Platinum today: News/Automotive

Automotive Roundup August 2010

Mon, 26 Jul 2010 00:00:00 GMT

Nissan to build new engine in UK (23/06/10)

Nissan has confirmed that it intends to build a brand new engine at its plant in Sunderland, a move which could create 200 new jobs by 2013.

The Japanese manufacturer will construct 60,000 of the 2.0-litre petrol units after receiving a £1.94 million grant from regional development agency One North East.

Nissan CEO: 2010 to be 'record year' for autos (15/07/10)

Charles Ghosn, Chief Executive of Nissan, has claimed that all-time high global auto sales of between 69 million and 70 million vehicles could be recorded this year.

"We have no doubt that 2010, no matter what, is going to be a record year for the industry," he said.

India's car makers see surge in sales (01/07/10)

Indian automakers reported strong domestic sales growth in June as the country's economy continues to gather pace, AFP reports.

Maruti Suzuki posted a year-on-year rise of 17 per cent, with Tata Motors seeing 49 per cent growth, Ford India recording a surge of 267 per cent and General Motors (GM) enjoying an improvement of 112 per cent.

"There was pent-up demand for cars which has overflowed into this year," Mahantesh Sabarad, Senior Analyst at Fortune Equity Brokers, told the news provider.

GM's China Sales Jump to 1.21 Million Autos, Exceeding U.S. for First Time (02/07/10)

GM has revealed that it sold more vehicles in China than the US during the first half of the year for the first time ever.

The company reported sales of 1.21 million in China for the six months to 30th June, compared to its US deliveries of 1.08 million.

GM is hoping to increase its China sales to about three million per year by 2015, having recorded a total of 1.83 million last year.

Automakers see no sign of expected recovery (01/07/10)

US auto sales were lower than expected in June, seemingly undermining hopes that the battered industry will enjoy a strong second half of the year.

Estimates for industry-wide sales were between 11.2 million and 11.4 million on an annualised basis, compared to the total of 11.6 million for the previous month.

Hyundai was the best-performing automaker, posting a 35 per cent sales rise, while Ford registered an increase of 13 per cent and GM witnessed an improvement of 11 per cent.

Chrysler recorded a 35 per cent jump, but failed to provide details about how many of its sales were soaked up by rental agencies and other fleet customers, Reuters reports.

"Recent economic news continues to point to a reinforced slow recovery with some volatility," GM's Head of Global Product Planning, Steve Carlisle, told the news provider.

"The key uncertainty here is whether there will be a transition from the stimulus-supported growth we saw early to more of a consumption- and investment-driven growth."

China car output, sales rank world's first in H1 (06/07/10)

China has maintained its position as the world's largest auto market, based on new sales and production figures for the first half of the year.

The China Automotive Technology and Research Center revealed that first-half terminal sales reached 7,185,300 units, representing a year-on-year rise of 30.45 per cent.

Terminal sales for June were 1,132,000, up 13.9 per cent annually but down 5.25 per cent from May's total, while domestic car production for the six-month period rose by 44.37 per cent to 8,472,200 units.

China's auto sales this year may hit 17.5 mln units (09/07/10)

The figures also suggest that full-year sales in China will reach 17.5 million units, with demand boosted by extended subsidies for auto trade-in and clean vehicles.

"By the end of this year, consumers may rush to buy cars before incentives expire," said Rao Da, Secretary General of the China Automotive Technology and Research Center.

China June car sales growth slowest in 14 months (09/07/10)

Meanwhile, alternative statistics have shown that China's passenger car sales totalled 1.04 million in June, representing a year-on-year increase of 19.4 per cent.

However, this was the slowest gain in 14 months, according to the China Association of Automobile Manufacturers, the body which compiled the data.

A senior executive at Dongfeng Motor Group claimed that the outlook for the second half of the year is challenging as the market attempts to keep up with the huge sales during the same period in 2009.

"We had expected early on that growth would continue to be strong in the first few months," said the source in an interview with Reuters.

"But it won't be one way and the market might head south in July and August."

China's SAIC Motor sees earnings quadrupling (19/07/10)

SAIC Motor Corporation, China's largest automaker, has announced that its vehicle sales improved by 44 per cent in the first half of 2010.

The company, which earned $206.5 million over the course of the six-month period, sold a total of 1.77 million cars between January and June.

China likely to import 1 million cars next year (21/07/10)

China could import more than one million automobiles in 2011, according to Xu Changming, Director of Economic Research at the State Information Center.

The country witnessed imports in excess of 300,000 between January and May this year, representing a rise of 184 per cent, with 244,000 of those being registered (a rise of 94.6 per cent).

Data from China Automobile Trading also suggested that China's exports were between 130,000 and 190,000 during the same period, up by 52 per cent year-on-year, Gasgoo reports.

