive solutions offer the potential for car manufacturers to continue to push the boundaries of connected car application experience. Today’s vehicles are rapidly becoming more technologically sophisticated, with many featuring advanced connected applications that were once only possible on a smartphone. A recent Gartner Research report forecasted that “about one in five Finance & Markets Telematics/Connected Car Vehicle Launch/Concepts Innovation General People Talking Points Environmental Toyota wants its Finance &back Markets- all of batteries them 6 February 2015 | Environmental With 91% of its hybrid batteries being successfully collected through its own retail network, Toyota Motor Europe (TME) is now extending collection to independent end-oflife vehicle (ELV) treatment operators Hybrid batteries can generally outlast the vehicle life. These are therefore usually only recovered at the end of the vehicle life or in case of an accident. TME has built up years of experience running an internal collection process with Toyota and Lexus retailers/repairers through a reverse logistics mechanism. Toyota and Lexus dealers receive a new hybrid battery in return for giving back the old one, leading to an average 91% collection rate. Now TME is stepping up efforts to Vehicle Launch/Concepts General 2 February 2015 | Telematics/Connected Car Spencer Stuart, the global executive search consulting firm, has released a new study examining the impact of the Internet of Things (IoT) on automotive companies on their leadership and talent needs. “Connectivity Leadership – How the auto industry can secure the right blend of talent to succeed in the era of the connected car” reports that one-third of automotive companies underestimate the extent of the challenge they are facing and are unprepared when it comes to answering three critical questions: 1. What critical capabilities do senior leaders need to possess in order to address the connectivity challenge? 2. Where can the talent be found? 3. What are the motivations and expectations of connectivity experts who are auto industry outsiders and how can companies get the best out of them? Connected car executives belong to a different demographic from traditional auto executives; they also have different career backgrounds and expectations over such things as working culture and compensation patterns. There is a finite pool of talent available and learning how to integrate these people successfully is critically important for auto companies. “At a time of market disruption, characterised by new entrants and changing business models, many traditional auto companies need to radically overhaul their talent development and succession planning activities or they will lose competitive advantage,” says Barnaby Noble, a consultant in Spencer Stuart’s Automotive Practice based in Paris. “This means adapting to the needs of a new type of automotive executive likely to be more comfortable in Silicon Valley than in Detroit. “Connectivity is a real game changer and talent is scarce,” Spencer Stuart has examined the career paths of more than 500 top executives from the automotive and connectivity sectors and has identified the six critical areas in which leaders and their teams must have strong capabilities. These are: Infrastructure; data analytics; business model literacy; innovation management; change & alliance management; engineering. “OEMs and suppliers need leaders who can identify potential business models and understand how to monetise connectivity technology,” says Ralf Landmann, a consultant in Spencer Stuart’s Automotive Practice based in Frankfurt. “Better and deeper cooperation is needed between the automotive, IT, telecommunications and consumer electronics industries. In particular, companies in the consumer electronics and automotive industries must connect their different cultures and processes better together to enable such collaboration. drastically increase the volumes of collected used hybrid batteries. It set itself the challenging target of aiming to collect 100% of the batteries, coming from both its own network and from any authorised ELV treatment operators across the whole of Europe. That is why the company announces today the extension, until March 31, 2018, of the current battery recycling agreements: Since 1 July 2011 France-based Société Nouvelle d’Affinage des Métaux (SNAM) has been taking back and recycling nickel-metal hydride (NiMh) batteries in Europe (installed in the Prius, Auris Hybrid, Auris Hybrid Touring Sports, Yaris Hybrid and all Lexus hybrids) Since 20 August 2012 Belgium-based Umicore N.V. has been taking back and recycling Lithium-ion (Li-ion) batteries in Europe (installed in Toyota’s Prius+ and Prius Plug-in) Steve Hope, General Manager TME Environment Affairs, says “When our customers buy a hybrid, they already know that they are in for outstanding fuel efficiency, a stress free driving experience and a reliable car.” He continues “This is yet another reason for a hybrid purchase. We ensure customers that their car excels in environmental performance during its entire lifecycle, giving customers another good reason to fall in love with hybrid.” “Today used hybrid batteries are still mainly destined for recycling”, adds Steve Hope. “However, TME has started to research the different options for the remanufacturing of NiMh batteries.” Solutions include giving those batteries a second life as vehicleto-vehicle or vehicle-to-stationary energy source. Since 2000, around 850,000 Toyota and Lexus full hybrid vehicles have been sold in Europe. A cornerstone in Toyota’s environmental approach is the protection of natural resources, making sustainable recycling of high voltage batteries a key priority. www.automotivepurchasing.com 41 Tier Suppliers PSA Peugeot Citroën leads Europe in reducing CO2 emissions in 2014 Supply Chain 5 February 2015 | Environmental Since 2008, the Group has gradually lowered its vehicle emissions by about 30 grams. PSA Peugeot Citroën recaptured its first place standing in reducing emissions at end 2014 in Europe, with an average of 110.3 grams of CO2/kilometre, compared with an average of 123.7 grams for the European market. The new record illustrates PSA Peugeot Citroën’s commitment to finding practical solutions to environmental problems. More than 50% of its R&D budget is devoted to developing technologies aimed at improving the fuel and environmental performance of its vehicles. PSA Peugeot Citroën’s top ranking is primarily the result of its engine downsizing strategy and the introduction of new PureTech 3-cylinder