Automotive Roundup July 2009 27th July 2009

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Toyota to Proceed With Plan to Build Car Factory in Brazil (29/06/09)

Toyota has confirmed that it will press ahead with plans to build a new auto-assembly plant in Sorocaba in south-eastern Brazil after a government tax cut boosted vehicle sales.

Hybrids help Toyota, Honda dominate Japan car sales (06/07/09)

Toyota's Prius hybrid was the best-selling car in Japan in June with a 258 per cent increase in sales, while Honda's Insight was the fourth most popular vehicle, the Japan Automobile Dealers' Association confirmed.

Toyota to mass produce plug-in hybrids from 2012 -Nikkei (03/07/09)

The world's largest automaker has also revealed that it will commence mass production of plug-in hybrids in 2012 and hopes to roll out between 20,000 and 30,000 in its first year, Nikkei business daily reports.

http://www.autonews.com/article/20090629/ANA06/306299972/1178 (29/06/09)

Honda, Chrysler, Ford, General Motors (GM), Nissan and Toyota have all shelved plans to produce diesel vehicles in 2010 over financial concerns and a desire to seek alternative fuel-efficient model solutions, Automotive News reports.

World's automakers differ in their support for diesels (02/07/09)

However, the Detroit Free Press reports that Chrysler is in fact committed to adapting several Fiat diesels, while also noting that German automakers are targeting increased diesel sales in the US.

http://news.xinhuanet.com/english/2009-07/01/content_11635908.htm (01/07/09)

GM has also revealed that government stimulus measures in China saw its H1 2009 sales in the country increase by 38 per cent on a year-on-year basis to a record 841,442 units.

GM global sales fall 22 percent in first half of 2009 (22/07/09)

However, the overall picture for GM was not so positive, with its global sales sliding by 22 per cent on an annualised rate in the first half of the year amid the economic downturn and its fall into bankruptcy.

Rate of new car sales decline starting to slow, says Naamsa (02/07/09)

The National Association of Automobile Manufacturers of South Africa announced that June vehicles sales were down by 23.7 per cent, but noted an improvement from May and that the overall rate of decline is slowing.

Toyota boss calls for postponement of proposed CO2 vehicle tax (06/07/09)

Meanwhile, Toyota South Africa Motors President and CEO Dr Johan van Zyl noted that the proposed CO2 emission tax should not be introduced in the country when fuel for Euro IV-standard engines is not yet available.

"To us it is inconceivable that the introduction of an ad-valorem duty based on CO2 emissions is being considered, while we are being deprived of the latest fuel technologies that are aimed at addressing that very issue," he told Mining Weekly.

Clean Diesel Fuels Volkswagen's June Sales (01/07/09)

Volkswagen of America sold 5,072 clean diesel vehicles in June, representing 26 per cent of total sales and bucking an overall year-on-year decline of 18 per cent to 19,027 units.

VW to pay $11.28 billion for all of Porsche: report (18/07/09)

Volkswagen has also seen an offer of about €8 billion (£6.915 billion) to buy out Porsche AG accepted by its sports car business, leading German weekly magazine Der Spiegel revealed.

The deal will see the automaker secure an initial 49.9 per cent stake in Porsche AG before completing the transaction at a later date.

Triumph for VW in Porsche battle (23/07/09)

In addition, the merger - which is set to come into force in 2011 - has seen the dismissal of Porsche AG Chief Executive Wendelin Wiedeking with a controversial €50 million pay-off, the Financial Times reports.

Volkswagen to produce new compact sedan in Mexico (20/07/09)

Meanwhile, Volkswagen Head of Mexican Operations Otto Lindner told Reuters that the company will commence production of its New Compact Sedan in Mexico early next year.

German automakers drive toward gas-electric hybrids (21/07/09)

USA Today reports that a number of major German automakers are focusing on production of hybrids, while also maintaining their long-standing commitment to diesel vehicles.

"We are taking a very broad approach. It's more than a statement. It's an opportunity for us to gain familiarity with [hybrids] for broader use," BMW Spokesman David Buchko told the news provider.

UPDATE 1-Italy 2009 car sales to match 2008-ministry (08/07/09)

The 10.7 per cent first-half decline in Italian car sales should be reversed in the second half of 2009 as government incentives take hold, the country's industry ministry has predicted.

U.S. EPA Awards More Than $25 million in Recovery Act Funding to California Communities to Reduce Diesel Emissions and Create Jobs (08/07/09)

The Environmental Protection Agency has issued a $25.4 million (£15.4 million) commitment to install retrofit engines to buses, heavy-duty trucks, locomotives, agricultural vehicles, construction vehicles and cargo handling equipment across California.

China passes US auto market in first-half sales (09/07/09)

China surpassed the US as the world's largest auto market in the first half of 2009 after its June sales increased by 36.5 per cent on a year-on-year basis to 1.14 million units, according to the China Association of Automobile Manufacturers.

Nissan, Honda to raise China output capacity-Nikkei (13/07/09)

On the back of the growing demand in the country, Nissan and Honda are set to increase output capacity at their respective Dongfeng and Hubei Province factories, Nikkei reports.

Nissan Introduces New Dual Injector System for Improved Fuel (14/07/09)

Nissan has also announced that it will debut a new dual injector system capable of speeding up fuel vaporisation in gasoline engines and reducing hydrocarbon emissions in the 2010 financial year.

Honda to nudge up green car output through October (17/07/09)

Meanwhile, Honda is planning to improve output of its greener vehicles in Japan as government incentives for smaller, more fuel-efficient cars continue to boost demand, Reuters reports.

Russia's GAZ to receive $180 mln state aid (23/07/09)

Moving to Russia, billionaire metals magnate Oleg Deripaska's GAZ automaker will receive about 5.6 billion roubles (£110.6 million) from the government in order to build a diesel engine plant.

Auto "clunker" program launched to spur sales (24/07/09)

Finally, the US government announced last week that it will devote $1 billion to a new programme designed to encourage consumers to trade in gas-guzzling vehicles for their more fuel-efficient counterparts.

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