Volkswagen to build Taiwan assembly plant on its own (06/07/10)

Volkswagen has announced that it intends to build an assembly plant in Taiwan, despite dismissing reports of a link-up with the country's China Motor Company.

Europe's largest automaker is planning to spend between $31 million and $156 million on the plant in a bid to produce 100,000 vehicles per year, the Commercial Times reports.

Volkswagen's First-Half China Sales Rise 46% After Introducing New Models (12/07/10)

Volkswagen has also revealed that it sold 950,278 to consumers in the greater China area in the first half of the year, representing a rise of 46 per cent.

The Wolfsburg-based company attributed the improvement to introducing new models, while adding that deliveries of Audi luxury-brand sedans increased by 64 per cent to 109,887.

Volkswagen to Build Factory in Eastern China in Move to Double Production (15/07/10)

Volkswagen is planning to build an assembly plant in eastern China in a bid to double its capacity in the country over the next four years.

The new facility, which will be located in Yizheng, Jiansu province, will have the capacity to offer 300,000 vehicles per year when operations commence in 2013.

"It's a sensible step to take as China's long-term growth prospects still have to be judged very positively," said Marc-Rene Tonn, an analyst at MM Warburg in Hamburg, in an interview with Bloomberg.

Avtovaz in profit thanks to Russia car scrappage scheme (13/07/10)

Avtovaz sold 149,100 cars in the second quarter of 2010, which was a rise of 108.2 per cent from its total for the first three months of the year.

Russia's largest automaker, which can assemble about 800,000 cars per year, has been boosted by the introduction of a scrappage scheme in the country in March.

Ford breaks ground on $300 million China plant (18/07/10)

And finally, Ford has revealed that it will unveil a $300 million vehicle plant in China to ramp up its expansion in the country.

The facility, which will be able to produce 300,000 units annually, will commence operations at the end of 2012, adding to the company's two existing Chinese factories.

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June sees growth in UK car sales as scrappage scheme withdrawal hits continent

Thu, 15 Jul 2010 00:00:00 GMT

UK car sales showed healthy growth in June, although industry group the Society of Motor Manufacturers and Traders (SMMT) said government help is still needed to ensure the momentum is carried through to the second half of the year.

New car registrations were 10.8 per cent higher in June than they were in the same month in 2009.

Increases have now been recorded in each of the last 12 months, with the growth for the first half of 2010 put at 19.9 per cent.

According to SMMT chief executive Paul Everitt, this can be attributed to rising business confidence and an upturn in the UK economy.

"The new car market continued to perform above expectations in June," Mr Everitt confirmed.

"The industry still expects challenging economic conditions in the second half of the year and government action to improve access to credit for consumers and businesses will be important in sustaining the momentum of recovery."

Meanwhile, the general trend in continental Europe was for a fall in domestic car sales as national governments started to phase out incentive schemes designed to protect the car industry from the effects of the global economic downturn.

In Italy, figures released by the country's Transport Ministry show 170,625 new cars were registered in June.

This represents a drop of 19.2 per cent on the level seen in June 2009, when 210,972 new cars were registered.

Similarly, new car sales in France slipped by 1.2 per cent last month, with 240,587 units registered.

The news came soon after it was announced that the car scrappage scheme credited with breathing new life into the sector in 2009 was being scaled back.

Domestic car sales in Germany also plummeted, with 289,400 vehicles sold in June.

According to the Verband der Automobilindustrie (VDA), this constituted a fall of 32 per cent on the equivalent figure recorded a year earlier.

However, overall production of German cars actually increased by ten per cent in response to growing demand from overseas.

Indeed, the country's exports rose by 26 per cent in June to 395,000 vehicles.

"Foreign trade is undoubtedly the industrial engine at the moment," confirmed VDA President Matthias Wissmann.

"We are seeing international markets pick up much more rapidly than many had expected. The drivers of growth are above all Asian markets."

As an illustration of this, sales of cars, sport-utility vehicles and multipurpose vehicles in China last month were up by 10.9 per cent at 839,228 on levels seen the year before.

Even so, Bloomberg reports that this was the slowest increase in passenger vehicle sales ever recorded by the China Automotive Technology & Research Center, which started to publish data on a monthly basis in April.

April and May saw increases of 34 per cent and 25 per cent respectively, with the reduced rate of growth attributed to rising inflation in the country which has had a negative impact on demand.

The annual rate of inflation in China was recorded at 3.1 per cent in May - its highest level for 19 months - with Tim Dunne, an analyst at JD Power and Associates, expecting the government to take action to subdue the economy.

This could have an adverse impact on demand for cars, he suggested in a recent report seen by the news provider.