petrol engines, as well as the introduction of new-generation, fuelefficient BlueHDi diesel engines. In 2014, nearly 30% of vehicles sold by the Group emitted less than 100 grams of CO2. Paired with these highly efficient petrol and diesel engines, many Group models are low-carbon leaders in their category. Due to the fact that they represent a significant proportion of European sales, they contribute to an overall reduction in emissions. The following models are examples of low-carbon leader vehicles: Citroën C4 Cactus, 1.6-litre BlueHDi, 100 hp, 82 grams of CO2 per kilometre Citroën DS 3, 1.6-litre BlueHDi, 100 hp, 79 grams of CO2 per kilometre Peugeot 308, PureTech 1.2-litre, 130 hp, 107 grams of CO2 per kilometre. This petrol version also set a new fuel economy record of 2.85 litres per 100 kilometres, covering 1,810 kilometres on a 51-litre tank of fuel. The recent Peugeot 308 and Citroën C4 Picasso models (built on the new EMP2 platform) and the Citroën C4 Cactus (launched in 2014) weigh significantly less than their predecessors, by 140 kilograms and 200 kilograms, respectively, which is a key factor in reducing emissions. “The outstanding reduction in CO2 emissions is the fruit of PSA Peugeot Citroën’s advanced petrol and diesel engine technologies but also of its ongoing research to make lighter, more aerodynamic cars,” said Gilles Le Borgne, Executive Vice President, Research and Development, PSA Peugeot Citroën. “The Group continues to invest heavily in research and innovation, particularly in the field of plug-in hybrid technologies and new-generation electric vehicles”. January rise sees 2015 new UK car registrations off to strong start Telematics/Connected Car Innovation People Environmental Finance & Markets Auto industry cautiously optimistic for 2015 5 February 2015 | Finance & Markets According to figures released by the Society of Motor Manufacturers and Traders (SMMT), UK has witnessed a positive start to the year for new car market as registrations grew 6.7% in January to 164,856 units – the strongest January since 2007. The figures released clearly demonstrate that market growth is on a steady rise, as January marked the 35th consecutive month of rises. Growth in company car registrations was particularly strong, up 18.1% on January 2014, while 4,598 alternatively-fuelled vehicles registered in January, up 60.8% on last year’s figure of 2,859. Mike Hawes, SMMT Chief Executive, said: “These figures mark an encouraging start to the year after a very strong 2014, with a strikingly robust company car market as businesses take advantage of the attractive finance offers currently available. “January saw increased uptake of both petrol and diesel cars, while demand for alternatively-fuelled vehicles continued its surge with registrations rising by 60.8%. Registrations of plug-in vehicles were particularly strong as consumers responded to a greater choice of makes and models delivering lower running costs. “Last year’s 9.3% rise in the overall market was fuelled by stronger than expected economic confidence and, for 2015, we expect to see some levelling off throughout the year: demand is back to pre-recession levels following record-breaking growth.” Imported car figures rise steadily in South Korea Vehicle Launch/Concepts ACEA expects growth to continue in 2015, but at a considerably slower pace, with a year-on-year forecast in the region of 2%. In terms of units, this would mean edging closer to the 13 million units mark. ACEA also released the provisional 2014 sales figures for all types of Electrically Chargeable Vehicles (ECVs). Last year 75,331 ECVs were registered in the EU. Although this is up 37% on the 2013 figure of 55,142, it still represents just 0.6% of the total market. ACEA Secretary General Erik Jonnaert commented: “ACEA’s members will continue to invest in alternative powertrains, including electric, hybrid, fuel-cell and natural gaspowered vehicles. This needs to be supported by the expansion of the charging infrastructure, as well as a more consistent EU-wide approach to customer incentives.” ACEA is also taking the opportunity of its Annual Reception to re-iterate its three policy recommendations: ■■ To drive innovation; ■■ To foster growth through international trade; and ■■ To build a supportive regulatory framework. “These are the three keys to building upon the fresh growth in our automobile market, and to supporting the political agenda for jobs, growth and investment,” stated Mr Ghosn. General Talking Points 5 February 2015 | Finance & Markets On the occasion of its Annual Reception in Brussels, the European Automobile Manufacturers’ Association (ACEA) set out its forecast for 2015 and released last year’s registration figures for electric vehicles on January 4. Last year, new passenger car registrations were up 5.7% on the previous year, reaching 12.6 million units. “This is significant because it was the EU’s first positive annual result since the financial crisis began in 2007, with December marking the 16th consecutive month of growth,” said ACEA President, Carlos Ghosn. “However, our optimism about this early sign of recovery must be tempered with caution, given the economic uncertainties still facing many countries.” 42 5 February 2015 | Finance & Markets South Korea’s imported car sales figures have hit an all-time monthly high in January as a result of steadily increasing demand for European and Japanese vehicles in the country. According to figures released by the Korea Automobile Importers and Distributors Association (KAIDA), approximately 19,930 cars were registered in the country in January 2015, as opposed to the 14,849 cars registered at the same period a year earlier. This marks a 16.4% increase from the same time last year In fact, January’s foreign branded vehicle sales figures have outpaced the July 2014 figures, when a total of 18,112 foreign vehicles were registered. www.automotivepurchasing.com German automobile brands such as Mercedes-Benz and Audi led the rise in demand for European vehicles. KAIDA’s figures went on to demonstrate the rising popularity of European auto brands in South Korea, with European cars accounted for 81.7% of the sales, slightly down from the previous year’s 82.7%. Closely following European brands are their Japanese counterparts with a market share of 11.1%, up from the previous year’s 9.8%. German carmakers dominated the topselling charts with Mercedes-Benz ranking first by selling 4,367 vehicles in January, followed by Audi with 3,550 units, while BMW slipped to number three by selling 3,008 units in January 2015.