"The government will continue its tightening measures to cool down the economy in the second half of the year," Mr Dunne commented.

"We therefore expect vehicle sales to slow to a more sustainable pace following what has largely been incentive- driven strong growth."

Asian demand also impacted on car production in Mexico, with total exports from the South American country rising by 109 per cent to 177,575 units.

In response to this, production at manufacturing plants in Mexico was ramped up by 102 per cent to 206,195 cars and light trucks.

However, the Mexican Auto Industry Association also revealed that growth in the domestic car market was more subdued.

June saw 59,909 vehicles sold in Mexico, which was seven per cent more than in June 2009.

"The dynamism of Mexican exports explains the significant increase in production, with growth (even) from levels prior to the crisis," AMIA said.

Further south, Brazil saw car sales slump on levels recorded in June last year.

According to Anfavea, the Brazilian Motor Vehicle Manufacturers Association, 262,758 vehicles were delivered to customers last month, which was 12.5 per cent fewer than in June 2009.

That said, car sales were higher last month than they were in May, while output was up by 7.7 per cent on June last year.

A different picture emerged in nearby Argentina, where sales to local car dealerships soared by 42 per cent, Dow Jones reports.

Figures released by Adefa, the Argentine Automobile Manufacturers Association, show 60,940 units were sold to local car dealerships last month, up from 42,965 in June 2009.

Meanwhile, annual production is on target to hit 680,000 units in 2010, up from approximately 513,000 in 2009.

"The automotive industry continues to account for more than a third of the growth in the entire industrial sector and represents 34 per cent of all industrial exports," Adefa President Cesar Rojas told Dow Jones.

Finally, Ford's Canadian division posted its best sales figures for a decade in June, with car sales up by 15.7 per cent on the year before.

In an interview with Reuters, Ford of Canada Chief Executive David Mondragon noted that the performance was particularly impressive given the events of 2009.

"The Ford brand posted a 25 per cent increase (last) June when the industry was down 14 per cent, so a 16 per cent gain for Ford of Canada in the month of June (2010) is extremely significant," he said.

Chrysler Canada also announced encouraging results, with sales in June more than doubling as it bounces back from its financial troubles.

Sources:

Car sales rise despite end of scrappage scheme (06/07/10)

Italy June car sales down 19 pct, Fiat share 30 pct (01/07/10)

French June New Car Sales Fell 1.2% as Government Incentives Phased Out (01/07/10)

German car sales plunge in June, exports climb (02/07/10)

China's June Car Sales Growth Slows to 10.9% as Government Tightens Credit (05/07/10)

Mexico's June Auto Production Doubles To 206,195 Units (07/07/10)

Brazil auto output falls in June; sales rise (12/07/10)

Argentina's Auto Production Continues To Soar (06/07/10)

Ford Canada posts best month in a decade in June (02/07/10)

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Volkswagen Group eyeing record auto sales in 2010

Wed, 07 Jul 2010 00:00:00 GMT

Volkswagen Group enjoyed a significant auto sales increase in the first half of 2010, it was confirmed yesterday (6th July).

Europe's largest automaker revealed that it sold more than 3.5 million cars worldwide during the six-month period, representing a year-on-year rise of about 15 per cent.

Chief Executive Martin Winterkorn revealed that this total included more than two million of its core Volkswagen brand models and that the group will achieve record sales this year.

"But this will not be achieved easily," he added in an interview with Reuters.

"Especially in Germany, business will become significantly harder in the second half of the year."

A similar view was outlined this week in the Financial Times, which suggested that the recovery in global auto sales is "losing steam", even in the two biggest markets, the US and China.

Although figures from US automakers have improved since the devastating impact of the recession last year, sales in the country have slowed over the past two months.

In Europe, government-led scrappage schemes which proved popular with car buyers in a number of countries are now coming to an end.

This situation has been compounded by the debt crisis in Greece, which has led to widespread austerity plans and a prevailing sense of economic unease across the continent.

Meanwhile, China's auto sales increased by 10.9 per cent in June, representing the third month-on-month decline and a significant drop from the figure of 25 per cent for May.

Domestic car production in the country reached 8,472,000 units in the first half of the year, up by 44.37 per cent from the equivalent period 12 months earlier.

However, the China Automotive Technology & Research Center statistics must be viewed with caution, particularly as General Motors said recently that its rivals' inventories are building up.

"Dealers feel a little bit worried about the second half of the year," concluded Yale Zhang, an analyst with IHS Automotive, in an interview with the Financial Times.

Sources:

Volkswagen sales top 3.5 million cars in first half (06/07/10)

Global car sector’s rebound runs out of gas (05/07/10)

China car output, sales rank world's first in H1 (06/07/10)

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